REGISTERED CHARITY NUMBER: 801900
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020 FOR
MSC CHARITY TRUST
Atkinson Finch & Co Chartered Accountants Central Chambers 45-47 Albert Street Rugby Warwickshire CV21 2S8G
MSC CHARITY TRUST
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
Page
Report of the Trustees Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements
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MSC CHARITY TRUST
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31ST DECEMBER 2020
The trustees present their report with the financial statements of the charity for the year ended 31st December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims The objects are set out in the Trust Deed, being to promote the objects of The Society of the Missionaries of the Sacred Heart of Jesus, a voluntary association ofmen formed in Ireland for the promotion of the Catholic faith.
Under the terms of the gift made to Warwickshire Catholic Independent Schools Foundation in September 2001, the charity has retained the use of community accomodation at Princethorpe College under a lease back arrangement for a nominal consideration. The property gifted included Princethorpe Church, which is to continue to be made available for use by the general public.
The Trust is now in receipt of property and investment income, which together with donations are applied to further the objects. The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities.
ACHIEVEMENT AND PERFORMANCE
Charitable activities The Charity raises funds for the MSC South Africa Fund and continues to support Bakhita Village, a home for orphaned and vulnerable school aged girls in Tzaneen Province, South Africa. The Charity also made the following donations during the financial year:
- £10,000 to the Catholic Worker Farm which supports female asylum seekers and their children - £1,500 Sponsorship for a pupil at Princethorpe College to attend a trip to Malawi - £2,000 contribution to the Conference of Religious UK to support new Church safeguarding/safe spaces initiatives
The MSC Charity Trust (no. 1176634), a company limited by guarantee, has been formed to take over the affairs of this Charity, at which point this Charity will be wound up. The transfer of the assets and activities has commenced but currently no properties have been transferred, only an amount of cash. The trustees are aiming to have the transfer fully completed by 31st December 2021.
FINANCIAL REVIEW
Reserves policy
The trustees have considered the requirement for free reserves which are those funds not invested in fixed assets, designated for specific purposes or otherwise committed.
The Charity has committed to make donations of £100,000 to the Catholic Worker Farm during the next financial year, together with £20,000 to the Missionaries ofthe Sacred Heart of Jesus in the Philippines to help fund the further studies or formation of young missionaries, which will represent the second instalment from a commitment of five.
The trustees continue to review suitable projects that will benefit from these funds and make life changing impacts on people in need.
Going concern
The trustees confirm that they are not aware of any material uncertainties about the Charity's ability to continue.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document The MSC Charity Trust was founded by Trust Deed on 16th June 1989.
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MSC CHARITY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees Trustees are appointed by the Provincial of The Missionaries of the Sacred Heart of Jesus, such that the number of trustees shall not exceed ten at any time.
Related parties
The Trustees of the charity are members of The Society of the Missionaries of the Sacred Heart of Jesus, a voluntary association ofmen formed in Ireland for the promotion of the Catholic faith.
A summary ofthe transactions with related parties is set out in note 11 of the financial statements
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number 801900
Principal address Princethorpe College Princethorpe Rugby Warwickshire CV23 9PX
Trustees
Rev. C R Tranter Rev. J P Fitzgerald Rev. M J O'Connell Rev. M A Serrage Rev. M A Ferry Rev. JA Nolan Rev. A R Whelan Rev. T O'Brien
Secretary to the Trustees PE Shaw
Independent Examiner S G Bolton FCA ICAEW Atkinson Finch & Co Chartered Accountants Central Chambers 45-47 Albert Street Rugby Warwickshire CV21 28G
Bankers
Allied Irish Bank (GB) Brmmingham City Office 61 Temple Row Birmingham B2 5LT
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MSC CHARITY TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2020
REFERENCE AND ADMINISTRATIVE DETAILS
Solicitors Varley Hibbs & Co. Keelers 3 Coventry Innovation Village Dunns Pitts Farm Cheetah Road Hollis Lane Coventry Kenilworth CV1 2TL CV8 23Y Approved by order ofthe board of trustees on ctlotlac at
and signed on its behalf by:
Rev. C R Tranter - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MSC CHARITY TRUST
Independent examiner's report to the trustees of MSC Charity Trust
I report to the charity trustees on my examination of the accounts of MSC Charity Trust (the Trust) for the year ended 3 1st December 2020.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- accounting records were not kept in respect of the Trust as required by section 130 ofthe Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
S G Bolton FCA ICAEW Atkinson Finch & Co Chartered Accountants Central Chambers 45-47 Albert Street Rugby Warwickshire CV21 28G
Date: _dtbes\aoat
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MSC CHARITY TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020
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|||||||||
|---|---|---|---|---|---|---|---|
|2020|2019|
|Unrestricted|Restricted|Total|Total|
|fund|fund|funds|funds|
|Notes|i|£|£|£|
|INCOME|AND ENDOWMENTS FROM|
|Donations|and|legacies|2|501|7,179|7,680|113,854|
|Investment|income|3|$1,186|-|81,186|66,285|
|Total|81,687|7,179|88,866|180,139|
|EXPENDITURE|ON|
|Letting of|properties|4|23,971|-|23,971|13,982|
|Charitable|activities|
|Donations|13,500|3,020|16,520|32,831|
|Subsistence|grants|for priests|34,000|-|34,000|-|
|Premises|and support costs|9,115|.|9,115|8,055|
|Administration|costs|14,836|“|14,836|13,523|
|Total|95,422|3,020|98,442|68,391|
|NET INCOME/(EXPENDITURE)|(13,735)|4,159|(9,576)|111,748|
|Other|recognised|gains/(losses)|
|Gains on revaluation of fixed|assets|1,298,818|-|1,298,818|105,000|
|Net movement|in|funds|1,285,083|4,159|1,289,242|216,748|
|RECONCILIATION OF FUNDS|
|Total|funds|brought|forward|2,884,975|10,734|2,895,709|2,678,961|
|TOTAL FUNDS CARRIED FORWARD|4,170,058|14,893|4,184,951|2,895,709|
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The notes form part of these financial statements
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MSC CHARITY TRUST
BALANCE SHEET 31ST DECEMBER 2620
| 2020 | 2019 | ||||
|---|---|---|---|---|---|
| Unrestricted fund |
Restricted fund |
Total funds |
Total funds |
||
| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 7 | 3,690,168 | “ | 3,690,168 | 2,391,473 |
| CURRENT ASSETS |
|||||
| Debtors Cash atbank |
8 | 35,922 719,384 |
- 14,893 |
35,922 734,277 |
10,628 772,751 |
| 755,306 | 14,893 | 770,199 | 783,379 | ||
| CREDITORS | |||||
| Amounts fallingduewithinoneyear | 9 | (275,416) | - | (275,416) | (279,143) |
| NETCURRENTASSETS | 479,890 | 14,893 | 494,783 | 504,236 | |
| TOTALASSETS LESSCURRENT | |||||
| LIABILITIES | 4,170,058 | 14,893 | 4,184,951 | 2,895,709 | |
| NETASSETS | 4,170,058 | 14,893 | 4,184,951 | 2,895,709 | |
| FUNDS | 10 | ||||
| Unrestricted funds | 4,170,058 | 2,884,975 | |||
| Restrictedfunds | 14,893 | 10,734 | |||
| TOTALFUNDS | 4,184,951 | 2,895,709 |
The financial statements were approved by the Board of Trustees and authorised for issue on EANVONVRO|N and were signed on its behalf by:
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Rev. C R Tranter - Trustee
ev. J P Eitzger, Trustee
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The notes form part of these financial statements
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MSC CHARITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020
- ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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) (effective 1 January 2019), Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
Income
Income is recognised in the period in which the charity is entitled to the funds.
Expenditure
Expenditure is recognised on an accruals basis.
Costs of generating funds comprise those costs directly attributable to income from letting.
Donations are charged in the period in which the offer is conveyed to the recipient.
Premises and support costs comprise costs in respect of the charity's property and costs incurred in running retreats.
Govemance costs comprise costs of running the charity itself as an organisation.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures, fittings and computer equipment
- 10% on cost
Freehold property
Investment property is stated at valuation at the balance sheet date. The Trustees review the property portfolio periodically and adjust the carrying values where they believe there is a material adjustment to the previous year. No depreciation is provided on the freehold property as the Trustees are of the opinion that the residual value is in excess of the valuation shown in the financial statements.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Restricted funds
Restricted funds are used for specified purposes as laid down by the donor. Expenditure which meets these criteria is allocated to the fund.
Unrestricted funds
Unrestricted funds are donations and other income received or generated for the objects of the charity without further specified purpose and are available as funds which the charity may use for its purposes at its discretion.
Designated funds
Theses are sums forming part of the charity's unrestricted funds set aside by the trustees for particular purposes in the future. The trustees have the power to reallocate such funds within unrestricted funds unless and until expended.
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MSC CHARITY TRUST
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST DECEMBER 2020
| 2. | DONATIONSANDLEGACIES | ||
|---|---|---|---|
| 2020 | 2019 | ||
| £ | £ | ||
| Donations Legacies |
7,680 - |
3,234 110,620 |
|
| 7,680 | 113,854 | ||
| 3. | INVESTMENTINCOME | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Rentsreceived | 75,667 | 60,620 | |
| Depositaccountinterest | 5,519 | 5,665 | |
| 81,186 | 66,285 | ||
| 4. | LETTING OFPROPERTIES | ||
| Propertycosts | 2020 | 2019 | |
| £ | £ | ||
| Insurance Lightandheat Rates andwater |
- 1,178 2,083 |
65 333 2,202 |
|
| Repairsandmaintenance Groundrentandservice charges |
13,391 2,339 |
6,539 1,740 |
|
| Managementfees | 4,980 | 3,103 | |
| 23,971 | 13,982 |
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees’ remuneration or other benefits for the year ended 31st December 2020 nor for the year ended 31st December 2019.
Trustees’ expenses
There were no trustees’ expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019.
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MSC CHARITY TRUST
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST DECEMBER 2020
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||||||||
|---|---|---|---|---|---|---|
|6.|COMPARATIVES FOR THE STATEMENT|OF FINANCIAL ACTIVITIES|
|Unrestricted|Restricted|Total|
|fund|fund|funds|
|£|£|£|
|INCOME AND ENDOWMENTS FROM|
|Donations and|legacies|110,820|3,034|113,854|
|Investment|income|66,285|-|66,285|
|Total|177,105|3,034|180,139|
|EXPENDITURE|ON|
|Letting of|properties|13,982|-|13,982|
|Charitable|activities|
|Donations|30,015|2,816|32,831|
|Premises|and|support|costs|8,055|-|8,055|
|Administration|costs|13,523|-|13,523|
|Total|65,575|2,816|68,391|
|NET INCOME|111,530|218|111,748|
|Other|recognised|gains/(losses)|
|Gains on|revaluation of fixed assets|105,000|-|105,000|
|Net movement|in|funds|216,530|218|216,748|
|RECONCILIATION|OF FUNDS|
|Total funds brought forward|2,668,445|10,516|2,678,961|
|TOTAL FUNDS CARRIED FORWARD|2,884,975|10,734|2,895,709|
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MSC CHARITY TRUST
NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST DECEMBER 2020
Te
TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETSASSETS | |||||
|---|---|---|---|---|---|
| Fixtures, | |||||
| fittings | |||||
| Freehold investment property £ |
Other freehold property £. |
and computer equipment £ |
Totals £ |
||
| COSTORVALUATION | |||||
| At 1stJanuary2020 | 1,604,111 | 787,071 | 74,597 | 2,465,779 | |
| Revaluations | 1,330,889 | (32,071) | . | 1,298,818 | |
| At31stDecember 2020 | 2,935,000 | 755,000 | 74,597 | 3,764,597 | |
| DEPRECIATION | |||||
| At 1stJanuary2020 | - | - | 74,306 | 74,306 | |
| Chargeforyear | - | - | 123 | 123 | |
| At31stDecember2020 | - | = | 74,429 | 74,429 | |
| NETBOOKVALUE | |||||
| At31stDecember2020 | 2,935,000 | 755,000 | 168 | 3,690,168 | |
| At 31stDecember2019 | 1,604,111 | 787,071 | 291 | 2,391,473 | |
| Freehold investmentproperty includes the following: | |||||
| Atvaluation | |||||
| £ | |||||
| Farmland | ba | ||||
| 157EttingtonRoad, Ashton, Birmingham | “2 | 260,000 | |||
| EastLodge, Princethorpe | *2 | 425,000 | |||
| TheRetreatCentre, Princethorpe | *2 | 725,000 | |||
| Gardener's Cottage, Princethorpe | *2 | 325,000 | |||
| £2,935,000 | |||||
| Otherfreeholdproperty includes the following: | |||||
| At valuation | |||||
| £ | |||||
| 2VitaHouse, CharringtonPlace, StAlbans | ¥3 | 350,000 | |||
| ThePresbytery, BeaconsfieldRoad, StAlbans | *4 | 405,000 | |||
| 755,000 |
*] The farmland was valued by Howkins and Harrison at its open market value in October 2020, subject to existing Farm Business Tenancies.
*2 The valuations were carried out by Howkins and Harrison, Chartered Surveyors, in October 2020 at their open market values with vacant possession.
*3 Vita House was revalued at December 2020 by Leaders Limited, Letting and Estate Agents, at its open market value with full vacant possession.
*4 The Presbytery was revalued in August 2019 by Avison Young, Chartered Surveyors, at its open market value with full vacant possession.
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MSC CHARITY TRUST
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|||||||||
|---|---|---|---|---|---|---|---|
|NOTES TO THE FINANCIAL STATEMENTS-|continued|
|FOR THE YEAR ENDED 31ST DECEMBER 2020|
|8.|DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR|
|2020|2019|
|£|£|
|Other|debtors|29,122|4,868|
|Prepayments and accrued income|6,800|5,760|
|35,922|10,628|
|9.|CREDITORS:|AMOUNTS FALLING DUE WITHIN ONE YEAR|
|2020|2019|
|£|£|
|Other creditors|268,584|270,286|
|Accruals|and deferred|income|6,832|8,857|
|275,416|279,143|
|10.|MOVEMENT|IN FUNDS|
|Net|
|movement|At|
|At|1.1.20|in|funds|31.12.20|
|£|£|£|
|Unrestricted|funds|
|General fund|2,884,975|1,285,083|4,170,058|
|Restricted|funds|
|MSC|South|Africa Fund|10,734|4,159|14,893|
|TOTAL FUNDS|2,895,709|1,289,242|4,184,951|
|Net movement in|funds,|included|in the|above|are|as|follows:|
|Incoming|Resources|Gains and|Movement|
|resources|expended|losses|in funds|
|£|£|£|£|
|Unrestricted|funds|
|General|fund|81,687|(95,422)|1,298,818|1,285,083|
|Restricted|funds|
|MSC|South|Africa Fund|7,179|(3,020)|-|4,159|
|TOTAL FUNDS|88,866|(98,442)|1,298,818|1,289,242|
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MSC CHARITY TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2020
10. MOVEMENT IN FUNDS- continued
Comparatives for movement in funds
| Net | ||||
|---|---|---|---|---|
| At 1.1.19 | movement in funds |
At 31.12.19 |
||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| Generalfund | 2,668,445 | 216,530 | 2,884,975 | |
| Restricted funds | ||||
| MSC SouthAfricaFund | 10,516 | 218 | 10,734 | |
| TOTALFUNDS | 2,678,961 | 216,748 | 2,895,709 | |
| Comparativenetmovement in funds, included intheabove are asfollows: | ||||
| Incoming resources |
Resources expended |
Gainsand losses |
Movement infunds |
|
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General fund | 177,105 | (65,575) | 105,000 | 216,530 |
| Restricted funds | ||||
| MSC South AfricaFund | 3,034 | (2,816) | - | 218 |
| TOTALFUNDS | 180,139 | (68,391) | 105,000 | 216,748 |
- RELATED PARTY DISCLOSURES
Members of the charity are individual members of The Society of the Missionaries of the Sacred Heart of Jesus. At 31st December 2020 the charity owed that organisation £268,584 (2019 - £269,586)
The Trust is in the process of transferring its activities to MSC Charity Trust, a charitable company (Charity reference 1176634). At 31st December 2020 £22,947 of funds had been transferred and this is shown in other debtors in the balance sheet.
The company received rent of £8,400 (2019 - £8,400) at open market value during the year in respect of its investment property in Aston, Birmingham from members of the MSC European Community. Some members are individual members of The Society of the Missionaries for the Sacred Heart of Jesus.
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