DUCHESNE TRUST
CHARITY REGISTRATION NUMBER 288467
ANNUAL REPORT
2022
Although we have to own goods, we hold them only as stewards, never forgetting that God destined the world and all that it contains for the use of everyone and for all peoples. Consequently, in a world full of ambiguities, justice and charity impel us to direct our administration towards the realization of this global destiny and to live our special responsibility through community of goods.
_Const. 178_
## **CONTENTS**
|Reference and administrative details of the Group……………………………………………….|3|
|---|---|
|Trustees’report including strategic report…………………………………………………………….|4|
|Statement of trustees’ responsibilities………………………………………………………………..|41|
|Independent auditor’sreport to the trustees of Duchesne Trust…………………………..|42|
|Financial statements…………………………………………………………………………………..……..|47|
|Notes to the financial statements……………………..………………………………………………..|53|
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**REFERENCE AND ADMINISTRATIVE DETAILS OF THE GROUP**
## **CONTACT & REGISTERED OFFICE**
## REGISTERED OFFICE
9 Bute Gardens London W6 7DR Tel: 0208 741 4688
## CONTACT
María Georgina Zubiría Maqueo Email: econgen@rscjroma.org Website: www.rscjinternational.org
## **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
## **TRUSTEES**
Sister Barbara Dawson - Chair Sister Marie-Jeanne Elonga Sister Monica Esquivel Sister Maria Georgina Zubiria Maqueo Sister Isabelle Lagneau (resigned: 11 January 2022) Sister Bernadette Porter (resigned : 31 January 2022) Sister Catherine Llloyd (appointed: 23 September 2022) Sister Anne Marie Loyola Corry (appointed: 11 January 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
Goldman Sachs International River Court 120 Fleet Street London EC4A 2BE
Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN
Waverton Investment Management 16 Babmaes Street London SW1Y 6AH
Schroders & Co Limited (Cazenove) 12 Moorgate London EC2R6DA
## **CUSTODIAN**
BNY Mellon Wealth Management 160 Queen Victoria Street 6th Floor London EC4V 4LA
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**OBJECTIVES AND STRATEGIES**
The trustees present their report and the audited financial statements of the group for the period ended 31 December 2022. 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.
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Strategic objectives
OUR PURPOSE
To promote the When se�ng the objec�ves and planning the work
charitable work carried of the charity for the year, the trustees have given
out or supported by the careful considera�on to the Charity Commission’s
members of the Roman general guidance on public benefit and in par�cular
Catholic Religious Order, to its supplementary guidance on the advancement
the Society of the Sacred of religion.
Heart
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## **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
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**OBJECTIVES AND STRATEGIES**
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:
- The worldwide administration of the Society, through members of the Generalate supporting provinces and communities of the Congregation, in order to provide leadership and to strengthen the charism and ethos of the group;
- The administration of a fund for solidarity, where projects involving members of the Congregation support and educate vulnerable groups who live in poverty; This is often directed towards health (special needs and HIV/AIDS), youth and education, people on the move and women in vulnerable situations;
- Administration of funds approved by the trustees to respond to situations of suffering and need, such as the Cor Unum-Covid 19 Fund and the UkraineRussia Conflict Victims Support Fund;
- The administration of a fund which will ensure the sustainability of the life and mission of the Society into the future and which, for some provinces, is already a necessity to support their own costs for formation, international activities, eldercare or capital projects.
## SHORT TERM STRATEGIES
During 2022 the Duchesne Trust, while continuing to support the charitable activities of the members in a worldwide context, began a complex process of internal reorganisation that will involve the creation of eight new territorial entities grouping the Provinces. The governance of the new entities will be defined as soon as the functions assigned to each one are established, both as individual entities and for their cooperation.
The trustees, with the collaboration of the International Planning Commission, have established that the Trust's activities must be oriented towards strengthening four Apostolic Priorities:
- Education
- JPIC (Justice, Peace, Integrity of Creation)
- Spirituality
- Formation
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**OBJECTIVES AND STRATEGIES**
## LONG TERM STRATEGIES
In the long term, the Duchesne Trust will continue to support the charitable activities of the members of the Society. Until 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, as developed by the International Planning Commission and the Assembly of Provincials. In detail:
- Revitalize our sense of mission in the world today
- Generate a process of reflection and systematization of each of the apostolic priorities
- Work on the definition of each apostolic priority
- Explore how to implement these apostolic priorities and their functioning with the new organisation
- See how to coordinate these apostolic priorities at an international level
- in the context of potential entities and/or with other entities, plan meetings, work-team meetings, and meetings regarding the articulation of apostolic priorities
- Implementing training in leadership, change management, financial, and intercultural competency
- Look into the financial and legal management and implications
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**STRUCTURE AND MANAGEMENT**
## **STRUCTURE AND MANAGEMENT**
## ORGANISATION
The trustees have the final responsibility for the policies, activities and assets of the Trust. They meet at least 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:
- the trustees who are nominated by the Superior General,
- the appropriate senior staff.
## 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 2022 funds have been used to further support 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:
- promote justice in faith and the welfare of the deprived and marginalised;
- promote the welfare of young people;
- enable the disadvantaged to become self-reliant;
- education in both formal and informal contexts.
- support vulnerable people in emergency context (wars, pandemics, natural disasters)
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**RELEVANT POLICIES**
## RISK MANAGEMENT
The trustees are assessing the major risks to which the group is exposed during 2022 , 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 over €65 million are held in designated funds. Further details of these are set out in note 12.
## INVESTMENT POLICY
The group has total fixed asset investments of €164 million as at 31 December 2022 (2021: €179 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:
- To preserve capital in real terms based on the Society’s annual inflation rate determined by the inflation rate proportionally by the expenditure rate in the countries it operates in.
- To draw down €2.3 million in cash per annum.
- To grow the capital over a period of 5 years by 1% or more.
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 2022, despite the fact that the financial year was the most negative in ten years, indicate that the objectives have been met and since inception all objectives have been achieved.
In early 2021 the Trust reviewed the investment strategy to ensure that post Covid it was still appropriate. 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.
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.
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**FINANCIAL REVIEW**
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:
- Make a positive contribution to society
- Conserve energy and natural resources
- Have high employee welfare and equal opportunities records
- Provide high quality products and services of long term benefit to the community
The Society would not wish to invest in companies which:
- Produce and distribute arms, landmines and other products which destroy life
- Produce and distribute pornographic material
- Engage in irresponsible environmental practices
- Actively support governmental regimes with oppressive human rights policies
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.
## **FINANCIAL REVIEW**
A summary of the year’s results for the group can be found on page 47 of the attached accounts. For the period of 12 months ending 31 December 2022:
- the economic result was €-14 million (2021 - €28 million) comprising mainly donations and investment income;
- total expenditure amounted to €6 million (2021 - €9 million) of which €5 million (2020 - €6 million) comprised donations to the Society of the Sacred Heart internationally.
## FINANCIAL POSITION
The balance sheet shows total reserves as at 31 December 2022 of €133 million (2021 - €146 million).
## THE GROUP’S ASSETS
Acquisitions and disposals of fixed assets during the year are recorded in the note to the accounts.
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**SOCIETY’S LIFE AND MISSION**
## Administration of the Society of the Sacred Heart Life and Mission
During the 12 months of 2022, the Duchesne Trust continued its charitable work with the commitment and support of members of the Society of the Sacred Heart in 41 countries around the world. The Trustees and members of the General Council appointed by the Superior General, carried out different activities in a context still affected by the pandemic and the effects of the outbreak of the Ukraine-Russia conflict.
We will introduce some specific areas within the Society that include the activities of colleagues, volunteers, and friends who are part of our extended group.
## Reorganization of the General Council as a new Team
Thanks to the easing of travel restrictions in some countries, the General Council was able to resume travelling and visiting the different communities and missions around the world. Daphne Sequeira and Marie-Jeanne Elonga visited Uganda-Kenya Province on February 2022. After two years of the pandemic, this was the first visit to the Provinces from the General Council.
Further significant visits to the provinces were those to the Province of Central Europe (CEU - Austria, Hungary and Germany), deeply hit by the Pandemic; to Brazil, where they met the new leadership team and found elder sisters very well cared; to Egypt, where the Councilors were invited to share the feast of Eid el-fitr (end of Ramadan) with the school of Heliopolis and with their Muslim brothers.
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Anne Corry and Daphne Sequeira visited Warsaw, Poland, in June 2022, which has been receiving thousands of refugees during the war in Ukraine. The General Council wanted to express the Society’s solidarity with our sisters in Poland who have been supporting this humanitarian effort. They met refugee families and children and visited the provincial house where the community and other friends have hosted Ukrainian refugees.
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## International Planning Commission
.
At the end of a participative consultation, the General Council named the members who are making up the International Planning Commission (IPC). The members of the Commission are Ananda Amritmahal (India), Claire Castaing (Belgium-France-Nederlands), Imma De Stefanis (United States-Canada), Elizabeth Nakayiza (Uganda-Kenya), Paqui Rodríguez (Spain) and Jacquelin Jiménez (Venezuela).
The IPC along 2022 designed a plan for restructuring the Society that has been studied, discussed, modified, and accepted in the Assembly of Provincials.
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**SOCIETY’S LIFE AND MISSION**
Assemblyof Provincials – Malaga, December 2022
The Assembly of Provincials of the Society of the Sacred Heart was held at the Diocesan House in Malaga, Spain, from December 1 to 15. Provinces and District Representatives, the General Treasurer, the Superior General and the four General Councilors participated. It was a discernment meeting organized in two interconnected parts: the reorganization of the Society and the preparation for the General Chapter 2024.
The International Planning Commission was present. Together with the facilitators, they led the discernment process, inviting the group to engage in generative listening and to look at the whole and not only at each of the parts. The Superior General, with the consent of her Council, confirmed the decision that will be definitively decided in the Chapter of 2024:
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**SOCIETY’S LIFE AND MISSION**
The Society of the Sacred Heart will be organized in eight provinces:
- I. Democratic Republic of Congo-Chad and Uganda-Kenya
- II. India, Indonesia, Philippines and Vietnam
- III. Australia-New Zealand, Japan, and Korea-Chinese
- IV. Antilles (Puerto Rico, Haití and Cuba), Mexico and United States-Canada
- V. Argentina-Uruguay, Brazil, Chile, Colombia, Peru and Venezuela
- VI. Austria-Germany-Hungary, England-Wales, Ireland-Scotland, and Malta
- VII. Belgium-France-Netherlands, Egypt, and Italy
- VIII. Poland and Spain
The Assembly of Provincials with the General Council made some additional important decisions. They agreed
to maintain four apostolic priorities: Education, Spirituality, Formation and Justice, Peace and Integrity of Creation (JPIC), including in each of them explicitly our preferential option for young people.
They have agreed that the process of preparation for the General Chapter 2024 will be integrated with this process of reorganization.
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**SOCIETY’S LIFE AND MISSION**
## Preparation towards the General Chapter 2024
During 2022 the General Council continued to work on their mandate, including the implementation of the preparation for the Chapter 2024, to be held in Nemi (RomeItaly) in August 2024. The Council worked to the appointment of four new commissions, in order to assist to the preparation of the General Chapter 2024:
1. The Spiritual Itinerary Committee: Committee of RSCJ responsible to create a spiritual process based on the Constitutions to involve all members in the process towards the General Chapter 2024.
2. The Synthesis subcommittee: Subcommittee of RSCJ responsible for reading the contributions of the Provincial Chapters, synthetize them and submit to the General Council in view of the final report to the General Chapter 2024.
3. The Discernment Communities subcommittee: Committee of RSCJ responsible to organise pre-Chapter discernment communities to prepare delegates and reflect on future leadership needs.
4. Preparatory Committee: Committee of the RSCJ in charge of collaborating with the facilitators, coordinating with the above-mentioned Committees in the elaboration of their tasks and involving the members in the preparation of the General Chapter 2024.
## Restructuring of the Generalate Finance Office
The Finance Office supports the General Council with the stewardship and administration of the financial resources of the Society. On September 1, 2021, Georgina Zubiría rscj from the province of Mexico started her role as Canonical Treasurer General of the Society.
The Generalate Finance Office has been working on the operational reorganization of the staff, considering the decisions of the Special Chapter: How can the Generalate Finance Office support the structural changes that will occur within the Society to “enable and support the putting in common of our resources”.
This review included the development of new policies and procedures for the Generalate to facilitate the continuing support of the General Council and Trustees, international services, and the Society's mission, especially in countries most vulnerable due to migration, poverty, and war. The new policies and procedures also seek to ensure that the Duchesne Trust remains in compliance with established regulations.
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**SOCIETY’S LIFE AND MISSION**
The Generalate Finance Office currently hosts the Mother House Solidarity Fund Coordinator, who ensures the management of the Fund under the direction of the Treasurer General and the General Council.
_Finance Office Team_
After two years of not being able to meet in person, they were finally able to do so. Present at the meeting were Robert Rae from Australia, Jeroen Kwist from Holland, Peter Keane from Ireland, Jane Maltby RSCJ from England, Georgina Zubiria RSCJ, Helen Harrington and Mark Freeman.
the Generalate.
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**SOCIETY’S LIFE AND MISSION**
## Communication
Throughout 2022, the Communications Manager met regularly with the General Council and the International Communications Team to discuss the progress of ongoing initiatives and to review future plans. She also worked closely with the General Council and the Secretariat on the Communications Bulletins, along with the Flash News.
To help facilitate communications efforts throughout the Society, two training series were held on key communications skills, such as taking and editing photos. In the fall, the Communications
_Training with photo expert Poncho Alarcon_ Manager conducted three trainings on the use of Word, PowerPoint and the Society templates. All
training sessions were attended by some members of the Society, collaborators, colleagues, volunteers and/or beneficiaries of the different mission projects. These sessions were also recorded and published on the website in the different languages, which doubled their reach.
Planning for the updated RSCJ International website began in earnest in January 2022.
As part of this process, surveys were sent out to the entire Society regarding formal education initiatives and spiritual direction. These will make it possible for RSCJ and other users to search for these resources on RSCJ International website.
Coverage of events and activities from around the
Society continued throughout 2022. Of particular interest are feast celebrations and special occasions, such as the taking of vows. Probation 2022 was covered in-depth on the website, with photos and videos of the opening, the closing conference, the final vows ceremony, and an interview series with the probanists.
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**SOCIETY’S LIFE AND MISSION**
For the Christmas season, the Communications Office produced a video message from the General Council for Advent, as well as a Christmas card and video slideshow featuring greetings from around the Society.
## Secretariat
The Secretariat continue to support the work of the General Council and the administration of the international Society. During 2022 they updated the catalogues of the Society, detailing the members, provinces and communities; worked on the development of a new web-based database for the international Society to securely store details of each member, community and Province; supported the General Council with administration and translation services; worked with the Provinces opening assemblies through Zoom, supporting assistants, facilitating technical support and translation of documents; assisted all international commissions in their work around the world and guaranteed daily correspondence and communication between the Generalate and the Provinces.
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**SOCIETY’S LIFE AND MISSION**
## Committees
During 2018 a series of Committees were established within the Society to address the recommendations of General Chapter 2016. During 2022, after the COVID-19 global pandemic, some of the committees had the opportunity to meet again in person, to discuss progress in their work.
The International Vocation Committee continued throughout 2022 to promote the networking of vocation ministry teams in the regions of the Society and have taken some initiatives in working with young people. On Saturday June 25, 2022, to celebrate the Feast of the Sacred Heart, the Committee organized an event for all RSCJ, collaborators, young people and young adults to better understand the reality of young people, focused on the creation of a culture of belonging through relationships.
The International Education Committee continues to focus on three major areas:
- Contemporary philosophy of Sacred Heart education with an emphasis on humanization.
- International Formation to Mission Program for Educators of the Family of the Sacred Heart.
- Analysis of structures of relationship and accountability of educational institutions (formal and non-formal) to the Society
During 2022, the Committee continued to work on drafting a profile of a Sacred Heart educator and a framework for the philosophy of education. Due to the pandemic, the Committee met via Zoom and focused on the preparation of their in-person meeting happening in July 2023.
The International Volunteers Commission has temporarily suspended its activities due to the pandemic. In 2023, the commission expects to reasume its work in planning volunteer initiatives throughout the Congregation, both on a local and international level.
The Ongoing Formation Commission suspended the renewal programs in 2022 because of the global pandemic and travel restrictions. The members met virtually to prepare for the next in-person meeting to be held in the renovated premises of the Villa lante in May 2023.
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**SOCIETY’S LIFE AND MISSION**
Justice, Peace and Integrity of Creation – UN-NGO
2022 was a year of transition for the three JPIC offices: JPIC International, UN-NGO,
and JPIC Learning Hub. All mebers of the three offices were involved in other tasks. Nevertheless, the team remained active and participative.
Some highlights of the work this year included:
- Responding to critical moments in the world and offering concrete acts of hope and solidarity through the First Friday Prayer for Peace: every First Friday of the month, people from different parts of the world come together for a global online prayer for peace in Ukraine and all places in the world that cry for peace.
- Strengthening advocacy and Education in the service of JPIC, through the activities of the UN-NGO.
- Integrating JPIC and Spirituality through activities like: participating to religious retreats, giving sessions for educators about Madeleine Sophie, preparing prayer reflection guides.
- Supporting the Transformative Community of Practice (TCoP) on Indigenous Peoples: a small group of RSCJ and partners who serve in Argentina, Australia, Brazil, Canada, India, Paraguay, and Peru.
- Inviting the participation of young people in JPIC and UN-NGO activities.
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**SOCIETY’S LIFE AND MISSION**
- Sustaining the connection between JPIC and Formation by being resource persons for different levels of RSCJ formation and province-wide meetings.
A significant moment for the JPIC International Team was the meeting in Manila on 1521 October 2022 -- our first face-to-face meeting since the pandemic began. Together, we were able to build the new JPIC International Team, plan the way forward for 20232024 for each of our offices and for the JPIC and integrate the 2021 Special Chapter's decision on “apostolic priorities” into our plan of action.
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Duchesne Trust – Charitable projects involving
members and volunteers.
Mother House Solidarity Fund
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One of the key instruments by which the Society of the Sacred Heart carries out its charitable work in favor of the most vulnerable communities and peoples is the “ ” Mother House Solidarity Fund .
Through this fund, the Society provides funding to projects around the world, following the calls of both Chapter 2008 and Chapter 2016 to live justice, peace, and the integrity of creation in our world today.
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**SOCIETY’S LIFE AND MISSION**
The fund is stewarded from the Generalate according to published criteria. Following the recommendations of the Chapters, the Finance Office presented a proposal outlining the work done over the past five years and the need to create a Solidarity Fund Commission. We are grateful that five experienced RSCJ have agreed to share
their time and expertise to serve on this commission for an initial three-year term: Yuka Arita (Philippines District), Pratibha Pinto (India), Sofia Baranda (Chile), Resty Nalubega (Uganda-Kenya) and Fatima SantalóOssorio (Spain).
In 2022, the Mother
House Solidarity Fund (MHSF) allocated 20 grants. The Region of Africa received seven grants, Asianz three, Europe four and the Region of Philippine Duchesne six grants. The MHSF was glad to allocate a grant to the province of Egypt that had not applied for over 20 years. The projects, which are currently ongoing, focus on the spheres of health (special needs and HIV/AIDS), youth and education, people on the move and women in vulnerable situations. f
In September 2022, projects submitted and financed in 2021 were evaluated. The Mother House Solidarity Fund (MHSF) supported 25 projects in the regions of Africa (10), Asianz (2), Philippine Duchesne (10) and Europe (3). Here are the results from seven of these projects.
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**SOCIETY’S LIFE AND MISSION**
Dental care, St. Charles Lwanga Health Centre, Chekalini, UGK
Chekalini had no dental service, and its population, which tends towards a high sugar diet and low dental hygiene, had to walk far for dental care and often could not afford the high costs. The St. Charles Lwanga Health Centre has set up a dental care unit where a newly hired dentist technologist visits patients on a new dental chair. The dental unit also carries out awareness campaigns in local markets and in local
public schools, where the dental technologist teaches dental hygiene, freely examines patients (which now number 150), and distributes toothpaste and toothbrushes.
Food support for people living with HIV AIDS, Kimwenza, Kinshasa, RDC
The project aimed to better the life of 40 adults and children living with HIV. Its activities focused on a materially, medically and spiritually follow up (a whole morning). Group encounters happened twice a month, one for children and one for adults encounters. In its encounters, it increased and varied food supplies, reviewed the miss-knowledge patients had about their HIV/AIDS medical conditions, and supervised the correct intake of pills. It also organized support to two HIV orphans (school and medical). To guarantee food supplies, the project increased support to the poultry breeding. Beneficiaries gained proper
knowledge on their own medical conditions, increased their weight, and overall blossomed. As for children, they enrolled and kept a stable presence at school.
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Going organic, moving away from the margins. A training series on natural farming in Samar, PHI
The objective of the project was to empower rural farmers with knowledge and skills, and to make them advocates of sustainable agriculture. Beneficiaries included practicing farmers, women, students, NEET, and people with disabilities. Activities focused on training on organic agricultural skills, with 14 workshops on crop rotation, organic fertilizing, pest control, disease protection, vermiculture, composting, waste management, and upcycling. Thanks to the partnership they developed with local authorities, participants acquired a national certification. Eighty percent of participants took up agricultural initiatives in their own contexts, and local municipalities are planning to reproduce the training.
ECO-Taller VERDE AROMA. Centro Penitenciario Madrid I Mujeres (ACOPE) – ESP
The Taller Verde Aroma (Green Aroma Workshop) took place in the women’s jail of Alcala de Henares, Madrid. The goal of the project was to enhance the technical, professional, and social skills in green growing of 17 jailed adult women (70% Spanish). The project ran workshops on aromatic and medicinal plants, floral decorations, and waste management. Some benefits included teamwork and solidarity, an increase in creativity and aesthetic sense, and improvements in punctuality,
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**SOCIETY’S LIFE AND MISSION**
responsibility, independence, motivation, interest, and proactiveness. By the end, 2,500 aromatic, medicinal plants and 840 litres of composting had been produced, a shed for tools had been built, and a blog was created for the plant nursery.
Tu médico en casa ahora con ambulancia – Cumaná, VEN
The economic crisis in Venezuela has considerably reduced public health services. Faced with this situation, a team of doctors designed a home care service for patients, your GP at Home, with accessible costs for the vulnerable population of Cumaná who cannot afford private care. The Con ambulancia extended the medical care to include transport of patients within the municipality and the state. A regular van was
turned into an ambulance, and its addition to the medical service enabled more rapid responses to medical emergencies, which reduced medical complications. The ambulance brought light and hope to the vulnerable population, equality in access to medical care, and more lives were saved.
## Equipo Bandera Blanca: Creadores de Paz – Zapopapan, Jalisco, MEX
The Oblatos neighborhood in Guadalajara has a high rate of violence. Violence is also to be found in schools. Following a selection of secondary schools in the area, the Bandera Blanca run a series of workshops on active participation towards peace building where attention is paid on selfawareness, group identity, positive expression of feelings, and self-control. Workshops used the example of peaceful activities in different camps (environmental protection, girl education). The young beneficiaries of Bandera Blanca have demonstrated autonomy and responsibility and to be bearers of civic values that allow them to move away from the violence to which adolescents and young people in
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**SOCIETY’S LIFE AND MISSION**
the Oblatos neighborhood are exposed to. They were able to construct conclusions and apply their intake in their daily lives for peaceful resolutions of conflicts (mediation).
Diversity, Equity and Inclusion initiative (DEI) – Chicago, USC
Following the death of George Floyd and the birth of the Black Life Matters movement, the Josephinum Academy, whose school community is predominantly of colour origins (Latin, AfricanAmerican, Asian), perceived a challenge in their (non) teaching on racism and diversity and recognized the need to develop a module on the issue. The Diversity, Equity and Inclusion has created an academic environment and community culture that is not only accepting and
welcoming of a diverse student body but is recognized for taking a leadership position in DEI implementation, schoolwide. In the classroom, curricula proactively addressed the history and impact of systemic racism and inherent bias to better inform the students about the societal issues that affect their lives. The Josephine Academy has incorporated a way of teaching that helps students learn to be proud of themselves and their families; respect a range of human differences; recognize unfairness and bias; speak up for the rights of others; and to develop the will, skill, and capacity to have courageous conversations. Activities included: racial and equity workshops for students, staff and board members; diversifying authors in students’ library; monthly/weekly events and round tabletalks on DEI topics. Concrete example: the school has hired Asian American and Latin teachers, increased its multicultural staff.
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For their second meeting, the Commission will review project evaluations of the previous year and discuss the overall operation of the Solidarity Fund, e.g., criteria, application, process, evaluations.
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## Funds for victims of the Ukranian-Russian conflict
In March 2022, the General Council launched a new international fund to support the victims of the Ukrainian-Russian conflict. This fund was managed by the Generalate Finance Office and donations could be made from provinces or others connected to the Society. The creation of the fund is in response to the many requests from within the international Society to offer financial support and to coordinate funding.
As of April 2022, the Generalate has financed 10 projects in Poland where the RSCJ sisters will continue to support Ukrainian refugees in 2023.
## _Below some projects_ :
Poland: Nuestra casa, es tu casa.
The project, in collaboration with the Open-Heart Foundation founded by Urszula Głowacka rscj, provided support to refugee families (mothers with children) in adapting to a new country, organizing workshops for mothers and children, promoting integration with the local community of families fleeing from war.
Poland: Solidarity in Action. HELP POINT Project
The project run in collaboration with Dominican sisters and local parish, supervised by Bożena Kunicka rscj, provided food and hygiene items for Ukrainian Refugees. A space also was created to welcome refugees and support them with basic items.
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**SOCIETY’S LIFE AND MISSION**
## Poland: Welcome to Kindergarten
This project aimed to provide support of five Ukrainian children to attend the kindergarten in Tarnow. This will include cost of full board, planned outings, stationary and as necessary clothing and footwear. The five children are aged between 3 and 6 years old and live in Tarnow with their mothers.
## Poland: Polish course for Ukrainians
This project provided an intensive Polish language course during the summer holidays in July and August 2022 for 40-50 refugees. The classes took place at the “Fundación Corazón Abierto” and the funding supported teacher’s salary, teaching materials and other running costs for the classes.
## Poland: Person Development Centre
The focus of the "Person Development Center", run by the Open-Heart Foundation, was supporting Ukrainian Refugees in acquiring new professional skills and helping them in finding a job in Poland. Participants took part in a Polish language course, a tailoring and handicraft course.
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**SOCIETY’S LIFE AND MISSION**
## Cor Unum Covid-19 Fund
The Cor Unum Covid-19 Fund was established within the Society to support Provinces and their ministries who have been profoundly affected by this pandemic. Over the last three years (2020, 2021 and 2022), this fund distributed support to 81 projects in 12 provinces. The projects were in areas related to the re-opening of schools or ministries, the provision of immediate needs of food and medical protection, projects related to JPIC or climate change, alternative income or retraining, mental health support and vaccinations.
The Generalate in January 2022 allocated a fourth round of funding to the Cor Unum Covid-19 Fund and financed 12 projects in those Regions deeply hit by the Covid Pandemic: Africa (4), Asianz (3), and Philippine Duchesne (5).
## Africa: School in N’Djamena, Chad.
Chad received financial support to provide materials for the provision of water for the community and the school, especially during the hot weather. The project also included support for students whose parents cannot pay tuition fees, support for supervisors for online courses and support for cleaning for the school.
South America: Ponce: Mental Health, Antilles
Funding for the services of a psychologist and consultant who will provide various workshops to members of the school community to support those impacted by the pandemic. The project includes a cycle of three (3) interactive and reflective personal and academic development workshops focused on enhancing the abilities of teachers, students, parents and the school community to become resilient to life's setbacks.
Asianz: Sadhna School, Sophia Campus, Mumbai, India.
Sisters in India received funding to support students with special needs, as they return to ordinary, person to person – interaction, which is very challenging given their disabilities. Teachers’ main task was to bring students back to their daily routine, managing their behavioral issues using various strategies to calm their thoughts, worries and anxieties about staying away from home.
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**SOCIETY’S LIFE AND MISSION**
Asianz: Sacred Heart Institute for Transformative Education Foundation (SHIFT), Samar, Philippines.
SHIFT is located at Sophie’s Farm in Northern Samar, one of the poorest provinces of the Philippines. SHIFT has different ministries where its personnel were assigned. During the pandemic, only the organic farm could be kept going, while other ministries went on and off due to lockdowns. A “Pandemic Exit Plan” for recovery of the Ministries has been done, but financial resources are needed for implementation. Included in this plan is preparation for Sophie’s Farm to offer ecological exposure programs and eventually for eco-tourism for schools and other educational programs. Funding was for salaries, mission operations and communications.
## Philippine Duchesne: Comunidad de Michaihue, San Pedro de la Paz, Chile .
The aim is to collaborate with training initiatives that help to remedy the damage caused by the pandemic in the whole development of children and adolescents through a comprehensive plan: recovery and levelling of learning and socio-emotional well-being.
The Covid Fund completed its funding and is currently closed.
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**SOCIETY’S LIFE AND MISSION**
## Sustainability Fund
In January 2020, after extensive consultation, the General Council approved the priorities that guide decisions on the projects that the Sustainability Fund finances. Its central focus is the sustainable future of the Society's life and mission.
The Congregation's policy is to break down these financial resources into eldercare, formation aid, capital aid and aid for the ordinary life of communities in fragile economic conditions.
## Formation and Capital Aid
One of the projects being supported by the sustainability fund, in relation to planning for initial formation for the Society internationally, is the construction of the international novitiate for the Asia and Australia-New Zealand 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. Along 2022, the construction of the novitiate in the District of the Philippines has considerably progressed. By October 2022 all the architectural on Building A was finished, together with the 95% of plumbing and electrical fixtures, while works on Building B are still ongoing but abut to completion.
The Asia and Australia-New Zealand formation community will move into the new building in January 2023.
Aid for formation of was furthermore provided to the Provinces of Uganda-Kenya, Indonesia, Congo-Chad and to the Vietnam Community. Part of this budget has been respectively assigned to UGK and RDC for the new African Common Formation project.
The region of Africa has decided to have one bilingual novitiate in Kimwenza RDC. To prepare the young women for this new venture, the provinces of the African region
have reflected on their initial formation program before and after the novitiate. After reviewing the previous program and looking at the need to prepare young women for the regional novitiate, the province has decided to have a two-year postulancy program. The first year is a residential
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**SOCIETY’S LIFE AND MISSION**
postulancy program with the accompaniment of a postulant mistress and with one more professed sister living with them.
This program started in January 2022, and has helped the young women build a community among themselves, get peer group accompaniment, and facilitate the organization of inputs. It has also supported mutual discernment. After one year of residential postulancy, the women from UGK will go to RDC-TCH Province and pursue their language study in Congo, while the RDC-TCH postulants will go to Kenya for their language study, living in a postulant community for one year.
Capital Aid was provided to the Provinces of Uganda-Kenya, Congo-Chad, Poland, Venezuela, India, Philippines, Mexico and Antilles. This included support of Provinces for capital projects, such as renovations and capital expenses for vehicles and equipment.
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**SOCIETY’S LIFE AND MISSION**
## Ordinary Life of Communities
During the year to 31 December 2022, the Society provided aid to some Provinces who cannot afford their own costs for formation, international service and eldercare or capital projects.
Ordinary aid for the administration and living expenses of communities was provided to Philippines, Chad, Congo, Uganda, Indonesia, Vietnam and Venezuela to support their ministry. These funds are used by Provinces to support the daily lives of sisters, their provision of healthcare, support for regional or international meetings and development of a mission area. In particular, the Province of Congo-Chad has received funding over the last two years from the Mother House for the construction of new living accommodations for elderly sisters in one of our communities in Kinshasa,
specifically in Kimwenza. The purpose of this house is to offer our elderly sisters a space that is suitable, given their age and increasingly vulnerable health conditions. This is a space where they will feel comfortable, fulfilled and safe, in order to respond to their mission of praying and supporting the mission of those who are still active in the whole Society.
It is a house with 48 rooms, of which 13 are on the ground floor and 35 on the first floor, with other facilities such as a chapel on the ground floor, an oratory on the first floor, two community rooms, two refectories, a treatment room, a gym. This is a multiuse building. The first level will be used as student housing and will offer space for retreat and prayer.
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**SOCIETY’S LIFE AND MISSION**
## Historical and cultural heritage of the Society
The Villa Lante, located in the heart of Trastevere in Rome, is the historical and cultural heritage of the Society of the Sacred Heart and has been remodeled to house a Formation Center for Religious and Laity, a museum and the archives of the congregation.
## Villa Lante
Over the past three years, the Villa Lante has undergone significant renovation, which is still ongoing and nearing completion. The “Villa Lante Conference Center” vision and mission 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.
A section of the complex known as Casa Betania opened formally in late October 2022 to welcome the probanists and two probation mistresses. They were the first group to use part of the newly renovated Villa Lante.
The other buildings are expected to open in late March 2023
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**SOCIETY’S LIFE AND MISSION**
## General Archives
During the last year,the General Archives continued to respond to requests from historians, researchers and scholars, both inside and outside the Society, and continued to ensure the appropriate storage and recording of important documents for the Society.
Special projects carried out in 2022 are:
- Setting up of the new museum and display area of Villa Lante
- Restoration of Villa Lante’s paintings and artifacts and setting up in the renewed spaces
- Updating of “Guidelines for Provincial Archives” for support and information of Provincial Archives
- Definition of strategies for digitisation projects for preservation of original documents and to implement consultation of documents from remote.
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**SOCIETY’S LIFE AND MISSION**
- Planning for collections to be made available on-line via AtoM (archival software) to facilitate and stimulate the use and study of archival material, patrimony of the Society of the Sacred Heart.
- Upgrade of archival spaces including new more efficient and sustainable ventilation system and a new room available for archival material
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**OUR BOARD OF TRUSTEES**
## **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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**OUR BOARD OF TRUSTEES**
## 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 self-financing. 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 AT 31/12/2022
**OUR BOARD OF TRUSTEES**
## 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.
## Sister Catherine Lloyd
has a background in formal education and ministry with young people, firstly as a teacher. After further formation in spiritual accompaniment and counselling using the arts, she returned to work as a school chaplain in the Society’s high school in London. After final vows, Cath spent some time in the Society’s mission in Indonesia where she worked in teacher education, theological formation and in a project with street children. On returning to the UK, Cath served as Novice Mistress in the Society and worked in the Formation department of the Conference of Religious of England and Wales, where
with others she developed inter-congregational formation programmes. After further studies in organisational change, Cath worked on a team which facilitated organisations and groups as they developed areas of strategic planning and leadership formation. Between 2008-2016 she served on the General Council of her congregation. Although this ministry was based in Rome, her service took her to many different parts of the world. This experience broadened her mind and opened her
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**OUR BOARD OF TRUSTEES**
heart!! Cath returned to her home province in 2016 and once again took up a ministry of facilitation and spiritual formation in the UK and abroad. With colleagues she has worked as a co-facilitator on General and Provincial Chapters and a variety of meetings for different religious congregations. In 2019, Cath was asked to serve as Provincial in England -Wales and she remains in that ministry to the present day.
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the company’s auditors are unaware; and
- they have taken all necessary steps that they ought to have to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Signed on behalf of the trustees by Sister Barbara Dawson, Chair of Trustees Approved by the trustees on 6[th] July 2023
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**INDEPENDENT AUDITOR’S REPORT**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF DUCHESNE TRUST**
## Opinion
We have audited the financial statements of Duchesne Trust (the ‘parent charity’) and its controlling entities (the 'group') for the year ended 31 December 2022 which comprise the group and parent Statement of Financial Activities, group and parent charity Balance Sheet, group and parent charity cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group's and parent charity’s affairs as at 31 December 2022, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## 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.
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**INDEPENDENT AUDITOR’S REPORT**
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees'use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
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**INDEPENDENT AUDITOR’S REPORT**
- the parent charity's financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement [set out on page …], the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group 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.
## Auditor 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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory framework applicable to both the Charity itself and the environment in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the
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**INDEPENDENT AUDITOR’S REPORT**
directors and other management. The most significant were identified as the Charities Act 2013, Charity SORP FRS 102, UK GAAP (FRS102) and relevant tax legislation.
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:
- making enquires of trustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;
- obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
- assessing the design effectiveness of the controls in place to prevent and detect fraud;
- assessing the risk of management override including identifying and testing journal entries;
- challenging the assumptions and judgements made by management in its significant accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the FRC's website at: _https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-theaudit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for_ .
This description forms part of our auditor’s report.
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**INDEPENDENT AUDITOR’S REPORT**
## 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 formed.
Haines Watts, Statutory Auditor Old Station House Station Approach Newport Street Swindon SN1 3DU
Date
Haines Watts is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**FINANCIAL STATEMENTS**
## **GROUP STATEMENT OF FINANCIAL ACTIVITY (INCLUDING INCOME AND EXPENDITURE ACCOUNTS) AS AT 31 DECEMBER (IN €’000S)**
## GROUP
|Income from:
Donations
Investment
Other income|Note
Unrestricted
Restricted
2022
2021
RESTATED|
|---|---|
||2
549
4.944
5.493
15.509
3
2.066
0
2.066
1.805
79
0
79
37|
|Total income|2.694
4.944
7.638
17.351|
|Expenditure on:
Investment manager fees
Supporting the charitable work of members
of the Society of the Sacred Heart
Other costs|550
531
1.081
943
4
3.777
1.200
4.977
7.697
5
412
0
412
415|
|Total expenditure|4.739
1.731
6.470
9.055|
|Realised & unrealised investment and
foreign currency gains/(losses) on
revaluation
Transfers|-7.627
-7.376
-15.003
19.687
0
0
0
0|
|Net movement in funds|-9.673
-4.164
-13.837
27.983|
|Balances brought forward at 01 Jan
Prior year adjustment
Revised balance brough forward
Balance carried forward at 31 Dec|78.338
71.755
150.093
120.718
15
-3.209
0
-3.209
-1.818
75.129
71.755
146.884
118.900
65.456
67.591
133.047
146.884|
Income and expenditure derive from ongoing activities. The statement of financial activities includes gains and losses recognised during the period.
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ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**FINANCIAL STATEMENTS**
**CHARITY STATEMENT OF FINANCIAL ACTIVITY (INCLUDING INCOME AND EXPENDITURE ACCOUNTS) AS AT 31 DECEMBER (IN €’000S)**
## CHARITY
|Income from:
Donations
Investment
Other income|Note
Unrestricted
Restricted
2022
2021
RESTATED|
|---|---|
||2
549
4.944
5.493
15.508
3
2.065
0
2.065
1.805
79
0
79
54|
|Total income|2.693
4.944
7.637
17.367|
|Expenditure on:
Investment manager fees
Supporting the charitable work of members
of the Society of the Sacred Heart
Other costs|550
531
1.081
943
4
3.204
1.200
4.404
7.655
5
412
0
412
415|
|Total expenditure|4.166
1.732
5.897
9.013|
|Realised & unrealised investment and
foreign currency gains/(losses) on
revaluation
Transfers|-7.627
-7.376
-15.003
19.686
0
0
0
0|
|Net movement in funds|-9.100
-4.164
-13.264
28.040|
|Balances brought forward at 01 Jan
Prior year adjustment
Revised balance brough forward
Balance carried forward at 31 Dec|77.411
71.755
149.166
119.733
15
-3.209
0
-3.209
-1.818
74.200
71.755
145.955
117.915
65.099
67.591
132.690
145.955|
Income and expenditure derive from ongoing activities. The statement of financial activities includes gains and losses recognised during the period.
48
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**FINANCIAL STATEMENTS**
## **GROUP BALANCE SHEET AS AT 31 DECEMBER (IN €’000S)**
## GROUP
|**AS AT31 DECEMBER(IN€’000S) **|GRO|UP|
|---|---|---|
|Notes
FIXED ASSETS
Fixed assets
8
Social Investments
Investments
9
Total fixed assets
CURRENT ASSETS
Debtors
10
Cash at bank
CREDITORS
Amounts falling due within a year (non-investments)
11
Amounts due to provinces (non-investment)
Accruals
Commitments
Amounts falling due within a year (investments)
11
NET CURRENT ASSETS
TOTAL NET ASSETS
RESTRICTED FUNDS
12,14
Ukraine
Solidarity
Covid Cor Unum
Heritage
Future Sustainability
UNRESTRICTED FUNDS
12,14
Designated
Solidarity
Formation
Future Sustainability
General funds
TOTAL FUNDS|2022|2021
RESTATED|
||483
665
0
750
164.080
177.886||
||164.563
179.301
14
251
7.473
8.081||
||7.487
8.332
8.601
8.223
1.707
1.524
658
571
6.236
6.128
30.402
32.526||
||39.003
40.749
-31.516
-32.417||
||133.047
146.884||
||67.591
71.755
0
0
0
0
135
305
789
900
66.667
70.550
65.456
75.129
14.855
15.428
6.029
6.086
2.801
3.317
6.025
6.025
50.601
59.701||
||133.047
146.884||
Approved by the trustees on 6th July 2023 and signed on their behalf by Sister Barbara Dawson
Chair of Trustees
49
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**FINANCIAL STATEMENTS**
## **CHARITY BALANCE SHEET AS AT 31 DECEMBER (IN €’000S)**
## CHARITY
|**AS AT31 DECEMBER(IN€’000S) **|CHA|ITY|
|---|---|---|
|Notes
FIXED ASSETS
Fixed assets
8
Social Investments
Investments
9
Total fixed assets
CURRENT ASSETS
Debtors
10
Cash at bank
CREDITORS
Amounts falling due within a year (non-investments)
11
Amounts due to provinces (non-investment)
Accruals
Commitments
Amounts falling due within a year (investments)
11
NET CURRENT ASSETS
TOTAL NET ASSETS
RESTRICTED FUNDS
12,14
Ukraine
Solidarity
Covid Cor Unum
Heritage
Future Sustainability
UNRESTRICTED FUNDS
12,14
Designated
Solidarity
Formation
Future Sustainability
General funds
TOTAL FUNDS|2022|2021
RESTATED|
||0
0
0
750
164.080
177.886||
||164.080
178.636
0
218
7.249
7.764||
||7.249
7.982
8.237
8.137
1.707
1.524
294
205
6.236
6.408
30.402
32.526||
||38.639
40.663
-31.390
-32.681||
||132.690
145.955||
||67.591
71.755
0
0
0
0
135
305
789
900
66.667
70.550
65.099
74.200
6.029
6.086
2.801
3.317
6.025
6.025
50.244
58.772||
||132.690
145.955||
Approved by the trustees on 6th July 2023 and signed on their behalf by Sister Barbara Dawson
Chair of Trustees
50
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**FINANCIAL STATEMENTS**
## **GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER (IN €’000S)**
## GROUP
||GROUP|
|---|---|
|Cash flows from operating activities:
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
(Decrease)/Increase in creditors
Decrease/(Increase) in debtors
Depreciation charges
Investment income
Net realised and unrealised investment and foreign currency
gains/(losses) on revaluation on investments|2022
2021
RESTATED|
||-13.837
27.984
538
9.242
77
1.007
222
231
-2.066
-1.805
12.548
-19.686|
|Net cash provided by / (used in) operating activities|-2.464
-21.260|
|Cash flows from investing activities:
Investment income
Net (additions)/withdrawals to investments
Purchase of new fixed assets
Proceeds from the sale of fixed assets|2.066
943
-116
7.697
-39
21.079
0
0
0
415|
|Net cash provided by investing activities|1.910
415|
|Change in cash and cash equivalents in the year|-607
-596|
|Balances brought forward at 01 Jan
Balance carried forward at 31 Dec|8.081
8.177
7.473
8.081|
51
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**FINANCIAL STATEMENTS**
## **CHARITY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER (IN €’000S)**
## CHARITY
||CHARITY|
|---|---|
|Cash flows from operating activities:
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
(Decrease)/Increase in creditors
Decrease/(Increase) in debtors
Depreciation charges
Investment income
Net realised and unrealised investment and foreign currency
gains/(losses) on revaluation on investments|2022
2021
RESTATED|
||-13.264
28.039
99
9.426
218
1.036
0
0
-2.065
-1.805
12.548
-19.686|
|Net cash provided by / (used in) operating activities|-2.464
17.010|
|Cash flows from investing activities:
Investment income
Net (additions)/withdrawals to investments
Purchase of new fixed assets
Proceeds from the sale of fixed assets|2.065
943
-116
7.655
0
21.079
0
0
0
415|
|Net cash provided by investing activities|1.949
415|
|Change in cash and cash equivalents in the year|-515
37.674|
|Balances brought forward at 01 Jan
Balance carried forward at 31 Dec|7.765
7.789
7.249
7.765|
52
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## NOTES TO THE FINANCIAL STATEMENTS
## **1. ACCOUNTING POLICIES**
## 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.
## Consolidation
Consolidation takes place with third parties when the charity determines that:
- the third-party entity is financially dependent upon the charity and would not be able to continue without the charity’s support, and
- the charity is able to control the actions of the third party either directly or indirectly due to the authority it has via the trustees of the charity.
53
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## 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.
All income donations received are verified with the recipient at the time of receipt to ensure that the intention of the donations is fully understood and accounted for correctly.
## 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:
- The costs of charitable activities comprise expenditure on the group’s primary charitable purpose as described in the trustees’ report. Such costs include:
- Support of the charitable work of members of the Society of the Sacred Heart. Specific areas of expenditure are detailed out in the trustees’ report.
- Other donations payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions.
- Governance costs are the costs associated with the governance arrangements of the group including audit costs and the necessary legal procedures for compliance with statutory requirements.
- All costs are directly attributable to specific activities.
## Fixed Assets
Tangible fixed assets 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:
- Land & Buildings 3%
- Equipment 15%
- Vehicles 25%
## Debtors & Creditors
- Debtors - Debtors are recognised at the settlement amount due.
54
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
- Creditors – Creditors are recognised where the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
## 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.
## 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)**
**----- Start of picture text -----**
GROUP CHARITY
2021 2021
2022 2022
RESTATED RESTATED
Funds received from the
Duchesne Trust:
- - - -
- Generalate (donation)
- Provinces (donation) 5.493 15.509 5.493 15.508
Total donations 5.493 15.509 5.493 15.508
**----- End of picture text -----**
55
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **3. INVESTMENT INCOME (IN €’000S)**
|Investment income (dividend & interest)|GROUP
CHARITY|GROUP
CHARITY|GROUP
CHARITY|GROUP
CHARITY|
|---|---|---|---|---|
||2022|2021|2022|2021|
||2.066
1.805||2.065
1.805||
**4. SUPPORTING THE CHARITABLE WORK OF MEMBERS OF THE SOCIETY OF THE SACRED HEART (IN €’000S)**
GROUP CHARITY
**----- Start of picture text -----**
2021 2021
2022 2022
RESTATED RESTATED
Donations to the Society of
the Sacred Heart:
- Generalate (donation) 3.230 4.649 2.657 4.846
- Provinces (donation) 1.747 3.048 1.747 3.048
Total donations 4.977 7.697 4.404 7.894
**----- End of picture text -----**
## **5. OTHER COSTS (IN €’000S)**
|Auditors remuneration
Other professional fees
Other costs
Total|GROUP
CHARITY|
|---|---|
||2022
2021
2022
2021|
||17
12
17
12
386
403
386
403
9
-
9
-
412
415
412
415|
56
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **6. STAFF COSTS AND TRUSTEES’ REMUNERATION (IN €’000S)**
The group had salary costs of:
## GROUP
|Salaries
Social costs
TOTAL GROUP COSTS|2022
2021|
|---|---|
||931
752
215
197
1,146
949|
The charity has no employees (31 December 2021- none) and, therefore, no staff costs were incurred during the year (31 December 2021 - €nil).
During the year the group had an average of 16 employees (31 December 2021: 16).
During the year group employees receiving renumeration in excess of €70,000 were:
Number
None of the trustees received any remuneration in respect of their services during the year (31 December 2021 - €nil). Expenses incurred by the trustees in the performance of their duties were not reimbursed during the year (31 December 2021 - €nil).
During the year ex-gratia payments totalled €121k were made (2021 €nil)
## **7. 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.
57
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **8. FIXED ASSETS (GROUP) (IN €’000S)**
**----- Start of picture text -----**
Land &
Equipment Vehicles TOTAL
Building
Opening cost as at 1 january 2022 5,842 455 18 6,315
Additions - 40 - 40
Closing cost as at 31 december 2022 5,842 495 18 6,355
Brought forward acc. depreciation as at 1
5,258 374 18 5,650
January 2022
Charge for the year 197 25 - 222
Total accumulated depreciation as at 31
5,455 399 18 5,872
december 2022
Total Net Book Value as at 31
387 96 - 483
December 2022
Total Net Book Value as at 31 December
584 81 - 665
2021
**----- End of picture text -----**
The charity has no fixed assets.
58
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **9. INVESTMENTS (IN €’000S)**
Movements in investments are summarised below:
|Movements in investments
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|GROUP
CHARITY|
|---|---|
||2022
2021
RESTATED
2022
2021
RESTATED|
||178.636
138.014
178.636
138.014
116
16.872
116
16.872
331
1.969
331
1.969
(2.456)
4.609
(2.456)
4.609
(12.547)
16.422
(12.547)
16.422
164.080
177.886
164.080
177.886|
List investments held at year-ends comprised of the following:
|Equities
Fixed interest securities
Alternatives
Property
Cash
Market value at 31 December|GROUP
CHARITY|
|---|---|
||2022
2021
2022
2021|
||84.658
107.443
84.658
107.443
20.699
24.076
20.699
24.076
26.421
24.548
26.421
24.548
16.363
12.274
16.363
12.274
15.939
9.545
15.939
9.545
164.080
177.886
164.080
177.886|
59
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **10.DEBTORS (IN €’000S)**
The other debtors relate to loans made to the Society’s provinces as follows:
|Democratic Republic of Congo Province
Other debtors
Market value at 31 December|GROUP
CHARITY|
|---|---|
||2022
2021
2022
2021|
||-
218
-
218
14
33
-
-
14
251
-
218|
The loan to the Democratic Republic of Congo Province was fully repaid during the year
**11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (IN €’000S)**
|Amounts due to provinces – Non Investment
Accruals
Commitments
Sub -total
Amounts due to provinces – Investment
Total|GROUP
CHARITY|
|---|---|
||2022
2021
RESTATED
2022
2021
RESTATED|
||1.707
1.524
1.707
1.524
658
571
294
205
6.236
6.128
6.236
6.408
8.601
8.223
8.237
8.137
30.402
32.526
30.402
32.526
39.003
40.749
38.639
40.663|
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 9) net of all disbursements and gains or losses on the investment.
60
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **12. FUND BALANCES ALLOCATED FOR SPECIFIC PURPOSES (IN €’000S)**
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:
## GROUP
**----- Start of picture text -----**
1 January Investment 31
2022 Income Expenditure gains (net December
RESTATED of fees) 2022
RESTRICTED FUNDS
Future Sustainability 70.550 4.576 (1.233) (7.226) 66.667
Cor Unum Covid 305 - (258) (47) -
Heritage 900 - (7) (104) 789
Ukraine Russia Support - 188 (54) - 134
Solidarity - 180 (180) - -
Total restricted funds 71.755 4.944 (1.732) (7.377) 67.590
UNRESTRICTED FUNDS - - - - -
- - - - -
Designated funds
Formation 3.317 - (516) - 2.801
Solidarity 6.086 - (57) - 6.029
Future Sustainability 6.025 - - - 6.025
Generalate 59.701 2.694 (4.166) (7.627) 50.601
Total unrestricted funds 75.129 2.694 (4.739) (7.627) 65.457
TOTAL FUNDS
146.884 7.638 (6.471) (15.004) 133.047
as at 31 December 2022
**----- End of picture text -----**
61
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
## **NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## CHARITY
**----- Start of picture text -----**
1 January Investment 31
2022 Income Expenditure gains (net December
RESTATED of fees) 2022
RESTRICTED FUNDS
Future Sustainability 70.550 4.576 (1.233) (7.226) 66.667
Cor Unum Covid 305 - (258) (47) -
Heritage 900 - (7) (104) 789
Ukraine Russia Support - 188 (54) - 134
Solidarity - 180 (180) - -
Total restricted funds 71.755 4.944 (1.732) (7.377) 67.590
UNRESTRICTED FUNDS
Designated funds
Formation 3.317 - (516) - 2.801
Solidarity 6.086 - (57) - 6.029
Future Sustainability 6.025 - - - 6.025
Generalate 58.772 2.694 (3.594) (7.627) 50.244
Total unrestricted funds 74.200 2.694 (4.167) (7.627) 65.100
TOTAL FUNDS
145.955 7.638 (5.899) (15.004) 132.690
as at 31 December 2022
**----- End of picture text -----**
## **GROUP & CHARITY**
## Restricted
- a) Solidarity – Funds that have been donated to fund projects involving members of the Congregation, to support and educate vulnerable groups who live in poverty. This is often directed towards women and children who lack the basic necessities of life.
- b) Covid - Funds that have been donated by provinces to fund projects and activities specifically related to the impact of COVID-19, as defined by specific criteria.
- c) Future Sustainability – Funds that have been donated by provinces in response to the call from General Chapter 2016 to "commit ourselves as one body to live our community of goods by sharing our resources throughout the Society, especially our financial resources, in order to sustain our life and mission for the future." The use of the Sustainability Fund was discussed at the Special Chapter 2021 and decisions will be implemented in 2022. Details of the types of funding are set out in a document titled “Priorities for Future Sustainability”.
62
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
- d) Heritage – The fund was set up to facilitate the maintenance of heritage assets within the Society of the Sacred Heart. Specifically, the heritage property located in Joigny, France.
- e) Ukraine-Russia support – The fund was set up to support the victims of the Ukrainian Russian conflict with assistance and psychological counselling of women and children, language teaching, facilitation of social integration, training for employment.
## Designated
- a) Generalate – Funds that have been designated to ensure the continuing operation of the General Council in Rome along with the associated costs of operating the Society of the Sacred Heart.
- b) Solidarity – Funds have been designated to fund projects involving members of the Congregation, to support and educate vulnerable groups who live in poverty. This is often directed towards women and children who lack the basic necessities of life.
- c) Formation – Funds that have been designated to cover the costs associated with initial and on-going education for the members of the Society of the Sacred Heart.
- d) Future Sustainability – Funds have been designated in response to the call from General Chapter 2016 to "commit ourselves as one body to live our community of goods by sharing our resources throughout the Society, especially our financial resources, in order to sustain our life and mission for the future."
## **13. RELATED PARTY TRANSACTIONS**
No related party transactions took place during the year.
63
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **14. ALLOCATION OF RESERVES (IN €’000S)**
## GROUP
||GROUP|
|---|---|
|Fixed assets
Current assets
Current liabilities - non-
investment
Current liabilities -
Province investments
Total reserves|Unrestricted
reserves
Designated
reserves
Restricted
reserves
TOTAL|
||31.516
65.456
67.591
164.563
7.487
-
-
7.487
(8.601)
-
-
(8.601)
(30.402)
-
-
(30.402)|
||-
65.456
67.591
133.047|
## CHARITY
|Fixed assets
Current assets
Current liabilities - non-
investment
Current liabilities -
Province investments
Total reserves|Unrestricted
reserves
Designated
reserves
Restricted
reserves
TOTAL|
|---|---|
||31.390
65.099
67.591
164.080
7.249
-
-
7.249
(8.237)
-
-
(8.237)
(30.402)
-
-
(30.402)|
||-
65.099
67.591
132.690|
64
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022
**NOTES TO THE FINANCIAL STATEMENTS (IN €’000)**
## **15. PRIOR PERIOD ADJUSTMENT**
During the course of the year two error were discovered relating to the following items:
- Liability due to a Province related to their investment being understated resulting in the liability increasing by €2.2 million, and
- A commitment that should have recorded at the time of the receipt of funding for a project of €1.8 million
The impact to the Statement of Financial Activities in the year ending 31 December 2021 was an increase in expenditure of €1.8 million and a reduction in the unrealised gains and losses of €2.2 million resulting in the reserves decreasing in the year by €4.0 million.
65
ANNUAL REPORT AND ACCOUNTS AT 31/12/2022