The directors and trustees present their annual report and financial statements for the year ended 30 September 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 Charitable Company's Memorandum and Articles of Association, 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).
The Charitable Company's objects are:-
For public benefit the advancement of health and physical and emotional wellbeing through promoting safeguarding for all, in particular within the Catholic Church; including by providing services, support and advice to protect and safeguard all and ensuring the adequacy and effectiveness of safeguarding arrangements.
The directors and trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charitable Company should undertake.
In the year 1 October 2022 to 30 September 2023 Religious Life Safeguarding Service Ltd (RLSS) had a Board of 6 and a staff team of 9. As of 30 September 2023 the RLSS held contracts with 214 Religious Life Groups (RLGs) which equated to 4,015 members.
Within this period, the RLSS took responsibility for 72 safeguarding cases of varying degrees of risk from low level concerns to working alongside criminal investigations. 60 cases were managed and closed during this period. The safeguarding team continued offering advice and support to all RLG members as well as providing guidance documents, policy clarifications and audit concerns and queries. The safeguarding team implemented a new case management software system and transposed all paper safeguarding files into electronic format.
Safeguarding Training has progressed throughout the period. The training team have provided safeguarding training to 974 RLG members and offered 9 different courses as well as offering bespoke training when requested. Courses run by the Training department included (but was not limited to); Trustee Safeguarding Training, Safeguarding for Spiritual Direction and Basic Safeguarding.
A new membership CRM system was implemented, enabling the membership team to tailor communication with stakeholders and communication statistical forms were produced and sent to all RLGs. Sage was also implemented as the main financial software system for accounts. Invoices were moved from being manually raised to electronically raised. The RLSS re-branded and a new Logo and colour scheme was adopted for all internal and external communication streams.
Our DBS system has gone from strength to strength. Between 1 October 2022 and 30 September 2023, 1,123 enhanced DBS checks were completed. During this time our DBS team trained 120 members on how to use the DBS online system and provided support with DBS and system related queries.
During the year the Charitable Company received donations totalling £415,827 (2022: £706,484), as well as member subscriptions for its services of £478,694 (2022: £238,927). Total expenditure incurred totalled £556,165 (2022: £361,729), resulting in an overall surplus of £338,693 (2022: £583,682 surplus) for the year being recorded.
The balance of free funds as at 30 September 2023 totalled £64,925 (2022: £4,605). The Designated Fund totalled £86,667 (2022: £Nil) representing future training needs. The Restricted Fund totalled £770,783 (2022: £579,077) and consists of Common Fund donations received for specific purposes and related expenditure.
Reserves policy
The directors and trustees have reviewed the Charitable Company's reserves. This review considered the nature of the income and expenditure streams, the need to match variable income with fixed commitments and the nature of the reserves.
Having taken all of the above into consideration, the directors and trustees have concluded that the level of reserves held, together with funding arrangements will allow the Charitable Company to fully meet its objectives in the short to medium term.
The Restricted Common Fund was developed so that all eligible RLGs could join the RLSS should they wish too. While exploring the barriers which would stop RLGs joining the RLSS, it was discovered that ability to afford membership fees could be a problem for the smaller or less well resourced RLGs. The Religious of the Catholic Church in England and Wales recognised how important it was that every RLG have access to safeguarding services should they want them regardless of their ability to pay. Therefore, the Religious created the Common Fund and donated generously to it in order to cover the fees of anyone who wished to join but was unable to afford some or all of the fees required.
The initial donations placed in the Restricted Common Fund were intended to last many years into the future (up to 10 years) as we know that with each year that goes by there will be more demand on the fund as the members of RLGs become older and the number within becomes fewer. The Restricted Common Fund has an application process and a criteria for eligibility.
Risk management
The directors and trustees have conducted a review of the major risks to which the Charitable Company is exposed and recognise the importance of and their responsibility for risk management. They are accordingly developing a system for regular review to mitigate the risks identified.
Public benefit
In considering the operation, achievements and performance and finances of the Charitable Company, the directors and trustees are satisfied that public benefit has been provided in accordance with the Charities Act 2011 and guidance issued by the Charity Commission.
The Charitable Company is a company limited by guarantee and is governed by its Memorandum and Articles of Association which were adopted on 17 June 2021 and amended by Board approval on 8 June 2022.
The business of the Charitable Company shall be managed by the current directors and trustees, who may exercise all the powers of the Charitable Company.
The maximum number of directors and trustees is eleven, and the minimum number is five. The directors and trustees may appoint at any time a director and trustee to fill a vacancy or as an additional director and trustee.
Each director and trustee shall be elected for a three year term. At the end of each term a director and trustee shall retire from office but may be re-elected.
No director and trustee shall serve in office for more than six consecutive years provided that a director and trustee may be re-elected annually. Any person who retires as a director and trustee after the maximum permitted period in office is eligible for re-election after an interval of at least three years.
New directors and trustees are given a copy of the Memorandum and Articles of Association, the latest report and accounts, and all the Charitable Company's document on governance. Subject to their experience and expertise, they are also given pamphlets issued by the Charity Commission explaining the duties of Trustees of Charities and offered training in any areas of their duties which they think they would like strengthening.
The directors and 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:
None of the directors and trustees has any beneficial interest in the Charitable Company. All of the directors and trustees are members of the Charitable Company and guarantee to contribute £1 in the event of a winding up.
The directors and trustees, who are also the directors of Religious Life Safeguarding Service Ltd for the purpose of company law, are responsible for preparing the Directors And 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 directors and trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Company 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 directors and 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 Charitable Company will continue in operation.
The directors and trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charitable Company 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 Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors and trustees report was approved by the Board of Directors And Trustees.
I report to the directors and trustees on my examination of the financial statements of Religious Life Safeguarding Service Ltd (the Charitable Company) for the year ended 30 September 2023.
As the directors and trustees of the Charitable Company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charitable Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charitable Company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the Charitable Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of Scotland, which is one of the listed bodies.
I have completed my examination. I confirm that no 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 Charitable Company as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Religious Life Safeguarding Service Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is 84 Church Street, Liverpool, L1 3AY.
The financial statements have been prepared in accordance with the Charitable Company's Memorandum and Articles of Association, 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 Charitable Company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Charitable Company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the directors and trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors and trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the directors and trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the directors and trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
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.
Cash donations are recognised on receipt. Other donations are recognised once the Charitable Company has been notified of the donation, unless performance conditions require deferral of the amount.
Membership subscriptions are recognised in the year in which they are received and then adjusted to reflect the term length of the subscription.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business and inclusive of VAT and other sales related taxes.
All expenditure is accounted for on an accruals basis. Costs are allocated to appropriate headings, based on the activities to which they are attributable.
Management and administration costs are those incurred in connection with the administration of the Charitable Company and compliance with constitutional and statutory requirements.
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:
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.
Fixed assets are capitalised, at cost where the purchase price exceeds £500.
At each reporting end date, the Charitable Company 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).
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.
The Charitable Company 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 Charitable Company's balance sheet when the Charitable Company 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, 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.
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.
Financial liabilities are derecognised when the Charitable Company’s contractual obligations expire or are discharged or cancelled.
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 Charitable Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the income and expenditure account.
In the application of the Charitable Company’s accounting policies, the directors and 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.
Charitable income
Charitable income
Member subscriptions
Computer and software expenses
Recruitment expenses
Insurance
Staff training expenses
DBS checks
Postage, printing and stationery
Telephone
Hotel, travel and subsistence
Consultancy fees
Office rental
Marketing expenses
Repairs, maintenance and cleaning
Donated member subscriptions
Exchange rate differences
Sundry expenses
Payroll administration fees
Accountancy
Independent examination fee
Governance costs includes payments to the independent examiner of £900 (2022: £900) for independent examination fees.
None of the directors and trustees (or any persons connected with them) received any remuneration via payroll or benefits from the Charitable Company during the year.
However, the Charitable Company did pay two (2022: one) of its directors and trustees consultancy fees totalling £13,000 (2022: £5,000) as detailed in note 18.
The average monthly number of employees during the year was:
The remuneration of key management personnel is as follows.
Key management has been determined to be the directors and trustees and the 4 members of the senior management team. The directors and trustees receive no remuneration or benefits.
The Charitable Company is exempt from taxation on its activities because all its income is applied for charitable purposes.
The Charitable Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charitable Company in an independently administered fund.
The charge to income and expenditure in respect of defined contribution schemes was £22,719 (2022: £15,185).
The income funds of the Charitable Company include restricted funds comprising the following unexpended balances of donations held on trust for specific purposes:
The unrestricted funds of the Charitable Company include the following designated funds which have been set aside out of unrestricted funds by the directors and trustees for specific purposes.
At the reporting end date the Charitable Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Transactions with related parties
During the year, the Charitable Company incurred consultancy fees from two (2022: one) of its directors and trustees totalling £13,000 (2022: £5,000). At the year end no balance remained outstanding (2022: £Nil).
The Charitable Company had no material debt during the year.