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2021-12-31-accounts

Duchesne Trust

Annual Report and Accounts In Euro

31 December 2021

Charity Registration Number 288467

Annual Report and Accounts 31 December 2021

Contents

Reference and Administrative Details of the Group
..................................................3
Trustees’ Report including Strategic Report
.............................................................4
Independent Auditor’s Report to the Trustees of Duchesne Trust
...........................33
Group Statement of Financial Activity (including income and expenditure accounts)
as at 31 December (in €’000s)
..................................................................................37
Charity Statement of Financial Activity (including income and expenditure accounts)
as at 31 December (in €’000s)
..................................................................................38
Group Balance Sheet as at 31 December (in €’000s)
..............................................39
Charity Balance Sheet as at 31 December (in €’000s)
.............................................40
Group Cash Flow Statement for the year ended 31 December (in €’000s)
..............42
Charity Cash Flow Statement for the year ended 31 December (in €’000s)
.............43
Notes to the Financial Statements (in €’000s) ..........................................................44

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Annual Report and Accounts 31 December 2021

Reference and Administrative Details of the Group

Contact & Registered Office

Sister Maria Georgina Zubiria Maqueo 9 Bute Gardens London W6 7DR Tel: 0208 741 4688 Email: econgen@rscjroma.org Website: www.rscjinternational.org

Trustees

Sister Barbara Dawson - Chair Sister Marie-Jeanne Elonga Sister Monica Esquivel Sister Maria Georgina Zubiria Maqueo (appointed: 25 August 2021) Sister Isabelle Lagneau (resigned: 11 January 2022) Sister Bernadette Porter (resigned: 2 February 2022)

Auditors

Haines Watts, Chartered Accountants Old Station House Station Approach Newport Street Swindon SN1 3DU

Financial Advisor

Mark Freeman & Associates 71-75 Sheldon Street Covent Garden London WC2H 9JQ

Investment Managers & Custodian

Investment Managers

BNY Mellon Wealth Management 200 Park Avenue New York, NY 10166 United States of America

Credit Suisse (UK) Limited One Cabot Square London E14 4QJ

Goldman Sachs International River Court 120 Fleet Street London EC4A 2BE

Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN

Schroders & Co Limited 12 Moorgate London EC2R 6DA

Waverton Investment Management 16 Babmaes Street London SW1Y 6AH

Custodian

BNY Mellon Wealth Management 160 Queen Victoria Street 6th Floor London EC4V 4LA

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Annual Report and Accounts 31 December 2021

Trustees’ Report including Strategic Report

The trustees present their report and the audited financial statements of the group for the period ended 31 December 2021 The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the group.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 UK and Republic of Ireland published on 16 July 2014.

Aim (Objects) and Purpose

Governance

The Duchesne Trust (the Trust) is regulated by a Trust Deed dated 14 December 1983. The Trust is registered with the Charity Commission for England and Wales - Charity Registration No: 288467.

Principal Aims

The trustees of the Duchesne Trust aim to promote the charitable work carried out or supported by the members of the Roman Catholic Religious Order, the Society of the Sacred Heart. When setting the objectives and planning the work of the charity for the year, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary guidance on the advancement of religion.

Objectives and Strategies

Charitable Objective

The Trust exists to promote any of the charitable works carried out, or supported by, the Roman Catholic Religious Congregation known as the Society of the Sacred Heart (the Society). Specifically, it funds activities associated with:

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Annual Report and Accounts 31 December 2021

Short Term Strategies

During 2022, the Duchesne Trust will continue to support the charitable activities of the members in a worldwide context. In November 2021, the Society held an online Special General Chapter, to discuss decisions taken at the General Chapter in 2016 in relation to the sharing of the Society’s resources and the reconfiguration of its structures. During the Special Chapter two decisions were taken:

  1. The Special Chapter agrees that the new organization of the Society will include the following aspects:

  2. The new organization will be made up of new entities smaller than the regions and larger than the provinces.

  3. The apostolic axes will be incorporated into this new organization according to rhythms and modalities that will be defined.

  4. The new organization will have new governance structures. These structures will enable and support the putting in common of our resources.

  5. The General Council will create an International Planning Commission, after consultation with the membership, the mandate of which will include development of a plan for reorganization of the Society. This Commission will work in collaboration with the General Council and the Provincials and will be accountable to the General Council.

During 2022, the General Council will appoint the International Planning Commission. Together they will begin to work on the implementation of the decisions and recommendations of the Special Chapter. The International Planning Commission will hold their first in -person meeting with the General Council in the second half of April 2022.

Within 2022, as travel restrictions ease around the world, the international Society will also hold two in person meetings for Provincial leaders. The first, a workshop for newly appointed Provincials will be held in late June. In December, the General Council will host an Assembly of Provincials, attended by all Provincials within the Society. This meeting will discuss the upcoming General Chapter to be held in August 2024. The General Council will also start to travel again, visiting provinces around the world to support the mission.

Long Term Strategies

In the long term, the Duchesne Trust will continue to support the charitable activities of the members of the Society. Over the next three years to the end of their mandate in 2024, the current leadership team will continue to work on implementing the decisions of the General Chapter 2016, and those of the Special General Chapter in 2021, (outlined above). They will also focus on the recommendations from the Special Chapter:

  1. That the following aspects be taken into consideration when planning the creation of NEW ENTITIES:

  2. Demographics

  3. Balance between the needs of sisters and the actual capacity of the sisters

  4. Language

  5. Collaboration with Mission Partners

  6. Sustainability

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Annual Report and Accounts 31 December 2021

Structure and Management

Organisation

The trustees have the final responsibility for the policies, activities and assets of the Trust. They meet annually to review developments with regard to the Trust and to make significant decisions. The day-to-day management of the Trust’s activities and the implementation of policies are delegated to:

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Annual Report and Accounts 31 December 2021

Trustees

The trustees who served during the year are shown on page 3. New trustees are appointed by the Superior General under Clause 14 of the Trust Deed. There shall at no time be fewer than four trustees who shall be members of the International Congregation. All new trustees are taken through a process of making them aware of their responsibilities as trustees of a UK Charity as well as what it means to be a trustee by fellow trustees that are on the Board of Trustees.

Volunteers

The administration of the Trust is done on a voluntary basis by members of the Society of the Sacred Heart. The trustees wish to record their appreciation of this work.

Relevant Policies

Donations and grant making policy

During the 12 months to 31 December 2021, funds have been used to further the charitable works that are particularly relevant to the work of education and social justice. The criteria for the use of these funds are that the work undertaken or supported must demonstrate a commitment to:

Risk management

The trustees are assessing the major risks to which the group is exposed during 2021, in particular those relating to the specific operational areas of the group, its investments and its finances. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the group, they have established effective systems to mitigate those risks.

Reserves policy

The trustees have examined the requirement for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets. The trustees consider that given the nature of the group’s work and its ability to satisfy future liabilities as they fall due that there is no need for free reserves and at present there are none. At the year-end €82 million are held in designated funds. Further details of these are set out in note 14.

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Annual Report and Accounts 31 December 2021

Investment Policy

The group has total fixed asset investments, including social investments, of €179 million as at 31 December 2021 (2020: €139 million). During 2020 the investment policy and investment managers were reviewed and the Trust maintained the strategy inline with its current and future requirements and adopted the investment objectives as stated:

The above investment policy came into place on the 1 July 2011 and revised in 2016 and 2020. The results for the past 12 months to 31 December 2021 indicate that the objectives have been met and since inception all objectives have been achieved. The overall real return since the implementation of the new investment policy has been a cumulative increase of 116% (2020:106%) in the investments after accounting for inflation as defined by the Society.

In early 2021 the Trust reviewed the investment strategy to ensure that post Covid it was still appropriate. During this review the impact of Covid and the volatility of the markets were considered, as well as the growing cash flow requirements for funding within the Society. The review indicated that the Trust would require a real return in excess of 6.5% per annum to meet the cash flow requirements as well as preserving the capital. As a result the asset allocation was changed to facilitate higher returns with less volatility and a minor reduction in liquidity. Over the next 5 years the approved asset allocation will be implemented. Expected returns are anticipated to be approximately 5.5% resulting in a short fall of 1.0% per annum. The short fall of returns will be taken in the from the excess returns since 2011.

A designated representative of the trustees meets formally with the investment advisor and the fund managers twice a year. This designated representative and the investment advisor meets regularly and communicates as and when required throughout the year. In keeping with charity law, the investment strategy is to maximise total returns, income and capital, within acceptable levels of risk.

The investments have restrictions placed upon them as to the type of investments that the Trust would or would not want to invest in. The ethical investment policy was reviewed during the year and appropriate changes were made which also took into account the changing investment environment.

Specifically the Trust seeks to invest in companies which:

The Society would not wish to invest in companies which:

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Annual Report and Accounts 31 December 2021

The Trust has also developed additional ethical policies where it felt further guidance and understanding is required due to the complex nature of the type of companies or global investments it invests in. No ethical restrictions apply other than those set out above, although the Trustees reserves the right to exclude any investments in companies whose representation might prove damaging, directly or indirectly, to the purposes or reputation of the group.

The Trust has Social Investment amounting to €750,000 (2020: €701,700). The increase in value was due to foreign currency not a result on any gains on the investments.

Financial Review

A summary of the year’s results for the group can be found on page 37 of the attached accounts. For the period of 12 months ending 31 December 2021:

Financial position

The balance sheet shows total reserves as at 31 December 2021 of €150 million (2020 - €120 million).

The group’s assets

the accounts.

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Annual Report and Accounts 31 December 2021

Current Year Activities and Future Trends

Review of Charitable Activities 2021 and Summary of Achievements

During the 12 months to 31st December 2021, the group continued to assist the members of the Society of the Sacred Heart with their charitable work, with a particular focus on education. Details for specific areas within the Society are outlined below:

Work of the General Council and Generalate

The Duchesne Trust provides donations to the Motherhouse to support the work of the Generalate, which includes the work of the leadership team (General Council), as well as international services of the Society of the Sacred Heart. In 2021 transfers of €4,636,000 were made from the Duchesne Trust as “Donations to the Motherhouse”

During 2021, the General Council continued to work on their mandate, including the implementation of the General Chapter 2021 and preparation for the Special Chapter 2021, held online in November 2021. The Council worked during the year with a facilitator, Piluca Benavente MSOLA, planning consultant, Erick Odmark, and the canonical advisor, Mary Wright IBVM to plan for the Special Chapter. In order to assist with the preparation, the General Council also appointed six committees:

  1. The Preparatory Committee: The primary work of this Committee of RSCJ and laywas to read and synthesize the materials received from the provinces in preparation for the Chapter;

  2. The Design Committee; This Committee of RSCJ planned the different stages of discernment that the capitulants will go through during the Special Chapter;

  3. The Models Committee: This committee of RSCJ and lay, reviewed all of the preparation documents for the Special Chapter and created three-four possible future “models” of the Society to stimulate the thinking of those participating in the Special Chapter.

  4. The Liturgy Commission: The Committee of RSCJ, helped to prepare the ambiance during the Special Chapter. The team organised retreats and celebrations for special moments of the Chapter and feast days, daily prayer and spaces for silent prayer. They worked closely with the Design Committee.

  5. The Technology Commission: The commission ensured appropriate the technical and practical conditions for all participants to enable access to the virtual meetings of the Special Chapter, assisting with the use of Zoom and ensuring security and privacy. They also conducted technical training with participants before the Chapter.

The General Council were also supported in their preparation by the International Investment Committee and the International Finance Commission. Both groups prepared “thought papers” for the Special Chapter, on new ways of sharing financial resources, the current sharing of financial resources with provinces and the different funds established internationally in the Society. During the Chapter the Communications Team was responsible for collecting and publishing materials for the Special Chapter on the website and intranet, for creating and publishing videos, and for maintenance of the Special Chapter website.

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During the year, the General

Council continued to communicate to the Society about the Special Chapter through a series of regular communications. These communications engaged with the whole membership as well as specific groups, e.g. members professed in the last 10 years, who

would contribute to the Special Chapter. The General Council also prepared a report to the Society for the Special Chapter, which was accompanied by a video. They also engaged with staff at the Generalate with a staff development day held in October 2021. The General Council and RSCJ met with lay staff to talk about the Special Chapter, what it means, how it will affect our work, how it will benefit the Society, and how we can be part of the family of the Sacred Heart.

Those participating in the Special Chapter (Capitulants), also prepared for the meeting with “discerning communities”. Between the months of April and September, each Capitulant participated in three group meetings by Zoom, each time with a different group, to build the foundations for the discernment process of the Chapter.

As a result of the global Covid-19 pandemic the General Council were restricted from travelling for most of the year. As a result, the General Council completed their first ever

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provincial visits via Zoom with the Provinces of Argentina-Uruguay, Chile and Peru during April and May 2021. Each Province welcomed the General Council to their communities and their ministries via videos, PowerPoints, music and live visits with our sisters and colleagues in mission.

At the start of December 2021, the membership of the General Council changed. Sr. Isabelle Lagneau returned to France and Sr. Anne Corry was welcomed as a new member. During December, the General Council worked on the formation of the new team and its reorganization.

Specific Tasks Undertaken During 2021:

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Annual Report and Accounts 31 December 2021

The Generalate Finance Ofce supports the General Council with the stewardship and administration of the financial resources of the Society. In September 2021, a new Canonical Treasurer General (CTG) was appointed following the retirement of her predecessor. The CTG works with the Chief Financial Officer (CFO) of the international Society and other staff in the Generalate Finance Office. Specific tasks during the year included support to provinces with issues related to resources, management of the Cor Unum Covid-19 Fund and Solidarity Fund and online meetings with new provincials.

During 2021, the Generalate Finance Office assisted the General Council in preparation for the Special Chapter in 2021. The Generalate Finance Office worked with the International Finance Commission (IFC) and International Investment Committee (IIC) to prepare documents to present to those attending the Special Chapter. In early 2021, the CFO was appointed co-ordinator of the Special Chapter Models Committee. This committee worked during 2021 to prepare models for presentation to the Special Chapter.

Following changes within the Generalate Finance Office, the Canonical Treasurer General, with the support of the CFO and other advisors, have been reviewing the structure of the Generalate Finance Office and the roles of personnel, both lay and RSCJ. The review is also considering the decisions of the Special Chapter, to determine how the Generalate Finance Office can support the structural changes that will occur within the Society to “enable and support the putting in common of our resources”, and to understand the short- and long-term plans that are required. This review also includes the development of new policies and procedures for the Generalate, to allow the continued support of both the General Council, international services and Provinces/Regions, as well as to ensure that the Society continues to follow the necessary regulations for our international finances.

The International Investment Committee, of whom the CTG and CFO are both members, continued to monitor and review the investments held in the Duchesne Trust. The Committee met regularly online with the CTG and CFO to discuss market changes and performance of investment managers. Due to the Special Chapter, the annual meeting of the Committee was held online in February 2021 for a shorter period than normal. In addition, individual meetings with each investment manager were held online during the year. The Committee also prepared a document to be presented to those attending the Special Chapter in November. In 2022 the Committee plan to hold two in-person meetings. The first meeting, due to be held in May 2022 will include discussion on the outcome of the Special Chapter, as well as meetings with each investment manager. The second meeting is planned for October 2022.

During 2021, the Canonical Treasurer General and CFO continued to provide support to the Province of Italy, managing the financial resources with the CFO of the Province of Italy. Part of this role includes representing the Society in the project to develop the Villa Lante, a historical property owned by the Province of Italy, into a Centre for Religious and Lay Formation. Construction work began on the property in early 2021 with significant structural work throughout the year on foundations, the installation of new elevators and the roof. Internal systems are also being replaced to make the building more energy efficient and comfortable for those who use it. Structural work also began on the historical gothic church, located within the Villa Lante. During 2022, the project will focus on the restoration of the interior of this church.

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In September 2021, the Villa Lante Coordinating Committee was created to plan for the future use of the Villa Lante property and to ensure that the changes and furnishings of the building will be appropriate for future needs. Other RSCJ also assisted with the technological requirements of the conference center and the building as well as planning for the Villa Lante garden.

The vision and mission of the Villa Lante Conference Center and Garden is to provide a hub for the international Sacred Heart family who share our mission. Local and international religious and lay groups, whose missions align with the Society, will also be invited to gather to educate, learn, share, collaborate and form each other in shared visions and goals around spiritual renewal and Justice, Peace and Integrity of Creation (JPIC) initiatives. For this phase of the work, a coordinating committee for the development of sustainable programs for the conference center, started to meet in late 2021 with various committees and groups within the Sacred Heart family to get input on how they foresee using the center and the garden and on how the Society might develop programs at the center to meet their needs for gatherings, both virtual and in person. It is hoped that the ideas for many of the programs will be generated at the grass roots level.

Development of the Villa Lante, Rome, Italy

The Finance and Development Ofcer (FDO) is responsible for the administration of the Solidarity Fund. In the past, she has visited a significant number of solidarity projects throughout the regions of the Society in order to develop an understanding and critique of

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the Solidarity Fund. During 2021, as a result of the Covid-19 global pandemic, travel was limited and visits to projects were not possible. However, the FDO, in conjunction with the CFO, worked on the recommendations from the General Chapter 2016 and the Special Chapter 2021 in relation to a review of the Solidarity Fund. This work was presented to the General Council in early 2022 and is outlined in more detail within this report. The FDO also organised online development training for 21 people, both RSCJ and lay staff, from 7 provinces during 2021. The training will assist Provinces to manage projects and to apply for funding both internally within the Society and from external funding agencies.

The General Archives was reorganised in 2021 following the retirement of the General Archivist. The General Council appointed two lay staff as Co-Archivists, ad experimentum. This structure will continue to be reviewed during 2022. During 2021, the General Archives continued to respond to request from both within and outside the Society during 2021, as well as continuing to ensure the appropriate storage and recording of important documents for the Society. During the year, a special project to scan the letters from the founder of the Society, Sr. Madeleine Sophie, continued. This significant piece of history for the Society will be made accessible online in the future. In late 2021, a new section of the Society’s website was created to showcase the historic postcards kept in the General Archives. This is regularly updated.

Postcards from Poitiers and Grenoble, France

The General Archives also updated access policies, in compliance with the GDPR ( in collaboration with Communication office and Data Protection officer) and submitted these to the General Council for final approval.

2021 was a year marked by the initial stages of implementing the new Justice, Peace and Integrity of Creation (JPIC) International Structure, creating the JPIC Learning Hub, and piloting Transformative Communities of Practice in the four regions of the Society. All this was done while navigating the unchartered waters of the Covid-19 pandemic.

Some highlights of the work during 2021 included:

  1. Building relationship and fostering connection through meetings with JPIC links in the different provinces, as well as the networks and international commissions of the Society of the Sacred Heart.

  2. Creating and sustaining platforms to raise JPIC awareness, generate hope, and inspire to action, especially as “One Body.”

  3. support Transformative Communities of Practice.

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  1. Being a resource for JPIC:

  2. a. making presentations on JPIC topics, like the connection between JPIC and education or JPIC and our spirituality and mission, on Laudato Si’ or Fratelli Tutti, on Sacred Heart at the UN or the Sustainable Development Goals, and on Being Artisans of Hope and the JPIC Imperatives;

  3. b. giving JPIC-related retreat and recollections;

  4. c. organizing and hosting webinars and zoom gatherings; and,

  5. d.

  6. Integrating in the life and mission of the Family of the Sacred Heart the JPIC PrayerReflection Guides which are available during the different seasons of the Church

Calendar and which follow this general scheme:

  1. Launching JPIC Voices, which has become the JPIC International Team’s regular report to the Family of the Sacred Heart.

  2. Strengthening advocacy and education in service of JPIC, through the activities of the UN-NGO:

  3. a. participation in UN-NGO activities, like the High Level Political Forum, and the Women and Gender Conference;

  4. b. side-events and statements at UN Commissions and Forums;

  5. c. UN International Days, like International Day of the Girl, International Day of Education; and,

  6. d. capacity building and advocacy training at the UN and at the grassroots.

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  1. Sharing JPIC resources (including technological support and interpretation services) through conferences given by members of the JPIC Team, virtual meetings, and materials published on the JPIC Learning Hub. For example: the collaboration with the European Network of Sacred Heart Schools (see image below)

  2. Creating the three-language website of the JPIC Learning Hub: https://rscj-jpic.org/, which serves JPIC International, the UN-NGO Office, and the JPIC Learning Hub and provides updated information in the following categories: News, Events, and Resources.

  3. Migrating the JPIC Database, which is a living resource that serves as a reservoir of concrete JPIC commitments of the Society of the Sacred Heart, from the Intranet of -

RSCJINTERNATIONAL to the JPIC Learning Hub: https://rscj jpic.org/database

The following charts, on the next page, illustrate how the JPIC Database can be used as a tool for analysis and discernment within the Society. It provides information about our JPIC engagements, and invites reflection and insight, as well as generating questions and surfaces concerns.

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Society Presence – JPIC Commitment

JPIC Learning Hub Articles 2021, by JPIC Imperatives

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Annual Report and Accounts 31 December 2021

The Communications Manager, appointed in the second half of 2020, has taken over the duties from the previous Webweaver. She formed a new International Communication Team (ICT) at the beginning of 2021, including a videographer, a French Webweaver (to facilitate translation of website content into French), a Spanish Webweaver (to facilitate translation into Spanish), and an English web support person. The new ICT meets regularly to discuss current efforts, possible new initiatives, and how to improve existing processes and relationships with the local technical/ communications links.

The Communications Manager meets regularly with the General Council to discuss the progress of ongoing initiatives and to review future plans. The Communications Manager has updated the format of the Communications Bulletin (General Council and Society news for all RSCJ) and works closely with the General Council and the Secretariat on these regular updates, along with the new Flash News (onepage communication to provincials regarding decisions made by the General Council).

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General Council Communica.ons
Bulle.n
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Over the course of late 2020 and 2021, the Communications Manager continued to build relationships with provincial technical and communications links and, with the help of the ICT’s videographer, held trainings on video creation and editing. Three additional trainings on photography for RSCJ and lay staff are scheduled for Spring 2022.

A new website for the Special Chapter was launched in July 2021 using a structure and content management system that will be replicated when the RSCJ International website is updated in 2022.

The Special Chapter website included specific content, with daily updates to ensure that sisters (both those attending the Chapter and others) could collaborate online and access

current, reference and background materials at any time. Specific Content of the website included:

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During the Chapter, RSCJ within the Society were kept apprised of the developments through a series of interviews with the capitulants, as well as regular summaries drafted by the capitulants, all of which were published on the Special Chapter intranet. Post-Special Chapter, the Communications Manager worked with the General Council, the Secretariat, and a graphic designer to design and format the Chapter document.

As part of the effort to become One Body and to make communications across the Society more consistent, the Communications Manager created a visual identity toolkit, including templates and guidelines, which was circulated to the provinces and commissions in early 2022. In the interest of including more local news, perspectives, and reflections on the website, the Communications Manager regularly solicits contributions from the local tech/comm links for the website and sends

them updates on what has been published. To ensure more consistency in the articles solicited from around the Society, the Communications Manager has created an article template, which is sent out to the links when soliciting contributions. Because many contributions contain photos and videos from schools, a photo/video/personal information release form has been created and must be filled out whenever minors appear in photos or videos, or whenever personal data is divulged online.

New Society report template in English

The Secretariat continue to support the work of the General Council and the administration of the international Society. During 2021 they:

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those attending, technical support and translation of documents.

During 2018 a series of Committees were established within the Society to address the recommendations of General Chapter 2016. During 2021, as a result of the ongoing COVID-19 global pandemic, committees met using online facilities, to discuss progress in their work.

The International Education Committee continues to focus on three major areas:

During 2021, the Committee continued work to draft a profile of a Sacred Heart educator and a framework for the philosophy of education. Due to the pandemic, the Committee met via Zoom. The Committee prepared a list of educational institutions (formal and non-formal) within the Society for the Special Chapter, 2021.

The International Vocation Committee continued to work during 2021, collaborating with rscj that form sub-committees, created after two international meetings of the vocation ministry teams. The lines or areas that the committee see as important to promote are:

  1. Our vocation ministry mission in the International Society. The whole Society has been motivated to pray for vocations on the 25th of each month. Add in photo of the online meeting - “Visibility as One Body” Sub-Committee

  2. Discussing vocation ministries in non-Catholic or non-Christian countries, and to organize a round table discussion on this topic.

The committee have promoted the networking of vocation ministry teams in the regions of the Society and have taken some initiatives in working with young people. For example, in December 2020 they had an online Advent retreat in the Philippine Duchesne region, with a large participation of young people from all over the continent. The committee has seen interest and commitment from many sisters in vocation work in the different regions.

During 2021, the global pandemic created unexpected realities for sending and receiving volunteers between countries and there was a need to be realistic about the possibilities given the restrictions in travel. The International Volunteers Commission encouraged provinces to arrange for volunteers to remain within their own countries, as there are always needs.

The Commission assisted several provinces within the Society to articulate and create volunteer programs, in line with established criteria, i.e. programs in Italy, Japan, the Philippines, Poland and Spain. Commission members also supported existing volunteer programs where there was a transition of the link person for volunteers at a local level, renewing contact and facilitating communication. At a regional level, commission members coordinated meetings of Provinces involved with volunteer programs. The Commission members also shared experiences of the International Volunteer Programs

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at Regional society meetings, e.g. ASIANZ Regional Meeting in June 2021.

The Commission continued to collaborate with JPIC international, creating a dedicated section within the JPIC database to record the activities within ministries of international volunteers.

The Ongoing Formation Commission suspended the renewal programs planned in 2021 as a result of the global pandemic and travel restrictions. The members of the commission met virtually during 2021 to explore other ongoing formation needs and possibilities and to plan for programs in 2022.

Solidarity Fund, 2021

The Solidarity Fund is a designated fund used within the Society to provide funding to projects around the world. It provides the Society with an opportunity to foster its coresponsibility for the educative dimension of its mission and share it with the people they are close to. It follows the calls of both Chapter 2008 and Chapter 2016 and the desire to live justice, peace, and the integration of creation in our world today. The fund is administered from the Generalate annually according to published criteria. Following the recommendations from the General Chapter 2016 and the Special Chapter 2021, the Generalate Finance Office prepared a proposal for the Central Team during 2021 regarding the Solidarity Fund (presented in early 2022 ). The proposal outlined the work that has been done on developing the Solidarity Fund over the last five years, identified some of the current challenges related to the fund and proposed some short-term (next two years) and longer term plans for the development of the Solidarity Fund. The shortterm actions will include formation for provinces/regions in relation to seeking outside funds; providing information to Provinces about the Solidarity Fund in relation to the criteria and the types of projects that can be funded; an update of the application form and guidelines; and the creation of a Solidarity Fund Commission. This Commission will be made up of four RSCJ with different levels of experience in managing projects. They will join personnel from the Generalate in the areas of Finance and JPIC to review applications to the Solidarity Fund and present recommendations to the General Council.

As a result of the Covid-19 pandemic, many projects that received Solidarity Funds during 2019 and 2020 had to change their project’s purpose and sought permission from the General Council to change the use of the funds or to extend the time period in which the funds can be used. In 2021, funding of € 284,000 was provided to 25 projects around the world. The projects included the following:

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Aid to Provinces

During the year to 31 December 2021 the Society provided aid to some Provinces who cannot afford their own costs for formation, international service, eldercare or capital projects.

Total “Ordinary Help” of €725,000 was provided to Philippines, Poland, Chad, Uganda / Kenya, the Democratic Republic of Congo, Indonesia, Venezuela and Vietnam to support their mission. These funds are used by Provinces to support the daily lives of sisters, the provision of healthcare for sisters, support for regional or international meetings and development of a mission area.

For example, in 2021 additional funding was provided to the District of Indonesia to support the daily lives of sisters as well as formation costs. The District is the youngest within the Society and is also one of the areas of the Society that is growing in size, with a large number of postulants and novices, who are supported by professed RSCJ from Indonesia, India, England, the United States and Japan. This District was previously supported financially from the earned income of sisters from other countries. As these sisters have returned to their own countries, the income of the District has decreased and it now needs support centrally from the international Society.

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Annual Report and Accounts 31 December 2021

Members of the District of Indonesia

Total “Extraordinary Aid” of € 1,438,000 during 2021. This included support of Provinces for capital projects, including renovations and capital expenses for vehicles and equipment. It also included expenses for the Cor Unum Covid Fund.

Construction of ASIANZ Novitiate in the Philippines

In line with the work of the General Council in relation to planning for initial formation for the Society internationally, a new Novitiate is being developed in the Philippines for the ASIANZ Region. The District of the Philippines generously donated land for this new property and construction of the building began in late 2021, with a donation from the Duchesne Trust. The following is an account from the District in early 2022:

“The construction of the ASIANZ Novitiate in Montalban, Rizal (Philippines) is well underway. All the targets for Phase I (September 2021 – January 2022) have been met: approval of permits, demolition of the old house, filling of the land, laying of foundations, and completion of concrete works — 80% for Building A and 40% for the ground floor of Building B. The hope is to have Building A ready for occupancy by August 2022; and Building B by November 2022.

In the meantime, the formation community (two novices and one candidate, with the novice director and two other professed RSCJ) are in Sophia House in Quezon City. They wait for both the completion of the formation house and the arrival of the pre-novices and candidates from ASIANZ countries, and of the candidacy director from New York. COVID-19 continues to be a major challenge, but with the help of technology both formators and those in formation are able to creatively connect and sustain the formation process.”

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Annual Report and Accounts 31 December 2021

Construction of the ASIANZ Novitiate, District of the Philippines

In the Democratic Republic of Congo, work began in late 2020 on the construction of a care home for aged and infirm sisters. The property to be developed will also provide accommodation for students from a local university, thereby generating income to support the expenditure for the whole property. During 2021 the project progressed on time and on budget, despite the challenges caused by the global pandemic. The project is due to be completed in early 2022.

Construction of the Care Home, Kimwenza, Democratic Republic of Congo

Total expenditure on “Training” of Sisters of €110,000, which supported the education of Sisters from Uganda, Kenya, Democratic Republic of Congo, Indonesia and Chad. The expenses include tertianship studies, formation programmes, inter-congregational courses, ministry experience and other related costs for those in initial formation (those who have not yet made vows).

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Annual Report and Accounts 31 December 2021

During the year support was also provided to for 21 people, both RSCJ and lay staff, from 7 provinces, primarily in the Philippine Duchesne Region, to attend an online course “Project Management and Fundraising”, provided online by PRISMA, the Claretian Project Training Platform. This course aims to support those who work directly in projects or those in leadership to address the issues related to the decrease of traditional sources of funding and emergence of new mission territories demanding financial resources.

“Other Charitable Donations” of €252,000 were made during the year in addition to the above, to support the work in Uganda / Kenya, Brazil, Egypt, Poland and the Democratic Republic of Congo. These donations include external donations from those connected to the Society to provide support for ministries and schools, as well as donations responding to natural disasters. This also includes donations to other religious congregations who are providing temporary accommodation to sisters as a result of construction work within the international Society.

Covid-19 Global Pandemic

The COVID-19 global pandemic continued to have a significant effect on life within the Society during 2021. The Superior General wrote in a letter to the Society on 23rd March 2020 “The world has changed in the last week; it has mobilized all of us and the daily life of everyone is deeply shaken. We have heard from many provinces and each one is taking the necessary steps to deal with this unprecedented situation, particularly in the care of our elder sisters.”

As the pandemic continued throughout 2021, with waves of infections affecting different parts of the world, the charitable activities and daily lives of the members were affected in each province. Ministries and projects continued to operate in new ways, and meetings continued on Zoom rather than face to face as travel became impossible. The Special Chapter of the international Society, which was due to be held in person, was held via Zoom in November 2021. This was the first virtual Chapter of the international Society in its history.

While provinces and communities in the Society adapted to a new reality, there was a continuing impact in relation to managing the finances within the Society, including a decrease in income from loss of salaries and decreasing interest rates.

Cor Unum Covid Fund

During the second year of the global pandemic, there were continuing needs around the world for those impacted by COVID-19. The Cor Unum Covid-19 Fund was established within the Society in early 2020 to support provinces and their ministries who have been profoundly affected by this pandemic. Over the last two years (2020 & 2021), this fund distributed US$ $1,100,000 supporting 71 projects in 12 provinces.

During 2021, the fund supported projects in areas related to alternative income or retraining; mental health support, the provision of vaccinations (or other related medical costs) and other educational needs. Within the Society there were also many provinces who were supported by funds locally from governments or other organizations.

There was a wonderful response to this call for solidarity within the Society. During this third round of funding eight provinces received funds totalling €259,000 which supported more than 20 projects across 9 countries. Examples of the projects included:

Page 26

Annual Report and Accounts 31 December 2021

Attached to this report is a copy of a report from a community project in Torpa, India that benefited from the Cor Unum Covid Fund during 2020 and 2021.

Page 27

Annual Report and Accounts 31 December 2021

Future Trends

Due to the COVID-19 global pandemic, which has affected the world during since late 2019, the last two years have created a new “normality”. A significant impact of the pandemic for the Society was the reduction in international travel and the use of technology for online meetings. This was reflected in the Society holding its first every Chapter meeting online in November 2021. As international travel starts to open up, it is likely that certain meetings will be held in person in the future. However, the pandemic has shown that there are new ways that we can work together and more meetings will be online.

The pandemic has also impacted the ministries of the Society, including schools. During 2022, it is expected that most of the schools around the world will reopen fully. However, continuing financial support may be required and it is expected that there will be another round of funding from the Cor Unum Covid-19 fund in early 2022.

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Annual Report and Accounts 31 December 2021

Trustee Biographies

Sister Barbara Dawson (Chair) is a native of San Francisco. Educated at the University of San Francisco and Stanford University, her ministries have included service in education,

administration and immigration in both the U.S. and Jakarta, Indonesia. Barbara served as Provincial of the United States-Canada Province from 2012 to 2016 and she also held the position of Provincial for the U.S. Province from 1993-1999. In addition to leadership, Barbara has served as a teacher and administrator for schools including St. Martin de Porres in Oakland, California.; Lone Mountain College in San Francisco; and others throughout the U.S. She was in administration for various Catholic Charities and has addressed public policy and immigration issues in the San Francisco Bay area. She is a member of the bar in both California and Missouri, serves on the board of the Hilton Fund for Sisters and has served on the board of trustees for various academic institutions. Since 2016, Barbara has been the Superior General of the Society of the Sacred Heart and Chair of the Duchesne Trust.

Sister Anne Corry has a professional background in education and mission promotion. Originally from New Zealand, she has lived in Rome since 2014 first as international coordinator for justice, peace and ecology and currently as a General Councillor for the Congregation. Anne has taught in high schools in Australia and New Zealand and has served on Boards of education and

healthcare institutions of religious congregations. Anne has Masters degrees in Education and Theology and a Graduate Diploma in Legal Studies and Ethics. She has travelled widely in countries of Africa, Europe and Asia and lived for a few weeks in Peru. All of this has contributed to her understanding of the mission-related activities of her congregation around the world. Anne’s current role gives her an overview of the widespread mission of her international congregation.

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Annual Report and Accounts 31 December 2021

Sister Mónica Esquivel Ballesteros was born in Mexico in 1966. She joined the Society of the Sacred Heart in 1992 and has worked in formal education as well as alternative (“popular”) education and pastoral ministry. In formal education she worked as a secondary school mathematics teacher and as a school chaplain. In alternative education her work focused on women and young people, in the areas of communication, educational development, as well as the promotion and coordination of educational projects, teacher training and the creation of educational networks at municipal and regional level.

Mónica served for 8 years in the Society's mission in Nicaragua, working for the charity “Roncalli-Juan XXIII Association” in the areas of housing and education. She also worked for the Conference of Religious of Nicaragua as the Justice, Peace and Integrity of Creation (JPIC) coordinator.

Upon her return to Mexico in 2011, she worked in teacher training program for public schools in the municipality of Ayutla de los Libres, and was a member of the provincial council. In 2013 she was appointed Provincial of Mexico. During this time she was also a member of the Board of Directors of the Conference of Religious of Mexico. Since December 2016 she has been a member of the General Council of the Society of the Sacred Heart in Rome.

Sister Marie-Jeanne ELONGA ABOMBPI MOKANGO is a theologian by training and a graduate in education. She has experience in formal education, working at different times and in different places as a teacher, principal and head teacher. She spent some years in the formation of young RSCJ’s in her province of the Democratic Republic of Congo (DRC) before serving as provincial and president of the Conference of Religious in the DRC. This last role helped her to interact with other congregations in the areas of initial and ongoing formation, management and selffinancing. Currently, she is in her fifth year of international service with the General Council of the Society in Rome.

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Annual Report and Accounts 31 December 2021

Sister Georgina Zubiria studied to be a primary school teacher. For 9 years she was director of the Santa Cecilia School and later she was working with low-income women in popular education and gender perspective. Since she was studying to obtain her degree in Theological Sciences, she has worked in different areas of her province such as formation, treasury, and leadership. Georgina has experience working in non-profit organizations and transferring the management of both the School and the Finance Office to lay people. As a theologian, she has taught at the Universidad Iberoamericana, the Hispanic Pastoral Institute of the University of Santa Clara, other higher education institutions and religious congregations. She was Director of the Center for Theological Studies of

the Interreligious Conference of Mexico (CIRM) and advisor to the Board of Directors of the Conference of Religious of Latin America and the Caribbean (CLAR). She participated in the creation and consolidation of the CIRM National Education Network. In recent years, she worked as a Canonical Treasurer in Mexico, and is now the Canonical Treasurer General of the Society of the Sacred Heart.

Page 31

Annual Report and Aecounts 31 December 2021 ststement of Trustees, Responsthl]ities The trustees a￿ responsible for preparing the Trustees, Annual Rewrt and the fina￿181 ststements in accordance with appllcable law and Unlted Kingdom Pttounting Stsndards (United Klngdom Generalty Accepted P£¢ounting Pra¢tke). The law applicable to charities in EnOand & Wales requires the trustses to prepare financial ststements for each flnancial which a true and fair view of the state of affairs of the group and of the incoming resou￿$ and applicatlon of resour￿ of the group for that peiicfvj. In preparing these flnanclal ststements, the tnjstees are required to". select suitable accounting W￿leS and then apply them o)nsiently obseNe the methods and principles in the Charlues SORP 2015 {FRS 1021: make judgemefrts and estlmates that are reasonable and prudent stste whether applicable accounting standards been followed. subject to any materlal departures dIscl(￿l 8nO explalned in the financial statemen prepare the financial ststements on the going concern basls unless it ts Inapproprlate to presume that the group wlll continue in operation. The trustees are resportslble for keeping proper accountlng records that dlselose wlth reasonable accur8W at any time the finenclal position of the group and enable them to ensure that the finan¢lal ststements compty wlth Ihe Charitles kt 2011, the Charity (Accounts and Reports) Regu18tion8 2CK18 and the provisions of the trust deed. They are also responsible for safeguardlng the assets of the gioup and hence for tsklng reasonable Sts￿ for the prevention and detection of fraud 8nd other irregularttie& Slgned on behatl of the trust￿ Slster Barbara Dawson, Chair of Trustees 23 September 2022 Approved by the trustees on_ Page 32

Annual Report and Accounts 31 December 2021

Independent Auditor’s Report to the Trustees of Duchesne Trust

Opinion

We have audited the financial statements of Duchesne Trust (the ‘parent charity’) and controlled entities (the ‘group’) for the year ended 31 December 2021 which comprise the group Statement of Financial Activities, group and parent charity Balance Sheet, group and parent charity cash flow statement 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).

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 and parent charity 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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Annual Report and Accounts 31 December 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. 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.

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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees are responsible for the preparation of financial statements which 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 parent 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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.

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Annual Report and Accounts 31 December 2021

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud and error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions.

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 Report of the Auditors.

Page 35

Annual Report and Accounts 31 December 2021 Use of our report This report is made solely to the charity's trustees. as a body. in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 forrned. kla-LV LJoL£ Haines Watts, Ststutory Auditor Old Station House Station Approach Newport Street Swindon SNI 30U Date 2G September 2022 Haines Watts is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. Page 36

Annual Report and Accounts 31 December 2021

Group Statement of Financial Activity (including income and expenditure accounts) as at 31 December (in €’000s)

Note
Income from:
Donations
2
Investment
3
Other income
Total income		 Unrestricted
Restricted
2021
2020		 Unrestricted
Restricted
2021
2020		 Unrestricted
Restricted
2021
2020		 Unrestricted
Restricted
2021
2020
559
14,950
15,509
10,800
1,109
696
1,805
1,167
37
0
37
23
1,705
15,646
17,351
11,990
Expenditure on:
Investment manager fees
Supporting the charitable
work of members of the
Society of the Sacred Heart
4
Other costs
5
Total expenditure
Realised & unrealised
investment and foreign
currency gains/(losses) on
revaluation
Net movement in funds
Transfers
Balances brought forward at
1 January
Balance carried forward at
31 December
579
364
943
899
7,669
28
7,697
5,632
415
0
415
340
8,663
392
9,055
6,871
11,637
9,442
21,079
5,135
4,679
24,696
29,375
10,254
(900)
900
0
0
74,559
46,159
120,718
110,464
78,338 71,755 150,093 120,718

Income and expenditure derive from ongoing activities.

Page 37

Annual Report and Accounts 31 December 2021

Charity Statement of Financial Activity (including income and expenditure accounts) as at 31 December (in €’000s)

Note
Income from:
Donations
2
Investment
3
Other income
Total income		 Unrestricted
Restricted
2021
2020		 Unrestricted
Restricted
2021
2020		 Unrestricted
Restricted
2021
2020		 Unrestricted
Restricted
2021
2020
558
14,950
15,508
10,822
1,109
696
1,805
1,167
54
0
54
14
1,721
15,646
17,367
12,003
Expenditure on:
Investment manager fees
Supporting the charitable
work of members of the
Society of the Sacred Heart
4
Other costs
5
Total expenditure
Realised & unrealised
investment and foreign
currency gains/(losses) on
revaluation
Net movement in funds
Transfers
Balances brought forward at
1 January
Balance carried forward at
31 December
579
364
943
899
7,627
28
7,655
5,597
415
0
415
340
8,621
392
9,013
6,836
11,637
9,442
21,079
5,137
4,737
24,696
29,433
10,304
(900)
900
0
0
73,574
46,159
119,733
109,429
77,411 71,755 149,166 119,733

Income and expenditure derive from ongoing activities.

Page 38

Annual Report and Accounts 31 December 2021 Group Balance Sheet a8 at 31 December (in eooo8) un￿trICted RèJtri¢ted 2021 2020 Hxed •wets Flxed Assets Sodal Inwstrrnnts 750 750 702 InN*stments )6,￿1 71.755 177.886 138,014 106.881 71.755 178,636 138.716 107,546 7L755 179,301 139,578 ffent DebtOTS 251 251 L258 Cash at bank 8.077 8,077 8.176 8328 &328 eredbtorn Amounts falling due withln one year Inon-lnvestmentl 6A03 6.403 3.455 Amounts lalllng due wlthln Ilnvestment) 3L133 3L133 24,839 37A36 37,536 28.294 Nel ¢uThentassets 129,2081 0 129.2081 118,8601 Totsl rt •s••ts W38 7L766 150,093 120,n8 R•prMented trr. 14. Restrlcted 7L755 71755 48,159 Unrestricted funds Deslgnatsd funds 78.338 78.338 74,559 General funds Total fund8 78338 7&755 150,093 120.718 Approved ty the trustees on 23 September 2022 and signed On their behaff ty. Sister Barbara Dawson Chair of Tntstees Page 39

Annual Report and Accounts 31 December 2021 Charity Balance Sheet as at 31 December (in eooos) N•te Unres1rfrt￿ Restrfcted F￿ed I88ets Soc181 Investrnents 750 750 702 Inva5tsnents li 106,131 71,755 177.886 138,014 106.881 71,755 178,636 138.716 .881 n.755 178.636 138,716 Cuvrent 4880ts Debtors 218 1,254 Cosh at bgnk 7,764 7,789 7.982 9,043 Credttor• Amounts falllng dua thln on• year InorAnvestmenti 6.319 3,187 Amounts folllng du• ithln o year Ilnvestmenti 31.133 3&133 24,839 37,452 37.452 28,028 Net current asststs 129.4701 0 129,4701 118,9831 Total n•t al￿￿ TT,411 7&765 149,166 119,733 RepreMntèd ty: 14. Regtrlcted 71,755 71,755 46.159 Deslinated funds 77.411 77.411 73,574 General funds Totsl funds 77.411 71755 149.166 119,733 Approved by the trustees on 23 September 2022 and signed On their behalf ty. Sistsr Barbara Dav*son Chart of Trustses Page 40

Annual Report and Accounts 31 December 2021

Group Cash Flow Statement for the year ended 31 December (in €’000s)

Unrestricted
Restricted
2021
2020
4,679
24,696
29,375
10,254
9,242
0
9,242
2,449
1,007
0
1,007
5,079
(1,109)
(696)
(1,805)
(1,167)
(11,637)
(9,442)
(21,079)
(5,135)
Net infow/(outfow) from operating
activities
(Decrease)/increase in creditors
Decrease/(increase) in debtors
Investment income
Net realised & unrealised
investment and foreign currency
gains/(losses) on revaluation on
investments
Net Operating Surplus
2,182
14,558
16,740
11,480
Cash fow from investing activities
Investment income
Net additions/(withdrawals) to
social investments
Net (additions)/withdrawals to
investments
Net cash fow from investing
activities
Cash fow from fxed assets
Purchase of new assets
Depreciation during the year
Net Assets (additions)/
reduction
1,109
696
1,805
1,167
48
0
48
(63)
(6,025)
(12,864)
(18,889)
(11,086)
(6,025)
(4,868)
(12,168)
(17,036)
(9,982)
(34)
0
(34)
(103)
231
0
231
240
197
0
197
137
Increase/(decrease) in cash (2,489)
2,390
(99)
1,635
Cash as at 1 January
Cash as at 31 December		 8,176
0
8,176
6,541
5,687
2,390
8,077
8,176

Page 41

Annual Report and Accounts 31 December 2021

Charity Cash Flow Statement for the year ended 31 December (in €’000s)

Unrestricted
Restricted
2021
2020
4,737
24,696
29,433
10,304
9,426
0
9,426
2,402
1,036
0
1,036
5,077
(1,109)
(696)
(1,805)
(1,167)
(11,637)
(9,442)
(21,079)
(5,137)
Net infow/(outfow) from operating
activities
(Decrease)/increase in creditors
Decrease/(increase) in debtors
Investment income
Net realised & unrealised
investment and foreign currency
gains/(losses) on revaluation on
investments
Net Operating Surplus
2,453
14,558
17,011
11,479
Cash fow from investing activities
Investment income
Net additions/(withdrawals) to
social investments
Net additions/(withdrawals) to
investments
Net cash fow from investing
activities
Cash fow from fxed assets
Purchase of new assets
Depreciation during the year
Net Assets (additions)/
reduction
1,109
696
1,805
1,167
48
0
48
(63)
(6,025)
(12,864)
(18,889)
(11,084)
(4,868)
(12,168)
(17,036)
(9,980)
0
0
0
0
0
0
0
0
0
0
0
0
Increase/(decrease) in cash (2,415)
2,390
(25)
1,499
Cash as at 1 January
Cash as at 31 December		 7,789
0
7,789
6,290
5,374
2,390
7,764
7,789

Page 42

Annual Report and Accounts 31 December 2021

Notes to the Financial Statements (in €’000s)

1. Accounting Policies

a) Basis of accounting

The Duchesne Trust is a regulated trust in the United Kingdom. The address of the registered office is given in the group information on page 3 of these financial statements. The nature of the group’s operations and principal activities are to promote charitable work carried out by the Society of the Sacred Heart.

The group constitutes a public benefit entity as defined by FRS 102. The financial statements 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 UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

These group financial statements consolidate the results of the Trust and the entity it controls being the Society of the Sacred Heart Generalate, both of which make up their financial statements to 31 December.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in euros which is the functional currency of the group and rounded to the nearest €000 .

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

There are no material uncertainties regarding going concern.

b) Consolidation

Consolidation takes place with third parties when the charity determines that:

c) Income

Income is recognised in the period in which the group is entitled to receipt and the amount can be measured with reasonable certainty.

Where income is received with specific criteria for its use or future use the income is recorded as restricted.

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Annual Report and Accounts 31 December 2021

d) Resources expended and the basis of apportioning costs

Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT which cannot be recovered. Resources expended comprise the following:

d) Fixed Assets

Tangible fixed asset are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life as follows:-

e) Debtors & Creditors

f) Loans to provinces

All loans at the time they are made to a Province are recorded as a debtor. All loans are reviewed at year end to determine their realisability in the future. In the event that of a loan may be impaired a provision is made in the year.

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Annual Report and Accounts 31 December 2021

g) Commitments

All future commitments that are agreed to prior to the year end that are material are recorded at the time of the commitment rather than at the time of the payment.

2. Donations (in €’000s)

Group
Charity
2021
2020
2021
2020
Funds received from Society of the
Sacred Heart:
- Generalate (donation)
- provinces (donation)
0
0
0
22
15,509
10,800
15,508
10,800
15,509
10,800
15,508
10,822

3. Investment (in €’000s)

3. Investment (in €’000s)
Group Charity
2021 2020 2021 2020
Investment income (dividend & interest) 1,805 1,167 1,805 1,167

4. Supporting the Charitable Work of Members

of the Society of the Sacred Heart (in €’000s)

Group
Charity
2021
2020
2021
2020
Donations to the Society of the Sacred
Heart:
- Generalate
- provinces
5,248
2,788
5,194
2,798
2,449
2,844
2,461
2,799
7,697
5,632
7,655
5,597

5. Other Costs (in €’000s)

Group
Charity
2021
2020
2021
2020
12
9
12
9
403
331
403
331
Auditors remuneration
Other professional fees
415
340
415
340

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Annual Report and Accounts 31 December 2021

6. Net Outgoing Resources for the Year (in €’000s)

Group Charity
2021 2020 2021 2020
Auditors remuneration 12 9 12 9

7. Staff Costs and Trustees’ Remuneration (in €’000s)

Average
Number of
Group
Social Total Staff Employee
The group had salary costs o Salary Costs Costs s
2021 752 197 949 16
2020 516 152 668 14

The charity has no employees (31 December 2020 - none) and, therefore, no staff costs were incurred during the year (31 December 2020 - €nil). During the year the group had an average of 14 employees (31 December 2020: 12).

During the year group employees receiving renumeration in excess of €70,000 were:

Number
€80,001 - €90,000 2
€160,001 - €170,000 1

None of the trustees received any remuneration in respect of their services during the year (31 December 2020 - €nil). Expenses incurred by the trustees in the performance of their duties were not reimbursed during the year (31 December 2020 - €nil).

8. Taxation

The Duchesne Trust is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

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Annual Report and Accounts 31 December 2021

9. Fixed Assets (Group) (in €’000s)

Land &
Building
Equipmen
t
Vehicles
Total
Opening Cost as at
1 January 2021
Additions
Closing Cost as at
31 December 2021		 5,818
24		 445
18
6,281
10
0
34
5,842 455
18
6,315
Brought Forward Accumulated
Depreciation as at
1 January 2021
Charge for the Year
Total Accumulated Depreciation as
at 31 December 2021
Total Net Book Value as at
31 December 2021
Total Net Book Value as at
31 December 2020		 5,048
210		 353
18
5,419
21
0
231
21
5,258 374
18
5,650
584 81
0
665
770 92
0
862

The charity has no fixed assets.

10. Social Investments (in €’000s)

Group
Charity
2021
2020
2021
2020
702
765
702
765
0
0
0
0
48
(63)
48
(63)
Market value at 1 January
Net (withdrawals)/additions from
sales & purchases
Net unrealised foreign currency
exchange gains/(losses)
Market value at 31 December
750
702
750
702

All social investments are held through 3rd party social investment funds.

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Annual Report and Accounts 31 December 2021

11. Investments (in €’000s)

Group Group Charity Charity
2021 2020 2021 2020
Listed investments and cash held 177,886 138,014 177,886 138,014
for re-investment

Movements in investments are summarised below:

Group
Charity
2021
2020
2021
2020
138,014
121,667
138,014
121,667
16,872
11,149
16,872
11,147
1,969
0
1,969
0
4,609
1,249
4,609
1,249
16,422
3,949
16,422
3,951
Market value at 1 January
Net (withdrawals)/additions from
sales & purchases
Net investments transferred to the
Duchesne Trust from the Society of
the Sacred Heart provinces
Net unrealised investment &
exchange gains/losses – Provincial
investments
Net unrealised investment &
exchange gains/losses –
Generalate investments
Market value at 31 December
177,886
138,014
177,886
138,014

List investments held at year-ends comprised of the following:

Group
Charity
2021
2020
2021
2020
107,443
83,774
107,443
83,774
24,076
24,152
24,076
24,152
24,548
16,838
24,548
16,838
12,274
3,726
12,274
3,726
9,544
9,523
9,544
9,523
Equities
Fixed interest securities
Alternatives
Property
Cash
177,886
138,014
177,886
138,014

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Annual Report and Accounts 31 December 2021

12. Debtors (in €’000s)

The other debtors relate to loans made to the Society’s provinces as follows:

Group
Charity
2021
2020
2021
2020
33
4
0
0
218
1,254
218
1,254		 Group
Charity
2021
2020
2021
2020
33
4
0
0
218
1,254
218
1,254		 Group
Charity
2021
2020
2021
2020
33
4
0
0
218
1,254
218
1,254		 Group
Charity
2021
2020
2021
2020
33
4
0
0
218
1,254
218
1,254
Other debtors
Province debtors
251
1,258
218
1,254
Group
Charity
2021
2020
2021
2020
218
252
218
252
0
94
0
94
0
640
0
640
Democratic Republic of Congo
Province
Peru Province
Poland Province
Uganda Kenya Province
0 268 0 268
218
1,254
218
1,254

The loan to the Democratic Republic of Congo Province was to assist with the development of an 800 hectare farm outside of Kinshasa that will assist the Province in becoming sustainable in the future. The loans to provinces are secured by a promissory note from the Generalate in Rome that is held against the Generalates Villa at Via Tarquinio Vipera, 16 Rome, Italy.

In the next 12 months the Group expects to receive (€’000s) as follows:

Democratic Republic of Congo Province 60

This leaves in the region of 150,000 receivable after one year.

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Annual Report and Accounts 31 December 2021

13. Creditors: Amounts Falling Due Within One Year (in €’000s)

Group
Charity
2021
2020
2021
2020
1,524
1,390
1,524
1,390
570
461
205
193
4,309
1,604
4,590
1,604
Amounts due to provinces – Non
Investment
Accruals
Commitments
6,403
3,455
6,319
3,187
31,133
24,839
31,133
24,839
Amounts due to provinces –
Investment
Total
37,536
28,294
37,452
28,026

Amounts due to provinces (Non-Investment) are funds awarded to provinces or expenses incurred by the Generalate that have not yet been paid.

Amounts due to provinces (Investment) are those funds invested on behalf of provinces by the Generalate (see Note 11) net of all disbursements and gains or losses on the investment.

Group
Charity
2021
2020
2021
2020
24,839
23,961
24,839
23,961
1,969
0
1,969
0
(284)
(371)
(284)
(371)
4,609
1,249
4,609
1,249
As at 1 January
Amounts Received In the Year
Disbursements
Investment Gains/(Losses)
Amounts due to provinces – Investment
31,133
24,839
31,133
24,839

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Annual Report and Accounts 31 December 2021

14. Unrestricted fund balances allocated for specific purposes (in €’000s)

Group

Funds 1 January
2021
Income
Expenditure
Investment
Gains
Transfers
31
December
2021
Restricted
Solidarity 0
133
(133)
0
0
0
Covid 0
564
(259)
0
0
305
Heritage 0
0
0
0
900
900
Future
Sustainabilit
y		 46,159
14,949
0
9,442
0
70,550
46,159
15,646
(392)
9,442
900
71,755
Unrestricted
General 0
0
0
0
0
0
Designated
Generalate 55,673
1,705
(6,105)
11,637
0
62,910
Solidarity 6,239
0
(153)
0
0
6,086
Formation 3,332
0
(15)
0
0
3,317
Future
Sustainabilit
y		 8,415
0
(2,390)
0
0
6,025
Heritage 900
0
0
0
(900)
0
74,559
1,705
(8,663)
11,637
(900)
78,338
Total Funds 120,718
17,351
(9,055)
21,079
0
150,093

During the year the charity undertook a review of the funding received to date for Heritage. This resulted in the charity reclassifying as restricted due to the specific location and nature that the funds could be used for.

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Annual Report and Accounts 31 December 2021

14. Unrestricted fund balances allocated for specific purposes (in €’000s) (continued)

The amount and destination of these funds are determined by the Trustees. Set out below are the balances of the funds as well as its intended use of the funds:

Charity

Charity
Funds 1 January
2021
Income
Expenditure
Investment
Gains
Transfers
31
December
2021
Restricted
Solidarity 0
133
(133)
0
0
0
Covid 0
564
(259)
0
0
305
Heritage 0
0
0
0
900
900
Future
Sustainabilit
y		 46,159 14,949
0
9,442
0
70,550
46,159
15,646
(392)
9,442
900
71,755
Unrestricted
General 0
0
0
0
0
0
Designated
Generalate 54,688
1,721
(6,063)
11,637
0
61,983
Solidarity 6,239
0
(153)
0
0
6,086
Formation 3,332
0
(15)
0
0
3,317
Future
Sustainabilit
y		 8,415
0
(2,390)
0
0
6,025
Heritage 900
0
0
0
(900)
0
73,574
1,721
(8,621)
11,637
(900)
77,411
Total Funds 119,733
17,367
(9,013)
21,079
0
149,166
119,733
17,367
(9,013)
21,079
0
149,166

Group & Charity

Restricted

Page 52

Annual Report and Accounts 31 December 2021

Designated

15. Allocation of Reserves (in €’000s)

Group

Unrestricted
Reserves
Designated
Reserves
Restricted
Reserves
Total
Reserves
29,208
78,338
71,755
179,301
8,328
0
0
8,328
(6,403)
0
0
(6,403)
(31,133)
0
0
(31,133)
Fixed Assets
Current Assets
Current Liabilities - Non-
Investment
Current Liabilities - Province
Investments
Total Reserve
0
78,338
71,755
150,093

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Annual Report and Accounts 31 December 2021

15. Allocation of Reserves (in €’000s) (continued)

Charity

Unrestricted
Reserves
Designated
Reserves
Restricted
Reserves
Total
Reserves
29,470
77,411
71,755
178,636
7,982
0
7,982
(6,319)
0
(6,319)
(31,133)
0
(31,133)
Fixed Assets
Current Assets
Current Liabilities - Non-
Investment
Current Liabilities - Province
Investments
Total Reserve
0
77,411
0
149,166

16. Related Party Transactions

No related party transactions took place during the year.

Page 54