The Congregation of the Sisters of Nazareth Generalate Annual Report and Accounts 31 March 2022 Charity Registration Number 1138878 (England and Wales)
Contents Reports Reference and administrative details of the charity, its trustees and adwsets Truste8s' rewrt Independent auditors report 23 Accounts Statement of financial activitles Balance sheet 27 Statement of cash flows 28 Principal accounting pollcies 29 Not85 to the acUnts The Congregation of Ihe SksterB of Nazareth Generalat8
Reference and administrafjve details of the ¢harity. its trustses and advisers TNstees Stster Brenda Mccall (Chair). AKA ser Mary Brenda Mccall Sister Valma 8eattiGe Cooper, AKA Sister Dominica ofthe Cross Cooper Sister Hannah Marie Dwyer. AKA Sister Hannah Maria Dwyer Sister Mary Veronica Kealey, AKA Sister Veronica Anne Kealey Slster Anne Bernadette Walsh, AKA Sister St Te5a Walsh Superior General Sister Mary Brenda McC811 Treasurer Geneial Sister Hannah Maria Dwyer General Secretary Sister veroni Anne Kealey Chief Executive Kewn Bames Principal office St Michaels Nazareth House 169-175 Hammersmilh Road London M 8DB Email generalate sistersofnaz8reth.com Website www.slstersofnazareth.com Charity registration number 1138876 (England 8nd Wales) Auditor Crowe U.K. LLP 55 Ludgale Hill, Lornjon EC4M 7JW Investment managers CCLA One Angel Late, London EC4R 3A8 Royal London Asset Managem8nt 55 Gracechurch Street, London EC3V OUF Principal banker Barclays Bank 22-24 Upper Marlborough Road, St Albans. Hertfordshire AL13AL Principal solicitor Stone King LLP Upper Borough Court, Upper 8orough Walls, 8ath BA11 RG The Congregation of the Sisters of Nazareth Generalate
Tru$tees' report 31 March 2022 OVERVIEW During the financial year. the third full year for the Gurrent trusiees, the Charity has continued to woth tOW8rds delivering the Mission, Vision and Aim of the Congregation, and living by its value5. These are set out in full on page 5 and are similar for the Charity and the COnggation. The main achievements of the Charily during the 2021122 year include.. 1. Supporting the regions induding how they respond to the Covid-19 pandemic as well as financialty. 2. Undertaking a review of safeguarding practices in all regions. 3. Developing the Heritage Cent, which was officially opened the pVIoUS year, it has been visited by members of the Congregation and their guests. The Heritage Centre includes an exhibllion of the lrfe and times of the Congregation's Foundress, Vlctoire Lamienier, and her legacy of the CorvJregation of the Siste[5 of Nazareth, along with new. permanent home for the archive. The collectM)n has been added to during the year and a new book has been publlshed lo provhje more infomation. 4. Three nowces making their first professlon in September 2021 and shortly after retuming to the African Region lo continue their religious journey a5 siste of Nazareth. 5. Entering into a sales agreement lor Nazareth House SoLrthend, subject to a satrsfacaory planning approval, on Lhalf of the UK Region. The year has also had its challenges. including the Congregation deciding to close Nazareth House Elsies River in Cape Town and transferring the residents and staff to the nearby Nazareth House in Cape Town, providing them with an improved environment. Proceedings into the historic abuse of chIldn fomially in Ihe Congregation's care continue. In May 2019, a report was Lssued by the Scottish Child Abuse Inquiry following the testimony in 2018 of the survivors of abuse in four res¢dential children's hornes in Scotland operated by the Congregation. The Congregation fomially apologised for any mistreatmenl of those in hs care and deeply regrets any ham or shortcomings in the Ca prowded. The conggation has and continues to cooperate with the Scottish Inquiry and the Inquiries held in England and Wales, Northem Ireland. Australla and New Zealand, each at different stages, and wlth those govemments as they set up their redress schemes. All residential children's hornes in eaGh of these countiies have Len ck)sed for many years. The CovMI-19 pandemic continued to affect the work of the Charlty. curtailing travel and adivities, and more directly, the provision of care to the ehjerly and children who are looked after in the care homes and other services in the regions of the Congregatlon. The Charity tnjstees pay tribute to the eXptIonal hard work of all the Sisters, staff, volunteers and others in Nazareth Care who have worf(ed tirelessly to keep the residents safe, often putting the care of others ahead of their own safety and wellbeing. There can be no greater example of their commrtment and livrng by the Core Values. The families and friends of all those who have died are remembered in our prayers. The Congregation of the Sistets of Nazath Generalale
Trustees, report 31 March 2022 STRUCTURE The Congregation of the Sisters of Nazareth Generalate (Ihe Charity,) supports the religlous. educational, care and other charitable work of the Congregatlon of the Sister5 of Nazareth {Ihe Congregation'l across the wortd. The Charity the facilrtaling entity for Garying out the civil law aclion5 on behalf of the Congreg81ion. The Chartiy is based in the United Kingdom and hokls the central reserves of the Congregation. The five trustees of the Charity are also the five ekcled leade of the COnggatIon, the Superior General and her four General CounGillors. Thi5 report uses 'lhe Charrty. lo refer to the work of the Congregation of the Sisters of Nazareth Generalale for whom this report relates lo and Ihe Congregation. to refer lo Ihe work of the Congregation of Ihe Sisters of Nazareth, Ihe religiou5 iKKly that the Charrly i8 a part of. The Congregation is an unincorporated intemational body of relvJious women - the siste of Nazareth (the SISte)- founded by Victoire Lamienier and recognised by the Holy See in 1864. As of 31 March 2022, there were 191 Sisters (2021.. 20318nd five novices (2021.. eight). The Congregational StrUcre Most of the Congregation's ministries, or services, are prowded wkhin Nazareth Houses, which are mainly care homes for older people. As of 31 March 2022, the Congregation opetaled 33 Nazareth Houses. 8 retirement vtllages, 3 education setmces and 2 children's services in 36 ifferenl locations. They are or98nised into four regions and one area.- Africa, America. Au51ralasia, Ireland alld United Kingdom. For this report only, the four gIonS and one area are all referred to as regions. Each region consists of both a regional branch of the Congregation 8nd an operating entity. which are charitable or not-for-profrt organisations. Each reg*)nal branch of the Congregation owns the properties - the Nazareth Houses - and looks after the mission of the Congregalion and the welfare of the Sisters In the region. The operating entities function under the name Nazareth Care (Nazareth House in Afflerica) and are deliveied on behalf of the Congregation. They manage the care homes and other servic8s, receive the income and employ the staff. This structure ensures that the Sisters retain control over the assets and mission of the Congregation while lay staff manage the semces 8nd provide the ca. Each Nazareth Care is a separate legal entity with its own goveming document And board of trustees, consisting of a majority of sters and supplemented with lay trustees. Each board is chaired by the Regional Supeiior, who is a Sister and a member of the Congregation. Each region has a similar legal structure. although each is necessarily tailored to the legal jurisdiction in which it operates. The Congregation, through the Superior Gener31 and the General Councillors. tainS some decision making powers over the r6glons. The Congregation of the Sistets of Nazareth Generalale
Trusteès, report 31 M8rch 2022 Connected enttties of the Charity The Charity has no related parties or subsidiaries. There are several entities connected lo the Charity, being other components of the Congregation. Those components in the United Kingdom are detailed in Note 20 to the accounts and consist ofThe Congregation of the Sisters of Nazareth Charitable Trust (charity registration number 228906 (England and Wales) and SC040507 (Scotland)) and Nazareth Care Charitable Twst (charity regislr*ion number 1113666 (England aThJ Wales) and SC042374 (Scotland)) and a company limiled by guargnlee (Company Registration No 5518564 {England and Wales)) and ils subsidiaries. The Conggation of the Sisters of Nazareth Generalate
Trustees, report 31 March 2022 THE CONGREGATION'S AIM MISSION, VISION, AND VALUES The Charity support5 the work of the Congregation throughout the world. Its Aim. Mission, Vision and Core Value5 a those of the Congregation. Aim The Conslitutions of the Congregation ofthe sters of Nazath set out Its aim.. °To glon.fy Almighty God by followng Christ 8s our supreme rule of life. We do this by personal Sanctn7Catn, by dedicating ourselves to the btjildlng up of God's kingdom, and by eng8glng in the particularministries entrusted to us by the ChurGh." Gare of the elderly, work wth children. educational, pastoral and soci81 ths, and other mirnstries in accordanc8 th the n8eds oflime andP1a., (Constitution 1.3) Mission The mission of the Congregation of the Sisters of Nazath is.. "We, the Sisters of Nazareth, aim to Sha the love olGod through our ministnes of care and education and our openness to respond to the needs of the time&° hatsoever you do to the least of my peofft you do to me,: Words of Jesus Christ (Mati.25'.40) Vision The Congregation of the SL8ters of Nazareth is a Catholic Congregation devoted to ca. dignity and proteclion of numan life, it striveslo maintain and improve the quality of lrfe of those entwsted lo its care. Core values The Aim. Mission and Vision are supported by six Go51 based 'core value5'. All who are associated with the work of Ihe Congregation are expected to demonstrate a mmitmentto the Core Value5'. Love - Unselfish conGem for the good of other5 Shown through p*ience, kindness. trust. hope, endurance, tnjth and a strong affection. Compassion - Being open and attentive to the whole person, spiritually, physically and emotionauy. showing empathy for the suffering of others and trying to lIeVe that suffering. Respect - Holding the unh]ue dignrty of each person in high esteem and wrth speci81 consideration. showing thoughtfulness. courtesy and rA . Justice- Upholding what is fair. decent and right, appreciating each person, respecting their righls in 8 b81anced and fair manner. Hospitality- Welcoming and receiving all into a warm, friendly and open 8tmosphere. patIen- Persevering calmty and with understanding 8nd endur8nce. The Congregation of the Sisters of Nazareth Generalate
Trustees, report 31 March 2022 The Chatity support5 a new programme. WKtoire s Legacy, which is being delivered lo the regions and is ready to be rolled out throughout the Congregalion's semces. It covers the leg8cy of the Foundress. th8 Core Values, safeguarding and inlercuhurality. Meanwhile, the Congregation's Mission Alive programme continues lo be used and reinforces the impacl of its Mission and Core Values on ils minislries. The programme promdes training to staff and volunteers in the meaning and application of the Core Values 2nd how to put them into pradice in the workplace. ensuring the CO Values and Mission make each Nazareth House and seNice a distinctlve place of care. The continuing and sible presence of Sisters in the serw¢es is a reminderto residents, relatives, staff and volunteers of the Congregation's or(gin and its ongoing commftment to providing spiritual and mpasSIOnale care lo the elderfy and others who benefrt from these services. The Congregation ha5 adopted the principles of 'seNant-leadership' set out by Robert Greenleaf, which have a strong affinity with the core value5. The Congregation of the Sistets of Nazareth Generalale
Trustees. report 31 March 2022 REVIEW OF THE YEAR The trustees present the report 8nd ACCOLtnts of the Congregation of the Sisters of Nazareth Generalate for the year ended 31 March 2022. During the year the Charity has supported the rnis5i0n and services of th8 Congregation provmyed in the regions. These include providing guidance, advice. financing 8nd ongoing monrtoring and support to building works, changes to governing documents and any other 5vJnffiGant developments. At the Congregalion's most cent General Chapter, hehj in June 2018 in Hammersmith, London, the futu direction of the Congregation was agreed uwn through one Mandate and four Recommendations, which form the basi8 of the Congregational Plan for the years 201 &2024. The key elements of the plan are to.. Acknowledge the gift of interculturalily in all 8specls of the Congregation. 2. Review the impact of the changing strengths and availability of Sisters. to maintain the viabiltty of the Congregalion. 3. Embrace, study, promote and Implement the principles of Catholic Social Teaching and Pope Francis, social encyclical on the environment, Laudato Si,, conceming ecoh)gical and social issues affecting the life and mission of the CoThJregation. 4. Safeguard the partnership between the Congregalion and Nazareth Care. S. Pmote vocations and the initial arKI ongoing fomation of the Sisters. The full delivery of the Mandate and Recommendations takes time. Actions towards thelr delivery by the Congregation, and where ne$sary supported by the Charity. have commenced and include- Continuing a new pmgramme of induction and training for all Si%ters and staff. imparting Victoire's legacy. mission, partnership. safeguarding, core values and intercUurality.' Applying the fom7ation programme to support the training and ongoing formation of Sisler5- Encouraging the implemenl8tion of the ecological and social justice pollcles furthering a growing consciousness 8nd practice in these areas. The ongoing con5Kleralion ofways to ensure the wability of the Congregation with regard to the changing availability of Sistets., Ensuring the role of Sister3 in the govern8nce of the Congregation., Strengthening the partnership befvieen the Congregation and NaZah Care. These and other 8(thions are contained in the Global Congregational Plan and the Nazareth Care Global Plan. which then cascaded down to the region, house and community plans. The Congregation of the Sisters of Nazareth Generalate
Trustees, report 31 March 2022 Plannin The Glob01 Congregational Plan and the Nazareth ca Global Plan fomi the lop layer of a planning system that requires each region, seNce and communty 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 actlvities are focused on the Recommendations. The plans Klentify the many elements comrnon to both plans that require the same actions by Sisters and lay staff. Pro The Charity has funded the pre•relurbishment works of Nazareth House Hammersmfth, includlng the planning application and professional fees that wlll enable the home to be completely refurbished. Building work continues in all regions. Consent was granted by the Superior General and the General Council to enter into separate contracts for the sale of two sites that had premously been losed, one in Southend in the UK and the other in San Rafael in America. Both sales are subject to achieving annIng consent so neither sale has been completed al the time this rert is slgned. Consent was aL%o granted forthe closure of a site in Elsies River. a suburb of Cape Town In South Africa. which was successfully completed. The surmunding are8 had become too violent to ensure the safely of the respjents and staff. The residents and staff were offered aMern8tive care and employment. which many accepted, in our larger sile, also in Cape Town. The premises may be IransferTed to the local Diocese to continue to benefrt the local community. Consent wa5 requested, and given, for the tM)tential transfer of a new 48 bedded nursing home and convenl from the Sislers of Sl Joseph of Annecy in Killorglin, County Kerry in lTrland to the Congregation following due dilpJence processes and subject to necessary regulatory and legal approvals. Works previousty approved have continued, induding the lurbi$hMenI and extensi)n of Nazareth House Birkenhead in the UK and the remodelling of part of Nazareth House Los Angeles in America. Plans are also being developed for upJrades and Improvements to several other Nazareth Houses across the regions. In uiries We continue our practice of c(Foperating wf(h all Inquiries and 0vidIng ongoing support. Following the passing of the Redress for Survivors (Historical Child Abuse in Carel (Scotland) Act 2021, the Charrty, on behalf of the Congregation, entered into 8 new agreement with the Scottish Government to Contribute to the payments made by Redress Scotland to fomier children in our Care regarding claims of abuse. This was accompanied by a further aFK>logy by the Congregation, as published on the gov.scot webslie. We continue to co0rate with the Scottish Govemment. Redress Scotland 8nd survivor organisations lo support dairnants and potential claimants with access to their recA)rds and to promde indimdual apolcoies when requested, and with other Inquiries. as necessary. Finance Each region consists of one or more independent chairiie5. Therefore, consoltd8ted accounts are only produced at a regional level and are not consolidated globalty. Region accounts are prepared and audited according to their local standards 8nd are available on request from each region. The Congregation of the Si5ter5 of Nazareth Generalate
Trustees, report 31 March 2022 Each region provTdes a quarterly report on 115 operational financial performance, covering the actiwlies of Nazareth Care including each Nazareth House. Unaudited 8CCOUnts for each regio show that the tol81 tumover for 2021122 was £109 million (2021-. £109m). No change in the total income reflects a slight increase in fees and occupancy in each region, but a worsening of several exchange rates when local currencies are converted lo Sterling. The greatest pressure in most reglons Is endItUre increases due particularly to the lack of available trained staff, increased use of agency staff and the Increased cost of operating care homes. Four of the five regions still man8ged to generate a surplus, to be used for reinvestment in capital projects. The Charity entered into a new loan 4reement with the Irish Region, collsolidatillg several smaller loans simpltfying amounts due and repayments. The mamM potential contribution to the Scottish Govemment has been accounted for in the 2022 accounts and the first two payments made. Nazareth House Southend This srte which closed in 2020 continues to be managed by the Charity on behaw of the UK Region. A property m8n8gernent guardianship company provhles much needed temporary accommodation for local people while guarding the property. Part of the srte was 81so made available to the NHS as a CovNJ-19 test centre. Following a marl(eting process and multiple offers, an offer for the sale of the sfte has been accepted. The offer is subjed to successful p18nning approval, and a planning application has been submitled by the prospective purchaser. No decision has been made at the time this report is signed. Covi(k19 The year continued to be impacted by the Covid-19 p8ndemic. This affected the work of the Congregation, curtailiro travel and acti)rities, and more directly the provision of care to the elderly and children. The response of the Sisler5, management and staff has been phenomenal. often prioriting the care of others before themselves. The Ch2rtty's actions continued, with greater use of virtual at10M1S to deliver training, ommunicalions, education and connectedness. All staff of the Charity have continued in their roles, wothing remotely where that has been feasible. Other artivities Other actiiAties by the Charity during the year on tehalf of the Congreg8tion included.. monitoring the flnancial and operational performance of the regions- monitoring the Siste, funds and Nazareth Cafe fund5 Ill the tEgions' reviewing the govefflan in regions., consideriThJ applications by regions for consents of vauS types, in particular relating to major building works and constitutional requirements., The Congregation of the Sisters of NaZAth Generalate
Trustees. port 31 March 2022 allocating fvnd5 to consented projects by way of grants and loans.. monitoring investment performance and remewing the investment managers used,. keeping in touch with the regions and houses. mainly by ve0 and telephone this year. The focus of these communicatlons by the Superior General and her General Councillors is their pastoral care of each Sisle¢s welfare.. they aL%o promde opportun(ties to obseNe the operations within houses. monitor the govemance within regions and house5. encourage a slrong partnership between the Congregation and Nazarelh Care and update their knowledge of issues in each region and house. The Congregation of Ihe Sister5 of Nazareth Generalate 10
Trustees. report 31 March 2022 FINANCIAL REPORT FOR THE PERIOD The accounts have been prepared in accordance with the accounting poliaes set out on pages 29 10 33 of the attached accounts and cornply with the Charity's trust deed, applicable laws and Accounting and Reporting by Charilie5.' Statement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial Rerx)rting Standany applicable in the Unrted Kingdom and Republic of Ireland (FRS 102). Income and expenditure The income and expendtture of the Charity are detailed in the Statement of Financial Activities. on page 26 of the accounts. Unrestricted income for the Charity increased by £224k or 11 % in the year. lo £2,227k. The majority of the increase is from a legacy receipt of £1 Ook. and increased contributions from the regions, tolalling £40k, which reversed a reduction in the premous year when occupancy was reduced in many houses due to Covid-19. The other source of income is from investment income and Inte$1 CeiVab. which totalled £481k (2021: £468k). The inGoffle 15 almost entirely interest on loan5 by the Charrty lo fund building projects in the regions. Loans include funding for works at Nazareth Houses in Chrlslchufch, New Zealand,. Giasgow. Scotland., Dublin. Ireland., Mallow, Ireland,. Bewasi, Northem Ireland and Birkenhead, England. Unrestrided expenditure in¢4sed substantially to £6,521 k 12021= £1,626kl due to accounting for a £5,161 k (2021.. £0) maximum polent181 contribution to the Scottish Government for the Charity's contribution to redress payfflents. The fifst £280k has teen paNJ. with the remainder due over the next nine years. The to181 has been discounted in these accounts. reflecting the period that payments wlll be made over. Other unrestricted expendiiure totalled £1,360k12021= £1,628k). The most sNJnificanl change is a reduclion in foreign exchangelosses of £210k. Grants by the Charity lo the regions increased to £544k {2021'. £421 k) lo fund activitie5 in Ireland and Southend and H8mmersmilh in the UK. Expenditure Is detailed in Note 4 of the accounts. £198k of restricled expenditure was incur during the yearto fund the refuJtJishment of Nazareth House Hammersmith, the hoffle of the Chariiy and the first house established by the foundress, Victoire Larmenier. The majority ofthe expendtlure is expected lo be spent from 2023124 onwards when construction cornmences. Income less expenditure resulted in a loss for the year of £4.492k (2021.. gain £10,377k). Funds After investment gains of £1.373k (2021.. £2,463k) the net fflovement in funds forthe year was a de¢ase of £3,119k {2021'. In¢aSe of £12,840k), of which £2,921 k was from unrestricted funds. The closing fund balances were £29,897k (2021.. £32,817kl in unrestrlcled funds and £9.513k (2021.. £9,71 Ok) in restrided funds. The Congregation of the Sisters of Nazareth Generalate 11
Trustegs. report 31 March 2022 Loans No new loans were approved during Ihe year and no further advances are anticipated for any loans that have already been approved. The Charity's debtor balance at 31 March 2022 is £16,743k 12021.. £17,062k). Notes 13 and 20 to the accounts provide furiher delails of the outstanding balances and the lunding aangefflents. Cash flow and investment perfomiance The value of listed investments at 31 March 2022 was £21,657k12021.. £20,215kl. The increase includes £653k of realised gains and £720k of unrealised gains in the value of the investments. A summary of movements on listed investments can be found in Note 11 to the accounts. Investments with a market value al 31 March 2021 of £16,679k were held within the BlackRock Catholic Charities Growth and Income Fund. During the yearthe entire fund was disp(>sed of, and the funds were transferred to CCL4's Catholic Investment Fund. The value at the end of the year is £18.126k. They are t#)th common investment funds sel up lo prowde charities with ethical investment in line wi(h Catholic teaching. A further £3,531 k (2021-. £3,536kl was held wf(h Royal London Asset Management and invested in cash, deposlts. money market inslrumerrts and 5hort- dated govemment securities. aimed at delivering a posltive relum without additional risk. Funds and reserves policy The Charity's reserves of £39,410k {2021'. £42,528k) atE divided belween Iwo DesKJnated funds, the Tangible red assets fund, General fund. and a Reslricled furKI- Design8ted funds: • The Sle[s, Supporl fund.. £7,OQOk (2021.. £7,OOOkl is retained to prowde any Sistets in the Cororegation who need any support, including nursing or resentIal care in a NAzareth House. with the means lo purchase itwhere public funds are not available and for other needs such as medical costs, training or 8mergencies. The amount is calculated based on the eslimated future costs of providing Ca for SisleTs, the number of Sisters, their ages. lrfe expectancy, anticipated length of care and the cost of provKJing care. The level of the fvnd was reviewed during 2021 when the Charity confimied that £7 million remained the appropriate level of the Fund. + The Property fund= £19,OOOk (2021.. £22,500k) was reduced by £3,500k {2021'. Ineased by £3.130k) to womde sufficient funds for the Scottish Govemment maximum potential contribution. The fund will used to provHJe loans or grants to regions requitirvJ support for building, restructuring, developments, or other similar projecls. Building projects and regional support are expected to be the primary focus of the utiltsation of the Charlty's funds for some years as many properties require upjrading and remodelling to comply with current slandards and expectations. The Chaiity has already invested a proportion of the fund, demonstrated through the existing loan balances. Further loans can be made as the existing loans 8re repaid. They anticipate using more of the fund over the next five to len ye8rs to continue the Pfo¢ess of upgrading properties, subje(1 to tptaining Sufflent funds to respond to emergencies. This 15 expected lo include additional costs to refvrbish Nazareth House Hammersmith. 8s well as other sites in the UK and overseas. The Congregation of the Sisters of Nazareth Generalate 12
Trustees, report 31 March 2022 Other fund5'. • The Tangible Fixed Assets fund represents the value of the tangible fixed assets owned by the Charity. The fund has decreased from £2,397k to £2,154k during the year as existing assets have been depreciated. • The Gener81 fund of £1,743k (2021.. £920k) is retained to coverthe running costs of the Charity in the evenl of a temporary loss of income, together with some capacity to support Ihe regions and houses expefiencing unforeseen costs that cannot Immediately be fijnded from other sources. The Gener81 Fund represents the only unresltided and non-des¥Jnaled funds of the Charity, that can be SFtnl as the trustees decide. • The General fund is in line with the Charity Irustees, expectation5 represents around 16 (2021.. nine) months of operating expenditu, eXudIng foreKJn exchange losses and depreciation. The Iruslees wish to retain behveen 6 and 12 months of operating expenditure in the Gener81 Fund to avoiy any intemjption lo its activlties in the case of a loss of income or the need for increased supwrt to a reglon. • The Restrided fund of £9,512k {2021: £9,710k) is accounted for separately. £7,OCKJk {2021.' £7,OOQk) 15 held in CCLA'S Catholic Investment FuThY and the remainder is hekl in cash depostts lo fund shorter-terTn Ga5hflows. During the year, £198k12021.. £289k) had been spent from the fund on the planning application and prOfeSsnal fee5. Going concern The trustees have assessed the Charity s ability to continue as a going concem. The trustees have considered several factors when forming their conclusion as to whether the use ofthe going concern basis is appropriate when preparing these financial st8temenls including a review of updated forecasts to 31 Mar¢h 2024 Govering income. expenditure, cash and reserves, the long- lem) cashflow forecast to 31 March 2027 and a consideration of key Fisks, including Cowd-19 and economlc uncertainly, that could neg8tively affed the Charity. The Charity is fijnded primarily by donations from the Regions wtihin the COnggatIon together with other donations including legacies. There is a risk that the effects of the pandemic. shortage of staff and rising inflation will reduce income in each of the regions and consequently this may reduce the amount that is paNJ to the Charity. During the last year, mosl houses and Tegions have remained resilient to the challenges and have continued to operate successfulty, wfÉh appropriate changes to their operating practices. Admissions have started in most locations and occupancy In the homes is slowly increasing again. Admission emb8rgoes are now much shorter and more latyeted than was the case in the earty days of the pandemic. The Charity has not accessed any of the goveTnfflent grants or loans provided in response to the Cowd-19 pandem and does not anticipate doing so. Debtor balances have been remewed and assessed and. as all108ns are within the Congregation, they are conswjered to be repayable in full. The budget and forecasts for the forthcoming ye8r are considered to be deliverable arKI the cashflow forec45t shows that there are sufficient cash and li7uid resources 8nd forecast inflows for the period of rEview, wilh the support of the unrestricted resetwe5 if required. The conggation of the Sisters of Nazareth Generalate 13
Trustse$' rnport 31 March 2022 Th8 Trustees therefore have a reasonable expectation Ihat the Charity has sufficient resources to ¢ontinue in operational e$tenCe for the foreseeable future and so shoukj continue to adopt the going conc£m basks in preparing the annual and financial statements. The Congregation of the Sisters of Nazareth GerFeralate 14
Trustees, report 31 March 2022 FUTURE PLANS The fOCS over the next year and beyond will lo continue impleinenling the Mandate and Recommendations fromlhe General Chapter in 2018. In addfjtlon, the Charity will continue to support the region5, particularly with their property developments and up3rad8S to ensure the best environment for delivering high quality care to resmjents. The Congregation of the Sistets of Nazath Generalate 15
Trustaes. report 31 March 2022 GOVERNANCE The members of Ihe Congregation are led by the Superior General, who is supported by her four General Councillors. These five Sislets are elected every Six year5 at the General Chapter, which IS attended by representatives of the whole Congregation. The General Chapter, while in session, is the highesl 8ulhority in the Congregation. Before each Chapter there is considerable consuftation wf(h all Sisters through a series of Regional Chapters. other region-based meetings and papers distributed for discussion. The Regional Chaoers elect Sisters to attend the General Chapter on behalf of all Sisters. The June 2018 General Ch8Pter was attended by 32 ex-officio and elected Sister5 from the Congregation. This consultative approach prowdes the elected representatives with information and views from all Sisters across the Congregation on the issues to be discussed. The Superior General and General Councillors oversee the mrssion and ministrie5 of the Congregation 8nd are accountable to the General Chapter for their stewardship of the Congregation's mission, ministries and assets between each General Chapter. The trustees of the Charity ¢omprtse the Superior General and the four General Counallors ex Off10. Al the end of the year, the following trustees hekl office= Sister Brenda Mccall I'sister Mary Brenda'l Sister Brenda was elected Superior General in 2018, having 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 Regions and implemented new constitutional and staffing struciures. Prior lo this, she had ministered in various Houses wlthin the UK, Ireland and South Africa. She is trained in the Residential Care of Children and Young People and is a Registered General Nurse. Sister Valma 8eatrice Cooper {*lster Dominica of the Cross.) Before her election to Ihe General Council as Vicaress General In 2018, Sister Dominica wothed in the Austral8Sl8n Region. Being a Registered Nurse. Sister Domini worked in aged care for many years before being appointed to leadership positions as a Superior and Regional Superior. a p0511ion She held for seven yeats_ During this lime, Sister Dominica was involved in the organisational restructure ar Setting up a new business enlily as well as n0VatiOn and redeveloprnenl progtafflmes in the Region. Sister Anne Bernadette Walsh I'sister St Teresa,) Sister Teresa setved a5 Superior in the two Northem Ireland Houses for the nine years before her election as a General Councillor in 2012. Sister Teresa orbJinally trained as a teacher and worked in education for Ihirty-five years. Her focus was on the prifflary school sector and she became principal of a nursery school. At the end of her leaching career. Sister Teresa was awarded an MBE for her contribution to earfy years, education in Northem Ireland. She was elected for a second tenn as a General Councillor in 2018. Sister Mary Veronica Kealey I'sister Vemnica Anne.) Sister Veronica trained as a teacher and worked in the primary school seclor for ftfteen years. She served as Superior in Dublin before golng to Canada to study for a License in Canon Law. Sister Veronica worked with the Scottish Catholic Inter-Diocesan Tribunal for eigm years working The Congregation of the Sisters of Nazareth Gener8late 18
Trustees, report 31 March 2022 prinpallY on marriage nullity cases before being elected lo Ihe General Council in 2018 and appointed as Secretary General. Sister Hannah Maria Dwyer I'sister Hannah Maria. Sister Hannah was elected to th8 General Coun1 in 2018 and seS as the Ttpasurer General. Following a long career in teaching, 23 years as Headteacher in a London Catholic Primary School, she receFved the Pearson Teaching Award In 2014 for Lrfetime Achievement. In 2002, Sister Hannah raised £7m lo fund the buihjing of a new school, which she supeM5ed. The school was lS[ted by the then Prime Minister Tony B18ir, accompanied by Arnobj Schwafzenegger. The library was opened by the future Prime Minister Boils Johnson. In 2015, she look a leadership role in the UK Region, as the Superior of the Chettenham Community. The Superior General and General Councillors live and wort on the Nazareth House sile in Hammersmrth, which wa5 the first to be established by the Congregation's Foundress. Vicioire Lamienier, in 1857 and which remains the 'Mother House, of the Congregation. The trustees fomi a Part Vll incorporated tnJstee body-'The Tmstees ofthe Congregatm ofthe Sisters of Naz8relh Gener8late'. The Charity Commission granted a Certificate of Incorporation on 23 March 2011. The Charrty is govemed by a Trust Deed dated 1 October 2010. Its objecls are to apply the Charity's property and incoffle ..for SUGh Gharitable purposes 8s sh8118dv8nce the rel10s, educalional, care and other charit8ble wort( or the Congregation, for the publiG ben8Tht, as the Tmslees wilh the appmval oflhe Superior General shall from time to tin78 think fft... . Trustees, powers include but are not limf(ed to.. supporting and maintaining . all who 8re or have been engaged in the cha171abl8 of th6 ConegatiOn including... Tmstees of the Trnst,. making wants and loans thether out of income LY capital and upon such terms and conditnS {ifanyJ as to interest, repayment, securky orothenwse and to guar8ntee money or to use the assets of the Trnst as securrfy forthe KerfomHn ofcontra(s entered into by any person, 8SSOCi8tion, company, local aUthlty, 8dministrative or govemmental agency or public body as May be thought frt or towards chan"table purposes in any way connectsd with or calculated to further the objecls of the Trnst,. • establLshing . such separate ch&7tyorch8nlies as tt)eythlnk fit... to C8ny on such chantable woths as are ¥thIn the ambrf... of this Deed, arbj '... trading cOMpanS to assist, or ac as agents for, the Trust,. The Superior General and General Coun¢illor5 a the tTU5tees of the Charity. Together wtth the Congregational Chief Executive, they meel formally four times during the year lo discuss the business aspects of the Congregation's actiirities. Following the trustees, meetings. the Superior General and Gener81 Counallors meet as a General Council to approve, give consent or further deliberate on the matters arising from these meetings. These meetings are minutj separately. New Iru5tee5 are inducted by the ex*ing trustees and 51aff and training 15 pfovKled. The Congregation of the Sisters of Nazareth Generalate 17
Trustees, report 31 March 2022 Charity Governance Code The Charity has assessed its compliance wtth the princlples of the Charity GovernanGe Code, undertaking a detailed review in June 2020. It GOnSKlers that it fully meets 54 of the 76 items of comfflended practice in the Code and is working towards another nine items. Two ilems are not rnet and 11 that it considers are nol levant to the charity. The two unmet areas are benchmatking with similar organisations and consKlering infomiation from other similar organisalions and reporting on how the charity evaluates the l)oard effectiveness in this pOrt. Formalty assessing board effectiveness Is one of the areas that it is working towards. The non-relevant 2re2s are mostly concerning the recruitment of trustees, as the Constitutions require some appointments to be tnade from within the Congregation, which limits the advertising. diVeIlY and breadth of board skills. This is compensated for by hawng trustees who are wholly committed to the Congregation and the Charity without outsNJe distractions, and the use of external admsors and outside expertise on Commee5 to prowde greater diversity and breadth of skill5. Key management personnel The trustees consider that they, wilh the assistance of the Congregational Chief Executive, comprrse the key management of the Ch8rity in charge of directing 8nd controlling. wnning and operating the Charity on a day lo day basis. Decisions are made by the trustees unless they have been delegated to the Congregational Chief Executive as part of the approved genefftl delegatlon or as agreed when making a specific decision. All trustees are members of the Congregation and. whitst their living and personal expenses are borne by the Charity, they receive no remuneration or reimbursement of expenses in connedion with their dutles as trustees. Addiiionally, they donate all their income to the Charity. The pertormance and pay of the Congregational Chief Executive is revlewed annually. To deliver the Gharitable aims to complement the skills of the Sisters, the ChaiTty employs a small number of paid staff. The commitment lo staff is to pay them a fair alld appropriate salary that is affordable. This is to 8ttrart and retain people with the right skilLs and who, therefore. will have the greatest impact in delivering the Charity's obj'ectives. In accordance wlih the Statement of Recommended PraGtice we: + disclose all payments to trustees (no trustees are paid) and expenses reimbursed (no trustees received expenses). disclose the number of staff in receipt of £60.000 and above (in bands of £10,000) (Note 7 to the a¢¢ounls). • disclose pensions and other benefrts (Note 7 to the accounts). staff remuneration does not incjude any share option5 or bng-terrn incenlive schemes as there are none. The Congregation of the Sisters of Nazareth Generalate 18
Trustees, report 31 March 2022 The period of notice for termination of contracts of employment is three months for any staff earning over £60,000. Granl-making policy The Charity makes funds available as grants to individual houses and regions, which are to separatety registered charities lo support tls ministries. The granls a aoUnted for as exFtndItU in the year in which they are approved. During the year, a few small exiemal grants were made by the trustees in response to identified needs. These We generally to support indivtduals or smaller not-for-prorrt organisations. Grants made by the Charity during the year are detailed in Note 4 to the accounts. Investsnent pollcy The Charity's constitution does not restricl the trustees. powets of investment. The choice of Investfflents is heavily influenced by the ethical investment policy, which is designed lo avoid, as far as is reasonably possible, any significant investment in organtsalions that produ goods or services at odds with the teachings of the CalholiG ChurGh, parlicularly regarding the sanctity of human ltte. The tmstees take a total relum approach to their investments, investing in funds Ihal adhere to the ethical investment policy. The majority of investments were transferred during the year to CCLAS Catholic Investment Fund and cash and cash equivalent funds were held with Royal London Asset Managefflenl Limited al the year end. The Catholic Investment Fund holds a diversified portfolio containing equities. allernative assets and cash and near cash. manag1 within 8n acceptable level of risk. The fund's investment objective is to achieve a gross total retum before fees of S% per allnum above the Consumer Price Index, over a period of five years. whilst adhering to its ethical Investment policy. It is currently not achiewng this due to the high level of the Consumer Price Index. The Royal London fund aitns to deliver a FX)sitive retum in a range of market conditlons wlthout taking additional risk. by investing In cash, deposits, money marf(et instruments and short-daled government securities. The Ch8rity's praLXice is to re-invest income arising frn Ihe investment portfollo. The trustees conslder the level of l¥Jurdily that is required lo suppjrt grant and operalional commitments in the short and medium-tem). The Charlty uses the expertise from its investment manager5 to help with the management of its investment funds and will purchase &lditional advice where necessary as well as draw upon the knowledge ofthe Advisory Finance Committee members and the key management personnel. The Congregation of the Si8ters of Nazareth Generalate 19
Trustees. rgport 31 Marth 2022 Public benefit The tnjstees confimi that they have given due consideration to the Charity Commission's publlshed guKiance on the Public Benefft requiremerrt under the Charities Act 2011 when consijering the Charity's objectives and actiwties. All activities relate to the general objectives of the Chartiy through suppx)rting Sisters and delivering care to the ekjedy and Childn, delivered through overseeing and supporting regions, providing financtal contributions, advice and guidance within which regions operate. In these ways, the Chartly is delivering a publiG benefrt. Risk management The Charity remews its risk management framework and agreed that there are five primary categoties of risk facing the Charity and the Congregation- Mission, Spirit and Values., Govemance,. Safeguarding- Fin8nci81', Organisalional and External Environment rlsks. In each category, il has agreed how willing rt is to take risks to achieve its objectives and how ti would endeavour lo reduce risks where they are unacceptable to the organisation, its purpose or values. Wrthin each category, several Specif risks and contro15 were Njentified that ei(her are in place or could be put in place to reduce those risks. The major risks faced and how they are managed are considered to be.. A loss of spirit or mission. The ri8k increases as the number of Sisters in the Congregation decrease and the role of paid staff in management EM)silions increases. There are several programmes available in regions lo ensure the mSiD 15 well understood and communicated. such as Vidoire's Legacy, Mission Alive and the CO Values of the organisatbn. Sisters remain intrinsic to each house and are Msible throughout the majority of houses. Mass is held each day in rnost houses. Visits occur from the Superior General. General Councillors and the Congregational Chief Executive to each region and the houses. Atternative arrangements have been irrtroduced in the regions lo explo models Ihat can operate with fewer Sisters including some sites operating as satellites with visiting Sisters. These are evaluated on an ongoino basis. Governanc shortcomings. Governance arrangements ensure that the Charity Ix)ard of trustees is made up entirely of Sisters who are silPPOrted by lay staff and advisors as necessary. In the regions, all boards consist of up to nine Iruslees, a majority of whom are Sisters. There is 8 Strong set of Consttiulions, Directives, Govemance Handbook and rep)rting mechanisms covering all aspects of govemance to ensure that regions administer their operations In 8CCO[anCe wfLh the standards expected by the Congregation. Safeguarding incKYents erther now orin the past. Current safeguarding risks are well fflanaged through comprehenslve training and procedures and are more likely to OGcur in one of the regions, where Ihey d1CtlY interact with vijlnerable indivhJu8ls. The impacl on the Challly is by asSOC18tion and the consequential impact on its reKXJt2tion. Historical inchJent5 within the Congregation's past are predominantly addressed nowadays by the Charity induding reviewing praGti¢es and continuing to cooperate fully with all public Inquiries and with indNKluals making their own enquiries or civil proceedings. Many safeguarding risks are covered by insurance. The Congregation of the Sister5 of Nazath Generalate 20
Trustees. report 31 March 2022 FlnancSal fallure through a regK)n or the Charfty not being able lo meet its commitments, such as the repayment of a loan or a buikling project not teing delivered to budget. The shared brand and support mechanisms ensure that if one part of the Congregation struggles. others may step in to suptN)rt ((. Due diloence is undertaken before commitments are made and Insurance is taken out where It is 2ppropi7ate to do so. There is a process of continual oversight oflhe financial perfomiance of each region and ca5hflow foreGasling forthe Chaiity lo ensure that there afe suffiaenl, IiquKI fvnds to meet all reasonable eventualrties. OrrJanisational risks al the Charity include an over-reliance on key indlvlduals, Ihe reputational damage associated with the failure of a Servi etther now or in Ihe past or the impact of investment or foreign exchange fluctuations. There ts an awareness of these risks and contingency plans built in wherever possi1e to minimise their impact, for example, through Ihe recruitment of skilled indiwduals, the sharing of infomiation and the use of professional adwsors where appropfrate to do so. All services in the regions ate externally regulated to ensure standatrls are continually met andlor improved. Extemal enwronment changes have a material impad on the work of the Charity and the Congregation through, for example, major changes to the funding or legislation concerning the care of the elderly At the end of their lives or changed, public perceptions of the Catholic Church or CeSsion or a global health crisis, such as the Cowd-19 pandemic. Fundraising policy The Charrty does not proactively fundraise or solicit donations lowards Tts work. 11 ha5 therefore not spJned up lo the FUndraIng Regulator. Vvhen fundraising income Is received, the Charity aims to achieve best pra(Aice In the way It communlcates with donors and other supporters. It takes care with both the tone of its Coffjmunicalions and the auracY of its data to minimise the pressures on supporters. It applies best practice to proteci supporters, data and never sells or swaps data and ensures that communication preferences can be changed al any time. The Chaiity does not employ the services of professional fur)draisers. The Charity undertakes to react to and investigate any ¢omplaint5 regarding its fundraising adivities and to ieam from them and improve ils seTrice. During 2021122 the Charrty received no complaints aboui tts fundratsing activities (2020121: none). Trustsos. responsibilities in relation to the financial statements The trustees are responsible for preparino the trustees, rew)rt and the accounts in accordance with applicable law and regulations. Charity law requires Ihe trustees to prepare financial statements for each financial year In accordance wilh United Kingdom Generally A¢¢epted Accounting Practice {United lfjngdom Accounting Standards and applicable law). Under Charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of ris net incomlng l outgoing resources for that period. In preparing these accounts. the trustees are required lo.. The Congregation of the Sisters of Nazareth Generalate 21
Trusfres. report 31 March 2022 select suitable accounting policies armj then apply them conslslenlly-, observe the methods and prtnciples in Accounting and Reporting by Charities.. Slatement of Recommended Practice applicable to chalities weparing their accounts in accotyjance with Ihe Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland IFRS 102).. make judgments and estimates that are reasonable and prudent., State whether applicable United Kingdom Accounting Standards have been followed, subject to any m8terial departures disclosed and explained in the accounts; and prepare the accounts on th6 going concem basi5 unless it is inapprowiate to presume that the Charity will continue in operation. The trustees are sponSible for kee[ng accounting records that are sufficient to show and explain the charily's transactions and disclose with reasonable accuracy at any time the financial Posttion of the Charlty and enable them lo ensure thal the account5 comply wlth the Charities Act 2011, Ihe applicable Ch8rity (Accounts and Reports) Regulations and the provisions of the Tnjsi 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 olher irglarities. Approved by the tNstees and signed on their behalf by-. Superior General and Tnjstee Date of approval.. The Congregation of the Sisters of Nazareth Generalate 22
Independent auditors report 31 March 2022 Independent Auditor's Report to the Trustees of The Congregation of the Sisters of Nazareth Generalate Opinion We have audited the financial stAtements of The Congregation of the Sisters of Nazareth Generalale ('Ihe charity ) forthe ye2r ended 31 March 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial Statements. including significant accounting policies. The ffnancial porting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, induding Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK 2nd Rewblic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the stale of the charity's affairs as at 31 Marth 2022 and of its income and expenditufe. for the year then ended.. have been properly prepared in accordance with Unhed Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducled our audit in accordance with Intemational Standards on Auditing (UK) IISAS (UK)) arKI applicable law. Our responsibilities under those Standards are further described in the Audrtor's responsibilities for the audit of the financial statements sedion of our report. We ale independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial slatements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evmlence we have obtained is sufficient and appropriate to provwje a b8sis for our opinion. Concluslons relating to going concern In auditing the financial 51atetnents, we have concluded that the trustee's use of the going concem basis of accounting in the preparation of the financral slalements is appropriate. Based on the work we have perfDmied. we have not identified any material uncertainties relating lo events or conditions that. indiwdually or collectively. may cast significant doubt on the charity's ability lo continue as a going concem for a perfod of at least twelve months from when the financial slatemenls are aulhorised for issue. Our responsibilities and the responsibililies of the twstee5 Wlth respect to going concem are described in the relevant sections of thr5 report. Other infomiation The trustees are responsible for the olher infomialion contained within the annual report. The other information comprises the infomation included in the annual report. other than the financial stalemenls and our audrtorfs report thereon. Our opinion on the financial statements does nol cover the other information and. except lo the extent otheiSe explicitly stated in our report, we do not express any foffli of assuran conclusion Ihereon. Our responsibility is to read the other infoiTnation and, in doing so, consider whether the other infom)81ion is materially inconsrstent with the financial Statements or our knowledge obtained In the audtt or otherwise 8ppe8rs to be materially mrsstaled. If we identify such material inconsistencies or app8rent material misstatements, we a required to detemine whetherthi8 gives rise to a materi81 misstatement in the financial statements themselves. If, based on the wort we have perfomied, we conclude Ihal there is a mate(ial misstatement of this other infomiation, we are reqUId to report that f8c*. We have nothing to report in this regard. The Congregation of the Sisters of Naz8reth Generalate 23
Independent auditor's report 31 March 2022 Matters on which we are required to report by exception We have nothing to report in respeci of the following matters in latIon to which the Charities (Accounts and Reports) Regulations 2008 requires us lo report to you if, in our opinion.. the infoimation given in Ihe financial statements ks inconsistent in any material respect with the trustees, report- or sufficient 8nd proper accountlng records have not been kept by the charity., or the financi21 statements are not in agreement with the accounting records and relums., or we have not received all the information and explanations we require for our audit. Responsiblllties ol trustees As explained more fully in the trnslees, resptsnsibililies statement set out on pages 21-22, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trusiees delemiine is necessary to enable the preparation of financial statements that a free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the trustees are respy)nsible for assessing Ihe charty's ability lo continue as 8 going concern. disdosing, as applicable, matters Telaled to going concem and using the going concem basis of 8CCOUnting unless the trustees either intend lo liquidate the charity or to cease operations. or have no realistic altemalive bul lo do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 151 of the Charrties Act 2011 and report in accordance with the Acts and relevant regulations made or having effect Ihereunder. Our objectives are to obtain reason8ble assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assuranGe, bul is not a guarantee that an audit conducted in accordance with ISAS (UK) will always dele¢l a material misstatement when it exists. Misstatements can arise from fraud or error and ale considered material rf, it7dividually or in the aggregate, they could reasonably be expected lo influence the enOMIC deGision5 of user5 taken on the basis of these financial statements. DelaiLs of the extent to which the aLrt was considered capable of detecting irregularities, inGluding fraud and non-compliance with laws and regul*ions are set out below. A further description of our responsibilities for the audft of the 17nancial statements is located on the Financlal Reporting Council's webstie at: www.frc.or .uklauditorsres onsibilitie5. This description forms part of our auditor's report. Extent to which the audit was considered capable of detecting irregularities, IncI(1n9 fraud Irregularities, including fraud, are instance5 of non-compliance with law5 and regulations. We Jentird and assessed the risks of material misstatement of the financial statements from irregularf(ies, whether due to fraud or error, and disc4Jssed these between our audit team memters. We then designed and perfomed audit procedures responsive to those risks. including otAaining audrt evmlence sufficient and appropriale to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charrty operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disdosures in the financi81 statements. The laws and regulations we consKlered in this corrtext were the CharTtie5 Act 2011 together with the Charities SORP IFRS 102). We 8ssessed the requi compliance with these laws and regulations as part of our audit procedures on the related financial statemenl ttems. In a(idition, we consKJered provisions of other law5 and regulation5 that do not have a direGt effect on the finanGial statements bul Gompliance wrth which fflighl be fundamental to the charity's 8bility to operate orto avoid a material penalty. We a150 considered the opportunities The Congregatlon of the Sisters of Nazareth Generalate 24
Independent auditor's report 31 March 2022 and incerrtives that fflay exist within the ¢harity for fraud. The laws and regulations we considered in this Gontexi for the UK operations were employment legislation. Auditing standards limii the required audr( procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest iisk of material impact on the financial statements from irregularities, including fraud, to be wiihin the liming of recogniiion of incoffle and the overrNJe of controls by management. Our audti procedures to respond to these risks inclLvJed enquiries of management, and the Admsory Finance Commrtlee about Iheir own identffication and assessment of the iisks of irregularities, safflple lesling on the posting of joumals, revi8wing accounting estimates for biases, rewewing regulatory correspondence wi(h the Charity Commission and reading minlrtes of meetings of those charged w((h govemance. Owing to the InhenI limiiations of an audtt, there is an unavoidable risk thal we may not have detected some material misstatements in the financial stalemenls. even though we have propeily planned and performed our audit in accordance with auditing standards. For example. the ftjrther rerrK)ved non-complianre with laws and regulations lirregularilies) rs from the events and IransaGlions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-deteciion of irregularities, as these may involve Gollusion, forgery, intentional omissnS, misrepresentations, or the overrNJe of inlernal controls. We a not responsible for preventing non-compliance and cannot be expected to detect non-compliance wfch all laws and regulations. Use of our report This report is made solety to the charity's trustees, as a tthy, in accordance with Part 4 ofthe Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slaie to the chafity's trustees those matters we are required lo slate to them in an auditor's report and for no other purpose. To the fullest extent peffnitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's tNStees as a body, for our audit work, for this report. or for the opinions we have fomied. Crowe U.K. LLP Statutory Auditor London 13th December 2022 Crowe U.K LLP ts eligible for appolnlm8nt as audmor ofihe charhy by vlrtue of its 8lvJ114Ity for appointment a5 auditor of mpany undvr section 1212 Dfthe Companies Acl 2008. The Congregation of the Sisters of Nazareth Generalate 25
Statement of financial activilies Year to 31 March 2022 2022 20 Unrostrirtod Restsicted Fund5 Funds 2022 2021 2021 Tcrtal Unrestred Restricted Funds Funds Funds 2021 Total Funds Notes Income= Donations and legacies Investment income and interest recer4able Total income 1.746,830 0 1.746,830 1,535,827 10,000.000 11,535,827 467,609 467,609 480.539 480.539 2,227,369 0 2,227,369 2,003,436 10,C4JO,000 12.003,438 Expendfture: Cost of raising funds Investment managers. fèès Charf(able aclivities Supporting the regioTrs olthe Congregation - Grants and donations in support of the Congregation's work Totèl expendUre 12,051 12,051 9.117 9,117 1,002,076 0 1.002,076 1,196,177 1,196,177 5.507.176 197,979 5.705,1S5 421,276 421,276 6.521.303 197.979 6.719,282 1,626,570 1,626,570 Net incomellexFenditurel before net investment galns on Ilstsd investments Nel investment gains on listed investments 14,293,934) 1197,9791 14,491,913) 376.866 10,000,000 10,376,866 1.373.202 0 1.373,202 2,462,827 2.462,827 Net incomel{exFEnditurel And net movement in funds for the year 12,920,732) 1197,9791 {3.118,7111 2,839.693 10,000,000 12,839,693 Transfer btheen fvnds 2e9,186 1289.1861 Ron¢[lIatIon of fvnds: Fund balances brought forward at 1 April 2021 32,817,434 9,710,814 42,528,248 29.688.555 0 29,688,555 Fund balances carried fotward at 31 March 2022 29.896.702 9.512,835 39,409.537 32,817,434 9,710,814 42.528.248 I the Charity's opèrations arè derived trom continuing aCtiv"t$ during èach of thè two financial years. The Congregation of Ihe Sistets of Nazareth Generalate 26
Balance sheet 31 March 2022 2022 2022 2021 2021 Notes Fixed assets.. Tangible assets Listed investments Investment properties ratsl fixed assets 10 11 12 2,153,651 21.657.125 165,000 23,975,776 2,397,473 20,214,630 165.000 22,777,103 Currnt aets. Dèbtors Amounts due wrthin one year - AnK)urrts due af(er one year Cash at bank and in hand Total current assets 13 13 2,680,834 14.062,104 5.501.764 22,244,502 2,552,635 14,509,026 5,004,110 22,oe5,771 Ll•t41itie8: Credf(ors. amounts falling due wrthin one year Provisions 14 14 11.511.026) 11.418,5001 1665,7811 11,648.8451 Net current assets Total assets less current liatilities 19,314.976 43,290,752 19,751, 145 42,528,248 Non Current Liabilities Credor- amounts falling due after more than one yèar 14 13,881,215) Total net assets 39.409.537 42,528,248 The funds of the charity Unr¢striced funds: Designated funds - Tangible fixed assets fund General fund Total unrestrictèd funds 16 26.000.000 2,153,651 1.743.051 29.896,702 29,500.000 2.397,473 919,961 32,817,434 16 Restrrcted funds.. - Oewlopment fvnd 18 9,512,835 9,710,814 Total charty funds 39,409,537 42,528,248 Approved by the trustees on and sign8d on thew behalf by.. Superior General and Trustee Date of approval.. s 2&22 The cOngallOn of the siste of Nazareth Genera18te 27
statement of cash flows Year to 31 Mar¢h 2022 2022 2021 Notes Cash llows from operatlng activlties: Nel cash used in operating activities 89,857 8,029,91 S Cash fiows from invastlng activibes: Investrnent income and interest reIVed Purchase of tangible frxed assets Proceeds from the disposal of investments Purchase of listed investment Net cash used in Inwténg actfivrtles 480,539 463,809 13.4501 1297,7351 17,331.708 2.400.000 117,401.0001 17,000,000) 407.797 14,433,926) Change In Gash and ca8h equrvalents In the year 497.654 3,595,989 Cash and cash equivalent5 at 1 April 2021 5,004.110 1,408.121 Cash and cash 4ulvalents at 31 March 2022 5,501,764 5,004,110 Notes to the statement of cash Ilows for the year to 31 March 2022 Reconciliation of movement In funds to net cash provided by operatlng activltl•s 2022 2021 Net movement In funds las perthe statement of financlal 1vItIes) Adjustment$ for: Investment income and interest reIVabl Gains on investments Depreci*ion of tangibl• red assets Deerèase I lincreasel in debtors In¢ase in credrtors Net ca6h us•d Sn operating activities 13,118,711} 12,839,693 1480,5391 1463,8091 11.373.202) 12.462,827 247.271 218,414 318,923 13,502,991) 4,496,115 1,401,435 89,857 8,029,915 Analysis of cash and cash equivalents 2022 2021 Total cash and cash equivalents.. Cash al bank and in hand 5,501,764 5,004,110 The Congregation of the Sisters of Nazareth Generalate 28
Principal accounting policies 31 March 2022 The prinpaI accounting policies adopted, Judgements and key source5 of estimation uncertainty in the preparation of the accounts are laid out below. Charity infomiation The Congregation of the Sisters of Nazareth Generalate fthe Charity'l is regtered with the Charity Commission for England and Wales, regtration numter 1138876. It is incorporated in the Unrted Kingdom and has Ils registered addsS at 169-175 Hammersmith Road, London 8DB. Basis of preparation These accounts have been prepared for the yearto 31 March 2022 with comparative infomation given in respect lo the year to 31 March 2021. The accounts have been prepared under the hislollcal cosl convention wf(h ttems recognised at cost or transartion value unless otherwise stated in the relevant accounling policies below or the notes to these accounts. The accounts {financlal statements) have been prepared to give a Irue and fair, view and have departed from the Charttie5 (AGGQUlltS and Reports) Regulations 2008 only lo the exient required to prode a Irue arKI fair wew,. Thi8 departure has involved following the Slalemenl of Recommended Practi applicable to ch8ritles preparing their accounts in acCoanCe wlh the Financial Reporting Standard applicable in the UK and Republic of Iretand (FRS 102) issued on 16 July 2014 rather than the previous Stalement of Recommended Practice.. Accounting and Reporting by Charrties which was effective frorn 1 April 2005 but which has since been withdrawn. The charf(y constitutes a public benefrt entty as defined by FRS 102. The accounts are presenled in sterfing and are rounded to the nearest pound. Crttical accounting ?$timates and areas of judgement Preparation of the accounts require5 the trustees and management to make slgnificant judgements and estimates. The items in the financial statements where these judgements and estimate5 have been made incjude.. • estimating the usefvl economic lrfe of18ngible fixed assets forthe purposes of determining a depciatIon charge- + assessing the timing of the (*1p1 of loan repayments for the PUTposes of classifying deblot as amounts due within one year and recoverable thereafter and assessing the recoverability of outstanding amounts., + detemiining the value of designated fvnds needed at the year end, in particular in SpeCt to the assumptions made in determining the v81ues of the Sisters, support fund and the property fund., • assessing the probablllly of the recelpt of Segacy income, where a notification of entitlement has been rEceived', The conQg¥tIOn of the Sisters of Nazareth Generalate 29
Principal accounting policies 31 March 2022 • assessing the probability of the payment of a legal clalm 8gainst Ihe Charity and the probability of th8 payment being covered by insurance, Whe a claim has been notified. Assessment of going ¢oncem The trustee5 have assessed the Chartty's abilily to continue as 8 going concern. The trustees have considered several factors when fomiing their conclusion as to whether the use of the going on basis is appropriate when preparing these financial statements including a review of uFxlate forecasts to 31 March 2024 covering income, expen(liture, cash and reseNes, the long- len cashflow forecast to 31 March 2027 and a consideration of key risks. including Cowd-19 and economic uncertainty, that could negatively affect the Chatity. The Charity is funded prim8ri1y by donations from the Regions within the Congregation together with other donations including legacies. There is 8 risk that the effects of the pandemic, shortage of staff and rising inflation will reduce income in each of the regions and consequently Ihls may reduce the amount that 15 paid to the Charity. During the last year, most houses and regions have remained resilient to the challenges and have continued to operate successfully, wtth Appropriate changes to their operating practice5. Admissions have restarted in most locations and occupancy in the homes is slowly increasing again. Admission embargoes are now much shorter and more targeted than was the &9se in the early days of the pandemic. 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. Deblor balances have been reviewed and assessed And, as 811 loans are within the Congregation. th8y are considered to be repayable in full. The budget and forecasts forthe forthcoming year 8re considered to be deliverable and the cashflow forecast shows that there are sufficient Cash 8nd IK4uid resources and forecast inflows for the period of review, with the support of the unrestrrcted serves if required. The Tiustees therefore have a reasonable expectation that the Charity has sufficient resources to continue in operational existence for the foreseeable future and 50 5houbJ continue lo adopt the going concem basks in prepallng the annual report and financi81 statements. Income recognition Income is recognised in the period in whlch the Charrty entitled to receipt and the amount is probable. Income is deferTed only when the Charity has lo fttifil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting peri(*J. Income eA)mprises donation5, legacies. investment income and interest receivabk. Don8tions including contributions from the regions and salarie5 and pensions of indivKJual religious received under deed of covenant, a CogniSed when the Chartty has confirmatron of tw)th the amount 2nd settlement dale. In the event of donations pledged bijt not received, the amount accrued for where the receipt is considered prob8ble. In the event that a donation is subject to conditK)ns that require a level of perfomiance before the Charity is entitled to the futNJs. the income Is defeed 2nd not recognised until either those conditions are fully met, or the fulfilment of those ¢ondilions is wholly within the control of the Chariiy and rl is probable that those conditions will be fulfilled in the reporting pericKI. The Gongregation of the Sisters of Nazareth Generalate 30
Principal accounting policies 31 Matth 2022 A small number of volunteers assist the work of the Charity, for example, providing Mass or assisting with the worf( of the Heritage Centre, Their contribution is greatly appreciated. In accordance with the Charitles SORP FRS 102 volunteer time is not recognised. Legacies are included in the statement of financial adivities when th8 Charlty is enl(tled to the legacy, the executors have established that there are sufficient surplus assets in the estAte to pay Ihe legacy, and any conditions atta¢hed to the legacy are within the control of the Chartty. Enlitlement 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 exec(rtor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only consbjered probable when the amount can be measured reliably, and the Charity has ien notified of the executor'5 intention to make a dk8tribution. Vlhere legacies have been notified lo the Charity, or the Charrly is aware of the granting of probate. but the criteria for inwme recognition have not been met, then the legacy is treated as a contingent asset and disclosed rf material. In the event that the gift is In the form of an asset other than cash or a financi81 asset traded on a gniSed stock exchange, recognition is subject to the value of the gift being reli8bly measurable with a degree of reasonable aGcuracy and the trtle of the asset having being transferred to the Charity. All of the Chanty's listed investments comprise accumulatlon units and hence investment income fmm listed investments is not credited lo the statement of financial activities as ti is reflecled in the maikel value of the relevant investment holding. Interest on funds hekj on depostt and interest receivable on loans advanced to other entities i8 included when receivable and the amount can be measured reliably by the Charity. In the case of bank inlerest. thus is normally upon nottfication of the interest paid 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 Ihe tern of the relevant loan agreement. Expenditure recognition and the basis of allocating gov•mance costs Liabilities are r8cognis8d a5 expenditure as soon as there is a legal or ¢onstrnctive obligation Committing the Charityto make a payment to a thin1 paty., it is probable that a transfer of economic benefrts will be required in settlement and the amount of the obligalion can be measured reliably. All expenditure is accounted for on an accruals basis. ExpeThJiture comprises direct costs and support costs_ All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The cl8ssthcation between activities Is as follows". a. The costs of raising funds comprise the fees paid lo investment managers in Gonnedion with the tnanagement of the Charity's listed investments. net of rebates CeIved. Rebates arise when the fees deducted automatillY through charges for common investment funds and related transactions exceed the fees agreed between the Charity and its investment managers. b. The costs ot charitable 8Ctivltles comprise expenditure on the Charity's Primary purposes as described in the tNstees' report and indude the support of the Congregation s work in the United Kingdom and overseas. In the main such expendhure comprises the coordination and direction of. and the provision of advice to, the regions of the Congregation. k)sses on foreign The CoNJregation of the Sisters of Nazareth Generalate 31
Prin¢ipal accounting policies 31 March 2022 exchange and the provision of grants and donations to projects of the Congregation. Grants payable are included in the statement of financial actimties when approved by the tnjstees and 011 conditions have b8en fulfilled by the intended recipient. Provision is made for grants and donations approved but unpald at the perrod end. Govemance costs comprise the costs involving the public accountability of the Charity {inGluding audit costs) and costs in respect to rts compliance wilh regulation and good practice. All governance Costs are allocated to expenditure on coordination and direction of. and the provision of advice to, the regions of the Congregation. Tangible fixed assets All assets costing more than £5,000 and with an expected useful life exceeding one year are captlalised. Tangible fixed assets a valued al historic cost. Assets are depreciated at a Tate calculated to write the value down to its estimated resijual value over its expected useful lrfe. The deprectatlon rates used are as follows: Freehold land not depreciated Freehold buildings SO yea(s on a slr81gM-line basi5 (2% per annum) Leaseholder improvements 10 years on a straight-line basi% {100A per annum) for refurfoishments or component-based for new assets, varying from 10 to 50 yea (2% 10 10% per annum) 4 years on 8 Straighl-line basis {25% per annum) Motor vehicles Fixed assel investmerts Listed investments are a fonn of basic financial instrument and are initially recognised at their transaction value and subsequently ffleasuted at their fair value as at the balance sheet date Using the dosing quoted market price. The Charily does not acquire put options, derivatives or other Gornplex financial instruments. Reali5ed gains (orlosses) on investment assets are calculated as the difference between di5P05al proceeds and their opening carrying value or their purchase value if acquired subsequent to the fiT51 day of the financial year. Unrealise(I gains and losses are cakulated 8S the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment galns (or losses) are combined In the statement of financial activities and are Credited (or debited) in the year in which they arise. Flnanclal instruments The Charrty has financial assels and financial liabilities of a kind that qualify as basSc financial instruments. Basic financial instruments are inttially recognised 8t transaction value and subsequently measured at amortised cost using the effective Interest method. Financial assets held at amortised cost Gomprise cash and bank in hand, together with Irade and other debtors. Financial liabilities held at amortised cost comprise trade and other Creditots. Investments are held at fair value at the balance sheet date, with gains and losses being recognised wf(hin income and expenditure. Investment propertles Investfflenl properties are stated at their fair value at the balance Sheet date. The Congregation of the Sisters of Nazath Generalale 32
Principal accounting poli¢ie$ 31 March 2022 Debtors Debtors are recognised al their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepald. They have been discounted to th8 present value of the future cash receipt where such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisltion. Cash placed on deposit for more than one year Is disclosed as a fixed asset investment. Credrtors and provlsions Credrtors and provisions are recognised when there is an obligation at the balance sheet dale as a result of a past event, tt is probable that a Ir8nsfer of econofflic benefit will be required in settlement, and the amount of the settlement can be estimated ieliably. CreditoT5 and provisions are re¢ogni5ed at the amount the charity anlicipales it will pay to settle the debt. They have been discounted lo the present value of the ftrture cash payment wherè such discounting is material. Funtls structure Restricted funds are monies given by a donor for specrfic purposes that can only be spent on the purpose for which they are given. Details of these funds are glven in note 16. The desrgnated funds are monies sel asvje of general funds and deslanated for specific purpo5e5 by the trustees. Details of these funds are gwen in note 16. The tangible fLxed assets fund represents the nel )0 value of the tangible fixed assets used to further the Charity'5 objectives and work. Movements on the fund are shown in note 16. The general fund comprises those mnies which may be used towards meeting the ch81itable objectives of the Charity and whlch may be applied at the discretion of the ttustees. SeNices pmvided by mernbers of the Congregation For the purpose Of these accounts, no monetary value has been placEd on the administrative and other services pmvKJed by the members of the Congregation. Foreign currencies Assets and liabiltties in foreign currencies are translated into slerfing at Ihe rates of exchange ruling at the balance sheel date. Transactions in foreign currencies are translated into steding at the rate of exchange ruling at the date of the transaclKJn. Exchange differences 8re taken into account in arriving at the net movement in funds. Pension contributiofts Contributions in respect of defined contribution pension schemes and peT50nal pension SCheS are charged to the statement of financial 8clivities when they are payable to the scheme. The Charity's contributions are S1cled to the contributions disclosed in note 7. There were no ouistanding contributions al the year end. The charity has no liability beyond making its contributions and paying across the deductions for the employees, conlribulions. The Congregation of the Sk8ters of Naz8tEth Generalate 33
Notes to the accounts 31 March 2022 1 Donalions and legacies 2022 2021 Legacies Pensions of individual Relu$ donated under a deed of covenant Donations - Arr*rican Areo U.K. Region - Australasian R£gion Irish Reglon Atrican Region - other Restritsled donation for Hammsrsmith redov•lopm8nt Contribution from NCCT Olh$r voluntary in¢ome 102,547 162,234 2,135 130,843 397,019 293,700 322.219 8,644 10,000 4,186 370,780 284, 180 318.046 268,417 10,000 5,285 10,000,000 100,000 46,141 11.535.827 100,000 86,281 1,746,830 2 Investment income and interest receivable 2022 2021 Interest rewable Bank Interest Rental inwme- investment properties Interest on loans to connected entit$ (note 211 21,186 4,405 454,968 480,S39 17.374 3,800 446.435 467,609 Income from inv8Stmenl properties has been moved from donations to investment income from this year. 3 Supporting the regions of the Congregatlon 2022 2021 staff costs (note 7) Maintenance of Sisters Travel IT and websrte development Professional fees.. )Inance and legal Novitiaté Premises Governan¢e costs (note Sl For•i9n exchange losses Depreciation- HammersrnMh devtrlopment other 272,023 136,419 81.676 44,855 50,195 46,856 35,008 23,738 527 247,273 83,508 1,002.076 258,604 136,709 1,033 119,893 58,296 46.946 29.121 22.490 211,202 218,008 93,875 1,196,177 Support costs incurred by the ChÉrty arè ddèlled In the table in Note 3. They comprise the governance costs and the support functions of IT expenditure and Professional finan¢$ and legal. The Congregation of the Sisters Df Nazareth Generalate 34
Notes to the accounts 31 March 2022 4 Grants and donations in support of the Congregation's work 2022 2021 The Congregation of the Sisters of Nazareth. Irish Region Grants lo the U.K Region". - Gentrral Nazareth House Southend Nazareth House Hammersmf(h Scottish redress provision - other donats'ons 44,180 158,493 3S,190 236.691 197,979 5.161.215 30,01)) 5.705,155 88,923 115,825 38,203 19,832 421,276 Claims for allÈg8d historic abuse in tha UK have been paid on behalf of the Congregation by our insurers and totalled £2,543,256 in 202212021.. £2,360,9(l. The expendrture has been n8tted off in the Statement of Financial ActNities against the income from insurers of £2,543,256 in 202212021.. £2,380,906). 5 Governance 2022 2D21 L8gal and professional fees Audit and accountancy fees 11,498 12.240 23,738 8,4S0 14,040 22,490 6 Net incomellexpenditurel and net movement in funds for the year This is stated after charging.. 2022 2021 Audrtorfs remuneration including VAT ststutc¥y audf( Icurrert yeerl 12,240 14,040 7 Stsff costs and remuneration of key manag•ment personnel 2022 2021 Wag¢s an4 salaries National Insurance costs Other pension costs 233,300 22,763 15.960 272,023 222,504 21.121 14,979 258,804 The nurrtjer of employees eaming £60,000 per annurn or more (including taxable benefls but excluding employer pension contributions) during the y£ar was as follows.. 2022 Number 2021 Number £120,001- £130,000 The Congregation of the Sisters of Nazareth Generalate 35
Notes to the accounts 31 March 2022 The average number of employees during the year wa5" 2022 2021 Administration Management The key management personnel of the Charity in charge of directing and corrtrolling, running and operating the Charty on a day lo day basis wmpris8 the trustees and the Congregational Chièf ExécutNe. The totsl rerNneration lincluding taxable ben8fits, employerfs national insur8nca and employerfs pension cOntributn$) of the key management personnèl lorth year was £151,02912021. £145,098). Trustees, expenses and remuneration and transactions with truslees The charitys trustees are all members of th8 Congregation and consequently their IIng and personal èxpenses. all ofwhich are consistentwiththe emounls paid in respectto othermembers oflhe Congregation. are bome by the Charty. No Irustèa rè¢awed any rèmunaration or reimbursemeth ofexp•nws in eonnedion w((h their duties as trustees12021- none). As members of the CongTe9ation, none of the trustees have resourcès Dfthèir own as 211 earnings, pensions and other Incorne have b88n donated to the Charty under a Gift compliant Deed of Covenant. During the year. the totsl amount donated by the truste8S to thé Charity was £125,88912021". £117,893). Taxation The Congregation of the Sisters of Nazareth Generalate is a registered eharity and, therefore, is not liablè to Income tax or corporation tax on income or gains derived from ((5 charitabl8 activities, as they fall within the various 8x8mption5 available to règistered charicies. 10 Tangibl? fixed assets Propety refurbishment Motor vehicles C8mèt8ry Total Cost At 1 April 2021 Addi(ions At 31 March 2022 19,500 2.809,7 2,829,468 3,450 3.450 2,813,417 2,832,918 19,SOO Depreciation At 1 April 2021 Charge lor the year At 31 Mar¢h 2022 19.500 412,495 247,272 659,767 431,995 247,272 679,267 19.500 N•t book values At 31 March 2022 At 31 March 2021 2,153,850 2.397,472 2,153,851 2.397,473 In 2014, at the time of disposing of Nazareth Housa Isleworth, the Charity entered into a 999-year lea58 in r8spect to the cemetery on that srte at a peppercorn rent This is diselosed on the balance sheet as tangible frA8d asst at the value of £1. The Congregation of the siste of Nazareth Generalate 36
Notes to the accounts 31 March 2022 There is an infomial aangernent be1w8 The Congregation of the Sisters of Nazareth Chartiable Trust, which owns the property at Nazareth House. Hammersmith, and the Charty, thatthe Ch8rity m8y use space on the site of Nazareth House Hammersmrth The Charty hgs paid lor tho cost of refurbishing ona ol the buildings used. This has been funded from a restri¢ted donation and the cost of refurbishment has been shown as a tangible asset and as a restrictod fund. Tho remainder of thE restricted don*ion is shown as a r8Stricted fund unbl rt IS 5penL In prèvious years, other buildings have been refurbished or extended. These are being treated as leaseholder improvements and a being depreciated according to the depreciation policy. 11 Listed investments 2022 2021 Llsted Investments M8rket value at 1 April 2021 Additions al cost Disposals at book value Net gains on revaluation Market value at 31 March 2022 20,214630 13.151,803 17.401.0 7.000,000 117,331,707) 12,400,000) 1,373.202 2,462,827 21.657,125 20,214,630 Cost of listed investments at 31 March 2022 20,628,756 15,172,536 sted investments held at 31 March 2022 cornprised the followng.. 2022 2021 U.K. ffixed interest U.K. ¢ommon investmerrt ftJnd$ 3.531,443 18.125,882 21,657.12S 3,535,824 16,67e,806 20,214,630 At 31 March 2022. listed investments included lh8 lolknwing lftdividual holdings which are deemed signrficant in th8 corrtèxt of the portfolio as a whola.. 2022 Market value of Percentage holdlng of portrolio 2021 Market value of Percentage holding of porttolio CCLA Catholic Investment Fund 18.125.684 83.69 BlackRock Catholic CharTties Groyrth & Income Fund Royal London Cash Plus Z Accumulation Fund 16.678,806 82.51 3,531,441 21.657,125 16.31 100.00 3,535,824 20,214.630 17.49 100.00 The Congregation of the Sisiers of Nazareth Generalate 37
Notes to the accounls 31 March 2022 12 Investment properties 2022 2021 Investment properties 165.000 165,000 165,000 165,000 The Charity owns bmo residential investment properties In Wellingborough, Northamplonshiie that were gifted many years ago to the Charity and another local charty. In 2019 the Ghaiity purchased the local charty's share of the properties and now 0S both properties outright. In preparation for the Purchase, an indepèndent valuation was carried out. Both properties ar* hald in our accounts at th¢ market value, taking into a¢count the incumbent tenants and the fail rEnt clauses in their tenan¢ies. The intent is to revalue th8 pioperties periodicplly or if there is a mat8rial change In the condition or eircumstances olthe propertles. The income due from the properties is trgated as income from op8rating leases The leases are registered with fair rent clauses, preventing a markèt rate of rent from being charged. They do not have expiry dates and thè arrangement will continue foi as long as the tenants wish to remain in the properties. The income ceived in 20212 was £4,4co. r( ts èxpected that a similar amount will be Te¢&wed in each fvture year. 13 Debtors 2022 2021 Loan to The Congregation of the Sisters of Nazareth Ch8rrtable Trusf Loan to NRV Development (Blackbuml Limiied" Loan to NRV Development IPlymoLrthl Limited" Loan to Irish Region of The Congregation of the SisleTS of Nazareth in respect to Nazareth House Dublin" Loan to Irish Region of The Congregation of the Sisters of Nazareth in resped tothe Dublin. Mallow and Bewast developments. Loan lo Australasian R8gion of The Congregation of the Sisters of Nazareth in respect to development * Christchurch New Ze8kqnd' Legal claims reimbursed by insurancè Other debtors and prepayrnents 5,732,333 523,286 240,1( 5,928,785 683,766 240,106 341.671 334,520 6,9S1.914 e,806,176 1,599.514 1,343.5C 10.434 16,742.738 Details in rèsp8Ctto each of these loans and the contribution due ar8 given in note 20. 1,474,631 1,573,844 21,833 17,061,661 The loan to NRV Development (Plymouthl Limited was not included in the 2021 accounts. The prior year omparison in these a(xounts has beèn restated lo Include rt. The legal c181ms debtor represents the expected amount to be reimbursed by our Insurers In relation to thè $ettlement of legal claims against the Congregation, ythieh are shown as è provision in Notè 15. The above deblors ar8 du8 for rlpt as folk". 2022 2021 AmouTrts falling due within one year Amounts falling duE after one year 2.680,634 14,062.104 16,742,738 ,552,635 14,509,026 17,061,661 The Congregation of the Sisters of Nazareth Generalale 38
Notes to the accounts 31 March 2022 14 Creditor5 and provisions: 2022 2021 Amounts held on behaN of indNidual member5 ofThè Congregation of the Sisters of Nazareth Congregation of the Sislets of Nazareth Charitabb Trust Trade Credrtors Sundry Credrftors Aecruals and Deferred incorne Social Seeurty CdrtOT S¢ottish Redress Scheme 166,832 240,106 15.118 14,467 67,084 7.419 4,881,215 5.392.241 168,061 240, 108 77,837 15,151 157,288 7,338 665,781 2022 2021 Amounts falling due wrthin one year Amounts falling due after one year 1.511,026 3,881,215 5,392,241 665,781 66S,781 Provisions 2022 2021 Legal claims 1.418.500 1.418,500 1,648,845 1,648,845 The creditor owlng to Congregation of the Sisters of Nazareth Chartsble Trust was not included In the 2021 accounts. The prior year comparison in these accounts has been restated to include r(. The Congregabon ran children's homes across England & Wales. Scotland and Northem Ireland until they closed in thè 1980s. The legal claims prowsion represents ongoing claims ot the year end for Compensation in respect ol alleged historic abuse of children In the Congregation'5 cars. These amounts are expEcted to be pahl wf(hin the next financial year. The vast rn8jority 1s expected to be covered by insurance. shown as a debtor in Note 13. Further detail is provided in the eontingent liabilities note. 15 Financial Instruments At the balance sheet date. tha Charity held financi81 assets at amortised cost of £22,244.502 12021.. £22,065,771) and Financial liabl1f(S at amortised cost of £1,511.02e12021.' £665,781). The total income recew8d in respect of financial assets held at amortised cost totalled £21.16612021.' £17,374). The Charity he assets at fair value through ineome and expenditure of £21,657,12512021". £20,214,830). Movements in the year through the statement of financial aCtiv.e$ oompri$$d gains of £1.373,20212021'. £2,462.8271. The Congregation of the Sisters of Nazareth General8te 39
Notes to the accounts 31 March 2022 16 Movement in funds Net movement in funds At 31 March 2022 At l April Net 2020 movèment in funds At 31 March 2021 1 April 2021 Restricted funds Development fund- H8mmersmf(h 9,710,814 1197,9791 9,S11835 0 9,710.814 9,710,814 Unrestrlcted funds Property fund- Designated Sisters 5UPPOrt fund- Designated Tangibk a5SOts fund General fund 22,500,000 13,500,000) 7,000,000 2.397,473 919,961 19,000,000 7,000,000 2,153,651 1,743,051 19.370,404 3,129,596 7,000,000 2,318,151 1.000,000 22,500,000 7,000,000 2,397,473 919,961 1243,8221 823,090 79,322 180,0391 42.528.248 13,116,711) 39,409,537 29.688,555 12,839,S93 42,528.248 The net movément in the Property Fund and the Gentral Fund include5 a transfeT of £3,500.000 from the Property fund to the General Fund to ensure the General fvnd is kept within tsrget range of 6-12 months expendrtura. Th• reslrided funds of the Charf(y represont a restricted donation that is being used to relurbish an asset. The unrestricted funds of the Charrty Inelude the following designated ftjnds, which have béèn set asid8 out of unrestricted fvnds by the trustse8 specific purposes". Property Fund The Property Fund of £1kn i8 sel asideto provlde loans or grants to regions requiring support for substantial building works. Slsters. Support Fund The Sisters. Support Fund of £7m is retained lo provide Sisters who need nursing. care or other support, wth the means to purchase rt should public funding not ba available. tt is intended that care will usu811y be provided within one ol the care homes operated by the Congregation. Tangible Fixed Asset Fund The unrestricted fijnds also include thetangible fLKed assets fvnd which represents the net book valuè ofthe Ch8rty'$ tangible fiyed assets used to further the Charty's objedives and work. A d8asion was made to sèparate this fund from thg general fund in recognition ol the fad that the asset5 8re used in the day to day work of the Charity, and the fund value would not bè realisable easily if nèeded to meet futura contingencie5. 17 Analysis of net assets between funds D¢signated Tangible fLYed funds assets fund General fund Restrieted fund Tot81 2022 Fund balances at 31 March 2022 are represented by.. Tangible fixed assets Listed investments Investsnent propety Net oJThent assets Tcéal nèt assets 2,153,651 2,153,651 7.000,000 21,657.125 165,IXIO 2,512.835 15,433,761 9,512,835 39,409,537 14,657,125 165,000 11,177.875 26,000.000 1,743.051 1,743,051 2,153,e51 The Congregation of the Sisters of Nazareth Generalale 40
Notss to the accounts 31 March 2022 Designated Tangible fixed funds assets fund Genera fund Restricted fund Total 2021 Fund balanees at 31 March 2021 ar• represented by.. Tangible fixed assets Listed investments Investrnent Pfopety Nel rrent ass8ts Total asstts 2.397 473 2,397,473 7,000,000 20,214,630 165.000 19,751,145 42,528,248 13,214.630 165,000 16,120,370 29,500.000 919,961 919,1 2,710,814 9,710,814 2,397,473 The total unrealised gains 8s at 31 March 2022 constrtute movements on révaluation and are as follows". 2022 2021 Unrealised galns Induded above: On investments Total unreallsed galns at $1 March 2022 1,018.998 1,018,998 5,OSS.974 5,055.974 Reconciliatlon of movements in unreallBed galns Unr8alised gains at 1 April 2021 In respect to disposals in the year Nel gainslll0ss8s1 arising on revdlualion in the year Total unreallsed gains at 31 March 2022 5,055,974 15.410,1781 1.373.202 1.018,998 2,800,316 17.1691 2,462,827 5,055,974 18 Contingent liabllities and contingent assets At 31 March 2022, the Charity was funding legal and other costs incurred rélating to statutory inquiries that have been establishèd in Northern Ireland, Scotland and England and Vvales, into the alleged historical abuse of chiklren. The inquiries are at variou5 stsges, wrth the Historical Instf(utional Abuse Inquiry i Northem Ireland having reported in January 2017, th8 England and W8les Independent Inquiry into Child Sexual Abuse has published its final report in October 2022. and the Scottish Child Abuse Inquiry publishing their port into the Sister5 of Nareth in May 2019. Th8 Charrty expectsto in¢urluthei lègal costs in relation to allthree inquiriès. K is not p)ssible at the present time lo provide any me8ningfvl estimaté of future costs, somo of which may bé covered by insuranco. It is also not possible to provide any EanIngful estimate of the futurè costs of ongoing claims being brought against the Congregation for which there is no reliable estimat8 of the value or probability of a claim bèing pahy, so of whlch may be covered by insuian¢¢. Redre85 schemes have been established. in March 2020 for Northern Ireland, and in December 2021 lor Scotland. England and Wales have not yet announeed their intentions. An agreement has been reached to Contribute to the cost of redress payments in Scotland and the cost of eontsibutions h8$ been included in these accounts as expendrture. The actual payments will be paid according lo an agreed Schedule of contnbuts'ons. No agreement has been reached for Northem Ireland and rt is not possible al the presenttime to provide any megningful estimats of future contributions, if any. The Congregation of the Sisiers of Nazareth Generalate 41
Notes to the accounts 31 March 2022 19 Other commitments The Charity ha5 provided a guarantee to Allied Irish Bank to support a loan tsk8n Out by th8 Irish Region for building work5 The Charty has provided a letter of comfort to 8arclays Bank pl¢ in respect to banknng f8cilities the Bank may make available to The Congregation of the Sisters of Nazareth Charitable Trust. At 31 March 2022, the Charty did not have any future capital commrtments12021." nill- 20 Related partTeg: connected entities Th8 Charrfcy Is eonnected to The con9regth.on of the Si5t¢rs of Nazareth (the Congregatlonl, an unincorporated international religious org8nisation re¢ognised by the Vatican. Thè Charty is also connected to two other UK r*gistèred Char9s.. Name Reglstration numbers etc. Princlpd activltles A rogistered charrty IChari(y + The support of the religious minislrlos and Regi%tration Nos 2289t works by members of the Congregation (the (England and Wales) and Sisters) in the Unrt¢d Kingdom and the care SC040507 Iscotlandll of those Sisters. n¢rship 0114 homes in England, WaLes, Scotland and Northern Irèland known as Nazareth Houses and which are us8d to provide nursing, residenti81 and care services to older people in need, and a nursory. The Congr8gation of the Sisters of Nazareth Charitabl8 Trust ICSNCTI Nazareth Care Charitable Trust INCCTI A registered charty Icharrty Registration Nos 11136fj6 (Engknd and Wales) and SC042374 Iscotlandll and a comp8ny limf(ed by guarante8 (Company Ragislralion No 5518564 IEngl3nd and Walesll The provision of nursing. residential and ¢are services to 0er people in need through the oper8tion of 12 homes wrf(hin England, Wales and Scotland, and a nursery. + The provision of management and support setvices to older people atthe retirement villages In Blackburn, Glasgow and PlYU. The Superior General of the Congregation is also a trustee of the Chary. She appoints the trustees of CSNCT an4 is the sole memberof NCCT and appoinlslheirtrustees. CSNCT and NCCT havethreotTUSt•es in common. At no point during the accounbng period did any of the three ¢harilies control one or more of the others. As a consequence, consolid8téd aecounts are not prepeTed. The Charlcy owe5 CSNCT £240.106 in respect of a grant that r8rnains owing. This sum Is included in credrtors (note 141. NCCT has a number of subsidiary companies wrth which it forTns the Nazareth Care Charrtable Trust Group. Consolidated awounts of the Nazareth Care Charitable Trust Group are prepared and filed with the Charty Commission and Companies House. The Congwation of the Sisters of Nazareth Generalate 42
Noles to the accounts 31 March 2022 The Charity has a financial 181ationship with the following NCCT subsidiarSes'. Principal xtivtttes The development of a retirement village in Blackbum. Name Registration numbers etc. Company RegratIOn No 05906057 IEn9land and Wales) NR V Development (Blackburnl Limited NRV Developrnent IPtyrnouthl Limrted Company Registration No 05940933 IEngland and Watesl The developrnent of a retirement village in Plymouth. During the ptrriod there have been a number of tranSaCtn$ befvrfeen the Charity and its connEcted entrties. The detail of grants and donations provided to conneeted entities is shown in Note 4. Details of the indebledne55 been the Charrty and Tts connected entitios and of commitmen15 is gNen k)w. The Congregation of the Sistets of Nazareth Charltsble Trust The Charty m8de a loan to CSNCT towards the cost of development and constructK)n of a new Nazareth Housè care home on th8 8XlSting site in Glasgow. The loan is repayable by 2035 wth int8rest charged at a comntercial rate. The balance at 31 March 2022 was£4 15 million12021" £4.4 million). In 201PA19 the Charity agreed a 108n of up to £1.5 million towards the refvrbishment of the Nazareth Housa care home in Birkenhead with interest charged at a commercial rate. The balance at 31 March 20 was £158 million 12021.. £1.53 million) The Charity owes CSNCT £0.24m12021". £0.24ml In iespect of a grant to fund a retirement vilLage in Ptymouth that remains wng. NRV Development (Blackbumj Limlted In 2012 the Charty 8grged a loan to NRV Development18lackburnl Limrted for up to £4.2 Tnillion to be used to part-finance the construction of apartments and bungalows at the Lamienier Retiremént Village, Prèston New Road, Blackburn. Al 31 March 20Z2, the loan balance w8$ £0.523rn12021.' £0.e83ml. NRV Development (Plymouthj Limitéd The Charity loaned NRV Development (Plymouthl £6.1m to build a retirement village in Plymouth. The majorty of the loan h9$ been repaid and £0.24m 12021.. £0 24ml is due from NRV Development IPlymouthl to repay the rern¥inder. The Charty has 8 flnancial relationship wf(h overseas connected charities." lrfsh Regi( Several loan5 have been provided to the Irish Region to finance refvrbBhment works at the Dublin, Mallow and 8effast Nazareth Housès. The prevKJUS loans were consolidated into a new loan agreernént that was signed on 4 April 2022. At 31 March 2022, the balance of the loans, when converted to Sterfing, amounted to £7.294 million12(Y21'. £7.141 million) and is due to be repaKI by 2034. Repayment of the loan is expe¢ted to commence in 2023. Interest Is charged al a commercial rat•. The remaining external funding forthg redevelopments in Ireland comes from a commercial bank108n taken out by the Irish Region. The Charity h95 provided a guarantee in respect ol this loan and funding for any cost overruns. Australasian Region A loan of £5 million, converted into New Zealand dollars, w85 approved by the trustees in December 2014 to assist in financing the rebuilding of Nazareth House Christchurch. The loan will be repaKI btheen 2018 and 2028, wrth interest charged at a commercial rate. Repayments have commenced." however, none were received in this financial y?ar and the balance at 31 March 2022 was £1.6 million12021.' £1.475 million). The Congregation of the Si8ters of Nazareth Generalale 43
Notes to the accounts 31 March 2022 21 Ultimate control Tha trustees of the Charity are the Superior General and four Goneral CouncilrS of the Con9regafjon ex offfuo. 22 Custodian funds As at 31 March 2022, the Congreg¥tlon of the Sisters of Nazareth Genaralate hehy lunds on behav of Nazareth House .$ Fund in Stsndard Bank of South Africa. This bank account acts as a holding account for money coming in and out of the Charity. These assèts are not included in these financial $tatemerrt5. The value of the fvnds h•ld in th• bank account at 31 March 2022 was £3,62612021'. £9,3971. The Congregation of Ihe Sister5 of Nazareth Generalate 44