**The Congregation of the Daughters of the Cross of Liege**
## **Annual Report and Financial Statements**
31 March 2024
Company Registration Number: 03492921 Charity Registration Number: 1068661
## **Contents**
|**Trustees’ Report**||
|---|---|
|1Summary of activities|1|
|2 Trustees|2|
|**_Strategic Report_**||
|3Introduction|2|
|4 Charity’s aim and objects|3|
|5 Strategic plans and objectives|4|
|6 Activities, performance and achievements in the year|5|
|7 Volunteers|11|
|8 Financial Review (including reserves)|12|
|9 Investments|16|
|10 Fundraising|19|
|11 Risk management|19|
|12 Events since the year-end and future plans|20|
|**_Other matters_**||
|13 Public benefit|21|
|14 Safeguarding|21|
|15 The environment|22|
|16 Structure and governance|22|
|17 Management|24|
|18 Related parties|25|
|19 Statement of trustees’ responsibilities|26|
|**Registration details and principal**||
|**advisers**|28|
|**Independent auditor’s report**|29|
|**Financial Statements**||
|Statement of financial activities|33|
|Comparative statement of financial activities|34|
|Balance sheet|35|
|Statement of cash flows|36|
|Notes to the financial statements|37|
|Principal accounting policies|48|
The Congregation of the Daughters of the Cross of Liege
**Trustees’ report** Year to 31 March 2024
## **1 Summary of activities**
The activities of the charity during the year under review can be considered under two headings.
- The ministry of the Sisters
Provision of housing, care and support for the Sisters. The voluntary work of the Sisters in their local communities, health & welfare settings and their support for the Daughters of the Cross worldwide.
- Healthcare provided at Holy Cross Hospital, Haslemere, Surrey.
A hospital providing care and rehabilitation for patients with complex neurological needs.
_Website: holycross.org.uk._
_The Hospital has 42 beds, over 50 in-patient beneficiaries, 144 employees and 21 volunteers._
The activities of the Sisters are supported by a small central staff who deal with statutory and charity-wide matters, including monitoring the investments and funding Sisters’ Communities. The central administration also encompasses the lay staff caring, cooking, and providing housekeeping for elderly Sisters in Haslemere, Chelsea, Much Hadham, Cheam, and Stillorgan, Ireland.
_Our finances_
|_es_|||
|---|---|---|
||**2024**|2023|
|Total expenditure|£17.5m|£14.4m|
|Total income|£61.8m|£10.8m|
|Net income (expenditure)|£44.3m|£(
3.6m)|
These amounts are achieved before investment and other gains and losses.
_Our people_
|_e_|||
|---|---|---|
||**2024**|2023|
|Total staff costs|£7.4m|£7.3m|
|Employees|187|193|
|Volunteers|23|21|
|Sisters|31|35|
The Congregation of the Daughters of the Cross of Liege **1**
**Trustees’ report** Year to 31 March 2024
## **2 Trustees**
The trustees who served during the year and during the period prior to the report and accounts being signed are:
Sister Veronica Hagen*
Chair and Chief Executive of the Charity (to 31 May 2024) Provincial Superior and Chair of the Provincial Council (to 31 May 2024) Sister Mary McGinn (aka Sister Mary Geraldine)
Provincial Bursar
Sister Josephine Clemence* (aka Sister Annette Clemence) (resigned 31 May 2024) Sister Anne Kelly*
Sister Kathleen O’Reilly*
Chair and Chief Executive of the Charity (from 31 May 2024)
Provincial Superior and Chair of the Provincial Council (from 31 May 2024) Sister Maureen O’Brien* (appointed 31 May 2024)
- Members of the Provincial Council
## _**Trustees’ thanks**_
None of the charity’s work could be achieved without the dedicated loyalty of all the staff employed by the charity, the efforts of the 23 full-time and part-time volunteers (2023 – 21) the commitment and effort of the 31 Sisters in the Province (2023 – 35 Sisters) or without the continuing generosity of its donors and supporters. The trustees are also extremely appreciative of all the members of the Advisory Committees who contribute to the charity’s work by devoting their time and expertise.
To all these groups, the trustees offer their grateful thanks and their prayers.
## **Strategic Report**
## **3 Introduction**
The trustees are pleased to present their report, together with the financial statements of The Congregation of the Daughters of the Cross of Liege, for the year ended 31 March 2024. The trustees’ report, including the strategic report, has been prepared in accordance with Part 8 of the Charities Act 2011 and also constitutes a directors’ report for the purposes of the Companies Act 2006.
The financial statements are presented in accordance with the accounting policies on pages 48 to 53 and comply with the requirements of the Charities Act 2011, the Companies Act 2006, the charity’s Memorandum and Articles of Association, applicable laws, United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice), and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Congregation of the Daughters of the Cross of Liege **2**
**Trustees’ report** Year to 31 March 2024
- **4 Charity’s aim and objects**
The aim of the charity is to provide a legal framework in the UK for the Sisters to follow their calling and to meet the obligations set out in their own Constitution.
In February 1782, in Liege, Belgium, Jeanne Haze was born. As a result of the French Revolution, Jeanne and her family were exiled in Germany, during which time her father died. Jeanne was conscious of her vocation early in her life and was drawn to helping those most in need. On 8[th] September 1833 Jeanne, and her sister, Ferdinande, made their perpetual vows. The two sisters were joined by other young women wishing to lead a religious life. Jeanne received the name Mother Marie Therese, with Ferdinande receiving the name Mother Aloysia. Along with Sisters Clara and Constance, and two postulants, the Congregation of the Daughters of the Cross was born. This small community of Sisters responded whenever they could to the needs of the people around them, nursing the sick in their own homes, caring for women prisoners, teaching children by day and adults in the evening.
Blessed Marie Therese was beatified on 21[st] April 1991. She died on 7[th] January 1876, by which time she had received more than 900 Sisters into the Congregation and founded 51 communities. These communities were spread across Europe and Asia; Germany (founded in 1849), India (1861), and England (1863), when the English Province was established. In 1910 the Sisters’ work was given a more formal framework under a trust deed and in 1998 the activities were transferred to a charitable company limited by guarantee, the objects being based on their Constitutions. The charity is established to:
- advance religion, by establishing and maintaining residencies for the Sisters of the Congregation.
- advance religion, advance education and relieve poverty and suffering, by direct activity in the community and by all other charitable means, including giving alms to the needy.
- relieve poverty and suffering, by establishing and maintaining hospitals, hospices, nursing homes and residential homes for the sick, elderly and needy.
- advance education, by establishing and maintaining educational institutions in accordance with Canon 803 of the Code of Canon Law.
- carry out any other charitable purpose for the benefit of the community as the trustees shall from time to time determine.
For the Sisters, Religion is the commitment to love and serve God as expressed in their vows and is and always has been the centre of their lives and everything they do. Thus, to them, Religion is not just about worship and prayer but encompasses, among other things, teaching and caring for others. To quote from the Sisters’ Religious Constitution “They serve Christ in the works of general and special education, the care of the sick and the aged, abandoned children, the physically, psychologically and mentally challenged, the socially deprived, local pastoral work and the various needs of the Church”. The Sisters do not see the above objects as separate activities but as all part of the one Religious life they have chosen.
The Religious commitment of the Sisters permeates all of the charitable activity carried out in the name of the Province and the charity.
The Congregation of the Daughters of the Cross of Liege **3**
**Trustees’ report** Year to 31 March 2024
## **5 Strategic plans and objectives**
The trustees are continuing to work on their strategic objective of resolving the long-term futures for:
- The Sisters, including where and how they live and are supported and cared for;
- Holy Cross Hospital, as eventually there will be an insufficient number of Sisters with the appropriate skills to continue to be responsible for the Hospital, whose activities are complex and heavily regulated.
Supporting these longer-term strategic plans, are the objectives of the charity;
- Ensure that the senior management of the charity have the required capacity and capability to run the day-to-day operations of the charity in line with their set objectives, including meeting or exceeding all regulatory standards.
- Ensure that the Sisters have the means to enable them to live their lives as spiritually and actively as possible.
- Provide healthy, inclusive, and safe environments for Sisters, beneficiaries, staff, volunteers, and visitors.
- Provide services that are complimentary to those available locally through the NHS and to do so in co-operation with statutory authorities and other healthcare professionals.
- Continue to develop services in neuro-disability and associated rehabilitation of physically disabled adults by increasing the knowledge and expertise of staff, collaborating with the NHS and other professionals and by improving facilities.
- Operate the physiotherapy centre as a service to local people, offering high quality and accessible physiotherapy services and classes.
- Provide comprehensive training programmes for staff and make these available as appropriate to other local care providers and agency staff.
- Maintain the ethos of the Congregation across all areas of the charity.
- **6 Activities, performance and achievements in the year**
## Sisters’ and Provincialate objectives and activities:
The activities of the Sisters and the central office are referred to in this report as ‘The Province’, as a collective term for their combined activities. Holy Cross Hospital and the activities that take place there, are described separately, as the two parts of the charity operate quite differently on a day-to-day basis.
The objectives for the Province for 2023/24 were:
## _**To complete the major building works on our Cheam site**_
The new house and two flats are almost complete at the year-end date but are not yet inuse. The redevelopment of the Gander Green Lane house is also ongoing, with completion for both of these projects expected in the summer of 2024.
The Congregation of the Daughters of the Cross of Liege **4**
**Trustees’ report** Year to 31 March 2024
## **6 Activities, performance and achievements in the year** (continued)
## _**To review the long-term plans for Sisters’ residences**_
These plans remain on hold, largely due to delays with the various property projects described above. This work rolls on into next year.
## _**To resolve the future of St Wilfrid’s, Chelsea**_
The property was placed back on the market in September 2023. The sale of the property was completed on 28 March 2024.
## _**To fund and complete the redevelopment project at Holy Cross Hospital**_
The first phase of the redevelopment project, encompassing the creation of two additional patient beds, the conversion of the former St Joseph’s Convent building into staff accommodation was completed in the year. Phase two work, the redevelopment of St Margaret’s into modern office and meeting space is progressing well and was almost complete at the year end. Work on both phases of the project is expected to be completed by the summer of 2024.
The main activities of the Province are:
- the welfare of the frail and elderly Sisters;
- the individual ministries of the Sisters
- the support of Holy Cross Hospital;
- the support of the former Works of the charity; and
- the support of the Worldwide Congregation.
The Province continues to have a presence in England and Ireland. The Sisters continue to fulfil the objectives of their Religious Constitutions, which are further reflected in the charitable company’s Memorandum and Articles of Association.
The Sisters are trustees, part of management, donors, and beneficiaries. The trustees, like all our Sisters, covenant their pensions and other income to the charity. Having taken a vow of poverty they have no financial resources of their own and they are provided for by the charity as beneficiaries. The Sisters have spent their entire working lives in one or other of the past or present Works and when they reach their later years the charity continues to care for them. As Sisters age, the care and support they require in their Communities is gradually increasing.
The Sisters continue to fulfil the objects set out in both their Religious Constitutions and in the charitable company’s Memorandum and Articles of Association, despite the advancing age and frailty of some of the members. The Sisters provide in-house facilities in England and Ireland to meet the need of their growing number of very frail and sick members, who need full time care. For Sisters with complex healthcare needs the Congregation may purchase a separate care provision.
The Congregation of the Daughters of the Cross of Liege **5**
**Trustees’ report** Year to 31 March 2024
## **6 Activities, performance and achievements in the year** (continued)
_**To fund and complete the redevelopment project at Holy Cross Hospital** (continued)_ Several of our Sisters are trustees of other charities (where they act as individuals, not on behalf of the Province). Sister Annette Clemence (until 31 August 2024), Sister Pat Ainsworth, and Sister Veronica Hagen are trustees at St Elizabeth’s Centre. As well as being trustees, the Sisters have roles as school governors (Sister Annette ) and Sister Pat), a college governor (Sister Annette ), and a member of the healthcare quality committee (Sister Veronica). Sister Veronica and Sister Kathleen O’Reilly are trustees of St Raphael’s Hospice. Sister Kathleen is also a member of the Hospice finance committee and Sister Veronica sits on the income generation committee. Five sisters serve as trustees for this charity.
The Provincial Superior and Provincial Bursar are members of Conference of Religious in England and Wales and the Association of Provincial Bursars respectively and participated in the Annual Conferences in 2023. Sisters are members of the Association of Senior Religious JPIC. During the year, the Province subscribed to membership of the Religious Life Safeguarding Service (RLSS) and the Catholic Safeguarding Standards Agency (CSSA) and are in the process of refreshing our own safeguarding procedures.
The governance and oversight work these Sisters do in the various charitable organisations they support is part of their mission and contribution to civil society and local communities.
The Province has two dedicated Care Communities to support the full-time care needs of 20 frail elderly members. The Communities are based in Haslemere, Surrey and in Stillorgan, Dublin. This arrangement enables these Sisters to continue to participate in the spiritual rhythm and companionship of community life, whilst continuing to receive the care they need.
No Sisters are currently in paid employment. All Sisters are over 70 years old, so it is unlikely any will carry out any paid employment in the future. However, Sisters remain very active and carry out a great deal of unpaid work in a variety of settings. With expert advice, the Sisters manage the income and reserves of the Province in a socially and environmentally responsible manner, to ensure we can support our commitments both at home and abroad.
Each Sister is supported in their chosen ways of volunteering in their neighbourhood. Examples are organising chaplaincy support, offering spiritual and/or pastoral companionship to pupils, patients, staff and relatives within our own hospital (Holy Cross), or in our previously owned services that are now independent charities. Sisters also take part in ecumenical activities, particularly those helping homeless people or those on low incomes. The Province continues to support a charity that supports victims of human trafficking and continues its support for Living and Dying Well’s work in the end-of-life debate.
Some examples of mission work carried out by Sisters during the year are set out below:
Sister Tessa Fisk, based on Holy Island in Northumberland continues to give her pastoral support to the Catholic community on the island and is active within the island’s ecumenical and social networks.
The Congregation of the Daughters of the Cross of Liege **6**
**Trustees’ report** Year to 31 March 2024
## **6 Activities, performance and achievements in the year** (continued)
_**To fund and complete the redevelopment project at Holy Cross Hospital** (continued)_ Sister Ann Venita, a member of our Cheam community, volunteers at St Raphael’s Hospice on a daily basis. This can involve speaking to patients and their families, writing cards and letters to families, and arranging for patients of all faiths to speak with or receive visits from ministers of their own religion. Sister Ann also volunteers in the Hospice’s Wellbeing Centre, where they welcome cancer patients, hospice at home patients, and their families and provide emotional support, fun, exercise, and joy. This year, Sister Ann accompanied a pilgrimage to Lourdes for HCT, a charity that organises pilgrimages for disabled children and adults.
Sister Cecilia D’Mello, a member of our Haslemere community, volunteers in Holy Cross Hospital, supporting patients and staff. Sister Pat Walsh, who also lives in Haslemere, teaches English to our Polish staff working in the community house.
Our Sisters in Ireland continue to support and house two Ukraine families who have sought refuge from the invasion by Russia. The two families are living on the Stillorgan site, under an agreement signed with the Irish Refugee Council. The agreement is in its second year, having been renewed for another 12 months. Both families are settled and interact with the Sisters. The children attend local schools and have a safe garden to play in. Sisters in Ireland continue to be involved in their local community, with Sister Marlene Sylas involved in the work of the local Parish, and Sister Joyce Cullinane continuing her many years of working and volunteering at St James’s Hospital, Dublin.
The Sisters also continue to be involved with The St Stephen’s Green Trust in Ireland, where our endowment continues to fund vital work in the area of social justice. The Daughters of the Cross gave the Trust a €3m permanent endowment in 2003 and the income generated from that sum is spent supporting the work of the Trust in Ireland, in line with the Deed of Gift. The work of the St Stephen’s Green Trust in the areas of relief of poverty and advancing welfare and health in communities is very closely aligned with the charitable aims of the Daughters of the Cross.
Sister Gillian Price works closely with RESULTSUK and JPIC (Justice Peace and the Integrity of Creation) with their advocacy work on nutrition, healthcare, ‘giving a voice to the voiceless’, supporting asylum seekers, and working to end poverty in developing countries. This work includes engaging with MPs and other parliamentarians in order to use UK overseas development aid more effectively.
The Sisters care deeply about their own impact on the environment and nature. They continually seek to address environmental and ecological issues and maximise reusing and recycling in their own living areas, caring for local wildlife, conserving water, and engaging in citizen science projects that support biodiversity and protecting UK wildlife that is under threat.
The Congregation of the Daughters of the Cross of Liege **7**
**Trustees’ report** Year to 31 March 2024
## **6 Activities, performance and achievements in the year** (continued)
_**To fund and complete the redevelopment project at Holy Cross Hospital** (continued)_ At 31 March 2024 there were 31 Sisters (29 in Communities and 2 on the General Council) in the Province (2023 – 35 Sisters (33 in Communities and 2 on the General Council)). During the year, four of our Sisters died: Mary Agnes, Rose McDermott, Mary Eugene, and Una Cullen. The average age of a Sister at 31[st] March 2024 was 83.7 years (2023 – 83.6 years).
Sisters normally spend time on retreat each year in silent contemplation and prayer. The purpose of retreats being to deepen their own spiritual life and to reflect on and evaluate how they are fulfilling their commitment to helping those most in need.
The Province’s frail and elderly Sisters are cared for in appropriately adapted accommodation in Haslemere, Surrey and in Stillorgan, Ireland within a Community setting and with the help of lay staff. The costs are significant, but it avoids the need for Sisters to go into the full-time and even more expensive care of others.
Communities are also supporting adult groups known as Associates of the Daughters of the Cross. These are people who wish to embrace the Charism and Ethos of the Congregation and who in turn support the Congregation’s ministries with their prayers. The English Province Sisters support Associates in Carshalton, Cheam, Jarrow and Much Hadham in England, Stillorgan in Ireland and Tracy in the USA, and there are other groups of Associates in many of the countries in which the Congregation works.
The Province supports the Worldwide Congregation in various ways. Until June 2024, the English Province provided two members of the General Council; Sister Maureen O’Brien (served for six years on the Council) and Sister Mary McLaughlin (served for twelve years). The Province continues to hold the Worldwide Fund designated fund, which enables it to provide grants for the International Generalate to support other Provinces around the world. The Province pays an annual contribution towards the running of the International Generalate and the costs of the Chapter and General Meetings, and hosts the Generalate for its finance committee and trustee meetings in our St Ann’s building in Cheam.
The Congregation of the Daughters of the Cross of Liege **8**
**Trustees’ report** Year to 31 March 2024
## **6 Activities, performance and achievements in the year** (continued)
## _**Holy Cross Hospital**_
Working in close co-operation with the NHS (from which most patients are referred), Holy Cross Hospital provides high quality inpatient services to adults with severe and complex neurological disabilities or illnesses that may arise from acquired brain injury, spinal cord injury or advanced stage of degenerative illness. It also has a physiotherapy centre which houses the hydrotherapy pool, enhancing the treatment of some inpatients and providing excellent facilities for outpatient treatment. The Hospital makes the benefits of physiotherapy and hydrotherapy available to as many local people as possible. The Hospital is also able to provide short-term rehabilitation and respite care.
Most of the inpatients referred to the Hospital have been in contact with statutory services and most of the Hospital’s income is derived from NHS Integrated Care Boards (ICBs), and Local Authorities, who are responsible for funding such healthcare services.
The Hospital aims to achieve the best possible quality of life for all those using its services, with a high priority being given to engaging the support and participation of family members. Some patients require access to the Hospital’s services over prolonged periods, therefore great effort is devoted to making the environment as home-like as possible, to which donations and the work of volunteers make a major contribution.
During the year, and following extensive building and refurbishment work, the Hospital increased its capacity from forty to forty-two beds (from August 2023 onwards).
The work on the two building projects, which comprised alterations to a former convent building in order to provide improved staff accommodation, and the conversion of offices to provide the two additional inpatient rooms, was successfully completed. A new project started during the year, to provide additional office space by converting the old staff accommodation, and this work is scheduled to be completed in April 2024.
The Hospital achieved an average of 97.8% in-patient occupancy (2023 – 93.5%). The increase in occupancy was related to the continuation of the reduced impact of the Covid19 pandemic, with a consequent increase in the number of suitable patients being referred to the Hospital. Recovering occupancy to pre-pandemic levels and securing the staff required to deliver services were the primary areas of focus this year. The Hospital is rated as Outstanding by the Care Quality Commission (CQC).
During the year all our archived patient records, stored as paper documents, were scanned and a secure digital archive created, improving ease of access when required and removing the need for storage space.
Securing sufficient staff continued to be difficult and the Hospital has had to use more agency staff in order to ensure that levels of care were maintained.
An interim CEO had been in place since August 2022. The trustees were delighted to appoint a new permanent CEO, Frances Campion-Smith, who started in October 2023. This is a key appointment for the charity as the trustees continue their work to set out the future of the Hospital.
The Congregation of the Daughters of the Cross of Liege **9**
**Trustees’ report** Year to 31 March 2024
## **6 Activities, performance and achievements in the year** (continued)
## _**Grants**_
Although grants were awarded each year, the charity is not primarily a grant-making charity.
Before every grant is approved, a request for appropriate information to support the grant is made to ensure that it is within the charitable objectives and being made to an organisation or on a project which the trustees wish to support. The impact which the grant would make is also considered. For all grants made within the Worldwide Congregation, reports are received (including photographs) to show what has been achieved with the funds.
During the year there were £148,000 (2023 – £165,000) of worldwide fund grants made to communities of the Worldwide Congregation to help their work in poor local communities in Cameroon, Nepal, and Rourkela, India. There was also a separate grant awarded to a large hospital project in Kolkata (India), for £1m.
For the regular worldwide fund grants, two grants were awarded to Nepal, both supporting the work being done by Sisters at the Christalaya convent in East Nepal. The total of the two grants was £38,000.
The first project is to support the children at the Christalaya Hostel in Maheshpur. Maheshpur is an area where a high percentage of the population are landless labourers, working in the tea gardens and paddy fields, while living in small accommodation provided by their employers. The children of these workers, as well as girls living in challenging and impoverished homes are given access to good quality education, medical care and wellbeing services, and are able to learn crafts and other skills needed in later life. The Hostel currently has 35 boarders (up from 30 last year), from very young children to collegeage students. The Morning Start Nursery provides the younger children with good quality early years care and development, to prepare them for school. Last year it had 46 children attending regularly (up from 37 last year). The Hostel also provides medical and pastoral care for the children. The £10,000 grant was to help to support more children in the nursery, complete the creation of the children’s play park, and pay for food, toiletries, and equipment used by the children, and pay the costs of the teaching and nursery staff.
The second project was to support the St Joseph’s school in Tulachan, East Nepal. The school was started in 2015 and provides education for up to 360 pupils, up from 276 in the previous year. The area has a low literacy rate and many people in the Santhal Tribe, who populate this area, earn their living as agricultural labourers, but do not own any land themselves. The grant of £28,000 was to fund buying books, uniforms, desks, benches, and chairs for the pupils, as well as covering the costs of the teaching and non-teaching staff. The grant also covered the school fees for 100 children, who come from families who are not able to afford to pay themselves. Due to the rising number of pupils, three more teachers were recruited this year, on top of the additional six last year.
In Rourkela, India, two grants of £21,500 each were awarded to the Daughters of the Cross Rourkela Province. The first project was to fund the completion of the development of the St Joseph’s school in Gaibira. The grant will help to fund the completion of the construction work that was started several; years ago but was disrupted by Covid, it will also pay for training for the Sisters so they can better support the children and provide an all-round education. The completion of the works will allow more students to attend the school and provide a better teaching and learning environment. There are 282 children in the school, including 113 boarders.
The Congregation of the Daughters of the Cross of Liege **10**
**Trustees’ report** Year to 31 March 2024
## **6 Activities, performance and achievements in the year** (continued)
## _**Grants** (continued)_
The second grant, also for £21,500, is to fund a project at the St Joseph’s school in Sundargarh. Due to cutbacks in local government support for education in the locality, the Sisters have had to take it upon themselves to help educate the children of the local tribal people. There are 251 children at the school (up from 247 last year) and the grant will allow the Sisters to maintain their education and keep developing the school, so it continues to meet the needs of the local people. The grant pays for the large costs at the school, that the Sisters in Rourkela cannot afford.
Several grants totalling £67,000 for projects in Cameroon were also awarded. These are for projects across the different parts of the country where the Sisters live and work. In recent years this activity has been severely restricted by civil war and terrorist groups, so the grants help to cover the costs of re-starting the work of the Sisters in Cameroon, building and maintaining the infrastructure (such as boundary walls and the solar panels on the college in Mayo Ouldeme) and supporting the development of the novice Sisters.
The £1m grant to Kolkata was part of an international, cross-Province project to help fund a large new hospital, built and operated by the Daughters of the Cross Sisters in Kolkata. The money sent by the English Province was to furnish and equip the new hospital building, and to purchase and install a new CT scanner.
Two grants totalling £2m were paid to St Elizabeth’s Centre during the year. The first £1m grant was to assist with a short term funding and cash flow issue that arose from the closure of the adult home in 2022 and the subsequent inability to admit new college placements in 2023. The second £1m was to support the Centre in much-needed maintenance of the buildings and facilities, to assist with gaining future contracts with local authorities.
The Sisters also made grants and donations totalling £69,000 (2023 - £33,000) to projects in the UK and to emergency disaster relief appeals. These include £30,000 to the Little Sisters of the Poor, £20,000 to Living and Dying Well, £10,000 to Aid to the Church in Need for the Gaza/Israel appeal, £5,000 to the Medaille Trust, £2,000 to the Tablet’s appeal, and £2,000 to Glass Door (a homeless charity). Other smaller donations totalling £450 were awarded to other organisations such as Housing Justice and the Cardinal Hume Centre.
## **7 Volunteers**
The Sisters are Apostolic Religious volunteers and the whole of their lives is given to helping those in need.
The trustees and staff are very grateful to our volunteers, in whatever role they carry out, across the charity, who give freely and generously of their time and who bring enthusiasm and dedication. They make an enormous contribution to the lives of the beneficiaries and the success of the charity.
At Holy Cross Hospital volunteers make a significant contribution to the activities of the Hospital. They contribute to patients’ quality of life by supporting social activities in the “Living Room” and outside in the wider community by helping with transport, outings, and fundraising through the Friends of Holy Cross Hospital.
The Congregation of the Daughters of the Cross of Liege **11**
**Trustees’ report** Year to 31 March 2024
## **8 Financial Review (including reserves)**
## _**Results**_
The Statement of Financial Activities shows an overall result of £51.7m surplus, which is made up of a £48.2m surplus in general funds, £3.5m surplus in designated funds and a £13,000 deficit in restricted funds.
The profit on sale of fixed assets of £49.7m make up the majority of the £51.7m surplus. Of this amount, the sale of the St Wilfrid’s Convent land and buildings in Chelsea accounted for over £49m, with other, much smaller sales also occurring in the year.
Within the Province, overall spending on charitable activities was higher than the previous year, £8m compared to £5.9 in 2023. This increase of £2.1m is driven by two large items; a £1m grant to Sisters in Kolkata to assist the Daughters of the Cross in India with the creation of a new hospital, and a £809,000 impairment charge to adjust the valuation of several properties on a small plot of land that is in the process of being sold.
Spend on Province properties was again significant this year. However, stripping out the £809,000 fixed asset impairment, the spend of £1,000,000 is similar to the £964,000 in the previous year. Spend on the Sisters of £2,419,000 (2023: £2,412,000) is similar to last year.
Income within the Province totalled £53,145,000. Of this, £49,380,000 was due to a profit on sale of St Wilfrid’s convent, Chelsea. Leaving aside this exceptional figure, income was up 16% from the previous year (£3.8m in 2024 compared with £3.2m in 2023), largely due to some one-off transactions. Regular income streams of Sisters income and investment income performed in line with the previous year.
Drilling down within investment income – which makes up 79% of regular income in the Province – the income from each of the three main portfolios was down compared to last year. This is predominantly due to withdrawing £2.65m from each of the portfolios in July 2023. Some of these funds were spent, while £5.1m was put into cash funds paying good rates of interest.
Holy Cross Hospital has worked hard over recent years to agree a level of fees with ICBs and Local Authorities that cover the full cost of providing the appropriate level of care for its patients, with NHS funding authorities awarding fee uplifts averaging almost 5% (up from 3.5% - 4% in the previous year). These uplifts helped to increase patient income by 15% (£1.1m) to £8.3m, and with costs rising by 11% (£0.9m), the Hospital has performed better than the prior year but still operating at a loss within its general funds even before charitywide support costs are allocated).
Staff costs of £6.6m are 74% (2023 - £6.1 and 76%) of its running costs, which is not unusual in healthcare settings. The Hospital had income from Health and Local Authorities of £7.7m (2023 - £7m), £583,000 (2023 - £249,000) of income from private patients, and £321,000 of other income (2023 - £276,000). The total cost of running the Hospital before charity-wide support costs was £8.9m (2023 - £8m).
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**Trustees’ report** Year to 31 March 2024
## **8 Financial Review (including reserves)** (continued)
## _**Results** (continued)_
During the year, the Hospital made changes to its investment portfolio, by selling £1.4m of its listed investments and moving the proceeds to a cash fund paying approximately 5% in interest. This was done to generate a higher level of income, in order to be able to cover the increased costs of running the hydrotherapy pool.
The trustees’ and management’s focus at the Hospital is to ensure a stable and improving financial operating model, so that it can continue to run successfully in the future.
## _**Investment gains and losses**_
After the investment valuations decreased significantly last year (over £5m of losses seen across the whole investment portfolio), this year saw a good recovery in valuations, with all three of the main segregated portfolios recording gains, leading to an overall investment gain in the year of £7.4m. The charity’s investments continue to be well-diversified, which is an important mitigation against the persistently volatile markets. The net result of withdrawing £7.95m from portfolios and this year’s good performance, is that the portfolio value went from £105.8m in 2023, to £103.8m at the end of this year. The investments are further explained in the section on Investment performance.
The trustees are conscious of the requirement to balance the needs of present and future beneficiaries, especially the Sisters current needs versus the changing needs over the next 20-30 years. This means that each year they consider whether to increase the proportion of resources allocated to general and designated funds reserves or whether to invest more in areas such as fixed assets, staffing, and training to maintain, improve or develop services to beneficiaries.
The annual review of the charity’s general funds reserves was conducted during the year. A further review of our designated funds has been deferred to 2024/25, due to the delay in selling the St Wilfrid’s property, which only completed on the final day of the financial year.
The reserves policy seeks to align the level of reserves with the major risks faced and the potential financial effects should one or more of these risk events occur. Trustees acknowledge that given the volatile nature of external markets at present, it is possible that several risk events could happen at once, or that one event may trigger a series of challenges, and so it is prudent to set the reserves at a level that could withstand the full effects of the major risks.
The reserves policy states that £10.7m should be held as free reserves and that half of this figure should be held in cash, with the other half held in investment assets to mitigate inflation risks over the medium to long term. The £10.7m figure covers six areas where a financial risk event has been identified, as shown in the table below:
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**Trustees’ report** Year to 31 March 2024
## **8 Financial Review (including reserves)** (continued)
## _**Reserves policy and funds**_
|No.|Component|Usage|Amount|
|---|---|---|---|
|1|Income risk reserve|Investment income fall|£2.5m|
|2|Income risk reserve|Pension income fall|£150k|
|3|Income risk reserve|Fee income fall|£3.3m|
|4|Adversity reserve|Adverse event (_e.g._legal case)|£600k|
|5|Opportunity reserve|Fund new projects|£500k|
|6|Cessation reserve|Orderly winding-down|£3.6m|
||||**£10.7m**|
The free reserves, which are funds that are neither restricted nor designated for a defined purpose, are represented on the balance sheet as the General Fund. Once its level is decided, trustees can consider the charity’s other needs and what funds are available to be designated.
The General Fund (free reserves) at 31 March 2024 stood at £58.9m (2023 – £10.7m),
which is not in line with the free reserves target of £10.7m.
This year-end, the charity had free reserves well in excess of the target set in the reserves policy. This is because of the sale of St Wilfrid’s, Chelsea on the last working day of the financial year. This transaction created a profit on sale of over £49m, but because it was at the very end of the year, was not designated or spent at the balance sheet date.
Trustees are in the process of formulating plans for the charitable use of these additional funds. Because of the Daughters of the Cross General Chapter in May 2024 (which affects the Provinces of the Daughters of the Cross worldwide), and a change in trustees, the decision-making on these charitable activities began following the convening of the new leadership group within the Province from June 2024 onwards. Trustees will discuss and approve the new 3-year business plan, which will include a review of the unrestricted reserves during the 2024/25 financial year. Trustees will ensure that the charity returns to the target free reserve figure for 2025.
## _**Restricted funds**_
Restricted funds of the charity relate to the surplus monies which have either been raised or given for, or their use restricted to, specific purposes or which comprise donations subject to donor-imposed conditions. At 31 March 2024 they amounted to £1.48m (2023 – £1.5m), of which £1.4m (2023 – £1.4m) was in respect of a legacy given for the benefit of Holy Cross Hospital. The legacy was partly used to build a Hydrotherapy Centre, with the remainder (the restricted fund) being invested so the income generated can fund the maintenance costs and keep the facility running.
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**Trustees’ report** Year to 31 March 2024
## **8 Financial Review (including reserves)** (continued)
## _**Designated Funds**_
The fixed asset fund amounts to £28.8m (2023 – £33.5m) and relates to those funds invested in tangible fixed assets. Other designated funds are established out of general funds where there is a need to provide funding for a specific purpose. The funds include:
The Daughters of the Cross fund stands at £43m (2023 - £43m). The level in the Daughters of the Cross fund reflects the continued (and future) decrease in covenanted income of the Sisters. The cost of running the Communities has not materially decreased over recent years, despite the reduction in the number of Sisters. At present, Sisters – including the frail and elderly - live in community. Two communities have a staff team to provide care and other support to the Sisters who need it. While these costs are significant, the current arrangements allow for the Sisters to live and take part in religious community life within the convent. Were Sisters to be resident in a care home this would incur higher costs, and the Sisters would lose the spiritual connection of living in community.
The shortfall in covenanted income to meet the Sisters’ living costs must be met from investment income. The current size of the fund that provides this income has been necessitated by the post-pandemic lower yields we have been experiencing within the investment portfolio since 2020. The income from Sisters pensions is considerably lower than the annual day-to-day living costs of the Sisters across all of our Communities. The shortfall is approximately £1m, and this can only be made up from income generated by the investment portfolio. Dividend yields fell during 2020 and have been slow to recover ever since, so, a substantial fund is still required to generate the required amount of income, given we are still seeing income yields of just over 2%, compared to 2.6% pre-2020. Work is planned for 2024/25 to review how the designated funds are used, including assessing whether the current model of only applying the income to pay for costs is appropriate for the future, or whether a combination of capital and income is a more effective model.
Provincialate fund of £33m (2023 – £34m). This fund has been established so that the income generated by the investment assets within it will meet the running costs of the charity’s central core functions. This facility will be required for the foreseeable future as the Provincialate office has no source of income other than investment income. The fund has been increased to meet the growing costs the charity faces due to high inflation pushing up the cost of goods and services.
The £20m (2023 – £10.8m) Charitable Activities fund reflects the continuation of the stated objective to plan for the future of the current and former charitable Works so they can continue their much-needed work. This will involve improving their physical and digital infrastructure, and ensuring their services are compliant and fit for current and future purpose. The Works’ finances are very marginal, particularly in the current climate of central government and local authority budget cuts. The fund is also in place to fund other longterm needs of the Sisters, such as ensuring appropriate housing and maintaining and enhancing existing properties.
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**Trustees’ report** Year to 31 March 2024
## **8 Financial Review (including reserves)** (continued)
## _**Designated Funds** (continued)_
This fund is invested to underpin the wide needs of the Works and the charitable activities within the Province. The needs are connected with the objective of finding long-term secure futures for the Works, securing the value of the existing land and buildings within the Province, and the long-term accommodation and other needs of the Sisters. It is difficult at this time of great change, both internally and externally, to calculate the funds which may be required to secure those futures. Some of these funds have been utilised over the past three years, by building new dwellings for Sisters as well as significant refurbishment of existing buildings, as well as supporting one former Work with a grant of £2m during the year. The fund has been added to this year, as the recovery in the valuation of the investment portfolio has allowed the reduction in the previous year, to be reinstated and bring the fund back up to an amount that is able to fulfil its requirement.
Trustees will review the value of this designated fund in 2024/25, as they recognise the significant need to support the Works, whose financial and business models have been severely affected by recent economic conditions.
Worldwide fund of £7.9m (2023 – £8.0m). This fund is invested to produce annual income to meet charitable needs across the worldwide Congregation. The decrease represents the net position after accounting for the rise in investment valuations and the grants paid out during the year for projects in India, Nepal, and Cameroon.
St Raphael’s Hospice fund of £2.7m (2023 – £2.7m). This fund was established at £6.3m following discussions between trustees and the senior management team at the Hospice. £3.6m was paid across to the Hospice upon separation, and the remaining £2.7m is being held as a contingency against the risks of delay, variances against inflation assumptions built into the new business model, and possible future volatility in legacy income. The fund will begin to be utilised again during the coming financial year.
The £106.8m other designated funds (i.e. not including the tangible fixed assets fund) are represented by fixed asset investments and cash deposits.
## _**Overall**_
The overall position is that total funds have increased over the year by £51.7m (2023 – £9.9m decrease). This is mainly due to the £44.3m in-year surplus (driven by the profit on slae of St Wilfrid’s) as well as the £7.4m increase in the value of the investment portfolio. At 31 March 2024 the charity had total funds of £196m (2023 – £144.2m).
## **9 Investments**
## _**Investment policy**_
The charity’s investment objective is to preserve capital value in real terms and to achieve a growing level of income over time. The day-to-day operation of the portfolio is managed by three investment management firms, who must each operate in line with risk and other parameters set out in our investment policy statement. Their approaches and strategies are all different, which gives additional diversification and contributes to the management of the various risks involved in holding investment assets.
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**Trustees’ report** Year to 31 March 2024
## **9 Investments** (continued)
## _**Investment policy** (continued)_
The charity has had a responsible investment policy for many years as the trustees believe that the practice of holding investments must be done in line with the Sisters’ ethos, values, and spirituality. Inevitably this means that some investments cannot be held as they will be incompatible with the values of the Congregation and Catholic Social Teaching. The trustees are comfortable that the long-term total return on the investments is not negatively affected by the exclusionary screens that form part of the overall investment policy. The investment policy is reviewed every year by the trustees, in consultation with the Province’s finance advisory committee.
The investment policy states that no charity funds are to be directly invested in companies which generate significant income from armaments, adult entertainment services, high interest lending, companies who breach modern slavery standards, or oil and gas companies that are not actively working towards meeting the goals of the 2015 Paris Agreement. Also excluded are companies which are involved in areas of activity contrary to the sanctity of life.
For certain areas of investment stewardship (for example the environment or corporate governance), the policy is to adopt an engagement approach, which means using the charity’s position as a shareholder, through its investment managers, to encourage companies to adopt more ethical and socially responsible policies and procedures, such as meeting Net Zero commitments. The investment managers, either internally or by using external agencies, monitor the activities of those companies in which the charity is invested, and the results of that monitoring are reported on and considered by the committee at all investment meetings. Our managers are asked to either follow-up on issues that they are currently engaging on, or we ask them to start to engage with companies on other specific topics of environmental, governance or societal issues.
The charity’s investment policy underwent review during the year, to ensure it remains fit for purpose and relevant to the present and future issues surrounding charity investments, particularly faith charities. There are various initiatives around faith-consistent investing and the role of catholic social teaching when selecting investments and the trustees are engaging with these at an early stage. These are longer-term processes and, while similar to “ESG” considerations, require deep thought on the interplay of faith and the financial system, so results will be seen over a period of years. During the year, the charity joined the Church Investors Group (CIG) for the first time. The CIG is a member network of Christian organisations that come together to promote ethical investment based on Christian principles. The trustees have also embraced the _Mensuram Bonam_ document produced by the Pontifical Academy of Social Sciences in the Vatican and are working towards enhancing the responsible investment policy to better integrate faith-based principles.
As well as its segregated portfolios, the charity retains an investment in the BlackRock Catholic Charities Growth and Income Fund, a fund in which we have been invested in since it was founded in 2006. The fund is aimed specifically at Catholic charities and provides an opportunity to invest in a fund operated in line with Catholic principles.
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**Trustees’ report** Year to 31 March 2024
## **9 Investments** (continued)
## _**Investment management, review and performance**_
The portfolios are invested for the long-term and comprise listed UK and overseas equities and bonds, with an exposure to commercial property and other alternative investments such as infrastructure funds. The investments comprise direct company holdings in both equities and bonds, together with pooled funds which are used by each of the managers to gain specific exposure and to manage risk. Income is withdrawn to meet central costs and the needs of the Sisters, and to fund the Worldwide Fund grants.
The portfolios have a significant exposure to global equity markets and the trustees therefore accept that there is likely to be considerable volatility in values. The strategic asset allocation of the overall portfolio, as well as the three individual portfolios, is continually monitored by trustees, in consultation with the investment managers and the Finance Advisory Committee (which includes all trustees and volunteer independent investment advisors). This group is satisfied that the movements in investment values and the various measures of investment risk were within acceptable parameters. The trustees and advisory committee will continue to carefully monitor the investment portfolio as markets and economic conditions remain volatile and it remains a challenge to ensure investment income meets spending requirements.
The overall result is that our investment portfolio reduced in value over the year, falling from £105.8m in April 2023 to £103.8m in March 2024.
However, the fall in overall value is due to the charity withdrawing £7.95m from the portfolio during July 2023, rather than because of poor performance. Some of the withdrawn amount has been kept in cash, while approximately £3m was required to meet spending commitments. Investment performance has produced positive growth over the financial year.
Each of the three investment managers’ results are reviewed formally at meetings twice a year, where up to date reports are reviewed, performance against benchmarks is considered, and any issues concerning ethical investment or corporate governance are discussed. Composite benchmarks are arranged in consultation with each manager reflecting the agreed asset class allocations and using appropriate indices for each asset class. Where action is necessary this is agreed and the actions are monitored to ensure it was taken.
Actual performance against the benchmarks for the 12 months to 31 March 2024 for the three main segregated portfolios was as follows:
|(Shown on a total return basis)|**2024**|**2024**|2023|2023|
|---|---|---|---|---|
||**Actual**
**%**
|**Benchmark**
**%**|Actual
%
|Benchmark
%|
|BlackRock
Sarasin
Evelyn Partners|**12.1**
**11.3**
**7.7**|
**17.9**
**15.5**
**13.5**|(3.50)
(4.20)
(3.60)|
1.75
(2.40)
(2.20)|
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**Trustees’ report** Year to 31 March 2024
## **9 Investments** (continued)
## _**Investment management, review and performance** (continued)_
The trustees continue to be satisfied with their investment managers’ actions and performance over the past 12 months. All three recorded strong gains for the year in absolute terms, but all three were below the benchmark returns they are each measured against. This partly reflects the difficulty in matching the huge gains in the largest US tech firms and the concentration of returns in US indices from these companies, returns that we are unable to match in our portfolios given the risk tolerances applied to the charity’s portfolios. The divergence that has developed between the portfolios and the global equities benchmark used to track performance over the past two years has made comparison difficult. However, the trustees are assured that the current benchmarks used remain the most appropriate at this time. Trustees use additional measure to review performance other than the primary benchmark (CPI, charity peer group indices) which ensures a rounded view on performance is taken by trustees and their advisors.
## **10 Fundraising**
The charity is registered with the Fundraising Regulator and is committed to adhering to the Fundraising Code of Practice. There have been no adjudications and no significant failures to comply with those standards. The charity has detailed policies and procedures in place to ensure high standards are complied with and those procedures ensure that all fundraisers and those who work on the charity’s behalf are aware of them.
During the year, there were no reported failures in compliance with the Fundraising Regulator and no fundraising complaints received (2023: none).
Holy Cross Hospital does not undertake fundraising activity itself, but it does benefit from the fundraising efforts of another charity, the League of Friends of Holy Cross Hospital. The Province does not undertake any direct fundraising with the public, nor use the services of a third-party organisation.
## **11 Risk management**
The charity works with people who have complex needs and caring for them involves carrying out activities which entail inherent risk. Whilst actions can be taken to monitor, manage and mitigate risks, only a certain level of assurance can ever be obtained, and the trustees accept that there are some risks which are outside of the charity’s direct control, and which cannot be mitigated. Trustees are nevertheless committed to maintaining highly developed risk management processes across the charity.
There are separate risk registers maintained at both Holy Cross Hospital and the Provincialate office. However, some risks carry across both parts of the charity; high inflation, increasing staff and non-staff costs, data protection and cyber risks are all features that need careful management. Data protection and cyber security have been a particular focus in recent years and trustees have policies and procedures in place to manage these business risks, as well as encouraging regular training to keep pace with the changing nature of these risks.
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**Trustees’ report** Year to 31 March 2024
## **11 Risk management** (continued)
At Holy Cross Hospital, the management team assesses risks on an ongoing basis, with a summary of the major risks being presented to the advisory committee for discussion and review. Risks are categorised under four main headings; clinical management; estates, facilities and supply; workforce; and governance. In respect of clinical management, the Hospital specialises in the care and treatment of vulnerable adults. Detailed attention is given to the clinical education and training of all clinical members of staff and patient feedback is actively sought. Where applicable, policy and practice are updated by reference to it. Infection prevention control is also a key part of the care and treatment of our patients.
Within the Provincialate office, the risk register is updated regularly and is reviewed by trustees at least once every year. Significant risks currently facing the Province include high inflation eroding the real value of investments and investment income, meaning income cannot keep pace with rising costs. Diversification across asset classes, sectors, geographies and currencies, as well as actively managing the asset allocation, are key ways of managing the various investment risks faced. Regular dialogue with our fund managers to ensure the investment agreements are robust, but flexible when required, and that any change in need or future plans is communicated well in advance so any changes can be well planned over time remains critical during a period of volatility.
The other significant risk is the ‘key person’ risk within the senior members of the Province. With the increasing age profile of the Province, there are fewer Sisters capable of taking on the leadership roles, both on the Council, at community houses, and as trustees. The leadership group within the Province is small in number, and the risk of ill health or any other reason for one or more of those Sisters suddenly being unable to fulfil their role presents difficulties for the remainder of the group, and indeed, all the Sisters and staff. Mitigation of this risk takes the form of sharing information with others, ensuring good record-keeping, continual dialogue between trustees, and supporting each other through the present challenges.
The charity maintains a good level of reserves and a robust set of insurance policies, which also ensure the charity is managing its risk exposures prudently.
## **12 Events since the year-end and future plans**
There were no significant events since 31 March 2024.
Future plans for 2024/25 within the Province include:
- To participate in the General Chapter of the Congregation (May/June 2024)
- To review the range of charitable activities undertaken by the Province
- To carry out a review the designated funds
- To continue to fund the redevelopment projects at Holy Cross Hospital.
- To continue to review the future status of Holy Cross Hospital.
- To complete the separation work on the Haslemere site
- To complete the major building works in Cheam (Clarkes Avenue and 571 Gander Green Lane) and deal with other legacy property issues.
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**Trustees’ report** Year to 31 March 2024
## **12 Events since the year-end and future plans (continued)**
- To review the long-term plans for the Sisters’ residences.
Future plans for Holy Cross Hospital include:
- Completion of building work to bring into use the two new patient rooms, refurbish the former convent building into a staff facility, and provide new office space and meeting rooms within the Hospital.
- Continue the work to introduce a new electronic patient record system.
- Digitisation of archive patient records.
- Introduce ultrasound scanning for physiotherapy outpatients.
## _**Other matters**_
## **13 Public benefit**
In many different locations both in the UK and overseas, Sisters have lived and worked to help the public - not only to advance Religion but to bring relief and improvement through education, healthcare, and social work and in whatever other ways were open to them. The charity continues in this spirit.
Holy Cross Hospital provides services which are not widely available within the NHS or elsewhere Through the Worldwide fund grants, the Sisters fund projects such as new schools and educational resources in developing nations including Nepal, India and Cameroon. The various grants to other UK charities helps those organisations to achieve their own charitable aims.
As required by the Charities Act 2011, the Charity Commission has issued guidance on the “public benefit requirement”. The trustees have considered the guidance and have had regard to it when exercising any powers or duties to which the guidance is relevant. The trustees consider that many aspects of this report demonstrate the public benefit which the charity provides.
## **14 Safeguarding**
In England, the charity works within the frameworks relating to the safeguarding of children and adults as expressed in the guidelines of the Roman Catholic Church, as issued by the Catholic Safeguarding Standards Agency and Religious Life Safeguarding Service. The charity is an affiliate member of both organisations. The charity has implemented robust policies and procedures to ensure everyone who interacts with the charity, particularly children and adults at risk, is supported in achieving their full potential in environments where they are protected from exploitation, abuse and any form of mistreatment. Where the charity works in Ireland, the same strong commitment to safeguarding good practice exists, in line with the country-specific guidelines and frameworks in place in Ireland.
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**Trustees’ report** Year to 31 March 2024
## **15 The environment**
The trustees are aware of the charity’s social responsibility to protect the environment. The Works have conservation and waste programmes in place to reduce the consumption of energy and water, to reduce waste so that as little as possible goes to landfill and to recycle metals, chemicals, etc. wherever possible. Our St Mary’s Convent uses solar panels to generate a high proportion of its electricity, as does the Hydrotherapy Centre in Holy Cross Hospital. Whenever significant work is carried out on any of the charity’s properties, opportunities are taken to reduce energy consumption. EV charging points have been installed at Holy Cross Hospital and the infrastructure to install them on the Cheam site is in place. Solar panels have been placed on the new build properties built in Cheam.
The Congregation has for many years held investments in solar and wind power and other ‘green’ energy funds and regularly engages with our investment managers on climate change matters. The charity has complied with ESOS Phase 3 reporting in 2023/24 and will continue to report updates as required throughout the rest of the Phase 3 period.
## **16 Structure and governance**
## **16.1 Legal structure**
The charity is a charitable company limited by guarantee and its governing documents are its Memorandum and Articles of Association which set out the objects of the charity, the powers of its trustees and details of its general administration and governance.
In terms of Canon Law (which is the law of the worldwide Roman Catholic Church) the Congregation of the Daughters of the Cross of Liege is governed at an international level by the Superior General and her General Council (the Generalate). They are elected every six years at a meeting of elected representatives from around the world called a General Chapter. At the 2018 General Chapter a Superior General and four General Councillors were appointed for a six-year term. Two of the Councillors are Sister Mary MacLaughlin and Sister Maureen O’Brien, both of whom are Sisters of the English Province.
The English Province, which covers Communities in England and Ireland, is governed by the Provincial Superior (Sister Veronica Hagen until 31 May 2024, since 31 May 2024 Sister Kathleen O’Reilly) and her Provincial Council (Sister Annette Clemence (to 31 May 2024), Sister Kathleen O’Reilly, Sister Anne Kelly, and Sister Maureen O’Brien (from 31 May 2024). The Provincial Bursar, Sister Mary Geraldine, is appointed by the Provincial Superior and this appointment continues until such time as a change is made. By reason of holding these offices, these five Sisters are the current trustees.
The Worldwide Congregation has Constitutions, approved in Rome, which governs how the Sisters should organise their affairs and live their lives. As well as the English Province, the Congregation has a presence in Belgium, Brazil, Cameroon, Germany, India, Italy, Nepal, and Pakistan.
The Superior General of the Worldwide Congregation and the Provincial Superior of the English Province of the Congregation are the only two members of the company.
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**Trustees’ report** Year to 31 March 2024
## **16 Structure and governance** (continued)
## **16.2 Governance and trustees**
The Articles of Association provide that there shall be between three and ten trustees. The number will always include Sisters who are trustees by reason of their respective offices within the English Province of the Congregation. The trustees at 31 March 2024 and the changes since the year-end date are shown on pages 1 and 2. They have all lived and worked for many years within one or other of the charity’s Works and all have personal experience of the services which the charity offers or has offered to the public.
The charity is unlike most charities in that the trustees devote, along with all the Sisters, their whole lives to the service of the charity and the people it serves. In normal circumstances, in living on the same sites as the Works, by meeting regularly and by visiting the Works and the Communities, the trustees oversee the smooth running of the charity. During the pandemic and subsequent constraints such as reduced access to buildings and beneficiaries, Sisters have had to adapt their oversight activities and stay connected in different ways. New ways of communicating with the lay associates, the employees, the beneficiaries, the volunteers, and all those connected in any way with the charity have also been crucial over the past two years.
The trustees meet six times during the year. Additional meetings are held as circumstances dictate to deal with time-sensitive issues such as changes to bank mandates, leases, etc.
Opportunities are taken to develop and enhance trustees' knowledge and expertise, and during the year they have attended various online conferences, seminars and training sessions on safeguarding, data protection, visas and UK Border Agency, risk and reserves, public benefit, financial governance and general trustee responsibilities.
Trustees reviewed the investment policy, governance arrangements, and refreshed their Essential Trustee knowledge. In particular, trustees have attended an in-depth seminar series held by the Religious Life Safeguarding Service (RLSS) looking at safeguarding issues in the Catholic Church.
The Provincial Superior is the voting member of the Conference of Religious in England and Wales to which all Sisters belong, and the Provincial Bursar is a member of the Association of Provincial Bursars. Through these and other such memberships, through attending seminars and conferences, and through newsletters from their advisers and others, trustees keep themselves up to date with changes within Religious Communities and with relevant changing legislation and regulation.
The trustees are aware that regardless of their experience in running the current and former Works of the charity, the environment in which the charity operates continues to evolve and develop, and they do not necessarily possess the full range of business skills required to govern effectively a substantial modern and up to date charity. For this reason, professional advice is extensively sought and relied upon, particularly in the areas of law, finance, accounting, property and investment. The trustees also benefit from the advice of the English Province Finance Advisory Committee, particularly on investments.
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**Trustees’ report** Year to 31 March 2024
## **16 Structure and governance** (continued)
## **16.2 Governance and trustees** (continued)
The trustees have adopted the Charity Governance Code and continue to review governance arrangements against the code. Trustees also keep up to date with guidance and updates issued by the Charity Commission. The charity is also registered as a charity in Ireland and reports against the Charities Regulator’s governance code, with progress reported at least annually at trustee meetings.
The charity has purchased insurance to protect it from any loss arising from the neglect or defaults of its trustees and officers and to indemnify them against the consequences of any neglect or default on their part. The policy provides cover for up to a maximum of £5,000,000. The charity has also purchased a terrorism and sabotage insurance policy to cover property damage and business interruption at its Central London site.
## **17 Management**
## **17.1 The Provincial Superior**
The day-to-day activities of the charitable company are the responsibility of the Provincial Superior, who delegates the management to the key management posts in the Province and the Hospital. She speaks to and visits Sisters in their Communities regularly to assist with the many issues arising, e.g. the apostolic work, the Sisters’ welfare, property issues and relations/negotiations with others in the local community. She attends regular meetings, discussing operational challenges and opportunities and identifies those decisions which require trustee discussion or approval.
## **17.2 The Communities**
At the end of the year, there are now three Communities, two in the UK and one in Ireland. Each Community has a Sister Superior who has the responsibility for the day-to-day running of the Community. The Sister Superiors are recommended for appointment by the Provincial Superior, then ratified by the Superior General.
## **17.3 Holy Cross Hospital**
At the Hospital, the Provincial Superior appoints a management team. The Sister Superior at our Haslemere Community attends management team meetings. The Superior, currently Sister Kathleen O’Reilly, is also a trustee and acts as a conduit between the management team and the board of trustees.
The Hospital is supported by an Advisory Committee. The members of the Advisory Committees are appointed by the Provincial Superior in consultation with the relevant Sister Superior and the trustees. The Provincial Superior and the Sister Superior are ex-officio members of the committee. The membership therefore comprises trustees, Sisters, and lay people with an expertise in the work or with a relevant specialism. The Advisory Committees’ purpose is to advise the Provincial Superior, the Sister Superior and the management team.
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**Trustees’ report** Year to 31 March 2024
## **17 Management** (continued)
## **17.3 Holy Cross Hospital** (continued)
The management structure described above allows the management team to run the Hospital within the ethos, framework and strategy set by the trustees. It also allows important issues to be brought to the attention of trustees, enabling them to make the key decisions affecting strategy, policies, the facilities and services provided, and the service quality and delivery. This structure also enables the trustees to inform management of their current thinking and the reasoning for decisions.
## **17.4 Employees**
The charity has always been and remains committed to opposing discrimination in its many forms and strives to be an inclusive employer. To further this commitment, the management teams throughout the charity ensure that recruitment and selection policies avoid direct or indirect discrimination and comply with all relevant legislation. The aim is to ensure that all employees are aware of and understand the charity’s equal opportunities policies and are familiar with the legal framework. One exception to this is the post of Chief Executive Officer at Holy Cross Hospital, where the post-holder will ideally be a practising Catholic or, if not, a practising Christian.
## **17.5 Key management personnel**
The trustees are key management personnel although they are not remunerated. Other key management personnel are the senior officer (CEO) at Holy Cross Hospital (who has delegated authority to run the Hospital in line with the agreed strategy and within the ethos of The Daughters of the Cross) and the finance manager in the Provincialate Office.
Their pay and remuneration are set by the Provincial Superior with regard to the pay structure in the relevant part of the organisation, in consultation with trustees and appropriate members of the Advisory Committee and with regard to the external market.
## **18 Related parties**
## **18.1 The Sisters**
The Sisters of the Congregation covenant their pension and other income to the charity. They are also beneficiaries of the charity in that the costs of their welfare and activities are met by it. The trustees, including the Provincial Superior and the Provincial Bursar, are all Sisters and no trustee is remunerated for their services. No trustee had any beneficial interest in any contract with the charity.
## **18.2 Congregation of the Daughters of the Cross International**
The International charity is the legal entity, based in England, for the Superior General and her Council (The Generalate). The Daughters of the Cross International is a grantmaking charity (no. 1142490), whose main activities are funding the Generalate in Rome and supporting other Congregation work and Provinces around the world. One trustee, Sister Maureen O’Brien, is also a trustee of this charity. Another of our Sisters, Mary McLaughlin, is also a trustee of the Daughters of the Cross International.
The Congregation of the Daughters of the Cross of Liege **25**
**Trustees’ report** Year to 31 March 2024
## **18 Related parties** (continued)
## **18.3 Worldwide Congregation**
The charity and the Sisters are part of the Worldwide Congregation of the Daughters of the Cross of Liege. The worldwide Congregation includes Sisters being present in ten countries (UK, Belgium, Brazil, Cameroon, Germany, India, Ireland, Italy, Nepal, Pakistan).
Grants are made to Provinces of the Congregation around the world so that the charitable objects can be fulfilled outside the UK.
## **18.4 St Elizabeth’s Centre**
Two trustees of this charity are also trustees of St Elizabeth’s Centre; Sister Veronica Hagen and Sister Josephine Clemence. Another of our Sisters, Sister Patricia Ainsworth, is also a trustee at St Elizabeth’s.
## **18.5 St Raphael’s Hospice**
Two trustees of this charity; Sister Veronica Hagen and Sister Kathleen O’Reilly are trustees of St Raphael’s Hospice. In 2020, the charity and the Hospice entered into three 20-year lease agreements for the Hospice building, the 759 London Road office, and St Bede’s conference centre. All three leases have a nominal rent of £100 per annum.
## **19 Statement of trustees’ responsibilities**
The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the trustees’ report and 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 charitable company and of the income and expenditure of the charitable company 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 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 United Kingdom and Republic of Ireland (FRS 102).
- make judgements and estimates that are reasonable and prudent.
- state whether applicable United Kingdom 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 Congregation of the Daughters of the Cross of Liege **26**
**Trustees’ report** Year to 31 March 2024
## **19 Statement of trustees’ responsibilities** (continued)
The 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 for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the trustees confirms that:
- so far as she is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
- she has taken all the steps that she ought to have taken as a trustee in order to make herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
This Trustees’ Report, including the Strategic Report contained therein, has been approved by the trustees at a meeting on 14 November 2024 and it is signed on their behalf by:
Sister Kathleen O'Reilly
Sister Kathleen O’Reilly Trustee
The Congregation of the Daughters of the Cross of Liege **27**
**Registration details and principal advisers** 31 March 2024
## **Registration details and principal advisers**
## _**Registration details**_
The Congregation of the Daughters of the Cross of Liege is a charitable company limited by guarantee incorporated in England and Wales and that is its registered name. Registration details are:
- Charity Registration Number: 1068661
- Company Registration Number: 3492921
- Registered Office and Principal Office address: Joseph’s Convent, 801 London Road, North Cheam. Surrey. SM3 9AT
## _**Principal advisers**_
**Auditor**
Buzzacott LLP 130 Wood Street London EC2V 6DL
**Investment managers** BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London EC2N 2DL Sarasin & Partners LLP Juxon House, 100 St Paul’s Churchyard London EC4M 8BU Evelyn Partners 45 Gresham Street London EC2V 7BG **Bankers** The Royal Bank of Scotland plc 250 Bishopsgate London EC2M 4AA **Solicitors** Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH Mullany Walsh Maxwell 19 Herbert Place Dublin 2 D02 NY72 Ireland
The Congregation of the Daughters of the Cross of Liege **28**
**Independent auditor’s report** Year to 31 March 2024
## **Independent auditor’s report to the members of The Congregation of the Daughters of the Cross of Liege**
## **Opinion**
We have audited the financial statements of Congregation of the Daughters of the Cross of Liege (the ‘charitable company’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 2024 and of 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’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 charitable company’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.
The Congregation of the Daughters of the Cross of Liege **29**
**Independent auditor’s report** Year to 31 March 2024
## **Other information** (continued)
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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report, which is also the directors’ report for the purposes of company law and includes the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report, which is also the directors’ report for the purposes of company law and includes the strategic report, has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees’ report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the 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, the Trustees (who are also the directors of the charitable company for the purposes 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 charitable company’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.
The Congregation of the Daughters of the Cross of Liege **30**
**Independent auditor’s report** Year to 31 March 2024
## **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.
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:
- making enquiries of management and representatives of those charged with governance as to their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any or unusual or unexpected relationships:
- performed substantive testing of expenditure including authorization thereof; and
- tested journal entries to identify unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
The Congregation of the Daughters of the Cross of Liege **31**
**Independent auditor’s report** Year to 31 March 2024
## **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.
## Buzzacott LLP
20 December 2024 Edward Finch (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
The Congregation of the Daughters of the Cross of Liege **32**
## **Statement of financial activities (incorporating income and expenditure account)** Year to 31 March 2024
|Notes|**Unrestricted funds**|**Unrestricted funds**|**Restricted**
**funds**
**£’000**|**Total funds**
**2024**
**£’000**|Total funds
2023
£’000|
|---|---|---|---|---|---|
||
**General**
**funds**
**£’000**|**Designated**
**funds**
**£’000**||||
|**Income from:**
Charitable activities
1
Investments
2
Donations and legacies
3
Other income
4
**Total income**
**Expenditure on:**
Raising funds
5
Charitable activities
6
Support of members of the
Congregation and their ministry
Running Holy Cross Hospital
Grants and donations
Other expenditure
**Total expenditure**
**Net income (expenditure) before net gains**
**(losses) on investments**
Net gains (losses) on investments
12
**Net income (expenditure)**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward at
1 April 2023
**Total funds carried forward at 31 March 2024**|
**8,326**
**2,704**
**694**
**50,038**|**—**
**—**
**—**
**—**|**—**
**—**
**29**
**1**|**8,326**
**2,704**
**723**
**50,039**|7,238
2,702
698
114|
||**61,762**|**—**|**30**|**61,792**|10,752|
||
**551**|**—**|**—**|**551**|814|
||
**4,602**
**9,062**
**3,222**
**33**|**—**
**—**
**—**
**—**|**—**
**33**
**—**
**—**|**4,602**
**9,095**
**3,222**
**33**|3,674
8,000
1,951
—|
||**16,919**|**—**|**33**|**16,952**|13,625|
||**17,470**|**—**|**33**|**17,503**|14,439|
||**44,292**
**7,428**|**—**
**—**|**(3)**
**(10)**|**44,289**
**7,418**|(3,687)
(6,192)|
||**51,720**
**(3,519)**|
**—**
**3,519**|
**(13)**
**—**|**51,707**
**—**|(9,879)
**—**|
||**48,201**
**10,699**|**3,519**
**132,054**|**(13)**
**1,491**|**51,707**
**144,244**|(9,879)
154,123|
||**58,900**|**135,573**|**1,478**|**195,951**|144,244|
The statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 37 to 53 form part of these financial statements.
The Congregation of the Daughters of the Cross of Liege **33**
## **Statement of financial activities (incorporating income and expenditure account)** Year to 31 March 2023
|_Notes_|_Unrestricted funds_|_Unrestricted funds_|_Restricted_
_funds_
_£’000_|_Total_
_funds_
_2023_
_£’000_|
|---|---|---|---|---|
||_General_
_fund_
_£’000_|_Designated_
_funds_
_£’000_|||
||_7,238_
_2,702_
_672_
_110_|_—_
_—_
_—_
_—_|_—_
_—_
_26_
_4_|_7,238_
_2,702_
_698_
_114_|
||_10,722_|_—_|_30_|_10,752_|
||_814_|_—_|_—_|_814_|
||_3,674_
_7,969_
_1,951_|_—_
_—_
_—_|_—_
_31_
_—_|_3,674_
_8,000_
_1,951_|
||_13,594_|_—_|_31_|_13,625_|
||||||
||_14,408_|_—_|_31_|_14,439_|
||_(3,686)_
_(6,111)_|_—_
_—_|_(1)_
_(81)_|_(3,687)_
_(6,192)_|
|||_—_
_(10,956)_|_(82)_
_—_|_(9,879)_
_—_|
||_1,159_
_9,540_|_(10,956)_
_143,010_|_(82)_
_1,573_|_(9,879)_
_154,123_|
||_10,699_|_132,054_|_1,491_|_144,244_|
The Congregation of the Daughters of the Cross of Liege **34**
## **Balance sheet** 31 March 2024
|Notes|
**2024**
**£’000**|**2024**
**£’000**|2023
£’000|2023
£’000|
|---|---|---|---|---|
|**Fixed assets**
Tangible assets
10
Investments
12
Investment property
11
**Current assets**
Debtors
13
Cash at bank and in hand
**Creditors**: amounts falling due
within one year
14
**Net current assets**
**Total assets less current**
**liabilities**
Provisions for liabilities
15
**Total net assets**
**The funds of the charity:**
Restricted funds
16
Unrestricted funds
. Fixed assets fund
16
. Other
16
. General fund
16
Total unrestricted funds
16
**Total charity funds**|
**806**
**64,404**|**28,783**
**103,765**
**540**|525
5,484|33,537
105,780
510|
|||**133,088**
**63,034**||139,827
4,593|
||**65,210**
**(2,176)**||6,009
(1,416)||
||
**28,776**
**106,797**||33,524
98,530||
|||**196,122**
**(171)**||144,420
(176)|
|||**195,951**||144,244|
|||**1,478**
**194,473**||1,491
142,753|
||**135,573**
**58,900**||132,054
10,699||
||||||
|||**195,951**||144,244|
Approved by the trustees of The Congregation of the Daughters of the Cross of Liege, Company Registration Number 03492921 (England and Wales), and signed on their behalf by:
The notes on pages 37 to 53 form part of these financial statements.
Sister Kathleen O'Reilly
Sister Mary McGinn
Sister Kathleen O‘Reilly
Sister Mary McGinn
Date of approval: 14 November 2024
The Congregation of the Daughters of the Cross of Liege **35**
## **Statement of cash flows** 31 March 2024
|Notes|**2024**
**£’000**|2023
£’000
(5,636)
2,702
13
(1,578)
63,360
(60,627)
(1,873)
(641)|
|---|---|---|
|**Cash flows from operating activities**
A
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Decrease in cash held by investment manager
Other movements
**Net cash provided by investing activities**
**Change in cash and cash equivalents**
**Cash and cash equivalents at 1 April 2023**
**Cash and cash equivalents at 31 March 2024**
B,C|**(6,066)**
**2,705**
**54,519**
**(1,626)**
**50,650**
**(42,929)**
**1,643**
**24**||
||**64,986**|
1,356|
||**58,920**
**5,484**|
(4,280)
9,764|
||**64,404**|
5,484|
The notes on pages 37 to 53 form part of these financial statements.
## **A. Reconciliation of net expenditure to net cash flow used in operating activities**
||**2024**
**£’000**
**51,707**
**977**
**809**
**(7,388)**
**(49,926)**
**(281)**
**775**
**(5)**
**(30)**
**(2,704)**
**—**
**(6,066)**|2023
£’000|
|---|---|---|
|Net (expenditure) income (as per statement of financial activities)
**Adjustments for:**
Depreciation charge
Fixed asset impairment charge
Losses (gains) on investments
Loss on the sale of fixed assets
(Increase) decrease in debtors
Increase (decrease) in creditors
(Decrease) increase in provision
Gains on investment property
Investment income
Donated fixed assets||(9,879)
969
_—_
6,224
35
(19)
24
_8_
(32)
(2,702)
(264)|
|||(5,636)|
## **B. Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2024**
**£’000**|2023
£’000|
|Total cash and cash equivalents – cash|**64,404**|5,484|
## **C. Analysis of changes in net debt**
|**Analysis of changes in net debt**||||
|---|---|---|---|
||At 1 April
2023
£’000
5,484|Cash flows
£’000
58,920|**At 31**
**March**
**2024**
**£’000**|
|Cash at bank and in hand|||**64,404**|
The Congregation of the Daughters of the Cross of Liege **36**
**Notes to the financial statements** 31 March 2024
## **1 Income from charitable activities**
||**Unrestricted**
**funds**
**2024**
**£’000**|
**Total**
**funds**
**2024**
**£’000**|
|---|---|---|
|Fees and charges – Privately-funded
Fees and charges – Publicly-funded|**583**
**7,743**|
**583**
**7,743**|
||**8,326**|
**8,326**|
||_Unrestricted_
_funds_
_2023_
_£’000_|
_Total_
_funds_
_2023_
_£’000_|
|_Fees and charges – Privately-funded_
_Fees and charges – Publicly-funded_|_249_
_6,989_|
_249_
_6,989_|
||_7,238_|
_7,238_|
## **2 Investment income**
||**Unrestricted**
**funds**
**2024**
**£’000**|
**Total**
**funds**
**2024**
**£’000**|
|---|---|---|
|UK investments
Overseas investments
Interest receivable|**1,747**
**618**
**339**|
**1,747**
**618**
**339**|
||**2,704**|
**2,704**|
||_Unrestricted_
_funds_
_2023_
_£’000_|
_Total_
_funds_
_2023_
_£’000_|
|---|---|---|
|_UK investments_
_Overseas investments_
_Interest receivable_|_2,023_
_591_
_88_|
_2,023_
_591_
_88_|
||_2,702_|
_2,702_|
The Congregation of the Daughters of the Cross of Liege **37**
**Notes to the financial statements** 31 March 2024
## **3 Income from donations and legacies**
|**Donations**|**Unrestricted**
**funds**
**2024**
**£’000**|
**Restricted**
**funds**
**2024**
**£’000**|**Total**
**funds**
**2024**
**£’000**|
|---|---|---|---|
|Donations
Covenanted income from Sisters of the Congregation
– pensions and other income
Legacies|**19**
**666**
**9**|
**29**
**—**
**—**|
**48**
**666**
**9**|
||**694**|
**29**|
**723**|
|_Donations_|_Unrestricted_
_funds_
_2023_
_£’000_|
_Restricted_
_funds_
_2023_
_£’000_|_Total_
_funds_
_2023_
_£’000_|
|_Donations_
_Covenanted income from Sisters of the Congregation_
_– pensions and other income_
_Legacies_|_26_
_629_
_17_|
_20_
_—_
_6_|
_46_
_629_
_23_|
||_672_|
_26_|
_698_|
## **4 Other incoming resources**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**funds**|
||**2024**|**2024**|**2024**|
||**£’000**|**£’000**|**£’000**|
|Sale of fixed assets:||||
|Property – St Wilfrid’s|**49,380**|**—**|**49,380**|
|Property – other|**283**|**—**|**283**|
|Motor vehicles|**7**|**—**|**7**|
||**49,670**|**—**|**49,670**|
|Property|**83**|**—**|**83**|
|Other income|**285**|**1**|**286**|
||**50,038**|**1**|**50,039**|
|_Sale of fixed assets_
_Property_
_Other income_|_Unrestricted_
_funds_
_2023_
_£’000_|
_Restricted_
_funds_
_2023_
_£’000_|_Total_
_funds_
_2023_
_£’000_|
|---|---|---|---|
||_13_
_86_
_11_|
_—_
_—_
_4_|
_13_
_86_
_15_|
||_110_|
_4_|
_114_|
The Congregation of the Daughters of the Cross of Liege **38**
**Notes to the financial statements** 31 March 2024
## **5 Expenditure on raising funds**
||**Unrestricted**
**funds**
**2024**
**£’000**|
**Total**
**funds**
**2024**
**£’000**|
|---|---|---|
|Investment management costs
Support costs|**353**
**198**|
**353**
**198**|
||**551**|
**551**|
||_Unrestricted_
_funds_
_2023_
_£’000_|
_Total_
_funds_
_2023_
_£’000_|
|_Investment management costs_
_Support costs_|_542_
_272_|
_542_
_272_|
||_814_|
_814_|
## **6 Analysis of expenditure on charitable activities**
## _**Summary by expenditure type**_
|**_Summary by expenditure type_**|||||
|---|---|---|---|---|
||**Staff costs**
**2024**
**£’000**|
**Non-staff**
**costs**
**2024**
**£’000**|**Support**
**costs**
**2024**
**£’000**|**Total**
**2024**
**£’000**|
|Support of Members
Holy Cross Hospital
Grants and Donations|**880**
**6,370**
**—**|
**3,083**
**2,419**
**3,222**|
**672**
**306**
**—**|
**4,635**
**9,095**
**3,222**|
||**7,250**|
**8,724**|
**979**|
**16,952**|
||_Staff costs_
_2023_
_£’000_|
_Non-staff_
_costs_
_2023_
_£’000_|_Support_
_costs_
_2023_
_£’000_|_Total_
_2023_
_£’000_|
|---|---|---|---|---|
|_Support of Members_
_Holy Cross Hospital_
_Grants and Donations_|_977_
_5,846_
_—_|
_1,366_
_2,034_
_1,951_|
_1,331_
_120_
_—_|
_3,674_
_8,000_
_1,951_|
||_6,823_|
_5,351_|
_1,451_|
_13,625_|
Net (expenditure) income for the year is stated after charging (crediting):
||**2024**
**£’000**|2023
£’000|
|---|---|---|
|Depreciation
Surplus on sale of tangible fixed assets
Gain on investment property
Auditors’ total remuneration
Grants and donations|**977**
**(49,670)**
**(30)**
**106**
**3,222**|969
(13)
(32)
98
1,951|
Of the grants and donations paid, £2m was to St Elizabeth’s Centre (2023 - £1.75m) and £1.1m was to the Worldwide Congregation (2023 - £165,000).
The Congregation of the Daughters of the Cross of Liege **39**
**Notes to the financial statements** 31 March 2024
## **7 Support costs**
|**Support costs**||||||
|---|---|---|---|---|---|
||**Governance**
**2024**
**£’000**||**Other**
**2024**
**£’000**||**2024**
**£’000**|
|Staff costs
Professional fees
Property costs
Other costs
Total support costs|**38**
**153**
**—**
**109**||**179**
**333**
**249**
**115**||**217**
**486**
**249**
**224**|
||**300**||**876**||**1,176**|
||_Governance_
_2023_
_£’000_||_Other_
_2023_
_£’000_||_2023_
_£’000_|
|_Staff costs_
_Professional fees_
_Property costs_
_Other costs_
_Total support costs_|_34_
_112_
_—_
_78_||_221_
_697_
_219_
_362_||_255_
_809_
_219_
_440_|
||_224_||_1,499_||_1,723_|
||||**2024**
**£’000**||2023
£’000
272
1,451
1,723|
|Attributed to the following activities:
. Raising funds (note 5)
. Charitable activities (note 6)|||**198**
**979**|||
||||**1,176**|||
All costs relating to a particular activity are treated as costs of that activity. Support costs, which include governance costs, are the central costs incurred predominantly within the Province which supports the charity’s activities and deals with its governance arrangements. Where costs specifically relate to an activity, they are allocated to that activity. General support costs are allocated to the activities on the basis of the cost and time spent on each of them.
The trustees are Sisters of the Congregation and are not remunerated for their work as trustees. The governance of the charity is dealt with by the trustees acting, where appropriate, after considering the advice of their professional advisers and with the assistance of the Senior Management Teams.
Trustees are, as are all Sisters, beneficiaries of and donors to, the charity and the charity meets the costs of their ministry and welfare. In the case of trustees, their costs include expenses incurred when they are fulfilling their trustee duties for which an allocation of costs is made.
Professional fees include payments to the charity’s external auditors for audit fees of £57,000 (2023 – £49,000), which are included in Governance. Fees paid to the charity’s auditor for other services, which all relate to taxation, governance, payroll services, and general financial advice and are included in support costs, amount to £49,000 (2023 – £49,000). The total amount paid to the auditors was £106,000 (2023 – £98,000).
The Congregation of the Daughters of the Cross of Liege **40**
**Notes to the financial statements** 31 March 2024
## **8 Staff costs**
||**2024**
**£’000**|2023
£’000|
|---|---|---|
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Agency costs
Termination payments
Other staff costs|**6,179**
**680**
**194**|5,846
681
177|
||**7,053**
**413**
**—**
**1**|6,704
213
158
262|
||**7,467**|7,337|
The average number of persons employed by the charity during the year was as follows:
||**2024**
**No.**|
2023
No.|
|---|---|---|
|Full time equivalent numbers of staff|**165**|
169|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**2024**
**No.**|
2023
No.|
|---|---|---|
|In the band £60,001 - £70,000
In the band £70,001 - £80,000
In the band £80,001 - £90,000
In the band £90,001 - £100,000|**7**
**4**
**—**
**2**|
9
3
3
**—**|
Details of the pension contributions for those earning £60,000 per annum or more are shown below:
|below:|||||
|---|---|---|---|---|
||**2024**||2023||
|Defined contribution schemes|**Number**|**£’000**|Number|£’000|
||**13**|**27**|15|37|
The trustees are key management personnel of the charity; they are not remunerated as trustees but they are beneficiaries of the charity in that their welfare and work is funded by it. The cost of the support of all Sisters is disclosed elsewhere.
The Senior Officer at Holy Cross Hospital has delegated authority to run the Work in line with the agreed strategy and within the ethos and charism of The Daughters of the Cross. They are therefore also regarded as key management personnel, along with the Provincialate Finance Manager. The total employee benefits of this group, including pension contributions amounted to £186,221 (2023 – £122,051), which together with National Insurance Contributions of £21,508 (2023 – £15,147) brings the total cost of employment of key management personnel to £207,729 (2023 – £137,198).
The Congregation of the Daughters of the Cross of Liege **41**
**Notes to the financial statements** 31 March 2024
- **9 Trustees’ remuneration and expenses**
- During the year, no Trustees received any remuneration or other benefits (2023 – £nil).
During the year ended 31 March 2024, no trustee expenses have been incurred (2023 – £nil).
## **10 Tangible fixed assets**
||Freehold &
leasehold
land and
buildings
£’000|
Assets in
course of
construction
£’000|Medical
Computer
and office
equipment
£’000|Motor
vehicles
£’000|**Total**
**£’000**|
|---|---|---|---|---|---|
|**Cost or valuation**
At 1 April 2023
Additions
Disposals
At 31 March 2024
**Depreciation**
At 1 April 2023
Charge for the year
Impairment
On disposals
At 31 March 2024
**Net book value**
At 31 March 2024
At 31 March 2023|37,229
528
(6,300)|
1,396
974
—|
4,547
107
(72)|
156
17
(18)|**43,328**
**1,626**
**(6,390)**|
||31,457|
2,370|
4,582|
155|**38,564**|
||6,440
772
809
(1,710)|
—
—
—
—|
3,235
182
—
(68)|
116
23
—
(18)|**9,791**
**977**
—
**(1,796)**|
||6,311|
—|
3,349|
121|**9,781**|
||25,146|
2,370|
1,232|
34|**28,783**|
||30,789|
1,396|
1,312|
40|**33,537**|
Included within freehold land and buildings are amounts for land a deemed cost of £6.94m (2023 – £10.0m) which has not been depreciated.
The impairment charge of £809,000 is made against the seven properties on the Province’s retained land in Much Hadham. At the balance sheet date, these properties were due for demolition prior to the sale of the land they were built on, so their values were written down to zero.
Under the transitional arrangements set out in FRS 102, the charity elected to treat property valuations prior to 1 April 2014 as their deemed cost at that date. Valuations were performed by a qualified external valuer, in accordance with the requirements of the RICS Valuation Standards and FRS 102. Subsequent additions are stated at cost.
The Congregation of the Daughters of the Cross of Liege **42**
**Notes to the financial statements** 31 March 2024
## **11 Investment property**
||**Freehold**
**investment**
**property**
**£’000**|
|---|---|
|**Valuation**
At 1 April 2023
Surplus on revaluation
At 31 March 2024|**510**
**30**|
||**540**|
The values of investment properties are wholly based on valuations by independent valuers. This year, a full valuation report was carried out by chartered surveyors, Weldon Beesly LLP, to determine the market value of the freehold agricultural grazing land in Much Hadham, Hertfordshire.
The land leased to the operator of the transmission mast in Haslemere was valued (on a market value basis) in 2023.
## **12 Fixed asset investments**
|**Fixed asset investments**|||
|---|---|---|
||**2024**
**£’000**|2023
£’000|
|Market value at 1 April
Additions at cost
Sale proceeds
Investment gains (losses)
Investment cash
**Market value at 31 March**|**105,780**
**42,929**
**(52,091)**
**5,146**
**2,001**|112,223
63,630
(60,627)
(13,113)
3,667|
||**103,765**|105,780|
Historical cost of investments at 31 March 2024 £84.6m (2023 – £93.9m).
Gains and losses on investments recognised in the statement of financial activities are made up as follows:
||**2024**
**£’000**|2023
£’000|
|---|---|---|
|Gains (losses) on investments
Investment gains allocated to others
Other movements
**Gains(losses) on investmentsper SOFA**|**7,405**
—
**13**|(5,633)
81
(640)|
||**7,418**|(6,192)|
||**2024**
**£’000**|2023
£’000|
|Listed investments
. Pooled funds
. Other
Unlisted shares
. Pooled funds
. Other
Cash held for reinvestment|**32,738**
**68,743**
**15**
**268**
**2,001**|36,547
64,991
17
558
3,667|
||**103,765**|105,780|
The Congregation of the Daughters of the Cross of Liege **43**
**Notes to the financial statements** 31 March 2024
## **13 Debtors**
|**Due within oneyear**|**2024**
**£’000**|2023
£’000|
|---|---|---|
|Trade debtors
Other debtors
Prepayments and accrued income|**598**
**32**
**176**|338
17
170|
||**806**|525|
## **14 Creditors: Amounts falling due within one year**
||**2024**
**£’000**|2023
£’000|
|---|---|---|
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**837**
**166**
**767**
**406**|166
137
554
559|
||**2,176**|1,416|
## **15 Provisions**
||**£’000**|
|---|---|
|At 1 April 2023
Movement in year|**176**
**(6)**|
||**171**|
The provision for compensation is an amount set aside, originally to meet the charity’s potential contribution to the Residential Institutions Redress Board (RIRB) established in Ireland to make compensation awards to people who, as children, were abused while resident in schools and other institutions subject to state regulation or inspection, as well as High Court claims that did not meet the criteria for claiming through RIRB.
The Redress scheme is now closed for applications, so the provision is held to meet any claims made through the High Court. A review carried out in 2021 in conjunction with our legal advisors in Ireland set the provision at €200,000. The change during the year is due to exchange rate movements.
The Congregation of the Daughters of the Cross of Liege **44**
**Notes to the financial statements** 31 March 2024
## **16 Statement of funds**
|**Statement of funds**|||||||
|---|---|---|---|---|---|---|
|**Currentyear**|Balance at
1 April
2023
£’000|Income
£’000|Expenditure
£’000|Transfers
in/out
£’000|Gains
(losses)
£’000|**Balance at**
**31 March**
**2024**
**£’000**|
|**Unrestricted funds**
**Designated funds**
Fixed asset fund
Daughters of the Cross fund
Charitable activities fund
Provincialate fund
St Raphael’s Hospice fund
Worldwide fund
**General funds**
General funds – all funds
**Total unrestricted funds**
**Restricted funds**
Hydrotherapy centre
Amenities fund
**Total funds**|33,524
43,000
10,798
34,000
2,700
8,032|—
—
—
—
—
—|—
—
—
—
—
—|(4,748)
—
9,402
(1,000)
—
(135)|—
—
—
—
—
—|**28,776**
**43,000**
**20,200**
**33,000**
**2,700**
**7,897**|
||132,054|—|—|3,518|—|**135,573**|
||10,699|61,762|(17,470)|(3,518)|7,428|**58,900**|
||**142,753**|61,762|(17,470)|—|7,428|**194,473**|
||1,442
49|—
30|—
(33)|—
—|(10)
—|**1,432**
**46**|
||1,491|30|(33)|—|(10)|**1,478**|
||||||||
||144,244|61,792|(17,503)|—|7,418|**195,951**|
The designated funds have been set aside for specific purposes by the trustees out of unrestricted funds, although they may ultimately use such funds for other purposes. It is a policy that income and expenditure either relates to restricted or unrestricted general funds, thus there is no income or expenditure on designated funds. Designated funds are determined by trustees at the end of the year and the increases or decreases are reflected as transfers from unrestricted general funds.
- Fixed asset fund
- The tangible fixed assets, of which property forms the major part, are of fundamental importance to the charity and without them the charity would be unable to fulfil any of its charitable objectives. The value of the assets is therefore not readily realisable and, to reflect that, their net book value has been established as a designated fund.
- Daughters of the Cross fund This fund is established to ensure the care and support needs of the Sisters is sufficiently met over the course of their lives. The Sisters have carried out the charitable activities of the charity over many decades, so it is essential, as part of the charity’s mission, that these Sisters are cared for both during and after they carry out their ministries. The fund is invested for the long-term with the current intention that only the income is spent. This income meets the shortfall of the Sisters’ covenanted income over the costs of their welfare, their apostolic activities and the costs of the care of the frail and elderly members. The fund value remains the same as last year, at £43m. The calculation is based upon expected investment income yields in the current economic conditions. The £43m fund allows for sufficient income to be generated to meet the shortfall between
The Congregation of the Daughters of the Cross of Liege **45**
**Notes to the financial statements** 31 March 2024
- **16 Statement of funds** (continued)
Sisters’ income and expenditure. In due course, as the number of UK Sisters declines, investment returns may be able to be used to support the former Works and to support the work and welfare of Sisters in the other Provinces around the world.
- Charitable activities fund This fund has been established to help secure the future needs of the charity’s current and former Works’ and the long-term accommodation and other needs of the Sisters (separate from the day-to-day living costs planned for in the Daughters of the Cross designated fund described above) and is represented by fixed asset investments. The funds are expected to be utilised in the medium to long-term to secure the Works’ futures, however some commitments have a much shorter time horizon and so the proportion of the fund held in cash deposits is available for commitments in the coming 12-24 months.
- Provincialate fund
- The Provincialate office of the charity incurs running costs each year, which are met from investment income. For the foreseeable future the office will be required to support the Sisters and to be the central administration function of the whole charity. In order to meet these ongoing running costs, this fund has been established to provide the necessary income. The fund remains at the same level as the previous year. To cover the full cost of the central office functions with the income generated by the investments, a much bigger fund would need to be created.
- St Raphael’s Hospice fund The St Raphael’s Hospice fund was set up with a total of £6.3m which included the £3.6m that was paid to the Hospice upon separation in 2020. The remaining £2.7m balance as at 31 March 2023 may be utilised by the Hospice in response to funding needs during a period of significant transition.
- Worldwide fund
- This fund is to provide grants to enhance or develop the work of the Worldwide Congregation, as agreed with the Superior General and her Council. The fund is made up of investment assets and distributes 85% of its net income as grants to overseas Provinces of the Worldwide Congregation. The fund is to be held in the long-term to provide ongoing support to developing the Sisters’ work around the world.
## _**Restricted funds**_
- Hydrotherapy centre
- This represents part of a legacy which had to be used at Holy Cross Hospital and is therefore restricted. The legacy was partly used to build a hydrotherapy facility and these were released to unrestricted funds. The remainder (being the restricted fund) was invested to generate an income to help meet the running costs of the facility.
- Amenities fund
This fund represents monies donated to support patients and staff activities, and patient amenities. The fund supports the running of the ambulances used to transport patients, and the cost of social activities and outings for patients. This includes the costs associated with the off-site cottage in Selsey that is used by patients as part of their care.
The Congregation of the Daughters of the Cross of Liege **46**
**Notes to the financial statements** 31 March 2024
## **17 Analysis of net assets between funds**
||**General**
**Funds**
**2024**
**£’000**|**Designated**
**funds**
**2024**
**£’000**|**Restricted**
**funds**
**2024**
**£’000**|**Total funds**
**2024**
**£’000**|
|---|---|---|---|---|
|Tangible fixed assets
Fixed asset investments
Net current assets
Provisions for liabilities and charges|**—**
**3,969**
**55,102**
**(171)**|**28,776**
**100,336**
**6,461**
**—**|**—**
**—**
**1,478**
**—**|**28,776**
**104,305**
**63,041**
**(171)**|
||**58,900**|**135,573**|**1,478**|**195,951**|
## **18 Related party transactions**
## _**Sisters**_
The Sisters of the Congregation are beneficiaries of the charity, in that the costs of their ministry and welfare are met by the charity. The trustees are all Sisters and they are not remunerated for their services. No trustee had any beneficial interest in any contract with the charity.
The trustees, as Sisters of the Congregation, covenant their pensions and other income to the charity. During the year the five trustees covenanted an aggregate of £115,421 to the charity (2023 – £114,101).
## _**Worldwide Congregation**_
The Sisters are members of the worldwide Congregation of the Daughters of the Cross of Liege and the charity has objects which are not restricted to the UK. Total grants of £1,148,000 (2023 – £165,000) were made during the year to the worldwide Congregation. Grants totalling £148,000 were made for projects in Rourkela (India), Nepal and Cameroon. There was also a grant of £1m made to Kolkata towards the costs of a new hospital facility being built by the Congregation.
## _**St Raphael’s Hospice**_
Two trustees of this charity; Sister Veronica Hagen and Sister Kathleen O’Reilly are trustees of the St Raphael’s Hospice charity. On 1 November 2020, this charity and the Hospice entered into three 20-year lease agreements for the Hospice building, the 759 London Road office, and St Bede’s conference centre. All three leases have a nominal rent of £100 per annum.
## _**St Elizabeth’s Centre**_
Two trustees of the Daughters of the Cross are trustees of St Elizabeth’s Centre; Sister Veronica Hagen and Sister Josephine Clemence. During the year, this charity paid a grant of £2,000,000 (2023 - £1,750,000) to St Elizabeth’s Centre to assist with exceptional staffing and maintenance costs.
## **19 Capital commitments**
As at 31 March 2024 the charity had commitments of £126,000 (2023 – £317,000) for projects at Cheam and Haslemere.
The Congregation of the Daughters of the Cross of Liege **47**
**Notes to the financial statements** 31 March 2024
## **20 Pension commitments**
The Works contribute to pension schemes, providing pensions under both defined benefit and defined contribution arrangements.
The assets of the funded schemes are held independently of the charity’s finances.
Details of the contributions are as follows:
|**Name**
**Type of Scheme**
**Administrator**|**Contributions inyear**|**Contributions inyear**|
|---|---|---|
||**2024**
**£’000**|**2023**
**£’000**|
|Holy Cross Hospital
Defined benefit
NHS Pension
Holy Cross Hospital
Defined contribution
The People’s Pension
Province
Defined contribution
The People’s Pension
Non-scheme contributions|**10**
**151**
**20**
**13**|**8**
**138**
**20**
**11**|
||**194**|**177**|
## _**National Health Service (NHS) Pension Scheme**_
The NHS pension scheme is a defined benefit scheme operated by the National Health Service Superannuation Scheme. The administration of the scheme is dealt with by the National Health Service Pension agencies. The charity is unable to identify its share of the underlying assets of the scheme. Accordingly, it has accounted for its contributions as if it were a defined contribution scheme. Contributions to this scheme are paid in respect of current service. There is no liability to the charity in respect of past service.
## **21 Post balance sheet events**
There are no post balance sheet events that require disclosure.
## **22 Scope**
The financial statements disclose the financial position and results of the charitable company, which incorporate and aggregate the results of the Province and Holy Cross Hospital, Haslemere, Surrey.
As at 31 March 2024, the five existing Communities were: Cheam St Mary’s, Surrey; Chelsea, London; Haslemere, Surrey; Much Hadham, Hertfordshire; Stillorgan (Dublin), Ireland.
## **23 Accounting policies**
## _**Basis of preparation of financial statements**_
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Congregation of the Daughters of the Cross of Liege **48**
**Notes to the financial statements** 31 March 2024
## **23 Accounting policies** (continued)
## _**Basis of preparation of financial statements** (continued)_
The Congregation of the Daughters of the Cross of Leige meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## _**Critical accounting estimates and areas of judgement**_
The trustees consider that the judgements they have made in the process of applying the charity’s accounting policies which give rise to significant effects on the amounts recognised in the financial statements are:
- The estimated useful lives of fixed assets and therefore the rates of depreciation;
- The future commitments and other obligations that are used to establish the value of designated funds; and
- The fair value of listed and unlisted investments.
The trustees do not consider that there are any key assumptions concerning the future, or any other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## _**Going concern status**_
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements and they have made this assessment in respect of a period of one year from the date of approval of these financial statements.
The trustees are confident that the charity has, and will continue to have, sufficient resources to meet its liabilities as they become due. The trustees have concluded that there are no material uncertainties related to events or conditions that would cast significant doubt on the ability of the charity to continue as a going concern. This is because they believe they have sufficient unrestricted reserves to withstand any temporary drop in income or any additional unexpected liability.
## _**Income**_
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
At the end of any financial year, the charity will have issued invoices to local authorities, health authorities, and individuals which cover a period beyond the balance sheet date. This income is carried forward and disclosed as “Income received in advance”.
In accordance with the Charities SORP FRS 102, no financial valuation of volunteer time is recognised in these financial statements.
Donations represent income given by individuals, corporations and trusts including recoverable taxation.
The Congregation of the Daughters of the Cross of Liege **49**
**Notes to the financial statements** 31 March 2024
## **23 Accounting policies** (continued)
## _**Income** (continued)_
Legacies are included in the statement of financial activities when there has been a grant of probate, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.
Covenanted income from the Sisters of the Congregation arises from the donation of their pensions and other income.
Grants receivable are accounted for in the period in which they fall due. Grants from the government and other agencies are included as income from charitable activities where they amount to a contract for services, and as donations where the money is given in response to a fundraising appeal or with greater freedom of use.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## _Income from charitable activities_
- Fees and charges are derived from individuals and Public Authorities and are stated exclusive of VAT.
- Other income represents proceeds from the sale of food and sundry other income.
## _Investment income_
Investment income, representing dividends, interest, and income from property, includes any associated tax recoverable. Dividends are recognised once the dividend has been declared and when the right to receive the dividend payment is irrevocable.
## _**Expenditure**_
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
The Congregation of the Daughters of the Cross of Liege **50**
**Notes to the financial statements** 31 March 2024
## **23 Accounting policies** (continued)
## _**Expenditure** (continued)_
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## _**Interest receivable**_
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## _**Tangible fixed assets and depreciation**_
Tangible fixed assets are initially recognised at cost or valuation, less accumulated depreciation and, where appropriate, impairment provisions. All assets costing £5,000 or more, and with an expected useful life exceeding one year, are capitalised. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any fixed asset may not be recoverable.
The majority of freehold land and buildings under the total control of the trustees and in use within the charity were valued at 31 March 2014 on a depreciated replacement cost or an existing use basis. Under the transitional arrangements set out in FRS 102, the valuations are deemed to be equal to cost at the date of transition. Subsequent additions are stated at cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
|Freehold property|2-5% on cost or revalued amounts|
|---|---|
|Leasehold property|over the period of the lease|
|Motor vehicles|10-25% on cost|
|Medical, computer and office equipment|4-33% on cost|
## _**Investments**_
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
## _**Debtors**_
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
The Congregation of the Daughters of the Cross of Liege **51**
**Notes to the financial statements** 31 March 2024
## **23 Accounting policies** (continued)
## _**Cash at bank and in hand**_
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## _**Liabilities**_
Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## _**Financial instruments**_
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## _**Pensions**_
## _**Defined benefit schemes**_
The charity contributed to one defined benefit pension scheme, the NHS Pension Scheme, providing benefits based on either final or career-average pensionable salary, depending on the scheme. The National Health Service Superannuation Scheme is a multi-employer defined benefit scheme and is an unfunded scheme. As it is not possible to identify the share of the underlying assets and liabilities belonging to individual participating employers, the contributions to the scheme are recognised in the statement of financial activities so as to spread the cost of pensions over employees’ working lives.
## _**Defined contribution schemes**_
The charity operates a number of defined contribution pension schemes. The amounts charged to the statement of financial activities represents the employers’ contributions payable to the schemes in the year.
The Congregation of the Daughters of the Cross of Liege **52**
**Notes to the financial statements** 31 March 2024
- **23 Accounting policies** (continued)
## _**Fund accounting**_
The general fund represents unrestricted and undesignated monies used to fund working capital and which the trustees may use at their discretion in furtherance of the charity’s objects.
Designated funds are those funds earmarked by the trustees for a specific purpose. They are unrestricted, and the trustees may ultimately use such funds for other purposes. Any income, gains or losses on the assets underlying the designated funds form part of general unrestricted funds.
The funds represented by the net book value of fixed assets are treated as designated funds.
The restricted funds are funds which have been raised for a specific purpose or which are subject to restrictions on their use and include those funds which have to be spent at a particular Work. Restricted funds raised for capital expenditure are released to unrestricted funds once they have been spent. Any income, gains or losses arising from the assets underlying the restricted funds form part of restricted funds.
The Congregation of the Daughters of the Cross of Liege **53**