2021-03-31-accounts

The Congregation of the Sisters of Nazareth Generalate Annual Report and Accounts 31 March 2021 Charily Registration Number 1138876 (England and Walesy

Contents Reports Reference and administr81ive details of the charity, its trustees and advisers Trustees. report Independent auditor's report 20 Accounts Statement of financial aCtI￿lieS 23 B8lanc8 sheet 24 statement of cash flows 25 Prin¢ipal accounting policies Notes to th8 accounts 32 The Congregation of the Sisters of Nazareth Generalate

Reference and administrative details of the charityTr its trustegs and advisers Trustees Sister Brenda Mccall (Chair), AKA Sister Mary BrerKla Mccall Sister Valma Beatrice Cooper, AKA Sister Domintca of the Cross Cooper Sister HAnnah Marie ￿yer, AKA Sister Hannah Maria [￿er Sister Mary Veronica Kealey, AKA Sister Veronica Anne Kealey Sister Anne Bemadette Walsh, AKA Sister St Teresa Walsh Superior General Sister Mary Brenda Mccall Treasurer General Stster Hannah Maria E￿lYer General Secretary Sister Veronica Anne Kealey Congregational Chief Executive Kewn Bames Principal offi¢e Sl Mi¢haels Nazareth House 169-175 Hammersmith Road London W6 8DB Email [e-mail] Website www.sislersofnazarelh.com Charity registration nurnber 1138878 (England and Wales) Audltor Crowe U.K. LLP 55 Ludgate Hill, London EC4M 7JW Investment managers Bla¢kRock Inveslmenl Management Limited 12 Throgmorton Avenue, London EC2N 2DL Roy81 London Asset Management 55 Gracechurch Street, London EC3V OUF Principal banker Barclays Bank 22-24 Upper Marlborough Road, St Albans. Herifordshire AL13AL Principal Solicitor Stone Kiro LLP 13 Queen Square, Balh BAI 2HJ The Congregation of the Sisters of Nazareth Generalate

Trustees, report 31 March 2021 OVERVIEW During the financial year, the second full year for the current tmstees, the Congregation has continued to work toward5 delivering tts Mission, Vision and Aim, and living by its values. These are s8t out in full on the next page. The main achievements during the 2020121 year include.. 1. The official opening of the Heritage Centr8 by Bishop Michael Campbell OSA, in September 2020. The Heritage Centre includes an exhibition of the Congregation's Foundress. Victoire Larmenier, and her legacy of the cOngregat￿n of the s￿ters of Nazareth, along whh a new, pemiAnent hDme for the 8rchlve, which ensures the Congregation'5 precious paper records can be stored in environmentally controlled conditions. 2. Supporting the regions to manage their response to the Covid-19 pandemic and to keep the vulnerable residents and children in the Congregation's care as safe as possible. 3. Five novices made their first pmfession in September 2020 and shortly after retumed to the African and Australasian Regions lo continue their relvJious joumey as Slsters of Nazareth. 4. Prov#Ying finance5 to the UK Region to enable them to repay a loan for the construction of the Glasgow care home and retirement apartments. 5. Prepa￿ Nazareth House Southend for malkeling. ready for a ftjture sale of the stte. The year has also had ts challenges, including decKJing lo close Nazareth House San Rafael in AmeiieA after more than 80 yea￿. This 15 due to a reduced numter of residents and the difficumy of recruiting suitably qualitled staff, both of whF¢h were exacerbated by the pandeml¢. The issue of historiG abuse of children in the Congregation's care continues to impad on our activities today. In May 2019, a rew)rt was issued by the Scottish Child Abuse Inquiry following the testimony in 2018 of the suNvors of abuse in four residential children's homes in Scot18nd operated by the Congregation. The Congregation fo￿allY apologised for any mislrealment of those in our care and deeply regrets any hami or shortcomings in the care that was provhded. The Congregation has and continues lo co-operate wilh the Scotti%h Inquiry and the Inquiries held in Northern Ireland, Australla and New Zealand, each at different stages, and with those govemmenls as they Set up their redress schemes. All residential children's homes in each of these countries have now been closed for many years. The year was dominated by the CovhJ-19 pandemic. This affected the work of the Congregation, curtailing travel and activities, and more directly the provision of care to the eldedy and children who are looked after in the care homes and other services in each region. The Trustees pay triblrte lo the exceptlonal hatd wotk of all the Sisters, staff, volunteetS 8nd others In Nazareth Care who have worked tirelessly to keep the res¥Jents safr. often putting the care of olhets ahead of their own safety and wellbeing. There can be no greater example of their commitment and living by the Core Values. Sadly. we have105t one Sister and have seen some resident5 k)se their live5 to the disease, along with two members of slaff. Their families and friend5 are rernembe￿d in our prayers. The Congregation of the Sisters ol Nazareth Generalate

Trustees, report 31 March 2021 THE CONGREGATION'S AIM MISSION, VISION, AND VALUES Aim The Constitutions of the cong￿gation of the Si5tets of Nazareth set out its aim.. °To gIC￿"fy Almighty God by ft)Mowng Christ as our supreme rnle of life. We do this by personal sancln7cation, by dedicating OU￿elVeS to the building up of God's kingdom, 8nd by engaging in the partiGularminislries entrusted to us by the Church." care of the elderty, wort( wrfh children, educational, pastoral and so￿al works. and other ministries in 8ccord8nce wth the needs of time and place.. (Constitution 1.3) Mission The Charity supports the work of the Conoregation throughout the wodd. tts mission. therefore, s identical to Ihe Congregation's own mission stalemerrt.. 'We, the Sisters of N8zareth, aim to share the love of God through our ministries of care and education and our openness to ￿Spond to the needs oflhe times." Whatsoever you do to the least of my people you do to n￿". Vlords of Jesus Christ {Matt.25.40) Vision The Sisters of Nazareth is a Cathollc Congreg8tton devoted to the dignity of life. We strive to maintain and improve the quality of lrfe of those whose live5 we touch. Core values The Aim, Mission and Vision are supported by six Gospel based 'core values,, derived f￿rn Scripture. All who are associated wrih the work of the Congregation are expected to demonstrate 8 commrtmentto the Core Values.. Love - Unselfish concem for the good of othets shown through patience, kindness. trust, hope, endurance, tnrth and a strong affection.. Compassion - Being open and attentive to the whole person. spiritually, physically and emotionally, showing empathy forthe suffering of others and trying to relieve that suffering. Respect - Hokjing the unique dlgnily of each person In htyJh esteem and with s￿￿al consKleration, showing thoughtfulness, courtesy and care. Justi¢e- Upholdlng what is fail. decent and f￿h1, appreciating each person, respecting their rights in a balanced and fair manner. Hospitality- Welcoming arvj receiving all into a wami, friendly and open atmosphere. Patience- Persevering calmly and with understanding and 8ndur8nce. The Congregation of the Sisters of Nazareth Generalate

Trustees, report 31 March 2021 A new programme, Vi(*oKe's Legacy, has been prepared and is ready to be delivered. which covers the legacy of the Foundress, the Core Values, s8feguarding and interculturality. Meanwhile, the Congregation's MISS￿ Alive programffle Gonlinues to be used and reinforces the impact of its Mission and Core Values on its minislrTes. The programme provides training to staff and volunteers in the meaning and application of the Core Values and how to put them into practice in the workplace, en5UriThJ the Core Values and Mission make each Nazareth House and Servi￿ a distinctive place of ca￿. The continuing and visible presence of Sisters in the seNices is a reminder to residents, relatives. staff and volunteers of the Congregation's origin arKI its ongoing commitment lo provmling spifilual and compassronate care to the eklerfy and others who benefit from these services. The leadershlp of the Congregation has adopted ttte principles of 'servant-leadership' set oul by Robert Greenleaf, which have a strong affinity with the core values. STRUCTURE The Congregation of the Sisters of Nazareth Generalate (Ihe Chariiy ) supports the religious. educ81ional, care and other charitable work of the Congregation of the Sisters of Nazareth (Ihe Congregation.) across the wortd. The Congregation an unIn￿￿K)rated international body of reliqrous women the Sisters of NaZ9￿h (Ihe Sisters) who were founded by Vicloire Larmenier and recognised by the Holy See In 1864. The five trustees of the Charlly are also the five elecled leaders of the Congregation, the Superior General and four General Councillors. The Chanty is based in the United ￿"ngdorn. As of 31 March 2021, there were 203 siste￿ (2020.. 2C6) and 8 noMces12020.' 9>. Most of the Congregation's ministries, or services, are provided within Nazareth Houses, which are mainly care homes for ohjer people. As of 31 March 2021, the Congregation operated 34 Nazareth Houses, 8 retirement villages. 3 education serwces and 2 children's seNces in 37 different locations. They are organised into four regrons and one area- Africa, America, Australasia, Ireland and Uniled Kingdom. For this report only, the four ￿gIonS and one area are all refer￿d to as regions. Each region consists of both a regional branch of the COng￿gatIon and an operating entriy, which are charitable or not-for-profft organisations. Each regional branch of the Congregation owns the properties the Naz8reth Houses and looks after the mission of the COng￿gatIon and the welfare of the Sisters in the region. The operating entities function under the name Nazareth Care (Nazareth House in America) and are delivered on behalf of the Congregalion. They m8nage the care homes atvj other services. receive the income and employ the staff. This struclure ensures that the Sislers ￿taIn control over the assets and mission of Ihe Congregation while lay staff can manage the services and provmje the care. Each Nazareth Care is a separate legal entity wrth ts owll governing document and L￿)ard of tmstees, consisting of a majority of Sisters and supplemented wrth lay trustees. Each board is chaired by the Regional Superior, who is a member of the Congregation. Each region has a similar legal stnjcture, amhough each is necessaiily tailored to the legal juris(iiction in which it operates. The Congregation of the Sisters of Nazareth Generalaie

Truslees, report 31 March 2021 The Congregation, through the Superior Gener81 and the General Counclllors. retains some decision making powers over the regron5 and the Charity hold5 the cenlral reserves of the Congregation. The Charity has no related parties or subsidiaries. There are several connected eniities to the Charity, being other components of the Congregation. Those components in the United Kingdom are detailed in Note 21 to the accounts and consist ofThe Congregation of the Sisters of Nazareth Charitable Trust (charity registr*ion number 2289[￿ (England and Wale51 arKI SC040507 {Scotland>) and Nazareth Care Charitable Trust (charity registration number 1113666 (England and Wales> and SC042374 (Scotland)) and a company limited by ouaranlee (Company Registration No 5518584 (England and Wales)) and Its subskjlarles. REVIEW OF THE YEAR The trustees present the report and accounts of the Congregation of Ihe Sisters of Nazareth Generalate for the year ended 31 March 2021. During the year the Charity has supported the mission and care provKled in the regions in many ways. These Include pmviding guidance. fomial approval, financing and ongoing monitoring and supp)rt to building work5, change5 to goveming documents and any other signlficant developments. Al the mosl recent General Ch8Pter, held in June 2018 in Hamme￿M[(h, London. the future direclion of the Congregation was agreed upon, which forms the basis of the Congregational Plan forthe next Stx years. The key elements of the plan are to.. 1. Acknowledge the gift of interculturalily in all aspeGts of the Congregation. 2. Review the impact of the changing st￿ng1h5 and availability of Sisters, to maintain the viability of the Congregab"on. 3. Embrace, study. promote and implement the principles of Catholic Social Teaching and Pope Francis, social encyclical on the enmronment, Laudato Si,, conceming ecological and social issues affecting the life and mission of Ihe Congregation. 4. Safeguard the partnership belween the Congregation aThJ Nazareth Care. 5. Promote vocations and the initial and ongoing formation of the Sisters. Delivery of these Recommendations will take time. Aclions towarts their delivery have mmenced and include.. An interculturality course in Rome was attended by four Sisters from the Congregation who then cascaded the course through each of the regions.. Developing a new programme of Induction and training for all Sisters and staff, exploring Victoire's legacy. our mission, the partne￿h[p, core value5 and intercutturality- The Congregation of the Sisters of Nazareth Generalate

T￿stee$, report 31 March 2021 Rewewing the formation progTafflme lo support the training and ongolng fomation of Sisters,. Preparing and distributing a new Common Policy docurnent for the Congregation including Nazareth Care to have a growing consciousness and praciice around ecological and social issues. Conshjering ways of ensuring the viability ofthe Congregation with regard tothe changing availability of Sisters.. Strengthening the role of Si%let3 in the govemance of the Congregation., Reviewing the partnership between the Congregation and Nazareth Care. These aThJ other actions are contained in the Global Congregational Plan and the Nazareth Care Global Plan, which are then c8scaded down to the regKJn, house and communrty plans. Plannin The Global Congregational P18n aThJ the Nazareth Care Glob81 Plan form the top layer of a planning system that requires each regron, service and communiiy of Sisters to produce their own plans. The intention is for a'golden thread, lo flow from the General Chapterthrough all the plans. ensuring that all activities are focused on the Recommendations. The plans identify the many elements common to both plans that require the same actions by Sisters and lay slaff. Pro ert The Nazareth Heritage Centre in HammeTsmilh was officially opened in September 2020. The Centre contain5 a new exhibition commemorating and celebrating the lrfe and legacy of the COng￿gatIOn,5 Foundress, Vicloire Larmenier. and prowdes a permanent home for the Congregatlon's archive. The collection has been added lo during the year as the Centre bec0n￿$ better known aioulld the Congregation and more artefacts are gifted lo the display. The Novits'ate was relocated during the year lo a refurbished building on the Hammersmrth sile. The volume of building work taking place in all regions has ￿duced dufing the pandemic, with just existing projects being continued and historic issues addressed. Consent was granted lo permit the African Region to deal with 8 longstanding and complex18nd split in Port Elizabeth. South Africa and to the Australasian Region for a similar land transfer in Geraldton. Consent was also given for a new lease to be entered into for the care home in Ballymote, County Sligo In I￿land and to replace the roof of Nazareth House Northampton. which was urgently required. Works previously approved have continued, induding completing Ihe refvrbishment of part of Nazareth House Gera￿jt0n in Australia and the refurbishment and exlension of Nazareth House Birkenhead in the UK. Plans are also being developed for upgrades and improvements lo several other Nazareth Houses across all of the regions. The CongregatK)n of the Sisters of Naza￿th Generalale

Trustees, report 31 March 2021 Finance Each region consists of one or more indeperKlent charities. Therefore, consolidated accounts are only pmduced at regional level and are not cons01￿lated globally. Region a¢eA)unts are prepared 2nd audited accoroing to their local standards and are available on request from each region. Each region provKJes a quarterfy report on its operational financial perfom)ance, covering the activities of Naz8relh Care including each Nazareth House. Unaudited accounts for each ￿gion Show that total tumover for 2020121 was £109 million, a decrease from £111 million in 2019120. The decrease is mainly attrib¢Jted to the reduction in the number of reS￿ents and then the closure of San Rafael Mi￿aY through 2020121, along wtih a weakening of the Dollar to Sterting exchange rate. Four of the five regions improved their financial performance, generaling a latrJer surplus or smaller deficit than the previous year. which will be used for reinvestment in capital projects. The Charity provided a new loan to the UK Region to ￿finance Ihe building of the Nazareth House Glasgow care home, reducing the interest rate payable. The Charrty also provKled fijrther advanGes of the previously agreed funding to the UK Region forthe extension and ￿ftIrtlishMent of Naz8r8th House Birkenhead. Nazareth House Soulhend Nazareth House Southend was closed and the closing Mass was held on 28 February 2020. Since then, the site has been made available lo the NHS as a CovhY-19 test centre aThJ lo provide much needed temporary accommodation. pending 8 decision on the ksng-tenTt future of the site. The siÈe has subsequently been marketed for sale. In uiries The Scottish Child Abuse Inquiry published its report in May 2019 into the work of the Sisters ol Nazareth in four homes for children, which were all closed in the early 19805. The report details the suffering and abuse reported by some children in our homes, for which we apologise profvundly. EvNJence has been given to the Inquiry. most recently in October 2020 relating to child m￿ratiOn. In addition, we continue to co-operate with the Scottish Govemment with their Advance Payment Scheme and the development of Redress Scotland, following the passing of the Redress for Survivots (Histortc41 Child Abuse In Care) (ScotlaThJ) Act 2021. to support the survivors of abuse. The Northern Ireland Hlstorfcal Instrtutlonal Abuse Inquiry, the Engllsh Inqulry, the Independent Inquiry into Chikj Sexual Abuse and in Australia, the Royal Commission into Inslitulional Responses to Chikl Sexual Abuse, have all previously published reports. The semces that are cited in the reports have not been operated by any part of Congregation including the ChaTity, the UK Region or the Australaslan Region for a long lime. We continue our practice of co-operating with all of the Inquiiies and providing ongoing 5UPPOrt to the survivors. The Congregatron of the Sisters of Nazareth Generalate

Tru5tees' report 31 March 2021 Cov*J-19 The year was dominated by the Covid-19 pandemic. This affected the work of the Congregation, curtailing travel and activities. and more directly the provision of Gare to the eldedy and chikjren who are cared for in the Gare home5 and other serwces in ea¢h region. The Sisters, management and staff response has been phenomenal. priorilising the care of others and we thank them for their efforts. The Charity's activities have continued, with more adivities delivered remotely, and the timing of olhers adjusted to reflect the ability to travel 8nd making extensive use of vhjeo conferenThng. All staff of the Chartiy have corrtinued in their roles. many working ￿MOtelY for at least part of the tlme. Income and expenditure have only marginally been affected during the 2020121 flnancial year. The laluest source of income, donations from the regions. are based on an agreed melhodolcgy linked to the inco¥ne in each region. Total donations have fallen by 4.6%, resulting from reductions in ￿gional income referred lo earlier in th￿ report. This reduction has been compensated for by In¢￿ase$ in interest charged on the loans promded. where a further £2.7m of k)ans have been advanced durfng the year. Inveslment funds have perfom)ed slrongty. In¢￿asIng in value by £2.5m durfng the year. less the withdrawals to extend the loans. This follows a loss of £0.432m in the previous finAnci81 year. other activities Other adivities during the year included= nK)nitoring the financial and oper8tional perfomiance of the regions, based on quarterly reports and commentaries received from them., rewewing the govemanc£ in regions., consijering applications by regions for consents of various types. in particular relating to major building works and constitutional requirements-, allocating fU￿lS to consented projerts by way of grants and loans; monitoring investment performance and reviewing the investment managets used. keeping in touch with the houses and regions, malnly by video and telephone this year. The focus of these visits by the Superior General alld her General Councillors is their pastoral care of each Sister's welfare. as well as provNJing opportunities to observe the operation5 within houses. monitor the governance within regions, encourage a strong partnership between the COng￿gatIon and Nazarth Care and update their knowledge of issues in each region and house. The Congregation of the Sisters of Nazareth Genera18te

Trustees. report 31 March 2021 FINANCIAL REPORT FOR THE PERIOD The accounts have been prepared in accordance wtth the accounting pollcies sel out on pages 26 lo 31 of the attaGhed accounls and comply with the Charity's trust deed, applicable laws and Accounting and Reporting by Charrties.. Stalernent of Recommended Praclice applicable to charities preparing their accounts in accordance with the Financial Reporting Stand8rd applicable in the United Kingdom and Republic of Ireland IFRS 102). Income and expenditure The income and expenditure of the Charity are detailed in the Statement of Financial Activtiies, on page 23 ofthe accounts. Unrestricted income for the yeAr amounted to £2.003 million {2020 - £1.977 million)- In &Jdition, a ￿$tricted donation of £10 million wa5 received in 2021 {2020- nil). Unrestricted income is from two primary sources.. Donations 8nd legacies of £1.540 million (2020 - £1.615 million). Donations are mainly from the regions and decreased this year. due to the closure of Nazareth House S8n Rafael and Nazareth House Southend. together wlth a weakening ofthe Dollarto Sterling exchange rate. In some other houses there has been an increase in occupancy and fees, which has fesulted in increased donations to the Charity. Income from inveslmenls tolalled £0.464 million (2020 - £0.362 million), which is almost entirely interest on loans lo fund buikling projects in the regic>ns. Loans include funding for works at Nazareth Houses in Christchurch. New Zealand-, Glasgow. Scotland., Dublin. Ireland". Mallow. Ireland,. Be￿aSt. Northern Ireland and Birkenhead, England. The loans for Glasgow and Birkenhead have been Increased this year, which has resijlted in more interest due. An extremely oenerous, restricted donation was received during the year to fund the refurbishment of Nazareth House Hammersmrth, the home of the Charity and the first house established by the foundre55, Victoire Launenier. The Charlty and the Trustees are extremely grateful lo the donor for their generosity. for which they have been thanked privately. Expenditure illGrease(i to £1.627 million {2020- £1.557 million) due to an increase in grants paid less a reduction in travel and not wrf(ing down a loan b81ance this year (2020 - £0.374 million). There were increases in depreciation following capital expenditu￿ in Ihe last few years in Hammersmith and an increase In foreign exchange losses refle(Aing a worsening of exchange rates used to ¢alculate the Stet1ing equivalent of the loan balances. Grants to the regions Increased to £0.421 million (2020- £0.195 million) to fund actIv￿leS in Ireland and Southend and Hammersmith in the UK. Expenditure is detailed in Note 4 of the accounts. Income less expenditure resulted in a gain forthe year of £10.377 million12020- £0.421 Million). After investment gains of £2.463 million (2020-1oss of £0.432 million) the net movement in funds for the year was an increase of £12.840 million (2020 decrease of £0.011 rnillion>, of which £9.710 million was held as a restricted fund at the end of the year. The Congregation of the Sisters of Nazareth Generalate

Trustees. Trport 31 March 2021 Loans No new loans were approved during the year. A new loan was approved in March 2020 and patd in April 2020, to the UK Region to refinance a commerc4al loan for the care home and retirement apartmerrts in Glasgow. The new108n is consolidaled with an existing debt from the Charity, 81so relating lo Glasgow, and improves the over811 fep8yment tern￿ for the Chaiity. Additional advances were made duting the year for a previously agreed loan to the UK Region lo extend and refurbish Nazareth House Birkenhead. This loan has now been pawj in full. The new loan advances. le55 repayments during the year. increased the Charity's debtor balance 10 £16.822 million (2020.. £13.319 million) al 31 March 2021. Notes 13 and 21 to the accounts prov¥Je fijrther details of the outstanding balances and the funding arrangemenls. Cash flow and irwestment perfoffl￿nCe The value of listed investments at 31 March 2021 was £20.215 million (2020- £13.152 million). The increase represents investing £7 million of the £10 million restricted donation, the drawdown of funds from Royal London lo fund the loan advances during the year and un￿alised gains on valuation. A summary of movements on listed investments can be found ift Note 11 to the 8ccounts. Investments whh a market value at 31 March 2021 of £16.679 millk)n {2019- £7.270 million) were held wrthin the BlackRock Catholic ChatTiie5 G￿Wth and Income Fund. This is a common investment furKI sel up to provide charities with ethical inveslment in line with Catholic teaGhing. A further £3.536 million (2020- £5.881 million) was held with Royal London Asset Management and invested in cash, deposi(s, money market instruments and short418ted government securities, aimed at delivering a positive return without addrt￿nal risk. Funds and reserves policy The Charity's reserves of £42.528 million (2020 - £29.689 million) are divided belween two designated funds, the tangible fLxed assets fund, General Fund, and a restricted fund.. DesNJnated funds.. • The Sisters, Support Fund.. £7 mlllion (2020- £7 million) is retained to prowde Sisters who need any SUPF()rt. including nursing or residential care in a Nazareth House, with the means to purchase it where public funds are nol available and for other needs such as medical cosls, training or emergencies. The amount is calculated based on the estirnated future costs of provKling care for Sisters, the number of Sister5, their ages, life expectancy, anticipated length of car8 and the cost of provmjing care. The level of the lund was rewewed during the year and the Chatity ConfiM￿d that £7 million remained the appropriate level of the Fund. The Congregation of the Sister5 of Nazareth Generalate 10

Trustees, report 31 March 2021 • The Pfoperty Fund.. £22.500 million {2020- £19.370 million) was Increased by £3.130 million (2020 reduced by £0.817 million) as a resu￿ of the increase in the value of investrnents and surplu5 generated during the year. The fund will be used to provide loan5 orgranls to regions requiring sUPPOrt for buikling or other major works. This is expected lo be the primary focus of the utilisation of the Charity's funds for some years as many properties require upJrading and remojelling to comply with current standards and expectations. Trustees have already used a prop)rtion of the fund, demonstrated Ihrough the loan balances. They anticipate using more of the fund over the nexl five lo ten ye8tS to continue the process of upgrading properties. subjed to retaining sufficient funds to respond to emeffjencies. This may include additional costs lo refurbish Nazareth House Hammersmith, as well as other siles in the UK and overseas. Other funds.. The tangible fLxed assets fund represents the value of the tangible fLxed assets owned by the Generalate. The fund has increased from £2.318 million to £2.397 million duiing the year as new assets have been added and the existing assets have be8n depreciated. The General Fund of £0.920 million12020 - £1 million) is retained to cover the running costs of the Generalale in the event of a temporary loss of income, together with some capacity to support regions 2nd houses experiencing unforeseen costs that cannot immediately be funded from other sources. The General Fund represents the only unrestricied and non-designated fvnds of the Charity. that can be spent as the trustees decide. The General Fund is in line with the trustees, expeclatM)ns and represents around nine months of operating expenditure, excluding foreign exchange losses. The trustees wish lo relain belween 6 and 12 months of operating expendtture in the General Fund to avoid any interruption to its acliviiies in the case of a loss of income or the need for increased support to a region. The restricted fund of £9.710 million {2020 - £0) 15 accounted for separately. £7 million (2020 - £0) is hekl in the BlackRock Catholic Charities Growth and Income Fund and the remainder Is held in cash deposits to fund shorter-temi cashtknvs. During the year. £0.289 million 12020 £0) had been spent from the fund on refurblshlng and relocating the Novitiate. Thls has been capitalised and added to Fixed Assets. Golng ct)ncem The trustees have assessed the Chafity's ability to continue as a going conceffl. The trustees have considered several factot5 when forming their conclusK>n as lo whether the use of the going COn￿rn basis is appropriate when preparing these financial statements inGluding a review of updated forecasts lo 31 March 2023 covering income, expenditure, cash and reSe￿e$, the long- tem cashflow fore¢asl 10 31 March 2026 and a consideration of key risks. induding CovKk19, that Qoukl negatively affec# the Charity. The Congregation of the Sisters of Nazareth Generalate 11

Trusts•s' report 31 March 2021 The Charity fvnded primarily by donations from the Regions within the Congregation together with other donations from the Sisters and legacies. There Is a risk that the pandemic will ￿dUce Income In each of the regions durtng the year and consequently this will reduce the income that is pail to the Charity. During the la51 year, m051 houses and most regions have remained ￿slI1ent to the challenges and have continued to operate successful houses, with 8ppropriate changes to their operating wactices. Admissions have restarted in most locations and occupancy in the homes is beginning to increase. Admission embargoes a￿ now much shorter than was Ihe case in the eady days of the pandemic and the number of residellts dying has reduced consmlerably. The ifflpad is reflected in the reports and foreGasts reviewed by the Trustees. Debtor balances have been reviewed and assessed and, as all loans are to within the Congregation, Ihey are considered to be repayable in full. The budget and f0￿CaSI$ for the forthcoming year are considered to be deliverable and the cashflow forecast shows that there a￿ sufficient cash and IKiuid resources and forecast inflows for the period of rewew, with the SUFPOrt of the unreslrided reserves rf required. The Charity has not accessed any of the government grants or loans provided In response to the Covid-19 pandemic and does not anticipate doing so. The Trustees therefoTr have a reasonable expectation that the Charity has sufficient resources to continue in operational existence for the foreseeable future and so should continue to ado the going concem basis in p￿parIng the annual report and financial stalements. FUTURE PLANS The focus over the next year and beyond wlll be implementing the Mandate and Recommendations from the General Chapter in 2018. In addition. the Chariiy will continue to support the regions. parti¢ulady with their property developments and upjrades lo ensu￿ the best environment for delivering high quallty care to residents. This has been especially difficum as they m8n8ge and come through the Covid-19 pandemic. The Charity continues to keep in regular Gontad with the ￿010n5 to ensure they are )piThJ, to underst8nd the challenges th8y are facing and to see how they can be supported. The Charity is also wothing closely with the UK Region to plan for the redevelopment of Nazareth House Hammersmith. GOVERNANCE The fflembers of the Collgregation are led by the Su￿riOr General, supph)rted by four General Councillors. These five Sisters are elected every six years at the General Chapter, which is attended by representatives of the whole Congregation. The General Chapter, whi18 in session, is the hKJhest authority in the Congregation. Before each Chapter the￿ is considerable consumation with all Sisters through a series of Region81 Chapteis. other region-based meetings and papers distributed for discussion. The Regional Chapters elect Sisters to attend the General Chapter on behalf of all Sislets. The June 2018 General Chapter wa5 attended by 32 ex-offic and elected Sister5 from the Congwation. This consultative approach provides the elected presentatives with inf0m￿lon and wews from all Sisters across the Congwation on the issues to be discussed. The Congregation of the Sistets of Nazareth Generalate 12

Trustees, report 31 March 2021 The Sup8rior Gener81 and General Councillors oversee the mlssion and ministries of the Congregation and are accountable to the General Chapter for their stewardship of the Congregation's mission, ministries and assets between each General Ch8Pter. The truslees of the Charily comprise the Sup8ri0r General and the four General Councillors ex off￿0. Al the end of the year, the following trustees held office.. Sister Brenda Mccall ('Sister Mary Brenda'l Sister Brenda was elected Superior General in 2018, hawng been a General Councillor since 2012. Before joining the Council. Sister Brenda had been the UK Regional Superior since 2009, where she oversaw the combining of the North and South RegM)ns and implefflented new constitutional and staffing strnctures. Prior to this, she had ministered in various Houses w￿h1n the UK, Irelarnl 8nd South Africa. She is trained in the Residential Care of Children and Young People and is 8 Registered General Nurse. Slster Valma Bealrlce Cooper {'Sister Dorninica of the Cross,) Befo￿ her election to the General Council as Vicaress General in 2018, Sister Dominica worked in the Australasian Region. Being 8 Registered Nurse. Sister Dominica worked In aged care for many years before being appointed to leadership positions as a Superior and Regional Superior, poshSon she hekl for seven years. During this liffle. Sister Dominica was involved in the organis8tional reslruclure and setting up a new business entity as well as renovation and redevelopment programme5 111 the Region. Sister Anne Bernadette Walsh I'sister St Teresa, Sister Teresa served as Superior in the two Northem Ireland Houses for the nine years before her election as a General Councillor in 2012. Sister Teresa originally trained as 8 teacher and worked in education for thirty-five years. Her focus was on the primary school sector and she became principal of a nursery SGhool. At the end of her teaching career, Sister Teresa was awarded an MBE for her contribution to early years. education in Northem I￿land. She was elected for a second lenn as a General Councillor In 2018. Sister Mary Veronica Kealey I'sister Veronica Anne,) Sister Verontca trained as a teacher and W0￿ed in the primary school sector for fifteen years. She served as Superior in Dublin before going to Canada to study for a License in Canon L8W. Sister Veronica worked with the Scottish Catholic Inter-Dioces8n Tribunal for eigm years wotking principally on marriage nullity cases before being elected to the General Council in 2018 and appointed as Secretary General. Sister Hannah Maria Dwyer {'Sister Hannah Marla, Sister Hannah was eleded to the General Council in 2018 and serves as the Treasurer General. Following 8 long career in teaching, 23 Yea￿ as Headteacher in a London Catholic Ptlmary School. she recelved the Pearson Teaching Award in 2014 for Lifetime Achievement. In 2002, Sister Hannah raised £7m to fund the I￿1[ding of a new school. which she supervised. The school was vts(ted by the then Prime Minister Tony Blair, accompanied by AmDhJ Schwarzenegger. The library was opened by the fulure Prime Minister Boris Johnson. In 2015, she took a leadership role in the UK Region, as the Superior of the Chellenham Communlty. The cong￿gatIOn of the Sisters of Nazaieth Genefalate 13

Trustees, report 31 March 2021 The Superfor General and General Councillors live and WO￿ on the Nazareth House site in Hammersmith, which was the fit to be established by the Congregalion's Foundress, Victoire Larmenier, in 1857 and which remains the 'Mother House, of the Congregation. The tnjstees fom) a Port Vll incorporated trustee body-'The Trustees of the cong￿g8¢10n of the Sistsrs of Nazareth Generalate.. The Charity Commission granted a Certificate of Incorporatlon on 23 March 2011. The Chartty is govemed by a Trust Deed dated 1 October 2010. Its objecls are lo awjly the Charity's property and income ..for such chantable pU￿oseS as shall advance the religious, educatDn81, care and other chaiylable wort( of the Congregation, for the public benefit, as the Tnth8s ￿ the apwov81 of the Superior General sh811 from (ime to time think fft... . Tmstees, powers Include but are not limited to.. • supporting and mainlalning . 8111tho are or have been engaged in the chantable wort(s of Ihe Congregation including... Tll￿teeS ofthe Trust,. making grants and loans whether out of income or ca￿tal and upon suGh temjs and oonditlons (Af any) as to interest. repayment, seGurity or othewse and to guarantee money or to use Ihe assets ofthe Trust as secunty forthe perfomMnce of Gontracts entered into by any pe￿on, association, company, Ioc81 alrthoty, administrative or govemment81 agency or public body as may be Ihoughf fft or towards cnantable purposes in any Wdy connected or GalGulated lo further Ihe objects of the Trust,. • establishing . such sep8r8te ch8rityorchanties 8S they think fit... to Canyon such charitable rks as are wrfhin the ambit... of this De8d' and '... tradw Gompanies to assist, or a( as agents for, the Trtsst,. The Superior General and the General Councillors meet as a General Council. which focuses on the relwJious aspects of the Congregation. The Superior General and the Genefal Councillors are atso the trustees of the Charity and they meet Separately to discuss the business 8spects of the Congregation's aclivlties. The trustee meetings are attended by the CorwJregational Chief Executive and are minuted separately_ The trustees rnet fotTnally fourtimes during the year. New trustees are inducied by the exlsting trustees and staff and training is provided. Charity Govemance Code The Charrty has 8ss8ssed Its compliance wtth the principle5 of the Charity Goveffl8nce Code, undertaking a detailed review in June 2020. 11 Conside￿ Ihat it fully meets 54 of the 76 items of recommended Practice in the Code Is working towards another nine f(ems. Two items are not met and 11 that it considers are not relevant to the chaiity. The unmet areas are bend)maJlng wlth slmilar organisalions and considering information from other Similar organisations and reporting on how th8 charity evalues the board effectiveness in this report. Formally assessing board effectiveness is one of the areas that It Is working towards. The COng￿98110n of the Sisters of Nazareth Generalate 14

Trustees. report 31 March 2021 The non-relevant areas are mostly concemlng the recruitment of trustees, as the Constitutions require some appointments lo be made from wilhin the CongregalK)n, which limits the advertlsing. diversity and breadth of board skills. This is compensated for by having trustees who are wholly committed to the cong￿gatiOn and the Charlly without outside distractions, and the use of external adviso￿ and outside expertise on commitiees to provide greater diversity and breadth of skills. Key management personnel The trustees consider that they, with the assistance of the Congregational Chief Executive, comprise the key management of the Charity in charge of directing and ￿ntrOlling, running and operating the Charity on a day to day basis. Decision5 are made by the trustees unless they have been delegated to the Congregational Chief Executive as part of the approved general delegatlon or as agfeed when making a specific decision. All Iruslees a￿ members of the Congreg8tM)n and, whiL%t their living and personal expenses are bome by the Charity, they receive no remuneration or relmbursement of expense5 in wnne¢tion with their dutie5 as trustee5. Addiiionally, they donate all their income to the Charity. The performance and pay of the Congregational Chief Executive is reviewed annually. To deliver the charitable aims and to complement the skills of the S￿lers, the Charity employs a small number of paid slaff. The commrtment to staff is to pay them a fair and approprbate salary that Is affordable. This is to attrad and retain people with trie right skills and who, therefore. will have the greatest impact in delivering the Charity'5 Ot¥-ectives. In accordan￿ wlih the Stalemenl of Recommended Practice we.. + disclose all paymentsto trustees (no trustees are pa￿> and expenses reimbursed {no trustees received expenses). • disclose the number of staff in receipt of £60,000 and above (In bands of £10.01)O) (Note 7 to the accounts). + disclose pensions and other beneffts (Note 7 to the ac4x)unts). Staff rernuneralion does not include any share options or long-tenn Incentive schemes a5 there a￿ none. The period of notice for ternin8tion of contra(ts of employment Is three months for any staff eaming over £60.000. Grant-making policy The Chartly makes funds available as gr8nls to individual houses aThJ regions, which are to separately registered charities to support ts minkstries. The grants are accounted for as expenditure in the year in which they are approved. During the year, 8 few small extemal grants were made by the trustees in response to Klentified needs. These were generally lo support indi￿ldUalS or smaller not-for-profft organisation5. Grants made by the Charfty during the year are detailed in Note 4 to Ihe acGourrts. The Congregation of the Sislers of Nazareth Generalate 15

Truslees. rnport 31 March 2021 Investhient policy The Charity's consttiutM)n does not restrict the trustees, powers of Investment. The choice of investments is heavily influenced by the eth￿al investment policy, which is designed to avoid. as far as is reasonably possible. any significant investment in organisations that produce goods or 5erviGes at odds with the teachings of Calholicism. particularty regar(Jing the sanclily of human The tru51ee5 take a total relum approach to their investmen15, investing in funds that adhere to the ethical investment policy. The majortty of investments are held in BlackRock Investment Management IUKI Limited's Catholtc Charities Growth & In￿me Fund {CCGIF) atmj cash and cash equivalent funds wtth Royal London Asset Management Limited. CCGIF holds a diversified rK)rtfolio containiThJ equities, giKs and other fixed-income securFties. managed within an acceptable level of risk. The TreAsurer General is a member of the CCGIF Advisory Committee. The BlackRock fund's inve51ment objective is to achieve a retum net of fees in excess of ils benchmark, over a pertod of fve or more years, whilst adhering to ils ethical investment policy. The Royal London fund aims to deliver a posbtive retum in a range of market conditions wtihout taking additional risk, by investing in cash, deposits, money market instrumen15 and short41ated govemment securities. A review of the investmenl managers was undertaken during the year and some thanges were ag￿ed towards the end of the financial year. which will te implemented during 2021122. The Charity's practice is to re•invest income arising from the investment portfollo. The trust8es consKJer the level of liquidity that is ￿quired to suP￿rt grant and operational commitments In the short and medium-temi. The Charrty uses the 8XP8rtise from its investment fflanagers to help wtth the management of its investment funds and will purchase additional advice where necessary as well as draw upon the knowledge of the Advisory Finance Cofflmiltee membets and the key management peT50nnel. Publlc benefit The trvstees confimi thal they have given due consideration lo the Charity Commission's published guidance on the Public Benefrt Tequirement under the Charities Act 2011 when considering the Chaiity's objectives and adi)rities. All activities relate to the general objectives of the Charity through supporting Sistets and delivering care to the eldedy and chikjren, delivered through overseeing and supporting regions, provhjing financial conlriblrtions, advice and guidance wiihin which regions operat8. In these way5, the Charity is delivering a public benerrt. Risk management The Charity ￿vieWed its risk management framework during the year and agreed that there are five primary categories of risk.. Mission, Spifii and Values- Governance,. Safeguarding,. Financial- Organisalional and External Environment risk5. In each ¢8legory, it has agreed how willing it to lake risks to achieve its objectives and how it would endeavour to reduce risk8 where they are unacceptable to the organisation, its pury)ose or values. The CoThJregation of the Sisters of Nazareth Generalate 16

Trusteos, r8POrt 31 March 2021 Within each category, several specific risks and ￿nt￿LS We￿ identffied that either arE in place or coukJ be put in place to reduce those risks. The major risks faced and how they are managed are constdered to be.. A loss of spirlt or mission. The risk increases as the nutnber of Sisters decre8se and the role of pa*J stsff in management posltions Increases. There are several programmes available in gions lo ensure the mission 15 well UnderstO￿j and communicated, such as Victoire's Legacy, Mission Alive and the CO￿ Values of the organisation. Sisters remain intrinsic to each house and are visible throughout each house, Mass is held each day in most houses. w￿rtS occur from the Generalate to each region and each house (not in 2020121>. Altemative arrangements have been introduced in three regions lo explore m(M1els that can OFtrate wtth fewer Sisters induding some sites operating as satelliles wtth wsiting Sislets. These are evaluated on an ongoing basis. Governance shortcomings. Govemance a￿angeMentS ensure that the Charity board of Iruslees is made up entirely of Slsters who are supported by lay staff and advisors as necessary. In the regions, 011 boards consist of up to nine trustees, a majority of whom are Sisters. There is a strong set of Conslitulions. Directives, Govemance Handbook and reporting mechanisms covering all aspects of governance to ensure that regions admlnlster their opefatlons In accordance wlth the sland8rds expected by the Charity. Safeguarding incrdents either now or in the past. Current safeguanling risks are well managed through comprehensive training and procedures and are more likely to occur in one of the regvjns, where they directly interact with vulnerable indiwdua15. The impad on the Charity is by association and the consequential impact on the Charity's reputation. The historical risk remains and 15 largety managed by the Charity. We have re￿eWed many practices and have and continue to Cooperate fully wlth all public Inquiries and wrth indivk1uals m8king their own enquirles or civll proceedlngs. Many s8feguardiThJ rlsks are covered by insurance. Flnanclal failure through a reglon or the Charity not being able to meet its commitments, such as the repayment of a k)an or a buikling proje￿ not being delivered to budget. The shared brand and support mechanisms ensure that rf one part of the Congregation struggles, othetS will slep in to supwrt it. Due diligence is undertaken before commitments are made and insurance is taken out where it is appropriate lo do 50. There is a process of continual oversight of the financial performance of each region and ¢ashflow forecasting forthe Charity to ensure that there are sufficient, Itquwj funds to meel all reasonable eventualrties. Organisational risks at the Charity in¢iude an over-reli8nce on key individuaL%. the reputational damage associated with the failure of a seNice either now or in the pa51 or the impact of investment or foreign exchange fluctuations. There is an awareness of these risks and contingency plans buili in wherever possible to minimise their impad. for example, through the recrurtment of skilled indivrduals. the shaiing of information and the use of professional advisors where appropriate lo do so. All 5erwce5 are extemalty regulated to ensure standards are conllnualSy met andlor improved. The Congregation of the Sisters of Nazareth Generalate 17

Trustees, report 31 MarGh 2021 Extemal enwronment changes have a material impact on the work of the Charity through, for example, major challges to the funding or legislation Goncerning the care of the eklerfy at the end of their live5 or changed. public perceptions of the Catholic Church or a global healih crrsis or recession, such as the CovKi-19 pandemrc currentty being faced. Fundraising policy The Charity does not proactively fundraise or solicit donalions towards its work. It has therefore not suned up to the Fundraising Regulator. When fundraising income is received, the Charity ains to achieve best practice in the way rl communicates with donors and other supporters. It takes care with both the lone of tis QDmmunications and the accuracy of it5 data to minimise the pressures on supporters. 11 applies be51 practice to prolect supporters. data and never sells or Swaps data and ensures that communication Fyeferences can be changed at any time. The Charity does not employ the 5eNce5 of professional ftsndraisets. The Charity undertakes to react to and investigate any cofflplaints regarding ils fundraising activities and to learn from them and improve ils servi￿. During 2020121 the Charity received no complaints about its fundraising activities (2019120.. none). Trustees. responsibiliti•$ in relation to the financial $tatgments The trustees are responsible for preparfng the trustees, report and the accounts in accordance with applicable law and ￿gulatIOns. Charfly law requires the trustees to prepare financial statements for each financlal year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable18w). Under Chaiity law the Tnjstees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state ol affai￿ of the charf(y and of its net incoming l outgoing resources for that period. In preparing these accounts, the trustees are required to.. select suitable accounting policies and then apply them consistentty- observe the melhc#ls and principles in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financi81 Reporting Standard applicable to the Uniied Kingdom and Republic of IrelaThJ (FRS 102),. make judgments and estlmates that a￿ reasonable and prudent., state whether appliG8ble United Kingdom Accounting StandarKls have been followed, subject to any material departures disclosed and explained in th8 accounts.. and prepare the accounts on the going concem basis unless r( i8 Inappro￿late to presume that the Charliy will continue in operation. The trustees are responsible for keeping accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any tirTre the financi81 The Congregation of the Sisters of Naza￿th Generalate 18

Trustees, rnport 31 March 2021 position of the Charlty and enable them lo ensure that the accounts comply with the Charities Act 2011, the applicable Charity {Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Irusleos and signed on their behalf by.. Superior General and Trustee Date of approval: i O The Congregation of the Sisters of Nazareth Generalale 19

Independent auditorfs report 31 MarGh 2021 Independent Auditorfs Report to the Trustees of The Congregatlon of the Sisters of Nazareth Generalate Opinion We have audited the financial statements of The Congregalion of the Sisters of Nazareth Genera18te I'the charity ) for the year ended 31 March 2021 which comprise the Statement of Fin8n¢ial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is appli￿ble law and United Kingdom Accounting Slandards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Ac¢epled Accounting Pradi¢el. In our opinion the financial slatemenls: give a Irue and fair view of the slate of the charity's affairs as at 31 March 2021 arKI of its income And expenditure, for the year then ended., have been properfy prep8red in accordance wilh United Kingdom Generally Accepled Accounting Practice.. and have been prepared in accordance with the requirements of the Charities ACL 2011. Basls for opinion We conducted our audlt In accordance with Intem8tional Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards a￿ further described in the Audrtorfs responsibilities for the aLrdll of the financial statements sedion of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our au(iit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibiltties in 8CCOtdance wrth these requirements. We believe that the audit evKlence we have obtained is sufficient 8nd appropriate to provtde a basis for our oplnlon. Conclusions relating to going concern In auditing the fin8ncial statements, we have concluded that the truslee's use of the going concem basis of accounting in the preparation of the financial statements IS 8PPfopriale. Based on the work we have performed, we have nol Klentiffed any material uncertairrties relating to events or conditions that, individually or collectively. may cast svJnificallt doubt on the charity's ability to continue as a going concem for a pe￿d of at least twelve months from when the financial statements 8re authorised for issue. Our responsibilities and the responsibilitles of the tmstees with respect to going concern a described in the relevant sertions of this ￿pOrt. Other infomation The tlustees are responsible for the other infomation (x)nlained within the annual report. The other information comprlses the infom)ation included in the annual report, other than the financial statements and our audilorfs report thereon. Our opinion on the financial statements does not cover the other infomation and, except to the extent othe￿iSe explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be malerially misstated. If we identify such material Inconslstencies or aFiparenl material misstatements, we are required lo determine whetherthis 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 infomiation, we a￿ required lo report that fact. We have nothing to report in this regard. The Congregation of the Sister5 of Nazareth Generalate 20

Independent audiior's ￿pOrt 31 March 2021 Matters on which we are required to report by exception We have nothing to report in respect of the following mailers in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report lo you if, ift our opinion.. the infomiation given in the financi81 statements 15 inconsistent in any material respect wlih the trustees, report.. or sufficient and proper accounting records have not been kept by the chartty., or the financial statements are not in agreement with the aGcounling records and returns., or we have not ￿ceiVed all the information and explanations we require for our audit. Responsibilities of trustees As explained MO￿ fully in the trustees, responsibiliiies statement sel out on pages 18-19. the trustees are ￿sponSible for the preparation of the financial statements and foi being s8tisfied that they give a true arKI lair view, and for such internal control as the trustees detemiine is necessary lo ellable the preparation of financial statenpnts that are free from material misstalemenl. whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going concem, disclosing, as applicable, matter5 rel*ed to going ¢oncem and using the going concern basis of accounting unless the trustees ei(her intend to Iv]uidate the charity or to cease operations. or have no realistic attemative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 151 of the Charitie5 Act 2011 and r8POrt in accordance with the Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statemen15 as a whole are free from material misslatemerrt, whether due lo fraud or error, aThJ to issue an auditor's report Ihat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in aCco￿lanCe with ISAS (UK) will a￿ayS detect a material rnisstalement when it exists. Misstatements can arise from fraud or error and are consK1ered material if. indivhjually or in the aggregate, they could re8SDnably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Details of the exlent lo whioh the audit was considered capable of detecting irregularrties, including fraud and non-¢ompli8nce wrLh18ws and ￿gUlationS are sel out below. A further description of our responsibilities for the audit of the finan¢ial statements is located on the Financial Reporting Council's websile at.. www.frc.o .ukJaudrtorsres onsibilities. This description fomis part of our auditor's report. Extenl to which the audit was ¢onsidered capable of detecting irregulariti&$, including fraud Irregularities, including fraud. are instances of non-compliance w(th law5 and regulations. We identified and assessed the risks of material misstalemenl of the finanGial slatements from iffegularrties, whether due lo fraud or ermr, and discussed these between our audit team fflembets. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to pmvKle a basis for our opinion. Vve obtaine(i an understanding of Ihe legal and regulatory frameworks within which the charf(y operates, focusing on those law5 and regulations that have a direci effect on the determination of maleTial amounts and di5dosures in the financial slatements. The laws and regulations we consic1ered in this context were the Charities Act 2011 together with the Chatilies SORP (FRS 102). We assessed the required compliance with these laws and regulalions as part of our audit procedures on the related financkgl statement items. In addition, we considered provisions of other laws and regulations that do not have a direct eff8Ct on the financial statements but compliance with which mvJht be fundamenlal lo the charity's ability to operate or to avoid a materi81 penatty. We also ¢onsidered the opportunities The Congregation of the Sister5 of Nazareth Generalate 21

Independent audilor'$ rgport 31 March 2021 and incentives that may exist within the charity for fraud. The laws and regulations we Considered in this context for the UK operations were employmenl legk51ation. Auditlng standards Ilmit the required audit procedures to identlfy non-compliance wbth these laws and regulations to enquiry of the Trustees and other management and inspection of gulAtory and legal correspondence, rf any. We Klenlified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be wilhin the timing of recognition of income and the override of controls by management. Our audit procedures lo reswnd lo these risks included enquiries of management, and the Advisory Finance Committee about their own identification and assessment of the risks of irregulafities, sample testing on the posting of journa15, reviewing accounting estimates for biases, fewewing regulatory cnrrespondence with the Charity Commission and ￿adIng minutes of meetings of those charged with govemance. Owing lo the inherent limitations of an audit, there is an un8vobJable risk that we may not have detected some materi81 misstatements in the financial statements, even though we have properly planned and perfom)ed our audit in accordance with audiiing $18ndards. For example. the further removed non-compli8n¢e wf(h18ws and regu18tions (irregularities) is from the events and transactions rellected in the financi81 slatemenls, the less likely the inherently limited procedures required by auditing standards woukj identify it. In addition. as with any al￿11, there remained a hwJher risk of non-delection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the overrKJe of internal controls. We are not responsible for preventing non-compliance and cannot be expected to dele(A non-complian with all laws and regulations. Use of our report This report is made solely lo the chality's ttU5tees. as a body, in accordance with Part 4 of the ChAnties (Accounts and Reports) Regulation5 2008. Our audit work has been undertaken so that we might state lo the charity's trustee5 Ih05e matters we are required lo state to them in an 8udilor's report and for no other purpose. To the fvllest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity and the chaftty s trustees as a b(Mly, for our audit work, for this report, or for the opinions we have formed. Crovle U.K. LLP Statutory Auditor London Date. 20th SÈptÈmbÈr 2021 Crowe U.K LLP i8 eligible for appolfttment as auditor of the charty by vlrtue of tts eligiblty for appointment as auditor of company under section 1212 oflhe Companies Act 2006. The Congregation of the Sisters of Nazareth Generalate 22

ststement of financial activities Yearto 31 M8rch 2021 2021 2021 Uniestricted Restricted Funds Funds 2021 2020 2020 Total Unrestricted Restricted Funds Funds Funds 2020 Total funds Notas Income: DorTrations and logaciès Investmènt incomè and intèr8st rec•ivabl8 Total income 1,539,627 10,000.OOC$ 11,539,827 1,614,711 463,809 463,809 362.455 0 1.614.711 362,455 2,003.436 10,000,000 12,003,436 1,977,166 0 1.977 186 Expendlture: Cost of raising ftjnds Investment managers, fees Charitable activities Cowdination and direction of, and the provision ol advice to, the regions of the Congregation GBnts and donations in support of the Congregation's work Total eX￿nditU 9,117 9,117 7,797 7,797 1,196,177 1,198,177 1,354.167 0 1.354,187 421,276 421,276 194,627 194,627 1.626,570 1,626,570 1.558,591 0 1,556,591 Net incomel(exFRnditurel before net investment gains on listed investments Nel invgstrnent gains I Ilos$esl on listed investments 376.866 10.000,000 10.376.888 420,575 420,575 2,462,827 2,462,827 1432,0321 0 1432,0321 Net incomellexpenditurel and net movement in funds for the year 2.839,693 10,000.000 12,839.693 111,4571 111.4571 Transfèr be￿￿n funds 289,186 1289,1861 Reconciliation of fund•: Fund balances brought forward at 1 April 2020 29,688,555 0 29,888,555 29,700,012 0 29,700,012 Fund balancos earnéd forward at 31 March 2021 32,817.434 9.710.814 42,528,248 29,688.555 0 29,688,555 Ai the Charty's operations are derwed from Continuing actNrties during each of the kn financial years. The Congregation of the Sisters of Naza￿th Generalate 23

Balance sheet 31 March 2021 2021 2021 2020 2020 Notes Flxed assets: Tangible assets Listed investments Investm9nt properties Total fix•d assets 10 2.397,473 20,214,630 165.000 22,777,103 2.318,151 13.151,803 165,000 15.634.954 12 Current aB89ts: Oebtors - Amounts due tsrithin on6 yaar - Amounts due after one year Cash at bank and in hand Total current assets 13 13 2,312.529 14,509.026 5.004,110 21,825.685 899.094 12,419.470 1,408,121 14,726,685 Llabllltles.. C￿dItorS.. amoun18 falling due thin one year Provisions 14 15 (425,675} 11.648,8451 (385,9711 1287,1131 Net eurr¢nt assots Total net assats 19.751.145 42.528,248 14,053,601 29,688,555 Th• fund$ ofthg ¢harlty 17,18 Unrostrlctod lundB: DeswJnated funds - Tangible fixed assets lund - General fund Total unrestrthd fvnds 29,500,000 2.397,473 919,961 32,817,434 26,370,404 2.318.151 1.000,000 29,688.555 R•$trl¢tsd fvnds: - Devek)pmenl fijnd 9,710,814 Total charfty funds 42,528,248 29.688.555 Approveil by the trustees on 8nd signed on their behalf by.. Superior General and Trustee Date of approval.. Ir) £&F[￿NBEL 20 The Congregation of the Sisters of Nazareth Generalale 24

staternent of cash flows Year to 31 March 2021 2021 2020 Nol85 Cash flu•VS from operatlng actlvltle$'. Net cash used in op&raling 81*ivities A 8,029.915 12,425,298) Ca$h flows from investlng actlvltles.. Investrnent in¢ome and interest re￿Ned Purchase of tangible fixed assets Proceeds from the disposal of investments Puichasa of listed investment Purchase of investment property Net cash used in investing activities 463,809 362.455 1297.73SI 1916,2181 2.41MJ.000 3,350,000 I7.￿0,(￿ 185,9291 14,433,926) 2.710,308 Change in cash and cash equival•nts In thè yèar 3,595,989 285.010 Cash and cash equivajents at 1 Aprll 2020 8 1,408,121 1,123,111 Cash and cash equlvalent$ at 31 March 2021 B 5.004,110 1,408, 121 Not•s to the statement of cash Ilthvs for the year to 31 March 2021 Reconclllatton ot not movement In tund$ to nèt ¢8$h prov[d￿ by oper411Th3 a¢tlvltles 2021 2020 Net movement In funds la5 per th8 Staternertt of financial activitie5 Adlustments for.. Invesbnent income and interest re￿1vable Lossesllgainsl on investnwnts Depreciation of tangible fixed assets Increase in debtors Inereaselldecr¢a$¢l in credtiors Net cash used In operating activities 12.839,693 111,4571 1463,8091 1362,4551 {2.462,8271 432,032 218,414 110,895 13,502,991> 12,453,391) 1.401,435 1140,9221 ,029,915 12,425,298) Analysi8 of cash and cash equlvalents 2021 2020 Total cash and eash aquivalents- Cash at bank and in hand 5,004.110 1.408,121 The CorrfJregation of the Sisters of Nazareth Generalate 25

Princlpal ac¢ounting poli¢ie$ 31 March 2021 The pfincipal accounting policies adopled, judgements 8nd key sources of estimation uncertainty in the preparation of the accounts are18id out below. Charity infonnalion The Congregation of the Slslers of Nazareth Generalale (Ihe Charity,) Is reglstered wfth the Chartty Commrssion for England and Vvales, regislratwjn nutnber 1138876. It is inGorporated in the Unit8d Kingdom and has its registered address at 169-175 Hammersmith Road, London 8DB. Basis of preparation These accounts have been prepared forthe year to 31 March 2021 wtth comparative infomwtion given in respect to the yearto 31 March 2020. The accounts have been prepared under the historical cost conventron with items recognised at cost ortr8ns8dion value unless otherwise stated in the relevant accounting policies ￿loW or the notes to these accounts. The aceA)unls (financial statements) hav8 been prepared to give a true and faiff view and have departed from the Charities (Accounts and Reports) Regulations 2008 only lo the extent required to provvje a Itue and fair view,. This departure has involved following the 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 IFRS 102} issued on 16 July 2014 rather than the previous Statement of Recommended Practice-. Accounting aNI Reporting by Charities which was effective from 1 April 2005 but which has Since been withdrawn. The charity constitutes a public benefft entity as defined by FRS 102. The accounts are presented in steding and are rounded to the nearest pound. Critical accounting estimates and areas of judgement Preparation of the accounts requires the trustees and management to make stgnificant judgements and estimates. The tlems in th8 financial slatement5 where these judgements and estimates have been made include.. • estimating the useful economic lrfe of tangible fixed assets forthe purwses of detemiining depreciation charge. + assessing the timing of the receipt of loan repayments forthe purposes of ¢lassifying debtors as amounts due within one year and recoverable thereafter and a55essing the recoverability ol outstanding amounts- • detemiining the value of designated funds needed at the year end. in particular in respect to the assumptions made in detemiining the values of the Sisters, support fund and the property fund-, • assessing the probability of the receipt of legaGy incotne. where a notif￿atIon of entitlernent has been re¢eNed', The Congregation of the Sisters of Nazareth Generalale 26

Principal actounting policies 31 March 2021 * assessing the probability of the payment of a legal claim against the Charity and the probability of the payment being covered by insurance. where a claim has been notified. Assessment of going con¢ern The trustees have assessed the Chartty's abilily to continue as a going concem. The trustees have considered several factors when fomiing their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including a review of UFrfdate forecasts lo 31 Ma￿h 2023 Goverillg inGoffle, experKJrture, cash and reserves. the long- term cashtlow forecast to 31 March 2026 and a consKlerdtion of key risk5, including Cowd-19, that could negatively affect the Chariiy. The Charrty is funded primarily by donations from the Regions within the Congregation together with other donations from the Sisters and legacies. There is a risk that the pandemic will reduce Income in each of the regions during the year and consequently thi5 will reduce the income that is paid to the Charity. During the last year. most houses and Th)st regions have remained resilient to the challenges and have corrtlnued to operate successful houses. wlth appropriate changes to their operating praGtice5. Admi55ions have restarted in most locations aruj oG¢upan¢y in the homes is beginning lo increase. Admission embargoes are now much shorter than was the case in the earfy days of the pandemic and the number of residents dying has reduced considerabty. The impact Is reflected in the reports and f0￿Cast$ remewed by the Tnjstees. Debtor balances h8ve been reviewed and assessed and, as all loans are lo within the Congregation, they are Considered to be repayable in full. The budget and forecasts for the forthcoming year are considered to be deliverable and the ¢ashflow forecast show5 that there a￿ sufficient cash and liquid resources and forecast inflows for the period of review, with the support of the unreslricled reserves rf required. The Charity has not accessed any ofthe govemment grants or loans womded in response to the Cowd-19 parFdemic and does not antlclpate doing so. The Trustees therefore have a reasonable expectatlon that the Ch8rity has sufficient resources to continue in operational existence for the foreseeable future and so shoukl continue lo adopt the goiro concem basis In preparing the annual report and financial statements. Income recognition Income is recognised in the period in which the Charity is entitled to receipt and the amount Ls probable. Income is deferred only when the Charity has to fulfil conditions before becoming entitled lo it or where the donor or funder has specified that the income is to b8 expended in a futuff accounting period. Income comprises donations, legacies. investment in¢ome and interest receivable. Donations, including salaries and pension5 of individual religious received under deed of covenant, are recognised when the Charity has ¢onfim)ation of tKsth the amount aThJ settlement date. In the event of donations pledged but not received, the amount is accrued for where the eipt is considered probable. In the event that a donation is subject lo conditions that require a level of perfomiance before the Charily is entitled to Ihe funds, the income is deferred and not cognlsed until either those conditions are fully met, orlhe fulfilment of those conditions is wholly The Congregation of the Sisters of Nazarelh Generalate 27

Principal accounting policies 31 March 2021 within the control of the Charity and ti is probable that those condiiions will be fulfilled in the reporting period. A small number of volurrteers assist the work of the Charity, for example, provwjing Mass or assisting wblh the work of the Heritage Centre. Their contribution is greatly appreciated. I 8¢oordance with the Charities SORP FRS 102 volunteer time is not recognised. Legacies 8re included in the statetnent of financial a￿1VilIeS when the Charity 15 entitled to the legacy, the executors have established that there are suffiaent surplus assets in the estate to pay the legacy, and any condiiions atta¢hed lo the legacy are within the control of the Charity. Enlrtlemenl is taken as the earlier of the date on which either.. the Charity Is aware that probate has been granted, the estate has been finalised and notification has been made by the execLrtor to the charity that a distribution will be made, or when a distriblrtion is received from the estate. Receipt of a legacy. in whole or in part, is only considered probable when the amount can be measured reliably. and the Charity has been notified of the executorfs intention lo make a distribution. IAthere legacies have been nottfied to the Charity. or the Charity 15 aware of the granting of probate. but the criteria for income recognition have not been met, then the legacy is treated as a conlingenl asset and disclosed if material. In the event that the gift is in the fomi of an asset other than cash or a financial asset traded on a recognised stock exchange, recognrtion is Subje￿ to the value of the gfft being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the Charity_ All of the Chaiity's listed investments compise accumulation units and hence investment income from listed investments is not credited to the statement of financial 8Ctiwlies as il is reflerted in the market value of the relevant investment holdinG. Interest on funds held on deposit and interest receivable on loans advanced to other entities 15 included when receivable and the amount can be measured reliably by the Charity. In the case of bank interest, this is nomially upon notification of the interest papj or payable by the bank. In the case of interest on monies advanced, this will be when the Charity becomes entitled to the interest under the tem￿ of the reievant108n agreement. Expendrture recognition and the basis of allocating govemance costs Liabilities are recognised as expenditure as soon as the￿ a legal or constnJctive oblijation committing the Charrtyto make a payment to a third party., it is probable that a transfer of ecollomic benefts will be required in settlement and the amount of the oblwJation can be measured reliably. All expenditure is accounted for on an accruals basis. Expendilure comprises direct costs and support costs. All expenses, including support costs. are allocated or apFM)rtioned to the applicable expendrture headillgs. The classification between activilies is as folbws: a. The costs of raising funds comprise the fees paid lo investment managers in ¢onneclion with the rnanagement of the Charity's li51ed investments, net of rebates received. Rebates arise when the fees deducted automatically through charges for common investment funds and related transactions exceed the fees agreed between the Charity and its Investment managers. The Congregation of the Sisters of Nazareth Generalale 28

Prlncipal accounting poli¢ie$ 31 March 2021 b. The costs of charitable activittes comprise expenditure on the Charity's primary p￿￿oSe5 as described in the trustees, report and indude the support of the Congregation's work in the United Kingdom and overseas. In the main such expendrture comprises the coordination and direction of, and the provision of advice to, the regions of the Congregation. losses on foreign exchange and the prowsion of grants and donation5 to projects of the Congregolion. Grants payable are included in the slatemenl of financial activliies when approved by the trustees and all conditions have been fulfilled by the intended recipient. Provision is made for grants and donations approved but unpald at the period end. Govem8nce costs comprise the costs Invol￿ng the public accountabllity of the Charlty (including audit costs) and costs in respect to its compllance wlth regulation and goc#J practice. All governance costs are alloc8ted to expenditure on GOOTtlination and d1￿ctIOn of, and the provision of advir* to, Ihe regions of the Congregation. Tangible fixed assets All assets costing more than £2,500 ar￿ with an expecled useful life exceeding one year are capttalised. Tangible fixed assets are valued at h￿toriC c05t. A55ets are depreciated at a rate calculated to write the value down to tis estimated residual value over its expected useful life. The depreciation rates used 8re as follows= Freehold land not depreciated Freehokl buildings 50 years on a Stra￿hl-lIne basis12% per annum) Leaseholder improvements 10 yea[5 on a slraighl-line basis (10% per annum) for refvTbishments or component-based for new assets, varying from 10 to 50 years 12% 10 10% per annum) 4 years on a straigm-line basis (250A per annum) Motor vehicles Fixed asset investments Listed investments are a fomi of basic financial instrument and are inrtlally recognised at their transactlon value and subsequently measured at their fair value as at the balance sheet date using the closillg quoted market price. The Charity does not a(¥U1￿ put options, derivatives or other complex financial instwments. Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value rf acquired subsequent lo the ffirst day of the financial year. Unrealised gains and losses are Ca￿ulated as the drffvrence between the falr value at the year end and their carrying value al thal dale. Realised and unrealised inve51menl gains (or losses> are combined in the statement of financial activities and are credtted lor debited) in the year in which they arise. Financial instruments The Charity has financial assets and financial liabiliiies of a knnd that qU8ltfy as basic finana81 instruments. Basic financial instruments are initially recognr5ed at transaction value and subsequently measured at amortised cost using the effedive interest method. Financial assets held al amortised cost comprise cash and bank in h8nd, together wilh trade and other debtors. Finan¢ial liabilities held at amortised cost comprise Irade and other creditors. Investments are The Congregation of the Sisters of Nazareth Generalate 29

Principal accounting policies 31 March 2021 heky at fair value atthe b81ance sheet date, with gains and losses being recognised within income and expenditure. Investment pfoperties Investment propertles are stated at their fair value at the balance sheet date. Debtors Debtors are recognised at their settlement amount. less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted lo the present value of the future cash receipt where such discounting is malerial. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are avallable on demand or have a maturrly of less than three monlhs from the dale of acquisition. Cash placed on deposit for more than one year is disclosed as a fLK￿ asset investment. Creditors and provisions Credltors and provisions are recognised when the￿ is an obligation at the balance sheet date as result of a past event, it 15 probable that a transfer of economic benefft will be required in settlemenl, an(i the amount of the settlement Can be esiimated reliably. Credf(ors and provisions are recognised at the amount the charity anticipates tt will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. Funds strncture Restricted funds a￿ monies given by a donor for specific purposes that can only be spent on the purpose for which they are given. Details of these funds are given in note 17. The desbJnated funds are monies set asmle out of general furtds and designated for specific purposes by the trustees. Details of these funds are given in note 17. The tangible [￿ed assets fund represents the net book value Df the tangible fixed assets used to further the Ch81ity's objectives and work. Movements on the fund are shown in note 18. The general fund comprises those monies which may be used towards meeting the ¢harTtable objectives of the Charf(y and which may be applled at the di8cretion of the tnjstees. Services provided by members of the Congregation Forlhe purpose of these accounts. no monetary value has been placed on the administrative and other services provKJed by the members of the Congregation. Foreign currencies Assets and liabiliEies in foreign c￿r￿n¢le$ are translated into 51eding at the rates of exchange tuling at the balance sheel date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transactK)n. Exchange differences are taken into account in arriving at the net movement in funds. The Congregatlon of the Sisters of Nazareth Gener818te 30

Prin¢ipal accounting policies 31 Matrh 2021 Pension contiibutions Contributions in respect of defined contribution pensron schemes and petsonal pension schemes are Ghatyed to the statement of financlal activitles when they are payable to the scheme. The Charity's contribjtions are restri￿￿1 lo the contributions di8closed in note 7. There were no outstanding conlrlbutions at the year end. The charity has no liability beyond making its contritmrtions and paying across the deductions for the employees, contributions. The Congregation of the Sisters of Nazareth Generalate 31

Notes to the accounts 31 March 2021 1 Donations and legacies 2021 2020 Legacies Pensions of indNidual Religious donated under a deed of cx)venant Donations - Arneriean Arèa U.K. Region Australasian Region Irish Region African Region - Other Restricted donation for Hammersmth redevekjpment Contribution trom NCCT other voluntary income 2,135 130.843 22,910 125,773 370.780 284.180 318,046 268,417 10.000 5,287 lo.1￿0,000 100,000 49.941 11,$39.627 416,724 361.490 310,888 248,896 13,000 1,000 100,000 16,030 1,614,711 2 Investment income and interest receivable 2021 21f20 Interest receNable - Bank interest Interest on h)ans to connected entities (note 211 17,374 446,435 463,809 1.897 360.558 362,455 3 Coordination and direction of, and the provision of advice to, the regions of the Congregatlon 2021 2020 *aff costs Inot8 71 Maintenance of Sister5 Travel IT and website development Professional fees.. finance and legal Noviliate Premises Govemancè e05ts (notè 51 Foreign exchange losses Depreciation- Hammersmith development Loan writ841own other 258,604 136,709 1,033 119.893 58,296 243,OS1 109,834 94,413 48,898 48,106 29,916 21.809 17,244 84,838 106,020 374,234 175,804 1.354,167 29,121 22,490 211,201 218,009 93,875 1,196.177 Support costs i￿Urred by the Charty are detailed in the table in Note 3. They comprise the goveman¢e costs 8nd the support functions of IT expendthre and Professional fees.. finance and legal. The Congregation of the Sisters of Nazaieth Generalale 32

Notes to the accounts 31 March 2021 4 Grants and donations in support of the Congregation's worft 2021 2020 Th8 Congregation of the Sisters of N￿areth, Irish Region Grants lo the U.K. Region.. General Nazareth Hous• Southend Nazareth House Hammersmith - Other donations 158,493 160 68,923 115,825 38,203 19,832 421.276 72,224 7S,781 45,462 194,627 CkSms for alleged historic abuse in the UK have been paid on behaK of the Congregation by our insurers and totalled £2.360,9C6 in 2(r21 12020 - £949,529). The expendf(ure and income fr(xn the insurgrs of £2,360,9(￿ in 2021 12¢LO- £949,529) have begn nèttgd Off in the Statement of Financial Activ￿les. S Governanc• 2021 2020 Legal and professional lees Audrt and accountancy fee5 8,450 14,040 22,490 7,140 10,104 17,244 6 Net incomellexpenditurel and net movement in funds for the year This is stat8d after char9in9." 2021 2020 Audrtoff s remuneration including VAT statthory audrt Icurrenl yearl 14,040 10,104 7 Staff costs and remuneration of key management personnel 2021 2020 Wages and salaries National Insurance costs Other pension costs 222,504 21,121 14,979 258,604 206,676 19,752 14,624 243,052 The number of emph)yees earning £8Q,IJOO per annum or more lincluding tsxable benefrts but excluding employer pension contributions) during the y88rwas as follows.. 2021 Number 2020 Number £120,001- £130,000 The Congregation of the Sisters of Nazareth Generalate 33

Notes to the accounts 31 March 2021 The average numb8r of employees during the year was.. 2021 2020 Administration Management The key management personnel of the Charty in charge of directing and controlling. runnlng and operating the Charty on a day to day basfjs wmprise the tru$lo$$ and the Congregational Chief Executive. The total remuneration lincluding taxable benefits. empk)yerfs national insurance and employer's pension contributions) of the k&y managemerrt persolln81 for the y8ar was £145,09812020- £140,8581. Trustees. expenses and remuneration and transactions with trustses The charity's trustees are all members of the Congreg8lion 8nd consequèntly their living and personal expenses, all of which are consistenlwiththe amounts paid in respect lo other membérs ofthe Congregation, are born8 bythe Ch8rrty. Nolrustè8 rèeÈNÈd any remunecation orréimbursèmènt of expenses in connection with thèir duU9s as trustees12020- none). As members of the Congregation, non8 of th8 trustees have iesources of their own as all earnings, pensions and other incomè have been donated to the Charty under 8 Gff( Aid compliant Deed of Covenant. During the year, the totsl amount donated by the trustees to the Charity was £117,89312020- £113,181). Taxation The Congregation of the Sisters of Nazareth Generalate is a registered charity and, therefore, is not liable to income lax or corporatK)n tax on income or gains derwed from rts charrtablo a￿1yrtieS, as they fall withi the various exemptions available to ￿gIStered charities. 10 Tangible fixed assets Property refurbishment Motor vehlcle5 Cemetery Total At 1 April 2020 Addrtions At 31 Maich 2021 19,500 2,512.231 297,736 2,809,967 2.531,732 297.736 2,829,468 19,500 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 19,094 406 19,500 194,487 218,009 412,498 213.581 218.415 431,995 Net book values At 31 March 2021 At 31 March 2020 2,397,471 2.397,472 2,317,744 2,318,151 4C In 2014, at the time of disposing of N8zareth House Isleworth, the Charity enter￿ into a 999-year lease in respect to the cemetery on that site at a peppercom rent This 15 disclosed on the ba18n￿ $h6èt as a tangible fixed asset at th8 value of £1. The Congregation of the Sisters of Nazareth Generalate 34

Notes to the accounts 31 March 2021 Theie is an infomial arrangement btheen The Congregath)n of the Sisters of Nazareth Charitable Trust, which owns the propérty at Nazareth House. Hamm&rsrnrth. and the Charity, thatthe Charity may use space on the site of Nazareth House Hammersmilh. During th& financial year, the Charrty has paid for the cost of refurbishing one of the buildings used. This has been fundèd from a restricted donation and the cost of refurbishment has been shown as a tangible asset and as a restricted fund. The remainder of the restricted donation is shown as a restricted fund until rt is spent. In previous years, other buildings have been refurbished or extended. These are being treated as loaseholder improveffjgnls and ale being depreciated a¢￿[dIng to the depwe¢iatson policy. 11 Llsted investments 2021 2020 Listed investments Market valu8 at 1 April 2020 Additions at cost Oisposals at book value Net Iloss?5yg8ins on ievalualion Market value at 31 March 2021 13.151.803 7.000,000 12,400,000) 13,350,000) 2.462,827 1432,0321 20.214,630 13,151.803 16,933.835 Cost of listed investments at 31 March 2021 15,172,536 10.565,367 Listed investments held at 31 March 2021 comprised the following.. 2021 2020 U.K. fLYed interest U.K. common invèstment funds 3,535.824 16,678,806 20.214,630 5,881,460 7.270,343 13,151,803 At 31 March 2021. listed invèstrTT8nts includedthe following individual holdings which are de8m•d significarrt in the context of the portrtslio as a whole.. 2021 Market value of Percentage holdlng of portrolio 2020 Market value ol Percentage holding of portfolio BlackRock Catholic Charrt￿S Growth & Income Fund Royal L¢ndon Cash Plu5 Z AccumuFation Fund 16,678.806 82.51 7.270,343 55.28 3,535,824 20,214,630 17.49 100.00 5,881.460 13,151,803 44.72 100.00 12 Investment properties 2021 2020 Investment properties 165.000 185.OTrJ 1e5,000 165,000 The Congregation of the Sisters of Nazareth Generalate 3S

Notes to the accounts 31 March 2021 The Charty owns ￿ rosid$ntial inve5tmont prop$rties in Wellingborough. Northamptonshire that wei gift•d many y8ars ago to the charrty and anolherlgcal charrty. In 2019 thE Charity purchased the local charty's share of tha properties and now owns both properti•s outriqht. In pr•paration for th8 purchas8, an ind8pendent valuation was carried out. Both properties are held in our accounts at the market value, tsking into account the incurnbent tenants and the fair rent clauses in their tenancies. Th8 intént is to rèvalu8 the propertiès periodically or rfthtre is a material change in the cond(tion or cirrjj￿tstanCes of the properties. The income due from the properties is treated as income from operating lease5. The leases are registered wrth fair rent clauses. preventing a rrorkel rate of rent from being charged. They do not have expiry dates and the arrangement wll continue for as long as the tenants Wk8h to remain in the properties. The in¢gm received in 2020Q1 was £3,800. It 1$ exp¢¢ted th* a similar omount wll be receNed in each future year. 13 Debtors 2021 2020 Loan lo The Congregation of the Sisters of Nazareth Charitable Trusv Loan to NRV Development (Blackburnl Limf(ed" L08n to Irish Reglljn Df The Congregation of the Sisters of Nazareth in rgspect to Nazareth House Dublin. Loan to Irish Region of The Congregats'on of the Sisters of Nezarelh in respect to the Dublin. Mallow and Bemast developments" Loan to Australasian Region of The Congregation of thè Sistèrs of Nazareth in re5P•Ct to developm8nt at Chii5tchurch New Z8aland' Legal ¢laim$ roimbursed by Insurance other debtors and prepayments 5,926,785 683,766 3,259.576 1,179,766 334.S20 337,834 6.806,176 6,889,279 1,474,631 1.573.844 21,833 16,821.555 Datails in réspecttts •ach of these loans and the contribution dua ar• gwtrn in note 21. 1,338,927 287,113 46,289 13,318,564 The legal claim5 debtof represents the expected amount to be reimburs8d by our insurers in relatk)n to the settlement of legal claims against the Congrtgotion, which are shown as a provision in Note 15. The above t1ebtors are due for receipt 85 lollow5.' 2021 2020 Amourts falling due within one year Amounts falling due after one year 2.312,529 14,509,026 16,821,555 899,094 12,419,470 13.318,564 The Congregation of the Sisters of Nazarelh Generalale 36

Notes to the a¢tounts 31 March 2021 14 Creditors: arnounts falling due within one year 2021 2020 Amounts held on bèhaw of IndNidual memb¢r$ of Tha cOngr￿atIOn ofthè Sisters of Nazareth Tiade Creditors Sundry Credrtors Accruals and Deferred in¢om Social Securty Credrtor 168,061 77,837 15,151 157,288 7,338 425,675 191,655 75.346 14,205 97,657 7,108 385,971 16 Provlslons 2021 2020 Legal claims 1,848,845 1.648,845 287,113 287,113 The Cgngregation ran children's homes across England & Wales, Scotland and Northern Ireland until they closed in the 1980s. The legal claims provision represents oTrJoing claims al the year end for compensation in respect of allagèd historic abuse ol childr8n in the Congregation's eare. These amounts are expected to be pald wrthin the next finan¢k?l year. The vast majority is expected to be Ix)vered by insuranee. shown as o debtor in Note 13. Further detail is provided in the contingent liabilitie5 note. 16 Financial Instrurnents At the balan￿ sheet date. the Charty held financiol assets at amortised eost of £21,825.685 12020 £14,414,150) and Financial liabilities at amortised cost of £425,67512020 £385,971). The total income received in respect of financial assets héld at amortised cost totalled £17,37412020.' £1,897). The Charrty held assets at fair valu• through incomè and èxpèndrture of £20,214,63012020.' £13,151,803). Movements n the yearthrough the statement of financial actNth'es corryrised galns of£2,462,￿7(2o2O'. Loss £432,032) 17 Movement in funds At Nel 1 April 2020 movement In funds At 31 March 2021 Al 1 April Net 2019 movement in funds At 31 March 2020 Restrlcted fvnds Development lund- Hanyne15mrth 9.710,814 9,710.814 Unrestrictsd fuMIs Property tund- Designated Sisters support fund - Designated Tangible fiKed assets fund General fund 19,370,404 3,129,596 7.ODO,000 2.318,151 1,000,000 22,500,000 7,lJOO,000 2,397,473 919,961 20,187,184 1816,7801 7,000.000 1.512,828 1,000,000 19,370.404 7,000,OCM) 2,318,151 1.000,000 79,322 180,0391 805,323 29,888,555 12,839,693 42,528.248 29.700,012 111,4571 29,688,555 The Congregation of the Sisiers of Nazareth Generalate 37

Ncte5 to the accounts 31 March 2021 The net movem8nt In th8 Devdopment FurKJ arKJ the General Fund Includes a transf6rof£289,186 from the Development Fund to the General Fund in raspect of capital expenditu￿ incurred during th6 year from the D8v8loprn8nt Fund. The r8Stricted lunds of thè Charity repr8sent 8 restrict￿1 dijnation that is beiro used to refurbish an asset. The Unrestrict￿ funds of the Charty induda tha following designaled funds. wh￿h have been stsl aslde out of unrestricted fvnds by the trustees for specjfic purposes: Property Fund The Property Fund of £22.5rn is set aside to provide loans or grants to wbons r8quirfng support for substanual buildlng WO￿$. Sisters, Support Fund The Sisters, Support Fund of £7m is retained to provide Sisters who need nuryng, care or other support. with Ihe means to purchase Tt shtsuld publi¢ funding not be avallable. It is intended that care wll usually be provtded within one of the care homes operated by the Congregation. The unrestricted fijnds 8180 indudè the tangible 17xed a&8etsfund whlch ￿presents the net ￿JOk value of the Charity's tsngible fixed assets used to ftjrther the Charity's objeGtNes and work. A de¢islon was made to separate this fund from the general fund in recognition ofthe facl that the ass8ts are used in the day lo day wort( of the Charty, and the fund value would not be realisable easily if needed to meet future conting8nci8S. 18 Analysls of net a￿ets between funds D8sign8ted Tangible fixed fund5 assets fund Genèral fund Restricted fund Total 2021 Fund b*anees at 31 March 2021 ar• Mpr•s•nt•d by: Tangible fixed assets Listed inv8slm8nts Investment propety et cutrant aSS8ts Total net assets 2,397.473 2,397,473 7.000.000 20,214.830 165,01)0 2,710.814 19,751,145 9.710,814 42.528,248 13.214.630 165,000 16,120,370 29.500,000 919,961 919,961 2,397,473 Designated TangitAe fixed funds assets fund Gengral fund Restrided fund Total 2020 Fund balanc•s at 31 March 2020 are represented by: Tangl1￿8 ffixad assets Listed investments Investment propety Nel cunEnt assets Total net assots 2.318.151 2,318,151 13,151.803 165,000 74,053,601 29,688,555 13,151,803 165,000 13.053,601 26.370,404 1,000,000 1,000,000 2.318,151 The total unrealised gains as at 31 March 2021 constitute rnovernents on revaluat￿￿ and are as follow8.. The Congregation of the Sisters of Nazareth Generalate 38

Notes lo the accounts 31 March 2021 2021 2020 Unrealised gains included above- On investments Total unrealised gaSns at 31 March 2021 5,055,974 5.055,974 2,600,316 2,600.316 Reeonclllatlon of movemehts In unreallsed galns Unrealised gain5 at 1 April 2020 In rè5POCtto di5P05als in the year Net Ilossesygains arising on revaluath)n in tho year Total unrealls•d galns at 31 March 2021 2,600,316 17,1691 2,462,827 5,055,974 3,032,348 13,880 1445,9121 2,600,316 19 Contlngent liabilities and contingent assets At 31 March 2021, the Charity was funding legal and olhor costs ineurred relating to statutory inquirie5 that have been established in Northern Ireland, S¢otland and England and Vvales, into the alleged historical abuse of children. The inquiries are at various stsges, wrth the Historical Instf(utional Abuse Inquiry in Northern Ireland having reported in January 2017, the England an¢J Wales Independent Inquwy into Child Sexual Abuse has publish6d an intèrim roport and ¢onliiiu05 to htrar eviden￿. and the Seottish Child Abuse Inquiry publishing their report into the Sisters of Nazareth in May 2019. The Charrty expects to intsjrfurther legal costs in relation to allthree inquiries. tt is not possible atthe present time to provide any w￿anIngfUl estimate of fijture costs, some of ￿1¢h may be covered by insurance. It is 8150 not possible to provid8 any ￿￿aningfUl estimate ol the fijture costs of ongoing daims being brought against the Congregation for which there is no reliable eStI￿rate of tho value or probabilty of a claim being paid, som8 of which rnay be ¢gvered by insurance. Redress $Che￿e5 are being established, in March 2020 for Northern Ireland. and currently being set up Scotland. England and Wales have not yet announced their Intèntions. Contributions to the redress schemes, if any, have not yet been agreed upon. tt is not PO55ible al the présènt ttmè to provide any meaningful estimate ol fLrture contributions. 20 Olher commitments The Charty has provided a guarantee to ￿lled Irish 8aTrk to support a loan taken out by the Irish Region for building works. The Charty has providèd a letter of comfort to BarcL4ys Bank plc in respert to banking faciltiies the Bank may make available to The Congregation of the Sisters of Nazareth charrtab￿ Trust. Al 31 March 2021, the Charity did not have any future eapital commrtments. In March 2020 there were no commitments. 21 Related parties: connected entities The Charity is conn8cl8d to The Congregth'on of the Sisters of Nazareth Ithe Congregation), an unincorpor8led international religious organisation recognised by the Vatican. The Charity is also connected to two other UK registered charrties.. The Congregation of the Sisters of Nazareth Generalate 39

Notes to the accounts 31 March 2021 Name Regi¥tration numbers etc. A registered charty (Charity Registration Nos 228g06 IEngland and Wales) and SC040507 Iscotlandll Principal activities The support of the religiou5 ministries and works by members ofthe Congregation (the Si$lorsl in the Unitod Kingdom and tha care of those Sisters. The Congregation of the Sisters ol Nazareth Charitable Trust ICSNCTI nership of 14 home5 in England, Wales, Scotland and Northem Ireland known 8$ Nazareth Houses and which are used to provide nutsing, rèsidential and care services to older people in need, and a nursery. Nazareth Care Charitable Trust INCCTI A registered charity (Charity Registration Nos 1113866 (England and Wales) and SC042374 Iscotlandll and a company limrted by guarantee (Company Registration No $518564 (England and Walesll • The provision of nursing, rasidential and care services to older people In need tttrough the operation of 12 home5 Wrthin England. Wales and Sco118nd, an¢J a nursery. + The provislon of mAnagament and support services lo glder peoplg at the retirement villages in Blackburn, Glasgow aThJ Plymouih. The Superior General of the Congregation is also a Irust?g of thè Charty. She appoint5 the trustees of CSNCT and is thesole memberof NCCT and appoinlstheirtru5te85. CSNCT and NCCT have Ihreetrustee5 in common. At no FK)int during the accounting period did any ol the three charrties control one or more of the others. As a eonsequence, consolidated accounts are not prepared. NCCT has a number of subsidiary companles wmh which icfoms the Nazareth Care Charitsble Trust Group. Consolidated accounts of the Nazareth Care Charitable Trust Group ore prepared and filed with the Char Commission and Companies House. The Charity has a financial relationship with the follo%￿ng NCCT subsidiaries-. N8me Registration numbers etc. Company Registration No 05906057 (England and Wales) Principal aotlvltles The development of a rntirement village in Blackbum. NRV De￿loprr￿nt IBla¢kburnl Lim((ed NRV Developmerrt IPlymouthl Limited Company Registration No 05940933 (England and Wales) The development of a r8tirament village in Plymotrth. During the period thtrré hav¢ bèsn a numbar oftransactions betseen the Charty and ts conn•cted entities. The detail of giants and donations provided lo connected enl((ies is shown in Note 4. Details of the indebtedness between the Charty and rf(s conn6cted enti(ies and of commrtments is gNen below. The Congregation of the Sisters of Nazareth Generalate 40

Notes to thg accounts 31 March 2021 The Congregation of the Sisters of Nazaréth Charitable Trust The Charity made a loan to CSNCT towards the cost of development and con5twctlon of a new Nazareth House care home on the existing srte in Glasgow. This was increased by £1.88 million in the financial year. The 108n is repayable by 2035 wrth interest charged at a commercial rate. The b81anc6 at 31 Mar¢h 2021 was £4.4 million12020-£2.735 million). In 2018119 the Charrty agr6￿ a loan of up lo £1.5 million towards the refurbishment of the Nazareth House care home in Birkenhead with interest ch¥rgèd at a commercial rate. The balance at 31 March 2021 was £1.527 million12020- £0.524 million). NRV Development (Blackbum) Limited In 2012 the Charrty agreed a loan to NRV Development IBlackburnl L￿rted fDr up to £4.2 million to be ¢Jsed to part-fSnance the construction of apartments and bungalows al the Larmenier R8tirement Village, Preston New Road, Bla¢kbum. At 31 March 2021, the loan balance was £6&3.76612020- £1.18 million). Thé Charity has a financial rélationship wf(h ￿ oveiseas eonnected charities" Irtsh Reglon A loan of ￿.45 million to the Irish R•gion to fi'nance refurbishment works atthe Dublin House was approved by th• trustees in 2013 and 2014. At 31 March 2021. the balance of thi5 loan, when converted lo Storfing, amounted to £0.335 million12020- £0.338 million) and is due to be repaid by 2025. Interest is charg¢d at Comercial rate. A loan of É3.66 million to fund the redev8lopment of the nursing homos in Dublin, Mallow and Beffast was approved by the trustees during 2016117. This was increased to É7.36 million in 2018119. The balance at 31 Maich 2021, in Starling, was £6.806 million12020 - 6.689 mi1Sionl. Repayment of the loan is expected to commenTr in 2023. Interest Is charged at a commercial rate. The remaining external funding the redevelopments in Ireland ¢omes from a commercial bank loan taken out by the Irish Region. The Charty has provided a guarantee in iesped of this loan and funding for any cost overrun$. Australasian Reglon A loan of £5 million, converted into New Zealand dollars, Wds approv¢d by tho trustee5 in December 2014 lo assist in fin8ncing the r¢building of Nazareth House Christrtturch. The loan will be repaid betsyeen 2018 and 2028. wrth interest charged at a cornmercial rate. Repayments have commenced,. however, none were rèceived in this financial year and the balance a131 March 2021 was £1.475 million12020- £1.339 million). 22 Uhimate control The trustees ol the Charicy are thè Superior General and four General Councillors of the Congregation ex officio. 23 Custodian funds As at 31 March 2021, the Congregation of the Sisters of Nazareth Gèneralale held funds on behaw of Nazareth House Aids Fund in Standard 9ank of South Africa. This bank a¢¢ount acts as a holding account for money coming in and out of the Charty. These assets are not Included in these thnancial statements. The value of the funds held in the bank account at 31 March 2021 was £9,39712020-£22,8301. The Congregallon of the siste￿ of Nazareth Generalate 41