Charity registration number 509793
Company registration number 1400367 (England and Wales)
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Canon Philip Moor
Mrs C Lawrence
RT Rev M Davies
Secretary
Mrs C Lawrence
Charity number
509793
Company number
1400367
Registered office
St Josephs Presbytery
Wheatland Lane
Wallasey
England
CH44 7ED
Auditor
Lewis Evans Partnership LLP
The Oaks
3 Village Road
West Kirby
Wirral
CH48 3JN
Bankers
The Royal Bank of Scotland
1 Dale Street
Liverpool
L2 2PP
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
CONTENTS
Page
Trustees' report
1 - 3
Statement of trustees' responsibilities
4
Independent auditor's report
5 - 8
Statement of financial activities
9
Balance sheet
10
Notes to the financial statements
11 - 22
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 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 (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Memorandum and Articles of Association established the aims and objectives of the Society to “fulfil the precepts of Catholic Social Teaching within the area of the Roman Catholic Diocese of Shrewsbury, particularly, but not exclusively, by providing services and facilities directed to children and families who are in need”. The Trustees, under the Diocesan Bishop’s direction, continue to work to promote the precepts of Catholic Social Teaching and any lawful charitable purposes, including education and relief of poverty and suffering, promoted or supported by the Church in the Diocese and beyond.

The majority of objectives were transferred to CARITAS Diocese of Shrewsbury from December 2016.

The key objective that remains is in respect of the Post Adoption Services (via Nugent Care) and fostering support for those tracing their personal histories. A secondary objective is the support of CARITAS Diocese of Shrewsbury, by the provision of expertise and knowledge through secondment.

All donations received continue to support the objectives of the Society.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

Volunteers

As the Catholic Children’s Society has changed its primary objectives to a primarily administrative charity the use of volunteers directly in its activities has also been transferred to CARITAS Diocese of Shrewsbury.

Achievements and performance

 

Charitable activities

With the objectives and activities of the Society being significantly reduced to that of an administrative charity, the performance has been in line with expectations and has fulfilled all of its obligations.

Financial review

 

Financial position

In common with other charities, the Society continues to face challenges in securing income to support its work.

The charity, as already stated, has transferred most of its activities to CARITAS Diocese of Shrewsbury save for those around adoption and support for those who wish to trace their histories.

As such a significant element of income arises from secondment for those employees who cannot be effectively transferred within the transfer deed without creating significant financial risk to the Society.

This financial risk arises from the defined benefits pension scheme and its current position is in surplus of £23,000 (2022: £230,000 deficit) as noted within these financial statements. Whilst the current position for the pension is in surplus, it remains a risk and to mitigate this position the charity remains in a long-term plan to manage this position through a structured methodology to protect its financial viability and its core remaining objectives.

 

 

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The long-term strategy of the charity is to maintain a responsible approach to the potential liabilities of its defined benefit pension scheme and small operating costs.

In terms of expenditure, £84,556 (2022: £75,577) has been spent on charitable activities with most of this cost being on staff delivering the services of the Society at £65,650 (2022: £63,223).

Turning to the Balance Sheet, the Trustees note that the Society retains positive net current assets of £34,344 (2022: £33,977), supporting the liquidity of the Charity. The Trustees have received assurances from the Diocese of Shrewsbury that interim support will be available until the future plans are in place.

Reserves policy

At 31 March 2023 the Society had a total of £351,233 (2022: £106,255), being restricted and unrestricted funds. The restricted fund deficit has been cleared from general funds as future income streams for adoption services are expected to be funded as normal activity £0 (2022: £6,677 in deficit). Further details are set out in Note 15 to the accounts.

With the impact of the pension deficit and the limited objectives of the Society the primary reserve policy is to generate sufficient reserves to meet the obligations of the repayment arrangement. We can confirm that this has been achieved for this financial period.

Risk Assessment and Risk Management

The Trustees have in place a risk management process to assess risks to which the Charity is exposed, in particular those relating to the operational areas, finances and investment assets. This involves assessing the likelihood and potential impact of occurrence and identifying means of mitigation. The Society has a rigorous safeguarding policy and activities are monitored for compliance.

Plans for future periods

The Society remains committed to the continued success of all of its objectives and responsibilities.

A key foundation stone to support the Society is to mitigate as much of the administrative cost to ensure the cost is reflective of its remaining objectives around adoption, by supporting CARITAS Diocese of Shrewsbury with its core objectives and improving its revenue streams.

Structure, governance and management

 

Governing document

The Catholic Children's Society is a registered charity, number 509793. It was established as a company limited by guarantee on 16 November 1978 and the governing documents are its memorandum and articles of association, as amended by special resolutions dated 13 December 1989, 21 September 1999 and 29 November 2001. On incorporation the Society became the successor organisation to The Shrewsbury Catholic Protection and Rescue Society, which was dissolved shortly after.

 

The Society operates within the area of the Diocese of Shrewsbury, which has 93 parishes (along with 28 other churches and chapels) and 111 Catholic Schools in Cheshire, Shropshire and parts of Derbyshire, Merseyside and Greater Manchester.

 

The Board of Trustees confirm that they have complied with the duty in the Charities Act 2011 section 17 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.

 

 

 

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

 

Mrs A McMullan
(Resigned 31 October 2022)
Canon Philip Moor
Mrs C Smith
(Resigned 31 October 2022)
Mrs C Lawrence
RT Rev M Davies

The affairs of the Charity are governed by the Trustees under the chairmanship of the Bishop. All Trustees are appointed and removed by the Bishop who is empowered to do so by the Trust Deed. The Board consists of two clergy and one lay member. The clergy Trustees are appointed for their expertise in parochial, spiritual and pastoral matters. The lay Trustee is selected for their skills and experience in business, management and property. Further lay trustees would be chosen to match any perceived skill requirement. New Trustees are provided with the terms of reference and a pack of information relating to the constitution, governance and operation of the Trust.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute an amount not exceeding £5 in the event of a winding up.

Connected Charities

The Roman Catholic Diocese of Shrewsbury is a separately registered charitable trust, Registration No 234025, and the Society operates from Diocesan property, rent free.

 

CARITAS Diocese of Shrewsbury is a separately registered charitable trust, Registration No 1169317, and the Society provides through secondment and at cost non-transferrable staff.

Auditor

In accordance with the company's articles, a resolution proposing that Lewis Evans Partnership LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Mrs C Lawrence
Trustee
30 October 2023
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The Trustees, who are also the directors of The Catholic Children's Society (Shrewsbury Diocese) Inc. for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

 

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

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
- 5 -

Opinion

We have audited the financial statements of The Catholic Children's Society (Shrewsbury Diocese) Inc. (the ‘Charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet 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 charitable company's affairs as at 31 March 2023 and of its 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 Companies Act 2006.

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 Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 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 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.

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

-

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-
certain disclosures of trustees' remuneration specified by law are not made; or
-

we have not received all the information and explanations we require for our audit; or

-

the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the statement of trustees' responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

The key objectives of our audit are to identify and assess the risks of material misstatement within the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

 

Based on our understanding of the charitable company, we identified that the principal risks of non-compliance with laws and regulations related to potential breaches of the applicable regulations for charities, and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Statement of Recommended Practice applicable to charities and the Companies Act 2006

 

We have also considered the incentives and potential opportunities for manipulation of the financial statements (including the risk of override of controls), and the principal risk areas were considered to include journal entries which could manipulate results as well as potential management bias in accounting estimates and judgemental areas of the financial statements, such as the pension liabilities.

 

Audit procedures performed by the engagement team included:

 

 

 

There are inherent limitations in the audit procedures described above and there remains an unavoidable risk that material misstatements in the financial statements might not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). We are less likely to become aware of instances of non compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting a material misstatement resulting from an error, as fraud may involve deliberate concealment or intentional misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
- 8 -

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Evans FCA (Senior Statutory Auditor)
for and on behalf of Lewis Evans Partnership LLP
31 October 2023
Chartered Accountants
Statutory Auditor
The Oaks
3 Village Road
West Kirby
Wirral
CH48 3JN
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
13,401
-
13,401
14,110
-
14,110
Charitable activities
4
30,469
29,664
60,133
29,118
28,726
57,844
Total income
43,870
29,664
73,534
43,228
28,726
71,954
Expenditure on:
Charitable activities
5
49,892
34,664
84,556
46,851
28,726
75,577

Net interest cost

9
6,000
-
6,000
7,000
-
7,000
Total expenditure
55,892
34,664
90,556
53,851
28,726
82,577
Net outgoing resources before transfers
(12,022)
(5,000)
(17,022)
(10,623)
-
(10,623)
Gross transfers between funds
(11,677)
11,677
-
-
-
-
Net (expenditure)/income for the year/
Net (outgoing)/incoming resources
(23,699)
6,677
(17,022)
(10,623)
-
(10,623)
Other recognised gains and losses
Actuarial gain on defined benefit pension schemes
262,000
-
262,000
127,000
-
127,000
Net movement in funds
238,301
6,677
244,978
116,377
-
116,377
Fund balances at 1 April 2022
112,932
(6,677)
106,255
(3,445)
(6,677)
(10,122)
Fund balances at 31 March 2023
351,233
-
351,233
112,932
(6,677)
106,255

The statement of financial activities includes all gains and losses recognised in the year.

 

From 9 December 2016, the family support work of Catholic Children's Society was moved to Caritas. The only ongoing charitable activities are the adoption support works.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
293,889
302,278
Current assets
Debtors
12
34,944
37,655
Cash at bank and in hand
10,859
1,403
45,803
39,058
Creditors: amounts falling due within one year
13
(11,459)
(5,081)
Net current assets
34,344
33,977
Total assets less current liabilities
328,233
336,255
Net assets excluding pension surplus/(deficit)
328,233
336,255
Defined benefit pension surplus/(deficit)
14
23,000
(230,000)
Net assets
351,233
106,255
Income funds
Restricted funds
15
-
(6,677)
Unrestricted funds
351,233
112,932
351,233
106,255
The financial statements were approved by the Trustees on 30 October 2023
Mrs C Lawrence
Trustee
Company registration number 1400367
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Charity information

The Catholic Children's Society (Shrewsbury Diocese) Inc. is a private charitable company limited by guarantee incorporated in England and Wales. The registered office is St Josephs Presbytery, Wheatland Lane, Wallasey, CH44 7ED, England.

1.1
Accounting convention

The financial statements have been prepared in accordance with the Charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The Charity is a Public Benefit Entity as defined by FRS 102.

 

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The Trustees have considered the future trading of the Charity. The Charity is dependent upon the continued support of the Diocese of Shrewsbury in order that it can meet its liabilities as they fall due. The Trustees expect the Diocese to continue to support the Charity for the foreseeable future. Taking this support into account, at the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.
1.4
Income
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Improvements to property
2% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7
Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Cash and cash equivalents

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

1.9
Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.10
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

The charity operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the charitable company, being with the Merseyside Pension Fund. This scheme has now been closed to new employees.

 

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in income/(expenditure) for the year.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

2
Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Donations and legacies
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Donations and gifts
13,401
14,110
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
4
Charitable activities
2023
2022
£
£

Amounts received for staff under secondment

60,133
57,844
Analysis by fund
Unrestricted funds
30,469
29,118
Restricted funds
29,664
28,726
60,133
57,844
5
Charitable activities
2023
2022
£
£
Staff costs
32,664
26,826

Project activities

5,000
-
37,664
26,826
Share of support costs (see note 6)
41,511
44,821
Share of governance costs (see note 6)
5,381
3,930
84,556
75,577
Analysis by fund
Unrestricted funds
49,892
46,851
Restricted funds
34,664
28,726
84,556
75,577
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
6
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Staff costs
32,986
-
32,986
36,397
-
36,397
Depreciation
8,389
-
8,389
8,389
-
8,389

Insurance costs

89
-
89
-
-
-

Sundries

47
-
47
35
-
35
Audit fees
-
4,800
4,800
-
3,600
3,600
Legal and professional
-
542
542
-
330
330
Governance costs heading 2
-
39
39
-
-
-
41,511
5,381
46,892
44,821
3,930
48,751
Analysed between
Charitable activities
41,511
5,381
46,892
44,821
3,930
48,751

All support and governance costs have been allocated to charitable activities. The majority of the staff costs of the charity are funded by Caritas Diocese of Shrewsbury for staff seconded to the related charity.

7
Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
8
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Charitable activities
2
2
Employment costs
2023
2022
£
£
Wages and salaries
44,294
42,707
Social security costs
3,790
3,455
Other pension costs
17,566
17,061
65,650
63,223
There were no employees whose annual remuneration was more than £60,000.
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
9

Net interest cost

Unrestricted
Unrestricted
funds
funds
£
£
2023
2022
Net interest on pension scheme balances
6,000
7,000
6,000
7,000
10
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

11
Tangible fixed assets
Improvements to property
£
Cost
At 1 April 2022
419,426
At 31 March 2023
419,426
Depreciation and impairment
At 1 April 2022
117,148
Depreciation charged in the year
8,389
At 31 March 2023
125,537
Carrying amount
At 31 March 2023
293,889
At 31 March 2022
302,278

The property improvements are in respect of St Aidan's Centre, Wythenshawe, which remains in use for charitable purposes.

12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
34,944
37,655
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Other taxation and social security
778
689
Accruals and deferred income
10,681
4,392
11,459
5,081
14
Retirement benefit schemes
Defined benefit schemes
Key assumptions
2023
2022
%
%
Discount rate
2.8 - 4.9
2.1 - 2.8
Expected rate of increase of pensions in payment
3.5 - 2.8
2.8 - 3.5
Expected rate of salary increases
4.9 - 4.2
4.2 - 4.9
CPI inflation / CARE benefits revaluation
3.4 - 2.7
2.7 - 3.4
Mortality assumptions

The assumed life expectations on retirement at age 65 are:

2023
2022
Years
Years
Retiring today
- Males
21.2
20.9
- Females
23.7
24
Retiring in 20 years
- Males
22.6
22.4
- Females
25.5
25.9

Amounts recognised in the profit and loss account:

2023
2022
£
£
Current service cost
17,000
17,000
Net interest on defined benefit liability/(asset)
6,000
7,000
Total costs
23,000
24,000
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Retirement benefit schemes
(Continued)
- 19 -

Amounts taken to other comprehensive income:

2023
2022
£
£
Actual return on scheme assets
118,000
(150,000)
Less: calculated interest element
49,000
34,000
Return on scheme assets excluding interest income
167,000
(116,000)
Actuarial changes related to obligations
(429,000)
(11,000)

The amounts included in the balance sheet arising from the Charity's obligations in respect of defined benefit plans are as follows:

2023
2022
£
£
Present value of defined benefit obligations
1,578,000
1,987,000
Fair value of plan assets
(1,601,000)
(1,757,000)
(Surplus)/deficit in scheme
(23,000)
230,000

Movements in the present value of defined benefit obligations:

2023
£
Liabilities at 1 April 2022
1,987,000
Current service cost
17,000
Benefits paid
(55,000)
Contributions from scheme members
3,000
Actuarial gains and losses
(429,000)
Interest cost
55,000
At 31 March 2023
1,578,000

The defined benefit obligations arise from plans which are wholly or partly funded.

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Retirement benefit schemes
(Continued)
- 20 -

Movements in the fair value of plan assets:

2023
£
Fair value of assets at 1 April 2022
1,757,000
Interest income
49,000
Return on plan assets (excluding amounts included in net interest)
(167,000)
Benefits paid
(55,000)
Contributions by the employer
14,000
Contributions by scheme members
3,000
At 31 March 2023
1,601,000

The fair value of plan assets at the reporting period end was as follows:

2023
2022
£
£
Equity instruments
593,000
667,000
Debt instruments
490,000
528,000
Property
131,000
128,000
Cash/liquidity
70,000
88,000
Other
317,000
346,000
1,601,000
1,757,000
THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
15
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 April 2021
Incoming resources
Resources expended
Balance at
1 April 2022
Incoming resources
Resources expended
Transfers
Balance at
31 March 2023
£
£
£
£
£
£
£
£
Family Support Services
-
28,726
(28,726)
-
29,664
(29,664)
-
-
Adoption
(6,677)
-
-
(6,677)
-
(5,000)
11,677
-
(6,677)
28,726
(28,726)
(6,677)
29,664
(34,664)
11,677
-

Funds received relating to adoption and family support services offered to schools in a specific area are treated as restricted.

 

Adoption

Historically, the Society has provided this service to families living within the Diocesan boundary. Files for families and children accessing this service must be kept for one hundred years. The Society has not employed an adoption worker for a number of years and has used Nugent Liverpool to carry out post adoption work for those seeking information and reunion with their birth families.

 

 

 

THE CATHOLIC CHILDREN'S SOCIETY (SHREWSBURY DIOCESE) INC.
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
16
Analysis of net assets between funds

Unrestricted

Restricted

Total

Unrestricted

Restricted

Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 March 2023 are represented by:
Tangible assets
293,889
-
293,889
302,278
-
302,278
Current assets/(liabilities)
34,344
-
34,344
40,654
(6,677)
33,977
Provisionsand pensions
23,000
-
23,000
(230,000)
-
(230,000)
351,233
-
351,233
112,932
(6,677)
106,255
17
Related party transactions
Transactions with related parties

During the year the Charity entered into the following transactions with related parties:

Seconded staff income
2023
2022
£
£
Entities with control, joint control or significant influence over the company
60,133
57,844
60,133
57,844

Staff secondment and associated costs were recharged in the period to Caritas Diocese of Shrewsbury, a related charity, and are disclosed as charitable income. Caritas has made direct salary and associated payments in respect of the seconded staff and other amounts have been transferred between the charities.

 

The property improvements at St Aidan's Centre are used for charitable purposes by Caritas with no rental being charged.

 

At the year-end, £32,980 (2022: £36,562) was owed to the charity by Caritas and is included within Other debtors.

18
Ultimate controlling party

The Charity is under the control of the Trustees. Under certain circumstances the Bishop of Shrewsbury, as permanent Chair of the Charity, has a casting vote under the Articles of Association.

 

 

 

 

 

 

 

 

 

 

 

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