The Congregation of the Sisters of Nazareth Generalate Annual Report and Accounts 31 March 2023 Charity Regislralion NumI￿r 1138876 {England and Wales) Contents Reports Reference and administrative details of the charity, its trustees and &JvL%ers Trustee5' report Independenl auditorfs repjrt 23 Accounts Stat8ment of financial activities 26 Balance sheet 27 Siatement of cash flows 28 Principal a¢¢ounting poliGies Notes to the accounts 34 The Congregation of the SisteTr of Nazareth Generalate Refvrenco and administrative details of the ¢harity, its trustees and advisers Trustees Sister Brenda Mccall (Chair), AKA Slsler Mary Brenda Mccall Sister Valma Beatrice Cooper, AK4 Sister Dominica of the Cross Cooper Sister Hannah Marie ￿yer, AKA Slsler Hannah Maria ￿Yer Sister Mary Veronica Kealey, AK4 Sister Veronica Anne Kealey Sister Anne Bernadette Walsh, AKA Sister St Teresa Walsh SuperiorGeneral Sister Mary Brenda Mccall Treasurer General Sister St Teresa Walsh Geneial 8e¢retsry Sister Veroni¢a Anne Kealey Chief Executive Kevin Bames Principal office St Michaels Nazaieth House 169-175 Hammersmith Road London IM 8DB Email generalate@$15tersolnazareth.com Webslte www.sistersofnaz8reth.com Charity registration number 1138876 IEngland and W81esl Auditor Crowe U.K. LLP 55 LLNJgate Hill, London EC4M 7JW Investment managers CCLA One Angel Late, London EC4R 3AB Royal LorKlon Asset Management 55 Gracechurch Street. London EC3V OUF Principal banker Barclays Bank 22-24 Upper Marfborough Road, St Albans, Hertfordshire AL1 3AL Principal solicitor stone King LLP Upper Borough Court, Upper Borough Walls, Bath BA1 1RG The Congregation of the Sistets of Nazareth Generalate Trustees. report 31 March 2023 OVERVIEW During the financial year, the fourth full year for the Gurrenl tnjstees, the Charity has continued to work towards delivering the Mission, Vision and Aim of the Cong￿gatIon, and limng by its values. These are sel out in full on page 5 and are similar for the Charity and the Congregation. The main achievements of the Charity during the 2022123 year include.. 1. Developlng the Heritage Cenlre, which was officially opened in September 2020. The Heritage Centre inciudes an exhibition of the life and times of the Congregation's Foundress, Vicio1￿ Lamenier, and her kgacy of Ihe Congregation of the Sisters of Nazareth, along wrth the Congregation's archive. The Centre has been visited by members of the Congregation and their guests and the collection Gontinues to be adde(J to. 2. Supporting the five regions as they transition out of the CovNJ-19 pandemic, hosting a glob81 conference and providing them with financial support where needed. 3. Preparing for the refurbishment of Nazareth House Hammersmilh, the original house established by Victoire Lamienier. and home of the Charity. 4. Preparing for the Sale of Nazareth House Southend and supportlng the purchaser with a planning approval, on IRhalf of the UK Region. Proceedings inlo the htsloric abuse of children formally In the Congregation's care continue. In May 2019, a report was issued by the Scottish Child Abuse Inquiry following the testimony in 2018 of the survivors of abuse in four ￿Sidential children's homes in Scotland operated by the Congregation. The Congregation fomially apologised for any mistreatment ofthose in its care and deeply regrets any hami or shortcomings in the care provKled. The Congregation has and cA)ntinues to cooperate wfth the Scottish Inquiry and the Inquiries hekl in England and Wales. Northem Ireland, Australia and New Zealand, each at drfferent stages. and with Ih05e govemments as they sel up their redress schemes. All resldenllal ¢hikI￿n,$ homes in ea¢h of these countries have been closed for many yeats. The Cowd-19 pandemic continued to affect the work oflhe Charlty, curtailing travel and activities 8t the start ofthe year, and more directly, the provision of Ca￿ to the elderfy and children who are looked after in the care homes and other services in the regions of the Congregation_ The Congregation of the Sisters of Nozarelh Generdlate Trustees, report 31 March 2023 STRUCTURE The Congregation of the Sisters of Nazareth Generalate (Ihe Charity) supports the re1￿J10U$. educational, care and other chari(able worf( of the Congregation of the Sr51ers of Nazareth Ilhe CongregAtion? across the worfd. The Charity is the facilitating entity for catrying out the ￿Vil law actions on behalf of the Congregation. The Chanty is based in the United Kingdom and holds the central reseNes of the Congregation. The five trustees of the Chari(y are also the fNe elected leaders of the Congregation, the Superior General and her four General Councillors. This report uses Yhe Charity, to refer lo the wotfr of the Congreg8tion of the Sisters of Nazareth Generalate for whom this report relates lo and Ihe Congregation, to refer to the work of the Congregation of the Sistefs of Nazareth. the ￿lIgIouS body that the Charty is a part of. The Congregation is an unincorporated intemational tKMJy of religiou5 women - the Sisters of Nazareth ('the Sisters)- founded by Victoire Lamienier and recognised by the Holy See in 1864. As of 31 March 2023. there were 188 Sisters (2022= 1911 and five novices {2022'. five). The Congregational Structure Most of the Congregation's ministries, or seThlces. are provided within Nazarfh Houses. which are mainly cale homes for okjer people. As of 31 March 2023, the Congregation operated 34 Nazareth Houses, 9 retirement villages, 3 education Se￿Ice5 and 2 children's serwces in 37 different locations. They are organised into four regions and one area.. Africa, America. Austr81asia, Ireland and the United Kingdom. For this report only, the four regions and one area are 811 referred to as regions. Each region consists of both a ￿giOnal branoh of the Congregation and an operating entity, whlch are charitable or nol-for-profrt organisations. In most cases. the region81 branch of the Congregation own5 the properties - the Nazareth Houses - and looks after the mission of the Congregation and the weifare of the Sisters in the region. The operating entities function under the n8me Nazareth Care {Nazarelh House in America) and the services are delivered on behalf of the Congregation. They manage the care homes and other services, re￿¢ve the income and employ the staff. Thi5 Structure ensures that the Sisters retain control overthe assets and missron of the Congregation while lay staff manage the services and provide the care. Each Nazareth Care a separate legal entity with its own governing document and boatKI of tru5tee5, consisting of a majority of Sisters and SUPFdemenled wf(h lay trustees. Each board is chaired by the Regional Superior, who is a Sister and a member of the Congregation. Each region has a similar legal structure. atthough each is necess8ri1y tailored to the legal jurisdiction in which ti ottrates. The Congregation, through the Superior General and the General Councillors, retains some decision making powers over each of the regions. The Congregation of the Sisters of Nazareth Generalate Trustees, report 31 March 2023 Connected entrties of the Charity The Charity has no related parties or subsidiaries. There are several entf(ies connected to the Charity, being other components ollhe COng￿gation. Those components in the Unried Kingdom are detailed In Note 19 to the accounts and consist of The CorvJregation of the Sisters of Nazareth Chariiable Trust (charity registration number 228906 (England and Wales) and SC040507 (Scolland)) and NaZa￿h Care Charitable Trust {charity registration number 1113666 (England and Wales) and SC042374 (Scotlandl) and a company limited by guarantee {Company Registration No 5518564 (England and Wales)) and its subsidiaries. The Congregation of the Sisters of Nazareth Generalate Trustees. report 31 March 2023 THE CONGREGATION'S AIM MISSION. VISION. AND VALUES The Charity supports the work of the Congregation throughout the worhl. Its Aim, Mission. Vision and Core Values are those of the Congregation. Aim The Constrtutions of the Congregation of the Sister5 of Nazareth set out its 81m'. °To gknify Almighty God by follory Christ as our suweme rule of lift. We do this by per&onal sancllfication, by dedicating ourselves to the building up of God's klngdom, and by engaging ￿ the partiGular ministiFes entrusted to us by the ChurGh.' Gare of the elderty, wort( wrfh children, educational, pastoral and S(￿al woths, and other ministries in accordan￿ wth the needs of time andplace.. (Collstitution 1.3) Mission The mission of the Congregation of the Sisters of Naza￿th rs.. 'We. the Sisters of Nazareth, aim to share the k)ve of God thrt)ugh our ministries of care and education and our openness to Trsrond to the needs of the times.. .￿alSoeVer you do to the least of my people you do to me,: Words of Jesus Christ (Matt.25.'40) Vision The Congregation of the siste￿ of Naz8relh is a cathol￿ Congregation devoted to the care, dignity and protection of human life. it strives to mainlain and improve the quality of Ilfe of those entrusted to its care. Core values The Aim, Mission and Wtsion are suppK)rted by six Gospekbased Core Value5. All who are associated wrih the work of the Congregation are expected to demonstrate a commitment to the Core Values.. Love - Unselfish concem for the good of others shown through patience, kindness, trust, hope, endurance, truth and a strong affection. Compassion - Being open arKI atterrtive to the whole per50n, spiritually. physically and emotionally, showing empathy forthe suffering of other5 and trying to relieve that suffering. Respect - Hokjing the unique dignity of each person In htgh esteem 8nd with special consideratlon, showing thoughtfulness. courtesy and care. Justice- Upholding what is fair, decent and right. appreciating e8ch person, respecting their rights in a balanced and fair manner. Hospitslity- Welcoming and receiwThJ all into a wann. friendly and open atmosphere. Patience- Persevering calmty and with understanding and endurance. The Congregation of the Sisters of Nazareth Generalate Truslees, rep)rt 31 March 2023 The Charity supports the programme, v￿Oire'S LegaGy, which has been delivered to the reglons and is being rolled out throughout the Congregation's sefwces. it cover5 the legacy of the Foundress. the Core V81ues. safeguarding and inlerculturality. Meanwhile, the Congregation's Mission Alive programme continues lo be used and reinforGes the impacl of ils Mission and Core Values on its ministries. The programrne promdes training lo staff and volunteers in the meaning and application of the Core Values and how lo pul them into practice in the workplace, ensuring the Core Values and Mlssion make each Nazareth House and Servi￿ a distindive place of care. The continuing and Msible presence of Sisters in the majority of semces is a reminder to residents, relatives, staff and volunteers ofthe Congregation's orvJin and its ongoing commhment to proMding spirrlual and comp8ssionate care to the eldedy and others who benefft from these servlces. The Congregation has adopted the principles of 'seN8nt-leadership' set out by Robert Gteenleaf, which have a strong affin(ty with the core values. The Congregation of the Sisters of Nazareth Generalate Trustees, report 31 March 2023 REVIEW OF THE YEAR The trustees present the report and accounts of the Congregation of the Sislers of Nazareth Generalale for the year ended 31 March 2023. Duflng the yearthe Charity has supported the mission and Se￿CeS of the Congregation provvjed in the regions. These include provK1ing guidance, adwce, financing and ongoing monitoring and support to building works, changes to goveming documents and any other slgnrficant developments. Al the Congregation's most recent General Chapter, helj in June 2018 in Hammersmith, London, the future dlrectlon of the Congregation was agreed upon through one Mandate and four Recommendations, which fomi the basis of the Congregational Plan for the Yea￿ 2018-2024. The key elements of the plan are to.. 1. Acknowledge the gtft of intercultur81ity in all &8pects of the Congregation. 2. Rewew the impact of the thang1￿ strengths and availability of Sisters, to maintain the ability of the Congregation. 3. Embrace, study, promote and implement the principles of Catholic SoGial Teaching and Pope Franas, social encyclic81 on the environment, Laudato Si,, concerning ecologrcal and social issues affecting the life and mission of the Congregation. 4. Safeguard the partnership between the Congregation and Nazareth Care. 5. Promote vocatlons and the inrtial and ongoing fom18tion of the Sisters. The fvll delivery of the Mandate and Recommendatlons takes tlme. Actions towards their delivery by the Congregation, and where necessary SUPPDrted by the Ch8rity. have commenced and include- Continuing a new prografflme of induction and training for all Sisters and staff, imparting Victoire's legacy, mrssion. partnership, safegltarding. core values and interculturalf(y,' Applying the forniation programme to 5UPPOrt the training and ongoiThJ ft)mation of Sisters. Encouraging the implementation of the ecological and social justice policies furthering a growing consciousness and practice in these areas., The ongoing con$￿JeraIb)n of ways to ensure the vtability ofthe Congregation with regard to the changing availabilty of Sislets., Ensuring the role of Sisters in the governan￿ of the Congregation., strengthening the partnership between the Congregation and Nazareth Care. These and other actions are contained in the Global Congregalional Plan and the Nazareth Care Glob81 Plan. which are then cascaded down to the region, house 8nd community plans. The Congregation of the Sisters of Nazareth Genera18te Truslees. report 31 March 2023 Plannin The Global Congregational Plan and the Nazarth Care Global Plan form the top layer of a plannlng system that requires each region, service and communriy of Sisters to produce their Own plans. The intention is for a 'golden thread, lo ffow from the General Chaplerthrough all the plans, ensuring that all activities are focused on the Mandate and Recommendations. The plans identify the many elements common to both plans that require the same actions by Sisters and lay slaff. Pro ert 8uilding work continues in all regions. The Charity has funded the pre-refurbishment works of Nazareth House Hammersmtth, includino the planning applicalK)n and professional fees that will enable the home to be completely refurbished. During the year, the lay0￿ and design has been finalised, the full team of professlonals eslabllshed. an additional planning application submrtied, the project lendered and 5hortli51ed Contrad0￿ evaluated. Consent by the Superior General was provided between the end of the financial year and the signing of this report. Consenl includes proceeding wf(h the refurbishment and the appointment of a main contractor. The Charity h8s continued to WO[1( with the feglons to progress the $81e of sites In Southend in the UK and San Rafael in America, which have bolh been sold subjeci ID achEving planning consent. In t4)th cases, a planning applThtion has been submilled with a purchaser and the planning Issues are being woiked through. Neither sale has been completed at the time this report is signed. Following the closure of a site in Elsies River, a suburfo of Cape Town in South Africa. the land has been successfully transferred to the local Diocese to continue to ￿nerrt the local commun￿Y. Consent was given the p￿VIouS finan¢ial yeAr for the transfer of a 48 bedded nursing home and convent from the siste￿ of Sl Joseph of Annecy in Killorglin, County Kerry in IrelarKI to the Congregation. The transfer was successfully concluded in 2022123. Works previously approved h8V8 continued, including uwrades to Nazareth House Cardlff In the UK and the remodelling of part of NaI8￿h House Los Angeles in America, More rninor works are occurring elsewhere and plans are also being developed for upgrades aThJ improvements to several other Nazareth Houses across all regions. In uiries We continue our practice of cooperating wlih All Inquides and prO￿dIng ongoing support. An agreement has been reached by the Charlty, acting on behaW of the Congregation, with Ihe Scottish Government to contribute to the payments made by Redress Scotland to forffler children in OUT care regarding claims of abuse. The Charity is also in discussions with The Executive Office in Northem Ireland about cotltributions to their red￿$$ scheme. No agreemenl has been reached at this tirne. We continue to cooperate wilh govemmenls. redress boards and survivor organisations lo SUPPOrt claimants and potential claimants wrth access to their ￿cordS and to provKle individual apologies when requested, and with other Inquiries, as necessary. The Congregation of the Sistets of Nazareth Gèneralate Trustees, report 31 MatEh 2023 Finance Each region consists of one or more independent charities. Therefore, consolidat8d accounts are only produced at a regional level and are not conSol￿ated globally. Region accounts a￿ prepared and audited a¢co(ding to their local standards and are available on request from each ￿gIon. Each region provwjes a quarterty report on tts operational financial perfomiance, covering the activities of Nazareth Care including each Nazareth House. Unaudited accounts for each region show that the lolal tumover for 2022123 was £110 million12022'. £109ml. The change in the total income reflects a slight increase in occupancy in the regions. similar fees per bed per nvJht and a mixture of exchange rale fflovements when local Guffencies a￿ converted to Sleding. The greatest pressure in mosl regions 15 expenditure increases due mainly to a lack of avallable trained staff, increased use of agency staff and the increased cost of operating care homes. which has become more pronounced as the year ha5 progressed and inflation has risen in each region. Collectively, the five regions still managed to generate a surplu5. to be used for reinvestment in capital projects but not every region was able to do $0 Indi￿lduallY. Nazareth Care Chartable Trust, the operating entity in the UK Region has h8d a very drfficuli time with reduced admissions and occupancy in its hornes. a lack of staff on their payroll and therefore an over-reliance on agency staff. poorly implemented IT systems and changes in leadership. Collectrvely these led to a poor financial perfomiance and a shortfall in their cashflow requirement. Consequentty. the Charity agreed to make a grant available, part of which was paid during the year and part remains available for drawdown in 2023124. It is pleasing to note that recent impfovements have been in many areas. The Charity has been wor1(ing with the Irish Region lo facilitate the fitst repaymenl of the 108n provided, now that the bank covenants have been sufficiently satisfied. This was received between the end of the financial year and the sijnlng of this repo Nazareth House Soulhend This site which closed in 2020 continue5 to be managed by the Chariiy on behaK of the UK Region. A property management guardianship company provides much needed temporary accommodation for local people while guarding the property. Part of the stte was also rnade available to the NHS as a Covid-19 test centre whiGh closed in June 2022. We Gonlinue to work wtth the prospective purchaser to secure planning approval and therefore be able to complete the sale of the site. Other aclivities Other adivlties by the Charity during the year on behalf of the Congregation included- monttoring the financial and operatlonal performance of the regions., asslstlng Iwo ￿gIonS wilh the recruitment of Chief Execulive Officers- organising and delivering a global conferen¢e for the Regional Superiors and Chief Executive Officers, held in March 2023 in San Diego, America,. monitoring the Sisters, funds and Nazareth Care funds in the regions; The Congregation of the Slsters of NazaTrth Generalaie Trnstees, ftport 31 March 2023 reviewing the governanGe in regions., considering applications by regions for consents of various types, in partKular relating to major building WOfk5 and constituiional requirements., allocating funds lo consented projects by way of grants and loans.. monitoring investment performance And rewewlng the Investment fflanagers used: keeping in touch with the regions and houses. This has moved from vvjeo and telephone at the start of the year to more in person visits. The foGUS of these communications and sits by the Superior General and her General Councillors is their pastoral care of each Sisterfs welfare; they also provide opportunities to observe the operations within houses, monrtor the governance within regions and house5, encourage a strong partnership between the Congregation and Nazareth Care aTrJ update their knowledge of Lssues Sn each region and house. The Congregation of the Si5tets of Nazareth Generalate 10 Trustees, report 31 March 2023 FINANCIAL REPORT FOR THE PERIOD The accounts have been prepared in accordance wrih the accountlng policles set out on pages 29 to 33 of the attached accounts and comply with the Charrty's trust deed, applicable laws and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with the Finanoal Reporting Standard appI￿able in the United Kingdom and Republic of Ireland IFRS 102). Income and expenditure The income and expenditure of the Chsrity are detailed in the Statement of Financial Actiwties, on page 28 of the accounts. Unrestricted income for the Charity decreased by £53k or 2.4Qk in the year, lo £2,174k. There was a reduciion in donation receipts of £414k in the year, partly offset by an increase in foreign exchange gains of £241 k and an increase in investment income and interest ￿CeIVable of £81 k, which includes interest on loans by the Charity to fund building projects in the regions (£467k). Loans have been provided forworks al Nazareth Houses in Christchurch, New Ze81and., Glasgow, Scotland. Dublln. Ireland,. Mallow, Ireland,. Beffa5t. Northern Ireland and Birkenhead, England. There was no ￿$tricted incorne in 2023 (2022.. none). Total expenditure de¢￿aSed by alfflosl £3m to £3.790k {2022'. £6,719k), almost all of it due to reduction in expenditure on grants and donations in support of the Congregation's work. In 2022, a prowsion of £5.16m was accounted for as current and future contributions lo the Scottish Govèrnment for redress payments that Was not repeated in 2023. In 2023, a grant of £2m was paid lo The Congregation of the Sisters of Nazareth ChaiTtable Trust (registered Charrty number 2289061 to support the work of Nazareth Care Charitable Trust (registered Charbty number 1113666). other grants by the Charity to the regions to fund activliies in Ireland and Southend and Hammer5mf(h in the UK are det8iled in Note 4 of the accounts. Reslrided expenditure on the refurtrfshment of Nazareth House Hammersmiih. the home of the Charity and the first house established by the found￿$$, Wi¢toire Larmenier, totalled £348k (2022: £198k). Until 31 March 2023 all expenditure ha5 been on professional fees. sutveys and enabling works. The main contract work commenced in 2023124 and expenditure 15 expected to be incurred over the next four yeatS. Income minus expenditure resulted in an unrestricled loss forthe year of £1,268k {2022.. £4,294k). Funds After investment losses of £817k (2022.. gain of £1.373k) the net movement in unrestricted fijnds for the year was a decrease of £2.085k 12022.. £2,921 kl. Including expenditure from ￿stri1Aed funds, the reduction in fund5 wa5 £2,433k12022'. £3.119k). The closing fund balances were £27,812k (2022.. £29,897k) in unrestricted funds and £9,165k {2022'. £9,513kl in restrirted funds. The Congregation of the Si8ters of Nazareth Generalale 11 Trustees, rèport 31 March 2023 Loans No new loans were approved during the year and no further advances are anllcipated for any loans that have already been appioved. The Charity's deblor balance at 31 March 2023 is £17,682k (2022.. £16,743k). Notes 12 and 19 to the accounts prov¥Je further details of the outstanding balances and the funding arrangements. Cash flow and investment perforniance The value of investments at 31 March 2023 was £17,469k 12022.. £21,822k) which includes investment property value(i al £204k {2022'.£165kl. The decrease represents £3,531 k of fixed interest investments moved from Royal London Cash Plus Fund to c4sh deposits and an unrealised10ss in the value of the investments of £856k (2022.. gain of £1.373k). Ihe investment properties increased In value by £39k during the year. A summary of movements on investments can be found in Note 11 to the ac¢ounls. Funds and reserves policy The Charity's Teserves of £36,977k {2022.. £39,41 Okl are divided between four unrestricted funds and a restricted fund.. A. Unresldcted furKIs'. Oe51 nated funds: • The Slsters, Support Fund- £7,OOOk (2022.. £7,0(H)k) retained to provide any Sisters in the Congregation who need any support, including nursing or residential care in a Nazareth House, with the means to purchase it where public funds are not available and for other needs such as medical costs, training or emergencies. The amount is Calculated based on the estimated future costs of prowding care for Siste￿. the number of Sisters, their ages, life exFeCtancy. antiGipated length of care and the cost of providing care. The level of the fund was reviewed in 2021 when the Charity confirmed that £7 million remained the appropriate level of the fund. • The Property Fund.. £17,SOOk12022.. £19,OOOkl was reduced by £1,SOOk12022.. £3,SOOk) to provmle a grant lo support the UK Region through its current challenges. The fund will be use(1 lo provide loans or grants to regions requiring supw)rt for building, restmcturing, developments. or other similar projects. Buikling projects and regional support are expected to be the primary focus of the utilisalion of the Chaiity's funds for some years as many properties require upgrading and rpmodelling to comply with Cu￿ent 5tandatds and expectations. The Charity ha5 already invested a proportion of the fund. demonstrated through the existing loan balances and this yearfs supExJrt to the UK Further h)ans can be made as the exlsting loans are repaKI. They anticipate using more of the fund overlhe next five to ten years lo continue the process of uparading properties, subject to retaining sufficient funds to respond to emetgencies. This is expected to include addrtional costs to refurbish Nazareth House Hammersmith, as well as other sites in the UK and overseas. The Congregation of the Si%ters of Nazareth Generalate 12 Trustees, report 31 March 2023 Other fttnds.. • The Tangible Fixed Asse15 Fund represenls the value of th@ tangible fixed assets owned by the Chartiy. The fund has de¢￿aSe(l from £2,154k to £1,907k during the year as existing assets have been depreciated. • The General Fund of £1,405k12022.' £1,743k) is retained to cover the runnlng costs of the Charity in the event of a teM￿rary loss of income, logelher with some capaThly to support the regions and houses experiencing unforeseen costs that cannot immediately be funded from othersources. The General Fund repre5errts the only unrestricled and non-desvJnated funds of the Chartty. that can b8 spent as the trustees decide. The General Fund is in line with the Charity trustees, expectations and represents around 12 (2022.. 16) months of budgeted operating expenditure. exciuding fore￿jn exGhange losses and depreciatlon. The trustees wish to retain be￿een 6 and 12 months of operating expenditure in the General Funol lo avoid ally inteffuption to tis activities in the ¢8se of a loss of income or the need for increased support to a wion. B. Restricted Fund.. • The Restricled Fund of £9.165k (2022.. £9.513kl is accounted for separately. £7,OOOk 12022.. £7,OOOkl is held in CCLA'S Catholic Investment Fund and the remainder is held in cash deposils to fund shorter-temi cashflows. During the year. £348k (2022.. £198k) had been spent from the fund on the planning application. professronal fees atvj other enabling works. Going ¢on¢em The trustees have assessed the Charity's abilrty to continue as a going concern. The trustees have considered several factors when fomiing their conclusion as to whether the use of the going concem basis is appropriate when preparing these financial statemenls including a review of updated forecasts lo 31 March 2024 covering income, expenditure, cash and reserves, the long- term ￿shfiOW forecast to 31 March 2027 and a consideration of key rlsks. including economic uncertainly and income streams that coukj negatively affect the Charity. The Chartty is funded primarily by donations from the Regh)ns within the Congregation together wilh other donations including legacies. There is a risk in each of the regions that the eff8Cts of th8 pandemic. shortage of staff and rising inflation will reduce income and consequently this may reduce the amount that is paid to the Charity. Admissions have restarted in all locations and any new admission embargo ss much shorter and more targeted than previously and occupancy is Incre8slng. During the last year, most houses and regions have remained resilient to the challenge5 and have continued lo operate successfully, wf(h appropriale ch8nges to their operating practices. The UK Region has struggled with muliiple challenges in the last year, detailed in their accounts. Consequently, the Charfty has not re￿iVed donations from the UK in the last year and has also provided financial support to Ihe region, detailed in this ￿pOrt. The Congregation of the Sisters of Nazareth Generalate 13 Trustees. report 31 March 2023 Debtor balances have been reviewed and assessed and, as all loans are within the Congfegatlon, they are consrdered lo be repayable in fvll. The budget and f0￿C8St$ for the forthcoming year are cons#Jered to be deliverable and the cashflow forecast shows that the￿ are sufficient cash and IiquKI resources and forecast inflows for the period of ￿vIeW, with the support of the Un￿strICted reserves if required. The Trustees therefore have a reasonable expectation that the Chartiy has sufficient resources to continue in operational existence for the foreseeable future and so shoijld continue to adopt the golng concem basis in preparing the annual report and financial statements. The Congregation of the Sisters of Nazareth Generalate 14 Trustees. report 31 March 2023 FUTURE PLANS The focus over the next year and beyond will be to continue implementing the Mandate and RecA)mmendalions from the General Chapter in 2018. In a(Idilion. the Charity will continue to support the regions, partlcularfy wilh their property development5 and upjrades to ensure the best en￿ronMent for delivering hlgh quality care to resKfents. The Congregation of the Sisters of Nazareth Generalate 15 Trustees, report 31 March 2023 GOVERNANCE The members of the Congregation are led by the Superior General, who is supported by her four GenerAI coun0ll0￿. These five SlsEers are elected every slx years al the General Chapter. which is attended by representatives of the whole Congregation. The General Chapter, while in session. is the highest authotiiy in the Congregation. Before each Chapter the￿ is considerable consuttalion with all Sisters Ihmugh a series of Regional Chapters, other region-based meetings and papers distributed for discussion. The Regional Chaptets elect Sisters to attend the General Chapter on behaif of all Sisters. The June 2018 GeneTal Chapler was attended by 32 ex-offioio and elected Sisters from the Congregation. This consultative approach provkles the elected representatives with information and views from all Sisters across Ihe Congregation on the issues to be discussed. The Superior General and General Councillors oversee the mission and ministries of the Congregation and are accountable to the General Chapter for their stewardship of the Congregation's mission, ministries and assets between each General Chapter. The tTuslees of the Charity comprtse the Superior General and the four Gener81 Councillors ex officio. At the end of the year, the lollowing trustees held offlce.. Sister Brenda Mccall ('Sister Mary Brenda'l Sister Brenda was elected Superior General in 2018, having been 8 General Councillor sitFce 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 ifflplemented new constitutional and staffing struCtU￿s. Prior lo this, she had ministered in various Houses within the UK. Ireland and South Africa. She is trained in the Residential Care of Children and Young People aThJ is a Registered General NuJ5e. Sister Valma Beatrice Cooper Ifjslster Dominica of the Cross'l Before her election lo the General Council as Vicaress General in 2018, Sister Dominica worked in the Australasian Region. Being a Regsslered Nurse. Sister Dominica worked in aged care for many years before b8ing appointed to leadership positions as a Superior and Regional Superror. a posrtion she held for seven years. During this time, Sister Dominica was involved in the organisational restructure and setting up of a new business entity as well as renovation and redevelopment programmes in the Region. 81ster Anne Bemadette Walsh {'Sister St Teresa'l Sister Teresa Se￿ed as Superior in the two Northem Ireland Houses for the nine years ￿fvre her election as a General Councillor in 2012. Sister Teresa oroinally trained as a teacher and worked in education for Ihirty-five years. Her focus was on the primary school sector and she became principal of 8 nursery school. At the end of her teaching ¢areer, Sister Teresa was awarded 8n MBE for her contribution lo eady years education in Northern IrelarKI. She was elected for 8 second temi as a General Councillor in 2a18. In 2022 Sister Teresa took on the position of Treasurer General. Sister Mary Veroni¢a Kealey I'Si*er Veronica Anne,) Sister Veronica trained as a teacher 8nd worked in the primary school sector for frfteen years. She served as Superior In Dublln before going to Canada lo sludy for a Llcense In Canon Law. Sister Veronica worked with the Scottish Catholic Inler-Dioc8san Tribunal for eKJM years working The Congregation of the Sisters of Nazareth Generalate 16 Trustee$. report 31 March 2023 principally on marriage nulltty cases before b8ing elected lo the General Council in 2018 and appointed as Secretary Geneial. Sister Hannah Maria Dwyer I'Si5tsr Hannah Maria,) Sister Hannah was elected to the General Council in 2018 and seNed as the TreaSu￿r General until 2022. Following a long career in teaching, 23 years a5 Headleacher in a London Catholic Primary School. she received the pea￿0￿ Teaching Award in 2014 for Lrfetime Achlevement. In 2002, Sister Hannah raised £7m lo fund the building of a new school, which she supervised. The school was visited by the then Prime Minister Tony Blair, aGcompanied by Arnold Schwarzenegger. The library was opened by the fLrture Prime Minister Boris Johnson. In 2015, she look a leadership role in the UK Region, as the Superior of the CheEtenham Community. The Superior General and General CouncilloT5 live and work on the NaZa￿h House site in Hammersmith, which was the firsl to be established by the Congreg8tion's Foundffss, Vlctoire Lamienier. in 1857 and which remains the 'Mother House, of the Congregation. The trustees form a Part Vll incorporated tmsiee body-'The Trustees of the Congregation ofthe Sisters of Nazareth Generalat&'. The Charity Commisslon granted a CertrfiGate of Incorp)ration on 23 March 2011. The Charity Is govemed by a Trust Deed daled 1 0(*ober 2010. Its objects are to apply the Charity's property and Income ..for such charitable PUryK)ses as sh811 athnGe the religious, educational, care and other charitable th of the Congregat￿n, for the public benefft, as the Trustees ￿th the approval of the Superior General shall from lime to time think fit... . Trustees, power5 indude bLrt are not limited to.. supporting and maintaining . all who a￿ or have been engaged in the ¢h8ntable wo￿8 of the cOngregat￿n induding.. Trustees of the Trust.. making '..￿antS and loans whether out of income or capital and upon such tsmls and conditions (ifanyj as to interest, repayment, security orothewse and to gu8rant88 money or to use the assets of the Trustas security ftir the perforrnan￿ ofcontracts enteredlnto by any person, associalion. company. local aulhority, administf8tive or govemmental agen¢y or public body as may be thought rrf or tOW8rds charilable purposes in any connected with or calculated to further the obJeGts of the Trust,. • establishing . such separate charityor Gharities as theythink fft... to carry on such Ghantable wort(s as are wilhin the amlwt... of this Deed, and '... trading companies to assist, or ad as agents for, the Trust,. The Superior General and General Councillor5 are the trustees of the Charity. Together wrth the Congregational Chief Executive, they meet fomally four times during the year to discuss the business aspects of the Congregation's a¢livtties. Following the trustees, meetings, the Supetior General and General Councillors meet as a General Council to approve, glve consent or further deliberate on the matters arising from these meetiThJs. These meetings are minuted separalety. New trustees are indu(led by the existing trustees and staff and training is provhjed. The Congregation of the Sisters of Nazareth Generalate 17 Trustees. report 31 March 2023 Charfty Governance Code The Charity has assessed tts compliance with the winciples of the Charrty Govemance Code. undertaking a detailed review in June 2020. It conslders that it fully meets 54 of the 76 items of recommended practice in the Code and is worknng towards another nine items. Two items are not met and 11 that it considers are not relevant to the charity. The two unmet area5 are benchmarking wrth similar organisations 8nd considering infomiation from other similar OffJanis2tions and reporting on how the charrty evaluates the board effectiveness in this ￿ port. Formalty assessing board effectiveness Trs one of Ihe areas that it is working towards. The non-relev2nl areas are mostly conceming the recruitment of trustees, as the Constitutions require 1111slee appointments lo be made from wlthin the Congfegation, which limits the advertising, diversity and breadth of t￿ard skills. This 15 compensated for by having truslees who a￿ wholly committed lo the Congregation and the Charity withoul outsNJe distraction5, and the use of external advisors and outside expertise on committees to provKle greater diversity and breadth of skilts. Key management personnel The trustees consKJer that they, with the 8SSlStance of the Congregational Chief Executive. comprise the key management of the Charity in charge of directing and controlling, running and operaling the Charity on a day to day basis. Decisions are made by Ihe trustees unless they have been delegaled lo the Congregational Chief Executive as part of the approved general delegation or as agreed when making a specific decision. All trustees are membets of the Congregation a￿1, whilst their liwng and personal expenses are )rne by the Ch8rlty, they recerve no remuneration or reimbursement of expenses in connection with their duties as trustees. Additionally, they don8te all of their income to the Charity. The performance aThJ pay of the Congregational Chief Executive is reviewed annually. To deliver the charitable aims and to complement the skilL% ol the Sisters, the Charity employs a small number of pamd staff. The commitment to staff is to pay them a fair and appropriate salary that is affortlable. This is to attract and retain people with the rwJht skills and who, therefore, will h8ve the greatest impact in delivering the Charity's objectives. In 8ccordance with the Statement of Recommended Practrce we.. • disclose all payments to trustees (no trustees are paid) and expenses relmbu￿ed Ino trustees received expenses). • disclose the number of slaff in receipt of £60,OCN) and above (in bands of £10.000) (Note 7 to the accounts). • disclose pensions and other beneffts (Note 7 to the aC￿unt$). Staff remuneration does not include any share options or long-term incentive schemes as there are none. The Congregation of the Sisters of Nazareth Generalate 18 Trustees, report 31 March 2023 The period of notice for terminatlon of contra￿S of employment is three months for any staff earning over £eo,000. Grant-making policy The Charrty make5 funds available as grants to indivKlual houses and regions, which are to separately registered charities. to support rts ministries. The grants are accounted for as expenditure in the year in which they are approved. During the year, a few small exlemal grants were made by the trustees in restM)nse to identffied needs. These were generally to support individuals or smaller nol-for-profft otganisatlons. Grants made by the Ch8rity during the year are detailed In Note 4 to the accounts. Investment policy The Charity's conslrtution does not restrict the trustees. powers of investment. The choice of Investments is heavily influenced by the ethical investment policy. which is designed 10 avoKJ, as far as 15 reasonably possible, any significant investment in organisalions thal produce goods or Se￿ICe5 at odds with the teachings of the Catholic Church. particularly regarding the sanctity of human life. The trustees take a total retum approach to their investments, investing in funds that adhere to the ethic81 investment policy. The main investment portfolio Is wlthin CCLAS Catholic Investment Fund which holds a diverstfied portfolio containing equities, 81temative assets and cash and near cash, managed wrthin an acceFrtable level of risk. The fund's investment objeGiive ts to achieve a gross total return before fees of 5% per annum above the Consumer PrKe Index, over a period of five years, whilst adheT7ng to its ethical investment p)licy. It is currently not achieving this due to the hvJh level of the Consumer Price Index. Cash and cash equivalent funds were transferred durfng the year to Cash deposits. from Royal London'5 Cash Deposit Fund. The Chaiity's pradice is to re-invest income arising from the investment portfolio. The ttustees consKler the level of li]u#Jity that is required to support grant and operation81 commitments in the short and medium tern. The Charity Uses the expertise of Its investment managers to help wtth the managernent of its investment funds and will purchase addtiional advice Whe￿ necessary as well as draw upon the knowledge of the Advtsory Finance Commttiee Membe￿ and the key management pe￿onnel. Public benefrt The trustees confimi that they have given due consideration lo the Charity Commission's published guhdance on the Public Benefft requirement under the Charities Act 2011 when considering the Ch8rtty's objectives and activities. All aclivities relate to the general objectives of the Charfty through supwrting siste￿ and delivering care to the elderfy gnd children, delivered through overseeing and supporting the regions. providing financial contrlblrtions, adwce and guK1ance within which Ihe regions operate. In Ihese ways. the Charity is deliveriThJ a public b8nefrt. The Congregation of the Sisters of Naza￿th Generalate 19 Trustees. report 31 March 2023 Risk management The Chartty remews Its risk management framework and agreed that there are five wimary categories of risk facing the Charity and the Congregation.. Mission, Spirit and Values- Governance.. Safeguarding., Financial: Organisational and Extemal Environment risks. In each category, it has agreed how willing it is to lake risks to achieve its objeclives and how it would endeavouf to reduce risks where they are unacGeplable to the organisalion, its purpose or values. Wrthin each category, several speclfic risks and controls were identified that either are in place or coukl be put in place to reduce those risks. The major ti5ks faced and how they 8re managed are considered to be.. A loss of spirh or mission. The risk increases as the number of Sisters in the Congregallon de¢￿aseS and Ihe role Df paid staff in management posf(ions increases. There are several programmes available in regions to ensure the mission is well understood and communicated, such as Wictoire's Legacy, Mission Alive and the Core Values of the ow8nisatK)n. Sisters remain intrinsic lo each htsLJse and afft visible throughout the majority of houses. Mass is hek each day in most houses. occur from the Superior General. General Counallor5 and the Congregational Chief ExecLrtive to each region and the houses. Attemative arrangements have been introduced in two regions lo explore models Ihat can operate with fewer Siste including some siies operating as s8tellites wrth visiting Sisters. These a￿ evaluated on an ongoing basbs. Govemance shortcomings. Governance arrangemerrts ensure Ihal the Charity's Board of Trustees is rnade up entirely of Sisters who are supported by lay Staff and advisors as necessary. In the reglons, all boards eA)nsist of up to nine trustees, a majority of whom are Sisters. There is a strong set of Constrtutions, Directives, Govemance HandL￿0k and reporting mechanisms covering all aspects of govemance to ensure that the ￿gIonS administer their operations according lo the standards expected by the Congregation. Safeguarding incidents either now or in the past. Current safeguarding risks are well managed through cornprehensive training and procedures and 8re more likety to occur in one of the regions. where they directly interact with vulnerable individua15. The impact on the Charity is by assoGiation and the consequential impact on its rewtation. Historical incidents within the Congregation's past are predominantly addressed nowadays by the Charity including viewing practices and continuing to cooperate fully with all public Inquiries and with individuals making their own enquiries or CIMI proceedings. Many safeguarding risks are covered by insuran¢e. Financial failure through a region orthe Charlty not being able to meet fts commitments, such a5 the repayment of a loan or a building project not txing delivered to budget. The sha￿d brand and support mechanisms ensure that if one part of the Congregation struggles, others may step in to support tt. Due dilrgence is undertaken befo￿ commitments are made and insurance is taken out where it is appropriate to do so. There is a process of continual oversight of the financial performance of each region and cashffow forecasting forthe Charity to ensure that there are sufficient, liquid funds to meet all reasonable eventualliies. The Congregation of the Sisters of Nazareth Genera18te 20 Trustees. report 31 March 2023 Organ￿atiOnal risks at the Chaiity include an over-reliance on key indiwdua15, the reputational damage 8SSOClated with the failure of a se￿iCe either now or in the past or the impact of Investment or foreign exchange flucluatlons. There is an awareness of these risks and contingency plans built in wherever possible to minifflise their impact, for example, through the recruitment of skilled indimduals. the sharing of infomiation and the use of professional advisors where appropriate to do so. All services in the regions are exiemally regulated to ensure standards are continually met andlor improved. External en)Amnment changes have a materfal Impacl on the work of the Charity and the Congregation through, for example. major changes to the fundiThJ or legislation conceming Ihe Ca￿ of the elderly at the end of their lives or changed. public perceptions of the Catholic Church 01 fecession or a global heatth crisis, such as the Covld-19 pandemic. Fundraising policy The Charlly does not pmaclively fundraise or soli¢it donations towards its work. li has the￿fore nol svjned up to the Fundraising Regulator. Imen fundraislng income Is received, the Charlty aims to achieve best pradice in the way it communicates with donors and other suprx)rters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies besl practice to protect supporters, data and never sells or swap5 data and ensLFres that communication preferences can be changed at any lime. The Charity does not employ the services of professional fundraisers. The Charity undertakes to ￿att lo And investlg8te 8ny complaints reg8rding its fundraising activrties and to iearn from them and improve fts semce. During 2022123 the Charity received no complaints about ils fundraising aCtI￿lieS 12021122.. none). Trustees. responsibilities in relation lo the financial statements The Iruste8s are responsible for preparing the trustees, report and the accounts in a￿Or￿anCe with applicable law 8nd regulations. Charity law requires the Iruslees to prepare financial statements for each financial year in aGcordance with UniEed Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Charity law, the Trustees musl 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 its net incomingloutgolng resources for that period. In preparing these accounts. the trustees are required lo.. sele(I suttable accounting policies and then apply them consistenlly,. observe the methods and principle5 in Accounting and Reporting by Charities." Statement of Recommended Practice applicable to charf(ies preparing their accounts in accordance with the Financial Reporting Standard applicabte to the United Kingdom and Republi¢ of Ireland (FRS 102): make judgmerrts and estimates that are reasonable and prudent., The Congregation of the Sisters of Nazareth Generalate 21 Trustees. report 31 March 2023 slate whether applicable Unrted Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts., 8nd pr8pare the accounts on the going ¢on¢em basis unless il is inapw)prlale to presume that the Charity will Continue in operation. The trustees are responsible for keeping accounting records that Are sufficient to show and explain the charity's transactions and disclose wrth reasonable accuracy at any time the financial position of the Chatity and enable them lo ensure that the accounts comply wilh the Charities Act 2011. the applicable Charity (Accounts and Reports) Regulations ar￿ the provisions of the Trust Deed. They are atso resFX)n5ible for safeguarding Ihe assets of the Charity and hence for taking reasonable steps for the prevention and dele(aion of fraud 8nd other irregulalities. Approved by the trustees and signed on their behalf by.. Superior General and Tnjstee Date of approval.. A3 The Congregat¢on of the Sisters of Nazareth Generalate 22 Independent auditor's report 31 March 2023 Independent Auditorfs Report to the Trustees of The Congregation of the Sisters of Nazareth Generalate Opinion We have audited the financial slalemenls of The Congregation of the Sisters of Nazareth Generalate (the charrty,) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, Balance Sheet. Statement of Cash Flows and notes to the financial statements, induding significant accounting policie5. The finanGial reporting framework that has been applied in their preparation Is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable In the UK and Republic of I￿land (United Kingdom Generalty Accepted Accounting Practice). In our opinion the financial slatemen*s= give a true and fair view of the slate of the charity's arfairs as at 31 March 2023 and of its incoffle and expendrture, for the year then ended.. have been propedy prepared in ac¢ordAnce wilh un￿ed Kingdom Generally Accepted Accounting Pradice.. and have been prepared in accordance with the requirements of the Chariti8s Act 2011. Basis for opinlon We conducted our audrt in accordance wf(h Intemational Standards on Audtting (UKI OSAS {UK)) and applicable law. Our responsibiltties under Ih05e standards are further described in the Audrtofs iesponsibilities forthe audit of the financial statements section of our report. We are independent of the charity in accordance with the ethi(zl requirements that are relevant to our audf( of the financial statements in the UK, including the FRC'S Ethic81 Standard, and we have futfilled our other ethical responsibiltties in accordanGe with these requirements. We believe that the audit ev¥Jence we have otAained is Suffi￿8nt and appropriate to provvje a basis for our opinion. Conclusions relaling to going concern In auditing the financial statements, we have concluded that the trustee's use of the going concem basis of accounting in th8 pr8p8ralion of the financial statements is appropriate. Based on the work we have perfomied, we have not idenlffied any material uncertalntles relating to events or conditions Ihal. indiwdually or collectively. May cast svJnificant doubt on the charity'5 ability to Gonlinue as a going concem for 8 period of at least hyelve months from when the finan￿al statements a￿ aulhorised for issu8. Our responsibilities and the responsibilities of the trustees with respec* to going concem are described in the relevant sections of this report. other infomiation The trustees are responsible lor the other infomatlon contained w(thin the annual report, The other information comprises the infomiation included in the annual report, other than the financial statements and our audilorfs report Ihereon. OLJf Dpinion on the financial statements does not cover the other information and, except to the extent othetwlse explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtalned In the audit or othewise appears to be materially misstated. If we identify such material inconsistencies or apparent material misst*ements, we are required to determine whetherthis gives rise to a material misslalement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a mater￿1 missialement otthis other information, we are required to report that fact. We have nothing to report in this regard. The Congregation of the Sisters of Nazareth Generalate 23 Independent auditor's rewrt 31 March 2023 Matters on which we are required to report by exception We have nothing lo report in respect of the following matters in relation to which the Charities (Accounts and Re(K)rts) Regulations 2008 requires us to report to you rf, in our opinion.. the informatlon given in the finan￿81 statements is inconsistent in any material respect with the trustees, report.. or sufficient and proper accounting records have not been kept by the charity,. or the financial $18temenls are not in agreement with the accounting records and returns., or we have not received all the infomalion and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, ￿SponsIbl1￿18S statement set oul on pages 21-22, the trustees are responsible for the prep8ration of the financial statement5 and for being salisfied th8t they give a Irue and fair view, and for such intem81 control as the Iruslees determine is necessary to enable the preparation of financial statements that are free from materlal misstatement, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees erther intend to IKJuKJate the charity or lo cease operations, or have no ￿ alistic allemative but to do so. Auditor's responsibilities for the audit of Ihe financial statements We have been appointed as auditor under section 151 of the Charities Act 2011 arvj report in accordance with the Acts and relevant regulations made or hawng effect thereunder. Our objectives 8m to obtain reasonable assurance aboul whether the financial statements as a whole are free from material mlsstatement. whether due to fraud or error, and to issue an auditor's report that indudes our opinion. Reasonable assurance is a high level of assuran¢e, but is not a guarantee that an audit conducted in accordance with ISAS {UlQ will a￿ayS delec* a material misstatement when it e￿5t5. Misslatemenls can arise frorn fraud or error and are considered material if, indivhJually or in the aggregate, they could reasonably be expected to influence the economic decisions of u58r5 taken on the basis of these financial Statements. Details of the ejlent to whlch the aud(t was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are sel out below. A fvrther description of our ￿SpOnsibl11[1es for the audit of Ihe financial statements is located on the Financial Reporting Council's websrte at: www.frc.o or es. This description forms part of our auditor's report. Extent to which the audit was considered capable of delecting irregularilies, including fraud Irregularlties. including fraud, Are instances of non-compliance wrth laws and regulations. )Ne Idenltfied gnd assessed the risks of material misstatement of the financlal statements from ityegularities, whether due to fraud or error, and discussed these between our gudli team members. We then designed and perfomed audit procedures responsive tc) those rlsks, including obtaining audit evKlence sufficient and appropriate to prowde a basts for our opinion. We obtained an understanding of the legal and regulatory fr8meworts within which the charity operates, focusing on those laws and regulations that have a direcl effect on the dete￿ination of material amounts and disdosures in the financi21 statements. The laws and regulations we considered in this context were the Charities Act 2011 together wrth the Chariiies SORP (FRS 102). We assessed the required compliance with these law5 and regulations as part of oui audit procedures on the related financial statement items. In 8ddlllon, we Considered pmvisions of other laws and regulalSons that do not have a direct effecl on the financial statements bul compliance with which m*Jht be fundamental to the charity's ability to operate or to avoid a materfal penaKy. We also consKlered the opportunities The Congregation of the Sisters of Nazareth Generalale 24 Independent auditor's report 31 Marth 2023 And incentives Ihat may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were employment legislation. Auditing standards limit the required audit procedures to wjentify non-compliance with these laws and regu12tions to enquiry of the Trustees and other management and inspection of regulatory and legal corresponden￿, rf any. We Klenlified the greatest risk of material impact on the financial statements from irregularities, Including fraud, to be within the timing of ￿cOgnItion of incorne and the override of controL8 by management. Our audit procedures to respond to these risks included enquirie5 of management, and the Advisory Fin8n¢e Commttee about their own identification and assessment of the risks of irregularrties, sample testing on the posting of journals. reviewing accounting eslimales for biases, rewewing regulatory correspondence wtth the Ch8riiy Commission and reading minutes of meetings of those charged with govemance. Chving to the inherent limitations of an audit, there is an unavoKlable risk that we may not have detected some malenal misstatements in the financial statements. even though we have pmperly planned and perfomed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations {irregularities) is from the events and transactions reflected in the financial stalemenls, the less likely the inherently limited procedijres required by auditing standards would identify it. In addition, as with any audit, there remained a hoher risk of non4JeteGlion of irregularities, as these may involve collusion, foffJery. intentional omissions, misrepresentations, or the override of intem81 controls. We are not responsible for preventing non-compliance and cannot be expected lo deted non-compliance with all laws and regulations. Use of our report This rew>rt 15 made solely to the charity's trustees, as 2 body, in accordance with Part 4 of the Charities (Accounts and Reports) Regu18tlons 2008. Ovr audit work has been undertaken so that we might slate to the charity's trustees those matte[5 we are required to slate to them in an auditor's report and foi no other purpose. To the fullest extent perfflitted by law, we do not accept or assume responsibility lo anyone other than the charity and the charlty's trustees as a body. for our 8udrt work, for this report. or for the opinions we have formed. Crowe U.K. LLP Statutory Auditor London Date.. 12 December 2023 Crowe U.K LLP ts eligible for appointment as audrtor ofthe charlty by of ts elpJibTI ity for appoint￿nt as auditoT of a ￿MpanY under section 1212 of the Companies Act 20Ce. The Congregation of the Sisters of Nazareth Generalale 25 Stslernent of financial activities Yearto 31 March 2023 2023 2023 Unrestricted Restrict•d funds fvnds 2023 2022 2022 T%Aal Unrestricted Restricted funds fvnds funds 2022 Totsl funds Notes Income: Donations and legacies Investment income and interest receNable Foreign axch8nge gains Other Income T¢*al Income 1,332,822 1.332,B22 1,746,830 1,746.830 581,731 581.731 480,539 480,539 241.402 38,290 2.174,245 241.402 38,290 2,174.245 2,227,3e9 2,L7,369 Expenditure: Cost of raising funds Invèstment managers, fees Charitable adivities Supporting the regions of tha Congregation Grants and donatsons in support of the Congregation's work Total •xpenditure 10,791 10.791 12,051 12,051 1,056,051 1,056,051 1,002,076 1,002,076 2,375,662 347,860 2,723.522 5,507,176 197.979 5.705,155 3,442,504 347,860 3,790,364 6,521,303 197,979 6,719.282 Net lexpendltvr•l before investment gainslllosse51 11,268,259) 1347,8801 (1,616.119) 14.293,9341 1197,9791 14,491.9131 Net investment 9ainsllloss¢$l 11 1816,5881 1816,5881 1,373,202 1,373,202 Net lexpenditurel and net movemènt in funds for the year 12.084,8471 1347.8601 12,432.707) 12,920,732) 1197,97QI 13, 118.7111 R￿OncIliatIon of funds.. Fund balances brought fornord al 1 April 20 29,896,702 9,512.835 39,409,537 32,817,434 9,710,814 42,528,248 Fund balanc¢s carryed forward at 31 March 2023 27,811,855 9,184975 36,976,830 29,896,702 9,512.835 39,409.537 All the Chanty's operations are derNed from eontinuing activthes during each ol th• ￿ financial year5. The cong￿gation of the Sisters of Nazareth Generalate 26 Balance sheet 31 March 2023 2023 2023 2022 2022 Notes Flxed assets: Tangiblè assats Listed investments Investment propertiès Total fixed assets 10 1,SYJ6.579 17,264.621 204.0 19,375,200 2,153,851 21,657, 125 165,000 23,975,776 Current assets: Debtors - Amounts due within one year - Amounts due after one year Cash at bank and in hand Total current assets 12 12 3,402,282 14,279.736 6,286.760 23,968,758 2,680,634 14.Cf2,104 5,501,764 22,244.502 Llabllltles: Credrtors." amounts f811ing due thin one year Provisions 13 13 11.180.964) 11,838.3671 11,511,026) 11.418,5001 Net eurrent assets Total assets less current Il•bllltl•s 20,949.427 40,324.627 19,314.976 43,290.752 Non Current Llabilities Cred6tor- amounts falling due after more Ihan one year 13 13,347,797) 13,881.2151 Total net assets 36,976,830 39,409,537 The fvnd8 of the charity Unrestricted funds: Designated funds Tangible Fixed Assets Fund Genèral Fund Total unrestr￿ed fijnds 15 15 15 24.$00.th)O 1,906,579 1,405.278 27.811.855 26,000,000 2.153,651 1,743,051 29.896,702 Restrlcted funds: - Developmerrt Fun¢J 15 9,184.975 g,511835 Total charlty funds 36,976.830 39,40g,537 Approv8d by the trustees on and signed on their ￿hat[ by_ Superior General and Trustee Date Of approval.. The Congregation of the Sisters of Nazareth Generalate 27 Statement of cash flows Year to 31 March 2023 2023 2022 Note5 Cash flryms from ope¥ailng activities: Net cash used in operating activrtlg5 13,313,652) 89,857 Cash flows from investing activities: Investment income and interest recewed Purchase of tangible fmed assets Proceeds from the disposal ol inveslnEnts Purchase of listed investment Net cash used in investing activities 561.731 480.539 13,4501 3.536,917 17,331,708 117,401,000 407,797 4.098.648 Change In ¢4$h and cash ¢qulv4lents In the year 784.996 497,654 Cash and cash equlvalents at 1 Awll 2022 5,501,784 5,004,110 Cash and cash equivalents st 31 March 2023 8,288,760 5,501,7e4 Nots¥ tothe Jtatsment of cash Ilows for thè year to 31 March 2023 Reconciliation of net movement in funds to net cash provided by operating actfvitl•s 2023 2022 Net movement in funds {as per the statsment of financlal adfvlt1￿j Adjustments for: Investment In¢ome and interest re￿i￿abl8 Investment losses I Igainsl Depre¢i8tion of tangible fixed assets Ilne￿aSe) I decreaso In dèbtors (Decreasel l increase in Credrtors Net cash used in operatlng actlvltlos 12.432,7071 13.118,7111 1561,7311 1480.539} 816,588 11,373,202) 247.072 247,271 1939,2611 318,923 1443.6131 4,496, 115 13.313,6521 89,857 Analysis of cash and cash equivalents 2023 2022 T<¥tal cash and cash equivalents- Cash at bank and In hand 6.286,760 5,501,764 The Congregation of the Sisters of Nazareth Generalate 28 Principal a¢¢ountlng policies 31 March 2023 The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below. Charfty Infom)allon The Congiegalion of the Sisters of Nazareth Generalate I'the Charity,) is registered wrth the Charity Commission for England and Wales, registration number 1138876. It is incorporated in the United Kingdom and has tls registe￿d address at 16&175 Hammersmith Road, London 8DB. Basis of preparation These accounts have been p￿pared forthe year to 31 March 2023 wf(h comparative infomiation given in respect to the year to 31 March 2022. The accounts have been prepared under the historical cost conventlon with items recognised at cost or transadion value unless otheThiise stated In the relevant accounting policies below or the notes to these accounts. The accounts (financial 5talements) have been p￿pared to give a Irue and fair wew and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required lo womde a true aThJ fair view,. This departur8 has involved following the Statement of Recommended Practice applicable to charities prepanng their accounts in accordance wfth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the pre￿o￿S Statement of Recommended Practice-. Accounting and Reporting by Charities which was effedive from 1 April 200S but which has since been Wilhdr4wn. The charfly constitutes a public b8nefft entity as defined by FRS 102. The accounts are presented in sterfing and are rounded to the nearest pound. Critical accounting estimales and areas of judgement Preparatlon of the accounts requires the tnjstees and managernenl to make s¥Jnificant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include.. • estimating the useful economic life of tangible fLxed assets for the purposes of detemiining a depreci8tion charge. • assessing the liming of the receipt of loan repayments forlhe purposes of classifying debtors as amounts due within one year and recoverable thereafter and assessing the recoverability of outstanding amounts; • determining the value of designated funds needed at the year end, in p2rtlcul8r in respect to the assumptions made in detemiining the values of the Siste￿. Support Fund and the Property Fund.. * assessing the probability of the receipt of legacy IncoTh. where a notification ol entitlemenl has been re¢eived', The Congregation of the Sisters of Nazareth Generalate 29 Principal accounting policies 31 March 2023 • assessing the probability of the payment of a legal claim against the Charity and the probability of the payment being cOVe￿d by insurance. where a claim has been notified. Assessrnent of going ¢oncem The trustees have assessed the Charity's ability lo continue as a going concem. The tnJstees have conSKje￿d several factot5 when fom)ing their conclusion as to whelher the use of the going concern basis is appropriate when preparing these financial statements including a review of update forecasts to 31 March 2024 covering income, expenditure. cash and reserves, the long- tetTn Gashffow foffcAst to 31 March 2027 and a consideration of key risks, includlng Cowd-19 and economic uncertainty, that coukl negatively affect the Charity. The Charity is funded primarily by donations from the Regions within the Congregation together with c)ther donations induding legacies. There ts a risk Ihat the effecls of the pandemic. shortage of staff and rising inflation will ￿￿￿ee income In each of the regions and consequently this may reduce the amourbt that is pavj lo the Charity. During the18St year. most houses and regions have remained resilient to the challenges and have continued to operate successfully, wtih appropriate change5 to their operating practlces. Admlsslons have restarted in most localions and occupancy In the homes is slowly increasing again. Admission embargoes are now much shorter and more targeted than was the case in the early days ofthe paThJemi¢. The Charity has not acce55ed any of the govemment grants or loans provided in response tD the CovhJ-19 pandemic and does not antiupate doing so. Debtor balances have b8en remewed and assessed and. as all loans are within the Congregation, they are considered to be repayable in full. The bLKlget and forecasts forthe forthcoming year a consKlered lo be deliverable and the ¢ashllow forecast 5how5 that there are sufficient cash and liquid resources and forecast inflows for the period of review, with the support of the Un￿St￿￿ed reserves if required. The Trustees therefore have a reasonable expectation that the Charity ha5 sufficient resourc85 to continue in operational existence for the foreseeable fulure and so should continue to adopt the going concern basis in preparing the annual reFM)rt and financial statements. Income recognitio Income is reC￿)niSed in the period in which the Chaftty is entitled to receipt and the amount is probable. Income is deferred only when the Charily has to fulfil conditions befor8 becoming entitled lo it or where the donor or funder has specified that the income is to be expended in a ture accounting pericwj. Income comprises donations, legacies, investment income and interest receivable. Donations includlng contributions from the regions and salaries and pensions of indiwdual religious received under deed of covenant. are recognksed when the Charity has confimiatlon of both the amount and settlement date. In the event of donations pledged but not received. the gmount is accnjed for where the receipt is considered probable. In the event that a donation Is subject to conditions that require a level of perforTnance before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met. or the fulfilment ollhose conditions is wholly within the control of the Charity and it is probable that those conditions will be fulfilled in the reporting period. The Congregation of the Sisters of Nazareth Generalate 30 Principal accountlng policies 31 March 2023 A small number of volunteers assist the work of the Charity, for example, seNing on a cofflmittee or pmvKJing Mass. Their contribution is greatly appreciated. In aCCo￿ance with the Charities SORP FRS 102 volunteer time is not rec(rfJnised. Legacies are included in the statement of financial actiwlies when the Charity is entitled to the legacy, the exeGUtor5 have e5toblished Ihal there are sufficient surplus assets in the estate to pay the legacy, and any Conditions attached to the legacy are within the ¢ontrol of the Charity. Errtillemenl taken as the earfier of the dale on which either.. the Chariiy Is 8W8re that probate has been granted. the estate has been finalised and notification has been made r)y the executor to the charity that a distribution will be made, or when a distribution is ￿te1Ved from the estate. Receipt of a legacy, in whole or in part, is only conSide￿d probable when the amount Can be measured reliably, and the Charity has been notified of the executor's intention to make a distribution. Imere legacTes have been notified to the Charity. or the Charity i$ aware of the oranling of probate, bul the crtteria for income recogniiion have not been mel. then the legacy IS treated as a contingent a55et and (1￿ClOSed rf mateiial. In the event that the gift ts in the fom) of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift ￿Ing reliably measurable with a degree ot reasonable accuracy and the title of the asset having being transferred lo the Charity. All of the Charity's listed investments com￿lSe accumulation units and hence inveslment income frorn listed investments is n(A credited to the statement of finand81 activities as it is refleGted in the market value of the relevant investment hokling. Interest on funds hekj on deposit and interest receivable on loans advanced to other entities is included when receivable and the amount can be measured reliably by the Charity. In the case of bank interest, this is nonnally upon nolrfication of the Inte￿St paKI or payable by the bank. In the case of interest on monies advanced, this will be when the Charity becomes entitled to the interest under the temis of the relevant loan agreement. Expenditure recognition and the basis of allocating govemance costs Liabilities are recrwJnised as expenditure as soon as there is a legal or construclive oblwJatlon committing the ChArttyto make a payment to 2 third party.. it is probable that a transfer of economic benefits will be required in seiuemenl and the amount of the oblwJation can be m8asured reliably. All expendrture Is accounted for on an accruals basis. Expenditure comprises direct Gosts and support Costs. All expenses, including support Costs, a￿ allocated or apportioned lo the applicable expendfture heading5. The dassification be￿een a¢tivities is as follows.. a. The costs of raising funds comprise the fres paid to investment managers in connection with the management of the Chartty's listed investmerrts, net of rebates received. Rebates arise when the fees deducted automatically through charges for common investment funds and related transactions exceed the fees agreed between the Charity and its investrnent managers. b. The costs of charitable activlties comprise expenditure on the Char￿Y'S primary purposes as described in the Iruslees, report and include the support of the Congregation's work in the Uniied Kingdom and overseas. In the main such expenditure comprises the coordination and direction of. and the provision of ad￿ce to. the regions of the COng￿gation, losses on foreign The Congregation of the Sisters of Nazareth Generalate 31 Principal accounting policies 31 March 2023 exchange and the provision of grants and donations to projects of the Congregation. Grants payable are Included in the statement of financial actiwlies when approved by the Iru51ees and all conditions have been fulfilled by the intended recipient. Provision is made for grants and donations approved but unpaid at the period end. Govemance costs comprise the costs involving the public accountability of the Charity (including audit Gosts) and costs in respe￿ to ils compliance wrth regulation and good pradice. All governance costs are allocated to expenditure on coordination and direction of, 8nd the provision of ad￿lCe to, the regions of the Congregation. Tangible fixed assets All assets costing n￿re than £5,000 and w4th an expected useful life exceeding one year are capitalised. Tangible fixed assels a￿ valued at historic cost. Assels a￿ depreciated al a rate calculated to write the v81ue down to its estimated re5idu81 value over its expected useful life. Tho depreciation rates used are as follows.. Freehold land not depreciated Fr8ehokd buildings 50 years on a slraight-line basis (2% p8r annum) Leaseholder improvements 10 year5 on a slraighl-line basis110% per annum) for refurbishmerts or eomponent-based for new assets, varying from 10 to 50 years (2% to 10% per annuml 4 years on a strayht-line basis (25% per annurn) Motor vehicles Fixed assel irNestfflents Listed investments are a fom of basic financial instrument and are initially re¢ognised at their Iransaotion value and subsequently measured al Iheir fair value as at the balance sheet date using the closing quoted market price. The Charity does not acqui￿ put options, derivatives or other complex financial instruments. Reali5ed gains (or losses) on investment assets are calculated as the difference between dispos81 proceeds and their opening carrying value or their purchase value rf acquired subsequent to the first day of the financlal year. Unrealised galns and losses 8re c81culated as the dtfference belween the fair value at the year end and their catrying value at that date. Realised and unrealised investment gains (or losses) are combined in the State￿nt of financial activities and a￿ credlled (or debited) in the year in which they attse. Financial instruments The Chaflly has financial assets and financial liabiltties of a kind that quallfy as basic finanual instruments. Basic financial instruments are inrtially reGogni5ed al tran5aclion value and subsequently measU￿d at amortised ¢ost using the effeclive interest method. Financial assets held at 8mortised cost comprise cash and bank in hand, together with trade and other debtors. Financial liabilities held at amortised cost Comprise trade and other Creditors. Investments are hehj at fair value at the b818nce sheet date, wkh g8ins and losses beiThJ reCOgn￿ed within income and expenditure. Inveslment propertles Investment properties a￿ staled at their fair value at Ihe balance sheet date. The Congregation of the Sisters of N8zareth Generalate 32 Principal a¢¢ouniing policies 31 March 2023 Debtors Debtors are recognised at their settlement amount. less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. Cash at bank and in hand Cash al bank and in hand represents such accounts and instruments that are available on demand or have a malurily of less than three months from the date of a(4uislllon. Cash placed on deposit for more than one year is disclosed as a fued asset Investment. Creditors and provisions Credrtors and provisions are recognised when there is an obligation at the balance sheet date as a result of 8 past event, it is p￿)babIe that a transfer of economic benerrt will be required in selllement. and the amount of the settlement Can be estimated reliably. Creditors and promsions a￿ recognised at the amount the charity anticipates (t will pay to settle the debt. They have been discounted lo the present value of the future cash payment where such discounting is material. Funds stNcture Reslricled funds are nTh)nies given by a donor for specific purposes that can only be spent on the purpose for which they are given. Details of these funds art given in note 16. The designated funds are monies set aside out of general funds and designated for specific purposes by the trustees. Details of these funds are given in note 16. The Tangible Fixed Assets Fund ￿presents the net book value of the tangible fixed assets used to further the Charity'5 objectives and wotk. Movements on the fund are shown in note 16. The General Fund comprises those monies which may be used towards meeting the thaTilable objectives of Ihe Chaiity and whiGh may be applied al the discretion of the tNste85. SeNices provided by members of the Congregation Forthe purpose of these accounts. no monetary value has been placed on the administrative and other services provwjed by the members of the Congregation. Foreign currencies Assets and liabilities in foreign currencies are Iran51aled into slerfing at the rates of exchange Nling at the balance sheet date. Transactions In foretgn currencies are translated into slerling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriwng at the net movement in fvnds. Pension contributions Contributions in fftspect of defined contribution pension sChe￿S and personal pension schemes a￿ charged lo the statement of financial activities when they are payable to the Scheme. The Charity's contributions are restricted to the contributions disclosed in note 7. There were no oulslanding contributions at the year end. The charrty has no liability beyond making its contributiDns and paying across the deductions for the employee5. contributions. The Congregation of the Sisters of Nazareth Generalate 33 Notes to the accounts 31 March 2023 1 Donations and legacies 2023 2022 Legacies Pensions of indivxlual Religious donated under a deod ol covenant Donations - American Aréa U K. Region Australas18n Region Irish Region - African Region - Other ContrtbLthon from NCCT Other voluntary income 173,424 161,448 102,547 162.234 358,530 23,000 281,604 281,573 13.1 259 397,019 293,700 322,219 268,644 10,000 4,186 100,000 86.281 1,746,830 39,984 1.332.822 Lega¢les notffigd not accrued at 31 March 2023. due lo probability or m8asurabl• eriteria not being met. were £312,50012022' nil). 2 Investment income and interest receivabltt 2023 2022 Interest receNable Bank interest Rent81 Income- investmgnt propertlo$ Interest on loans to conne¢ted entitiès Inote 211 91,8(K) 2,860 467.071 561,731 21.166 4,405 454,￿8 480,539 Income from investment properties has been nT)ved from donation5 to invèstmént incom8 from this year. 3 Supporting the regions of Ihe Congregation 2023 2022 staff costs Inot8 71 Maintenance of S¢sters Travel IT and websit6 davalopmenl Professional fees". fi'n8nce and legal Novitiate Piemise5 Governance costs Inole 51 Foreign exchange k)sse5 Depreciation- HaM￿￿rsMrth development Other 294.840 12S,145 65.219 46,396 49,149 31,984 49,823 26.028 272,023 136,419 61,676 44,855 50,195 46,856 35,006 23.738 527 247,273 83,508 1,002,076 247,072 120,41S 1,OS6,051 Support costs incurred by the Charrty ara detailed in tha table in Note 3. They comprise th* gtsvtmancè costs atyj the support functions of IT expenditure and Professional fees." finance and legal. The Congregation of the Sisters of Nazareth Generalate 34 Notes lo the accounts 31 March 2023 4 Grants and donations in support of the Congregation's work 2023 2022 Th8 Congregation of the siste￿ of Nazareth, Irish Region Grant5 to the U.K Region.. - General N8Z8reth Housè SoLrthend Nazareth House Hammersmilh Congregation of th8 Sisters of Nazareth Charitable Trust, UK Region Scottish rèdrass provision Iwrf(e backl cther donations 416.436 44,180 35,190 236,591 197,979 42.794 347.860 2.000,000 {118.4181 26,000 2.723,522 5.161,21S 30,QOO 5,705,155 Claim5 for alleged historfc abuse In the UK have been paid on behalf of thé Congregation by our insurers and lolalled £2,510,5go in 202312022 £2,543,258). The expendrture has bèen netted off in the Statement of Financial Actwities against the income from insurers of £2,510.590 in 202312022.. £2,543,256). S Governance 2023 2022 Legal and professional fges Audit and aeeountaney fees 11.498 12.240 23,738 18.528 26.028 6 Net incomel{expenditurnl and net movement In funds for the year This is stated after charging". 2023 2022 Audrtofs ramuneration including VAT Statutory audft i¢urrent yearl 18,528 12,240 7 Staff costs and remuneration of key rnanagement personnel 2023 2022 W3g8S and salaries National Insurance costs Other pension costs 252,704 24,920 17,216 294,840 233.300 22,763 15,960 272.023 The number of employees earning £60,000 p¢r annum or mor8 (including laxablo benèfrts but excluding employer pension contributions) during th? year was as follows.. The Congregation of the Sisiers of Nazareth Generalate 35 Notes to the a¢¢oumS 31 March 2023 2023 Numbèr 2022 Number £120,001 - £130,000 £130.001 - £140,000 The average number of employ8•s duTing the year was.. 2023 2022 Administration Management The key managemant pèrsonnel of the Charty in charge ol d￿e¢lIng and controlling, runnlng and operating th$ Ch8rty on a day lo day basis eompn$¢ thè trustèes and the Congregational Chief ExecutNe. The total retlvjnerat￿n lincluding taxable benafts, employerfs national insurance and employerfs pension contributions) ofthè kay management ￿rsonnel forthe year was £158,42212022" £151,029). Trnst¢e$' èxpenses and remuneration and transactlons with trustees The charitls trustees 8re 811 members of th8 Congregatson and consequently their Iwing and personal expenses, all ofwhich are consistentwilh the amounts paid In respectto other members ofthe Congiegation, are borne bythe Charity. No trustee receNe¢J any remuneration or reimbursement of expenses in ¢onnectl¢n wrth Ih¢ir duties as trustees12022- none). As members of the Congregation, non8 of the trustees have resources of their ovm as all earnings, pensh)ns and other income have been donated to the Charity under a Grft Aid Compl￿nt Deed of Covenant During the year. the totsl amount donated by the trustees to Ihtt Charity was £131,61012022'. £125,689). Taxation The Congrogalion of thè Sistors of Nazarèth Generalate is a registered charrty and, th8r•fore, is not liab lo income tax or corpgralion lax on income or gain5 derivèd from rts charitable actNrti8s, as they fall wrfchin the varh)us éxamptions availabl8 to r•gis18r8d charf£ies. 10 Tangible fixed assets Propety Cgmet¢ry refvrbishmert Motor vehicles Totsl Cost At 1 April 2022 Additions At 31 March 2023 19,500 2.813.417 2,832,918 19,500 2,813,417 2,832,918 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 19,500 659,767 247,072 )6,839 679.267 247,072 926.339 19,500 Net book valutss At 31 March 2023 At 31 March 2022 1,906,578 1,908,579 2,153,650 2,153,651 The Congregaiion of Ihe Sisters of NazatEth Generalate 36 Notes to the accounts 31 March 2023 In 2014, at the time of disposing of N8z8reth House lsleworth, the Charty entered into a 99￿year lease ￿n respect to the cemetery on that site at a peppercorn rènt. This is disclosed on Ihg balance she6t as a tangible fixèd assèt at th8 value of £1. There is an infcrfmal arrangement be￿&￿n Thé Congregation of the Sister5 of Nazareth Charitable Trust, which owns the property at Nazareth House, Hammersmtth, and the Charity, that the Charty may use space on the $rte of Nazarèth House Hammersmrth. The Charity has paid for the cost of refurbishing oné of the buildings used. This has been funded from a restricted donation and the cost of refvrbi5hment has b6en shown a5 a tangible assèt and as a restricted fund. The remainder of the rastricted donation is shown as a restricted fund until spent In wevlous years, other buildings have been refijrbished or extended. Thèsè are being treated as leaseholder improvements and are bein9 depr8ciatad aecording to the depreciation poli¢y. 11 Investments 2023 2022 Investments Market value at 1 April 2022 Additions at C05t Disposals al btstsk valuè Net Ilossesl I gains on revaluation Market value at 31 March 2023 21,822,125 20,379.630 17,401,000 13,536,917) 117,331,707) 1816.5871 1.373,202 17.468,621 21.822,125 Investments held at 31 March 2023 comprised the following.. 2023 2022 Property U.K. fE