2025-03-31-accounts

The Congregation of the Sisters of Nazareth Generalate

Annual Report and Accounts

31 March 2025

Charity Registration Number 1138876

(England and Wales)

Contents

Reports
Reference and administrative details of the charity, its trustees and advisers	1
Trustees’ report	2
Independent auditor’s report	23
Accounts
Statement of financial activities	25
Balance sheet	26
Statement of cash flows	27
Principal accounting policies	28
Notes to the accounts	33

The Congregation of the Sisters of Nazareth Generalate

Reference and administrative details of the charity, its trustees and advisers

Trustees	Sister Brenda McCall (Chair), AKA Sister Mary Brenda McCall
	Sister Valma Beatrice Cooper, AKA Sister Dominica of the Cross Cooper,
	to 16 October 2024
	Sister Mary Veronica Kealey, AKA Sister Veronica Anne Kealey, to 16
	October 2024
	Sister Anne Bernadette Walsh, AKA Sister St Teresa Walsh, to 16
	October 2024
	Sister Mary Monaghan, AKA Sister Mary Anne Monaghan, from 17
	October 2024
	Sister Mary Doolan, AKA Sister Anna Maria Doolan, from 17 October 2024
	Sister Thi Xuan Linh Nguyen, AKA Sister Teresa Clare Nguyen, from 17
	October 2024
	Sister Anne Margaret Craig, AKA Sister Margaret Craig, from 17 October
	2024
Superior General	Sister Mary Brenda McCall
Treasurer General	Sister Anna Maria Doolan
Secretary General	Sister Teresa Clare Nguyen
Chief Executive	Kevin Barnes
Principal office	St Michael’s
	Nazareth House
	169-175 Hammersmith Road
	London W6 8DB
Email	[e-mail]
Website	www.sistersofnazareth.com
Charity registration number	1138876 (England and Wales)
Auditor	Crowe U.K. LLP
	55 Ludgate Hill, London EC4M 7JW
Investment manager	CCLA
	One Angel Late, London EC4R 3AB
Principal banker	Barclays Bank
	22-24 Upper Marlborough Road, St Albans, Hertfordshire AL1 3AL
Principal solicitor	Stone King LLP
	Upper Borough Court, Upper Borough Walls, Bath BA1 1RG

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Trustees’ report 31 March 2025

OVERVIEW

During the financial year the Charity has continued to work towards delivering the Mission, Vision and Aim of the Congregation, and living by its values. These are set out in full on page 5 and are similar for the Charity and the Congregation.

The main achievements of the Charity during the 2024/25 year include:

1. Holding the General Chapter of the Congregation in June 2024, and agreeing five new mandates for the Congregation.

2. Supporting the five regions, including providing them with financial support where needed.

3. Funding and managing the refurbishment of Nazareth House Hammersmith, the original house established by Victoire Larmenier, and home of the Charity.

4. Continuing to develop and support the Heritage Centre, which includes an exhibition of the life and times of the Congregation’s Foundress, Victoire Larmenier, and her legacy of the Congregation of the Sisters of Nazareth, along with the Congregation’s archive. The collection continued to be added to during the year.

Proceedings into the historic 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 residential children’s homes in Scotland operated by the Congregation. The Congregation formally apologised for any mistreatment of those in its care and deeply regrets any harm or shortcomings in the care provided. A formal apology has also been issued in Northern Ireland for the mistreatment of those in its care in its children’s homes.

The Congregation has and continues to cooperate with the Scottish Inquiry, Northern Ireland Inquiry and the Inquiries held in England and Wales, Australia and New Zealand, each at different stages, and with those governments as they set up their redress schemes. All residential children’s homes in each of these countries have been closed for many years.

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Trustees’ report 31 March 2025

STRUCTURE

The Congregation of the Sisters of Nazareth Generalate (‘the Charity’) supports the members of the Congregation of the Sisters of Nazareth (‘the Congregation’) and its educational, care of the elderly and other charitable works across the world. The Charity is the facilitating entity for carrying out the civil law actions on behalf of the Congregation. The Charity is based in the United Kingdom and holds the central reserves of the Congregation. The trustees of the Charity are also the elected leaders of the Congregation, that is, the Superior General and her General Councillors.

This report uses ‘the Charity’ to refer to the work of the Congregation of the Sisters of Nazareth Generalate to whom this report relates, and ‘the Congregation’ to refer to the work of the Congregation of the Sisters of Nazareth, the religious body that the Charity is a part of.

The Congregation is an unincorporated international body of religious women – the Sisters of Nazareth (‘the Sisters’) – founded by Victoire Larmenier and recognised by the Holy See in 1864. As of 31 March 2025, there were 172 Sisters (2024: 184) and three novices (2024: three).

The Congregational Structure

Most of the Congregation’s ministries, or services, are provided within Nazareth Houses, which are mainly care homes for older people. As of 31 March 2025, the Congregation operated 34 Nazareth Houses, 9 retirement villages, 2 education services and 1 children’s services in 35 different locations. They are organised into four regions and one area: Africa, America, Australasia, Ireland and the United Kingdom. For this report only, the four regions and one area are all referred to as regions.

Each region consists of both a regional branch of the Congregation and an operating entity, which are charitable or not-for-profit organisations. In most cases, the regional branch of the Congregation owns the properties – the Nazareth Houses – and looks after the mission of the Congregation and the welfare of the Sisters in the region. The operating entities function under the name Nazareth Care (Nazareth House in America) and the services are delivered on behalf of the Congregation. They manage the care homes and other services, 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 services and provide the care.

Each Nazareth Care is a separate legal entity with its own governing document and board of trustees, consisting of Sisters and 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, although each is necessarily tailored to the legal jurisdiction in which it operates.

The Congregation, through the Superior General and the General Councillors, retains the principal decision-making powers over each of the regions.

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Connected entities of the Charity

The Charity has no related parties or subsidiaries. There are several entities connected to the Charity, being other components of the Congregation. Those components in the United Kingdom are detailed in Note 19 to the accounts and consist of The Congregation of the Sisters of Nazareth Charitable Trust (charity registration number 228906 (England and Wales) and SC040507 (Scotland)) and Nazareth Care Charitable Trust (charity registration number 1113666 (England and Wales) and SC042374 (Scotland)) and a company limited by guarantee (Company Registration No 5518564 (England and Wales)) and its subsidiaries.

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Trustees’ report 31 March 2025

THE CONGREGATION’S AIM, MISSION, VISION, AND VALUES

The Charity supports the work of the Congregation throughout the world. Its Aim, Mission, Vision and Core Values are those of the Congregation.

Aim

The Constitutions of the Congregation of the Sisters of Nazareth set out its aim:

“To glorify Almighty God by following Christ as our supreme rule of life. We do this by personal sanctification, by dedicating ourselves to the building up of God’s kingdom, and by engaging in the particular ministries entrusted to us by the Church: care of the elderly, work with children, educational, pastoral and social works, and other ministries in accordance with the needs of time and place.” (Constitution 1.3)

Mission

The mission of the Congregation of the Sisters of Nazareth is:

“ We, the Sisters of Nazareth, aim to share the love of God through our ministries of care and education and our openness to respond to the needs of the times.”

“Whatsoever you do to the least of my people you do to me”. Words of Jesus Christ (Matt.25:40)

Vision

The Congregation of the Sisters of Nazareth is a Catholic Congregation devoted to the care, dignity and protection of human life; it strives to maintain and improve the quality of life of those entrusted to its care.

Core values

The Aim, Mission and Vision are supported by six Gospel-based Core Values. All who are associated with the work of the Congregation are expected to demonstrate a commitment to the Core Values:

• Love – Unselfish concern for the good of others shown through patience, kindness, trust, hope, endurance, truth and a strong affection.

• Compassion – Being open and attentive to the whole person, spiritually, physically and emotionally, showing empathy for the suffering of others and trying to relieve that suffering.

• Respect – Holding the unique dignity of each person in high esteem and with special consideration, showing thoughtfulness, courtesy and care.

• Justice – Upholding what is fair, decent and right, appreciating each person, respecting their rights in a balanced and fair manner.

• Hospitality – Welcoming and receiving all into a warm, friendly and open atmosphere.

• Patience – Persevering calmly and with understanding and endurance.

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The Charity created and supports the programme, Victoire’s Legacy , which has been delivered to the regions and continues to be rolled out throughout the Congregation. It covers the legacy of the Foundress, the Mission of the Congregation, Core Values, safeguarding, interculturality and the principles of Servant Leadership. The programme provides training to staff and volunteers in the meaning and application of the Core Values and how to put them into practice in the workplace, ensuring the Core Values and Mission make each Nazareth House and service a distinctive place of care. The continuing and visible presence of Sisters in the majority of services is a reminder to residents, relatives, staff and volunteers of the Congregation’s origin and its ongoing commitment to providing spiritual and compassionate care to the elderly and others who benefit from these services.

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Trustees’ report 31 March 2025

REVIEW OF THE YEAR

The trustees present the report and accounts of the Congregation of the Sisters of Nazareth Generalate for the year ended 31 March 2025.

During the year the Charity has supported the mission and services of the Congregation provided in the regions. These include providing guidance, advice, financing and ongoing monitoring and support to building works, changes to governing documents and any other significant developments.

The Congregation holds a General Chapter every six years at which the Congregational Plan for the next six-year period is agreed. The 27[th] General Chapter was held in June 2024 in Hammersmith, London and developed five Congregational mandates. Subsequently, the Charity developed a Congregational Plan through to the next Chapter in 2030, which provides more detail on the actions, responsibilities and planned outcomes. The mandates are:

1. Vowed life : Deepen our enthusiasm for our vowed life, renewing our commitment to community and mission;

2. Vocation promotion and formation : Renew and update the current Formation booklet;

3. Embedding the mission : Sustain Victoire's vision and mission into the future;

4. Safeguarding : Embrace safeguarding as a priority for the Congregation;

5. Aggregation : Congregation of Sisters of Nazareth to aggregate with the Augustinian family.

The delivery of the Mandates is a process that will take time. Actions towards their delivery by the Congregation, and where necessary supported by the Charity, include:

• Employ a Mission Director in each Region to promote the mission of the Congregation and Victoire’s Legacy, along with the core values.

• Applying the formation programme to support the training and ongoing formation of Sisters;

• Organising a meeting of the Chief Executives from each region to consider the future needs of Nazareth Care, how they support the objectives of the Congregation and work in partnership with the Congregation.

• Considering ways to ensure the viability of the Congregation with regard to the changing availability of Sisters;

• Ensuring the appropriate role of Sisters and others in the governance of the Congregation;

• Promote and develop safeguarding policies and practices in each region;

• Strengthening the partnership between the Congregation and Nazareth Care;

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• Continue the implementation of ecological and social justice policies, furthering a growing consciousness and practice in these areas;

These and other actions are contained in the Global Congregational Plan and are the main themes in the Nazareth Care Global Plan and each regional Nazareth Care plan.

Planning

The Global Congregational Plan and the Nazareth Care Global Plan form the top layer of a planning system that enables each region, service and community of Sisters to produce their own plans. The intention is for a ‘golden thread’ to flow from the General Chapter through all the plans, ensuring that all activities are aligned with the Mandates. The plans identify the many elements common to both plans that require the same actions by Sisters and lay staff.

Property

Building work continues in all regions. The Charity is funding the majority of the refurbishment works of Nazareth House Hammersmith, including the construction costs and professional fees to refurbish the home completely. Work continues on site on the back-of-house areas and the first 14 resident rooms. Work will continue for at least four years while parts of the home are refurbished and the rest of the home is kept operational.

In February 2025, a rural service in the Northern Cape, South Africa, known as Fourteen Streams was transferred to the Diocese of Kimberley and the Sisters who lived and worked there were transferred to other services in South Africa. It is pleasing to know that the services, including a nursery, will continue to benefit the local community.

Works previously approved have continued, including completing the remodel of part of Nazareth House Los Angeles in America, upgrading facilities and converting space to more resident accommodation in Cape Town in South Africa, and installing new kitchens in Geraldton and Camberwell in Australia and San Diego in America. More minor works are occurring elsewhere, and plans are also being developed for upgrades and improvements to several other Nazareth Houses across all regions.

Inquiries

We continue our practice of cooperating with all Inquiries and providing ongoing support. An agreement by the Charity, acting on behalf of the Congregation, has been reached with the Scottish Government to contribute to the payments made by Redress Scotland to former children in our care regarding claims of abuse. The Charity is also in discussions with The Executive Office in Northern Ireland about contributions to their redress scheme. No agreement has been reached at this time. We are also working with other Inquiries, as necessary.

We continue to cooperate with governments, redress boards and survivor organisations to support claimants and potential claimants with access to their records and to provide individual apologies when requested.

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Consent

No new consents were granted in the year.

Finance

Each region consists of one or more independent charities. Therefore, consolidated accounts are only produced at a regional level and are not consolidated globally. Region accounts are prepared and audited according to their local standards and are available on request from each region.

Each region provides a quarterly report on its operational financial performance, covering the activities of Nazareth Care including each Nazareth House. Unaudited accounts for each region show that the total turnover for 2024/25 was £139 million (2024: £133m). The increase in total income mainly reflects inflationary increases to cover cost increases.

The most significant pressure in most regions is expenditure increases due mainly to a lack of available trained staff, wage inflation and the increase in the cost of energy and food at a faster rate than income. Collectively, the five regions still managed to generate a surplus, to be used for reinvestment in capital projects but not every region was able to do so individually.

The recovery of Nazareth Care Charitable Trust, the operating entity in the UK Region, reported in the previous Annual Report continued. Occupancy, fee rates and recovery of debts all improved, along with using fewer agency staff and more permanent employees. The Region continued to operate at a deficit, but smaller than in the previous year.

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Other activities

Other activities by the Charity during the year on behalf of the Congregation included:

• monitoring the financial and operational performance of the regions;

• monitoring the Sisters’ funds and Nazareth Care funds in the regions;

• reviewing the governance in regions;

• considering applications by regions for consents of various types, in particular relating to major building works and constitutional requirements;

• inducting the new Charity trustees;

• allocating funds to consented projects by way of grants and loans;

• monitoring investment performance and the investment managers used;

• keeping in touch with the regions and houses. The focus of the communications and visits by the Superior General and her General Councillors is their pastoral care of each Sister’s welfare and providing opportunities to observe the operations within houses, monitor the governance within regions and houses, encourage a strong partnership between the Congregation and Nazareth Care and update their knowledge of issues in each region and house.

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Trustees’ report 31 March 2025

FINANCIAL REPORT FOR THE PERIOD

The accounts have been prepared in accordance with the accounting policies set out on pages 28 to 32 of the attached accounts and comply with the Charity’s trust deed, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Income and expenditure

The income and expenditure of the Charity are detailed in the Statement of Financial Activities, on page 25 of the accounts.

Unrestricted income for the Charity was £2,592k in 2024/25. This is a reduction from £9,658k in 2023/24 and reflects a more typical level of income. 2023/24 included a donation from the UK Region of over £7m, following the sale of a property in Southend.

Expenditure of £4,001k (2024: £5,122k) exceeded income, leading to a deficit of £1,409k (2024: surplus £4,535k).

During 2024/25, financial support to the UK Region was not required. However, support was paid to the Australasian Region to assist with legal and related costs.

There was a loss in the value of investments in the year of £235k (2024: gain £2,093k), mostly in the final quarter of the year, which has since recovered.

Foreign exchange losses, resulting from loans denominated in a foreign currency, of £299k (2024: £311k) were incurred. Sterling strengthened during the year against the Euro and the New Zealand Dollar, the two main currencies where there is exposure. The loans are financing works completed at Nazareth Houses in Christchurch, New Zealand; Dublin, Ireland; Mallow, Ireland; Belfast, Northern Ireland, along with Sterling loans for works in the UK, in Glasgow and Birkenhead.

There was no restricted income in 2024 (2023: none). Restricted expenditure of £4,023k (2024: £2,024k) was incurred on the refurbishment of Nazareth House Hammersmith, which the Charity is largely funding.

Funds

The results of the above income and expenditure are a reduction in restricted and unrestricted funds. Unrestricted funds reduced by £1,644k (2024: gain £6,629k) to £32,796k (2024: £34,440k) and restricted funds reduced by £4,023k (2024: £2,023k) to £3,118k (2024: £7,141k).

Loans

No new loans were approved during the year and no further advances are anticipated for any loans that have already been approved. The Charity’s debtor balance as at 31 March 2025 is £16,509k (2024: £16,967k), predominantly by the repayment of part of the Irish loan. Notes 12 and 19 to the accounts provide further details of the outstanding balances and the funding arrangements.

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Cash flow and investment performance

The value of investments as at 31 March 2025 was £15,576k (2024: £17,812k) which includes investment properties. £2m had been withdrawn during the year to fund cashflow requirements. The balance includes unrealised losses in the value of the investments of £236k (2024: gain £2,093k). The investment properties are valued at £275k (2024: £204k). One was in the process of being sold at the year end and has subsequently been sold. A summary of movements on investments can be found in Note 11 to the accounts.

Funds and reserves policy

The Charity’s reserves of £35,914 (2024: £41,582k) are divided between four unrestricted funds and a restricted fund:

A. Unrestricted funds:

Designated funds:

•  The Sisters’ Support Fund: £7,000k (2023: £7,000k) is retained to provide Sisters in the Congregation who need 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 providing care for Sisters, the number of Sisters, their ages, life expectancy, anticipated 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: £23,500k (2024: £24,500k) was reduced by £1,000k during the year following cash flow needs and expenditure on Nazareth House Hammersmith. The fund will be used to provide loans or grants to regions requiring support for building, restructuring, developments, or other similar projects. Building projects and regional support are expected to be the primary focus of the utilisation of the Charity’s funds for some years as many properties require upgrading and remodelling to comply with current standards and expectations. The Charity has already invested a proportion of the fund, demonstrated through the existing loan balances. Further loans can be made as the existing loans are repaid. They anticipate using more of the fund over the next ten years to continue the process of upgrading properties, subject to retaining sufficient funds to respond to emergencies. This is expected to include additional costs to refurbish Nazareth House Hammersmith, as well as other sites in the UK and overseas.

Other funds:

•  The Tangible Fixed Assets Fund represents the net book value of the tangible fixed assets owned by the Charity. The fund has decreased from £1,659k to £1,442k during the year as existing assets have been depreciated.

•  The General Fund of £854k (2024: £1,281k) is retained to cover the running costs of the Charity in the event of a temporary loss of income, and provides some capacity to support regions and houses experiencing unforeseen costs that cannot immediately be funded from other sources. The General Fund represents the only unrestricted and non-designated funds of the Charity, that can be spent as the trustees decide.

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The General Fund is in line with the Charity trustees’ expectations and represents around 9 (2024: 10) months of budgeted unrestricted expenditure, excluding depreciation. The trustees wish to retain between 6 and 12 months of budgeted operating expenditure in the General Fund to avoid any interruption to its activities in the case of a loss of income or the need for increased support to a region.

B. Restricted Fund:

•  The Restricted Fund of £3,118k (2024: £7,141k) is accounted for separately. It is held in CCLA’s Catholic Investment Fund. During the year, £4,023k (2024: £2,024k) had been spent from the fund on construction costs and professional fees.

Going concern

The trustees have assessed the Charity’s ability to continue as a going concern. The trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including a review of updated forecasts to 31 March 2026 covering income, expenditure, cash and reserves, the longterm cashflow forecast to 31 March 2030 and a consideration of key risks, including economic uncertainty and income streams that could negatively affect the Charity.

The Charity is funded primarily by donations from the Regions within the Congregation together with other donations including legacies. There is a risk in each of the regions that reductions in income caused by fewer residents, shortage of staff and rising cost inflation will reduce the amount that is paid to the Charity. Occupancy is steady, admission embargos are less common and are often much shorter and more targeted than previously. During the last year, most houses and regions have remained resilient to the challenges and have continued to operate successfully. All regions have made a contribution to the Charity in the last year.

Debtor balances have been reviewed and assessed and, as all loans are within the Congregation, they are considered to be repayable in full. The budget and forecasts for the forthcoming year are considered to be deliverable and the cashflow forecast shows that there are sufficient cash and liquid resources and forecast inflows for the period of review, with the support of the unrestricted reserves if required.

The Trustees therefore have a reasonable expectation that the Charity has sufficient resources to continue in operational existence for the foreseeable future and so should continue to adopt the going concern basis in preparing the annual report and financial statements.

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FUTURE PLANS

The focus over the next year will be to continue implementing the five mandates from the General Chapter in 2024 and the actions in the Congregational Plan. These will be in the next year and also for the following six-year period.

In addition, the Charity will continue to support the regions, particularly with their property developments and upgrades to ensure the best environment for delivering high-quality care to residents.

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GOVERNANCE

The members of the Congregation are led by the Superior General, who is supported by her General Councillors. These Sisters are elected every six years at the General Chapter, which is attended by representatives of the whole Congregation. The General Chapter, while in session, is the highest authority in the Congregation. Before each Chapter there is considerable consultation with all Sisters through a series of Regional Chapters, other region-based meetings and papers distributed for discussion. The Regional Chapters elect Sisters to attend the General Chapter on behalf of all Sisters. The June 2024 General Chapter was attended by 29 ex-officio and elected Sisters from the Congregation. This consultative approach provides 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 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 trustees of the Charity comprise the Superior General and the General Councillors ex officio . At the end of the year, the following trustees held office:

Sister Brenda McCall (‘Sister Mary Brenda’)

Sister Brenda was elected Superior General in 2018, having been a General Councillor since 2012. She was re-elected in 2024. 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 structures. Prior to 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, is a Registered General Nurse, and has a Postgraduate Diploma in Leadership and Management from Loughborough University.

Sister Mary Monaghan (‘Sister Mary’)

Sister Mary trained as a teacher and worked for over 20 years in Catholic education, mainly in Western Australia, including as the Principal of St Lawrence’s Primary School in Geraldton. She served as a member of the School Resources Committee (a committee of the Catholic Education Commission of Western Australia), which examined all proposed capital works applications of Catholic Primary and Secondary schools in the State and recommended to the Commonwealth Government those applications that should be funded. Sister Mary oversaw the complete refurbishment of one house and the new build of another. She served as Superior General for 12 years, during which time she introduced Nazareth Care. She has also been a Regional Superior in Australasia and was elected as a General Councillor in 2024.

Sister Mary Doolan (‘Sister Anna Maria’)

Sister Anna Maria trained as a registered nurse and worked in a number of houses in the UK and Ireland. Before she was elected a General Councillor in 2024, Sister Anna served as the Superior in Lancaster, Glasgow, and Cardiff. Additionally, she held the position of UK Regional Superior for seven years, during which time she attended Loughborough University and obtained a Postgraduate Diploma in Leadership and Management. Upon joining the General Council, she has taken on the positions of Treasurer General and Safeguarding Lead.

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Sister Thi Xuan Linh Nguyen (‘Sister Teresa Clare’)

Sr Teresa entered the Congregation of the Sisters of Nazareth in 1993. She has worked in the Australasian region, holding various roles, including Vocation Director, Mission Leadership program, and Lifestyle and Volunteer coordinator. She also served on the Nazareth Care board and the Regional Council, and was a Superior in Tamworth and Camberwell. Sr Teresa's training background was in Theology with a particular focus on Pastoral Studies and Discernment. At the General Chapter in 2024, Sr Teresa was elected to the General Council where she is the Congregation’s Secretary General.

Sister Anne Margaret Craig (‘Sister Margaret’)

Sister Margaret has been a Sister of Nazareth for over fifty years, spending most of her time in South Africa as a social worker and manager for residential children’s services. She has a degree in social work and qualifications in child and adolescent psychology and development, safeguarding and sexual abuse. Before being elected as a General Councillor in 2024, she had been a house Superior in Johannesburg and Port Elizabeth, and Regional Superior for Africa. She now leads the formation programme for all Sisters in the Congregation.

The Superior General and General Councillors live and work on the Nazareth House site in Hammersmith, which was the first to be established by the Congregation’s Foundress, Victoire Larmenier, in 1857 and which remains the ‘Mother House’ of the Congregation.

The trustees form a Part VII incorporated trustee body – ‘ The Trustees of the Congregation of the Sisters of Nazareth Generalate’ . The Charity Commission granted a Certificate of Incorporation on 23 March 2011.

The Charity is governed by a Trust Deed dated 1 October 2010. Its objects are to apply the Charity’s property and income ‘...for such charitable purposes as shall advance the religious, educational, care and other charitable work of the Congregation, for the public benefit, as the Trustees with the approval of the Superior General shall from time to time think fit...’.

Trustees’ powers include but are not limited to:

•  supporting and maintaining ‘... all who are or have been engaged in the charitable works of the Congregation including ... Trustees of the Trust’.

•  making ‘...grants and loans whether out of income or capital and upon such terms and conditions (if any) as to interest, repayment, security or otherwise and to guarantee money or to use the assets of the Trust as security for the performance of contracts entered into by any person, association, company, local authority, administrative or governmental agency or public body as may be thought fit or towards charitable purposes in any way connected with or calculated to further the objects of the Trust’.

•  establishing ‘... such separate charity or charities as they think fit ... to carry on such charitable works as are within the ambit ... of this Deed’ and ‘... trading companies to assist, or act as agents for, the Trust’.

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The Superior General and General Councillors of the Congregation are the trustees of the Charity. Together with the Congregational Chief Executive, they meet formally four times during the year to discuss the business aspects of the Congregation’s activities. Following the trustees’ meetings, the Superior General and General Councillors meet as a General Council to approve, give consent or further deliberate on the matters arising from these meetings. These meetings are minuted separately.

Elections of the Superior General and General Councillors take place at the General Chapter. The General Chapter held in June 2024 re-elected the Superior General and elected four new General Councillors who took up their positions in October 2024.

New trustees are inducted by the existing trustees and staff and training is provided.

Charity Governance Code

The Charity has assessed its compliance with the principles of the Charity Governance Code, undertaking a detailed review in June 2020. It considers that it fully meets 54 of the 76 items of recommended practice in the Code and is working towards another nine items. Two items are not met and 11 that it considers are not relevant to the charity.

The two unmet areas are benchmarking with similar organisations and considering information from other similar organisations and reporting on how the charity evaluates the board effectiveness in this report. Formally assessing board effectiveness is one of the areas that it is working towards.

The non-relevant areas mostly concern the recruitment of trustees, as the Constitutions require trustee appointments to be made from within the Congregation, which limits the advertising, diversity and breadth of board skills. This is compensated for by having trustees with wide-ranging experiences in care and education and who are wholly committed to the Congregation and the Charity without outside distractions; the use of external advisors and outside expertise on committees provide greater diversity and breadth of skills.

Key management personnel

The trustees consider that they, with the assistance of the Congregational Chief Executive, comprise the key management of the Charity in charge of directing and controlling, running and operating the Charity on a day to day basis. Decisions are made by the trustees unless they have been delegated to the Congregational Chief Executive as part of the approved general delegation or as agreed when making a specific decision.

All trustees are members of the Congregation and, whilst their living and personal expenses are borne by the Charity, they receive no remuneration or reimbursement of expenses in connection with their duties as trustees. Additionally, they donate all of their income to the Charity.

The performance and pay of the Congregational Chief Executive is reviewed annually. To deliver the charitable aims and to complement the skills of the Sisters, the Charity employs a small number of paid staff. The commitment to staff is to pay them a fair and appropriate salary that is affordable. This is to attract and retain people with the right skills and who, therefore, will have the greatest impact in delivering the Charity’s objectives.

In accordance with the Statement of Recommended Practice we:

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Trustees’ report 31 March 2025

•  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 accounts).

•  disclose pensions and other benefits (Note 7 to the accounts).

Staff remuneration does not include any share options or long-term incentive schemes as there are none.

The period of notice for termination of contracts of employment is three months for any staff earning over £60,000.

Grant-making policy

The Charity makes funds available as grants to individual houses and regions, which are to separately registered charities, to support its ministries. The grants are accounted for as expenditure in the year in which they are approved.

During the year, a few small external grants were made by the trustees in response to identified needs. These were generally to support individuals or smaller not-for-profit organisations. Grants made by the Charity during the year are detailed in Note 4 to the accounts.

Investment policy

The Charity’s constitution does not restrict the trustees’ powers of investment. The choice of investments is heavily influenced by the ethical investment policy, which is designed to avoid, as far as is reasonably possible, any significant investment in organisations that produce goods or services at odds with the teachings of the Catholic Church, particularly regarding the sanctity of human life.

The trustees take a total return approach to their investments, investing in funds that adhere to the ethical investment policy. The main investment portfolio is within CCLA’s Catholic Investment Fund which holds a diversified portfolio containing equities, alternative assets and cash and near cash, managed within an acceptable level of risk.

The fund’s investment objective is to achieve a gross total return before fees of 5% per annum above the Consumer Price Index, over a five year period, whilst adhering to its ethical investment policy. It has not been achieving this recently due to the high level of the Consumer Price Index.

The Charity’s practice is to re-invest income arising from the investment portfolio. The trustees consider the level of liquidity that is required to support grant and operational commitments in the short and medium term.

The Charity uses the expertise of its investment managers to help with the management of its investment funds and will purchase additional advice where necessary as well as draw upon the knowledge of the Advisory Finance Committee members and the key management personnel.

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Trustees’ report 31 March 2025

Public benefit

The trustees confirm that they have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011 when considering the Charity’s objectives and activities. All activities relate to the general objectives of the Charity through supporting Sisters and delivering care to the elderly and children, delivered through overseeing and supporting the regions, providing financial contributions, advice and guidance within which the regions operate. In these ways, the Charity is delivering a public benefit.

Risk management

The Charity reviews its risk management framework and agreed that there are five primary categories of risk facing the Charity and the Congregation: Mission, Spirit and Values; Governance; Safeguarding; Financial; Organisational and External Environment risks. In each category, it has agreed how willing it is to take risks to achieve its objectives and how it would endeavour to reduce risks where they are unacceptable to the organisation, its purpose or values.

Within each category, several specific risks and controls were identified that either 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 risk increases as the number of Sisters in the Congregation decreases and the role of paid staff in management positions increases. There are several programmes available in regions to ensure the mission is well understood and communicated, such as Victoire’s Legacy, and the Core Values of the organisation. Sisters remain intrinsic to each house and are visible throughout the majority of houses. Mass is held each day in most houses. Visits occur from the Superior General, General Councillors and the Congregational Chief Executive to each region and the houses. Alternative arrangements have been introduced in two regions to explore models that can operate with fewer Sisters including some sites operating as satellites with visiting Sisters. These are evaluated on an ongoing basis.

• Governance shortcomings. Governance arrangements ensure that the Charity’s Board of Trustees is made up entirely of Sisters who are supported by lay staff and advisors as necessary. In the regions, all boards consist of up to nine trustees, including Sisters. There is a strong set of Constitutions, Directives, Governance Handbook and reporting mechanisms covering all aspects of governance to ensure that the regions administer their operations according to the standards expected by the Congregation.

• Safeguarding incidents either now or in the past. Current safeguarding risks are well managed through comprehensive training and procedures and are more likely to occur in one of the regions, where they directly interact with vulnerable individuals. The impact on the Charity is by association and the consequential impact on its reputation. Historical incidents within the Congregation’s past are predominantly addressed nowadays by the Charity including reviewing practices and continuing to cooperate fully with all public Inquiries and with individuals making their own enquiries or civil proceedings. Many safeguarding risks may be covered by insurance.

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Trustees’ report 31 March 2025

• Financial failure through a region or the Charity not being able to meet its commitments, such as the repayment of a loan or a building project not being delivered to budget. The shared brand and support mechanisms ensure that if one part of the Congregation struggles, others may step in to support it. Due diligence is undertaken before commitments are made and insurance is taken out where appropriate. There is a process of continual oversight of the financial performance of each region and cash flow forecasting for the Charity to ensure there are sufficient, liquid funds to meet all reasonable eventualities.

• Organisational risks at the Charity include the reputational damage associated with the failure of a service either now or in the past, an over-reliance on key individuals, or the impact of investment or foreign exchange fluctuations. There is an awareness of these risks and contingency plans built in wherever possible to minimise their impact, for example, through the recruitment of skilled individuals, the sharing of information and the use of professional advisors where appropriate to do so. All services in the regions are externally regulated to ensure standards are continually met and/or improved.

• External environment changes have the potential to materially impact the work of the Charity and the Congregation in the UK or overseas through, for example, major changes to funding or legislation concerning the care of the elderly at the end of their lives, the public perception of the Catholic Church, recession or a global health crisis, such as the Covid-19 pandemic.

Fundraising policy

Traditionally the Charity has not proactively fundraised or solicited donations towards its work. It has therefore not signed up to the Fundraising Regulator.

When fundraising income is received, the Charity aims to achieve best practice in the way it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells or swaps data and ensures that communication preferences can be changed at any time. The Charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2024/25 the Charity received no complaints about its fundraising activities (2023/24: none).

Trustees’ responsibilities in relation to the financial statements

The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and regulations.

Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom 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 its net incoming/outgoing resources for that period. In preparing these accounts, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

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Trustees, report 31 March 2025 observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102),. make judgments and estimates that are reasonable and prudent., state whether applicable United Kingdotn Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts" and prepare the accounts on the going concern basis unless it is inappropriate to presutne 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 with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Chariiies Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence forlaking reasonable steps forlhe prevention and deteciion of fraud and other irregularities. Approved by the trustees and signed on their behalf by: Superior General and Trustee The Congregation of the Sisters of Nazareth Generalate 21

Independent auditor’s report 31 March 2025

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 Generalate (‘the charity’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2025 and of its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Independent auditor’s report 31 March 2025

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the financial 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 statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement 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 trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were employment legislation.

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Independent auditor’s report 31 March 2025

Auditing standards limit the required audit 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 risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Advisory Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed 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 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 nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP Statutory Auditor London Date: 22 October 2025

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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Statement of financial activities Year to 31 March 2025

Notes	2025 Unrestricted funds £ 2025 Restricted funds £ 2025 Total funds £	2024 Unrestricted funds £ 2024 Restricted funds £	2024 Total funds £
Income: Donations and legacies 1 Investment income and interest receivable 2 Total income Expenditure: Cost of raising funds - Investment managers’ fees Charitable activities - Supporting the regions of the Congregation 3 - Grants and donations in support of the Congregation’s work 4 Total expenditure Net income/(expenditure) before investment gains/(losses) Net investment gains/(losses) 11 Net (expenditure) and net movement in funds for the year 6 Reconciliation of funds: Fund balances brought forward at 1 April 2024 Fund balances carried forward at 31 March 2025	1,720,092 - 1,720,092 872,279 - 872,279	8,927,186 - 730,351 -	8,927,186 730,351
	2,592,371 - 2,592,371	9,657,537 -	9,657,537
	250 - 250 2,035,779 - 2,035,779 1,964,868 4,023,329 5,988,197	4,241 - 1,553,186 - 3,564,877 2,023,685	4,241 1,553,186 5,588,562
	4,000,897 4,023,329 8,024,226	5,122,304 2.023.685	7,145,989
	(1,408,526) (4,023,329) (5,431,855) (235,571) - (235,571)	4,535,233 (2,023,685) 2,511,548 2,093,354 - 2,093,354
	(1,644,097) (4,023,329) (5,667,426)	6,628,587 (2,023,685) 4,604,902
	34,440,442 7,141,29041,581,732	27,811,855 9,164,975 36,976,830
	32,796,345 3,117,961 35,914,306	34,440,442 7,141,290 41,581,732

All the Charity’s operations are derived from continuing activities during each of the two financial years.

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Balance sheet 31 March 2025 2025 2025 2024 2024 Notes Fixed assets: Tangible assets Listed investments Investment properties Total fixed assets 10 1,442,135 15.301.406 275.000 17,018.541 1,659,107 17.607,977 204,000 19,471,084 Current assets: Debtors - Amounts due within one year - Amounts due after one year Cash at bank and in hand Total current assets 12 12 5,447.194 11.062,210 9.417,321 25.926.725 3,134,380 13,832,533 10,960,915 27,927,828 Llabillties: Creditors.. amounts falling due within one year Provisions 13 13 {1,261.236) {3,120,588) 11,268,031) 11,682.5591 Net current assets Total assets less current liabilities 21,544,901 38,563,442 24,977,238 44,448,322 Non Current Liabilities Creditor- amounts falling due after more than one year 13 (2,649,136) 12,866,590) Total net assets 35.914,306 41,581,732 The funds of the charity Unrestrictsd funds: Designated funds Tangible Fixed Assets Fund General Fund Total unrestrtcted funds 15 15 15 30.5(10.000 1.442.135 854,210 32,796,345 31,500,000 1,659,107 1,281,335 34,440,442 Restricted funds: Development Fund 15 3.117.961 7,141,290 Total charity funds 35,914.306 41,581,732 Approved by the trustees on and signed on their behalf by: Superior General and Trustee The Congregation of the Sisters of Nazareth Generalate 26

Statement of cash flows Year to 31 March 2025

A B	Notes	2025 £	2024 £ 2,193,804 730,351 - 1,750,000 2,480,351 4,674,155 6,286,760 10,960,915 2024 £
	Cash flows from operating activities: Net cash used in operating activities A Cash flows from investing activities: Investment income and interest received Purchase of tangible fixed assets Proceeds from the disposal of investments Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 April 2024 B Cash and cash equivalents at 31 March 2025 B	(4,385,573)
		872,279 (30,300) 2,000,000
		2,841,979
		(1,543,594) 10,960,915
		9,417,321
	Notes to the statement of cash flows for the year to 31 March 2025 Reconciliation of net movement in funds to net cash provided by operating activities 2025 £
	Net movement in funds (as per the statement of financial activities) Adjustments for: Investment income and interest receivable Investment losses / (gains) Depreciation of tangible fixed assets Decrease / (Increase) in debtors Increase / (decrease) in creditors Net cash used in operating activities	(5,667,426) (872,279) 235,571 247,272 457,509 1,213,780	4,604,902 (730,351) (2,093,354) 247,472 715,084 (549,949)
		(4,385,573)	2,193,804
	Analysis of cash and cash equivalents	2025 £	2024 £ 10,960,915
	Total cash and cash equivalents:Cash at bank and in hand	9,417,321

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Principal accounting policies 31 March 2025

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Charity information

The Congregation of the Sisters of Nazareth Generalate (‘the Charity’) is registered with the Charity Commission for England and Wales, registration number 1138876. It is incorporated in the United Kingdom and has its registered address at 169-175 Hammersmith Road, London W6 8DB.

Basis of preparation

These accounts have been prepared for the year to 31 March 2025 with comparative information given in respect to the year to 31 March 2024.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees and management to make significant 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 fixed assets for the purposes of determining a depreciation charge;

•  assessing the timing of the receipt of loan repayments for the 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 particular in respect to the assumptions made in determining the values of the Sisters’ Support Fund and the Property Fund;

•  assessing the probability of the receipt of legacy income, where a notification of entitlement has been received;

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Principal accounting policies 31 March 2025

•  assessing the probability of the payment of a legal claim against the Charity and the probability of the payment being covered by insurance, where a claim has been notified.

Assessment of going concern

The trustees have assessed the Charity’s ability to continue as a going concern. The trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including a review of update forecasts to 31 March 2026 covering income, expenditure, cash and reserves, the longterm cashflow forecast to 31 March 2030 and a consideration of key risks, including Covid-19 and economic uncertainty, that could negatively affect the Charity.

The Charity is funded primarily by donations from the Regions within the Congregation together with other donations including legacies. There is a risk in each of the regions that reductions in income caused by fewer residents, the effects of the pandemic, shortage of staff and rising cost inflation will reduce the amount that is paid to the Charity. Admissions have increased in all locations, occupancy is increasing, and any new admission embargo is much shorter and more targeted than previously. During the last year, most houses and regions have remained resilient to the challenges and have continued to operate successfully. The UK Region has struggled with multiple challenges in the last year, detailed in their accounts. Consequently, the Charity has not received donations from the UK in the last year and the Charity has also provided financial support to the region, as detailed in this report.

Debtor balances have been reviewed and assessed and, as all loans are within the Congregation, they are considered to be repayable in full. The budget and forecasts for the forthcoming year are considered to be deliverable and the cashflow forecast shows that there are sufficient cash and liquid resources and forecast inflows for the period of review, with the support of the unrestricted reserves if required.

The Trustees therefore have a reasonable expectation that the Charity has sufficient resources to continue in operational existence for the foreseeable future and so should continue to adopt the going concern basis in preparing the annual report and financial statements.

Income recognition

Income is recognised in the period in which the Charity is entitled to receipt and the amount is probable. Income is deferred only when the Charity has to fulfil 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 period.

Income comprises donations, legacies, investment income and interest receivable.

Donations including contributions from the regions and salaries and pensions of individual religious received under deed of covenant, are recognised when the Charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance 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 of those conditions is wholly within the control of the Charity and it is probable that those conditions will be fulfilled in the reporting period.

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Principal accounting policies 31 March 2025

A small number of volunteers assist the work of the Charity, for example, serving on a committee or providing Mass. Their contribution is greatly appreciated. In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Legacies are included in the statement of financial activities when the Charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the Charity.

Entitlement 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 executor 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 considered probable when the amount can be measured reliably, and the Charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form 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 being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the Charity.

All of the Charity’s listed investments comprise accumulation units and hence investment income from listed investments is not credited to the statement of financial activities as it is reflected in the market value of the relevant investment holding.

Interest on funds held 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 normally upon notification 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 the terms of the relevant loan agreement.

Expenditure recognition and the basis of allocating governance costs

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to make a payment to a third party; it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

• a. The costs of raising funds comprise the fees paid to investment managers in connection with the management of the Charity’s listed investments, net of rebates received. Rebates arise when the fees deducted automatically through charges for common investment funds and related transactions exceed the fees agreed between the Charity and its investment managers.

• b. The costs of charitable activities comprise expenditure on the Charity’s primary purposes as described in the trustees’ report and include the support of the Congregation’s work in the United Kingdom and overseas. In the main such expenditure comprises the coordination and direction of, and the provision of advice to, the regions of the Congregation, losses on foreign

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Principal accounting policies 31 March 2025

exchange and the provision of grants and donations to projects of the Congregation. Grants payable are included in the statement of financial activities when approved by the trustees and all conditions have been fulfilled by the intended recipient. Provision is made for grants and donations approved but unpaid at the period end.

Governance costs comprise the costs involving the public accountability of the Charity (including audit costs) and costs in respect to its compliance with 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 capitalised. Tangible fixed assets are valued at historic cost.

Assets are depreciated at a rate calculated to write the value down to its estimated residual value over its expected useful life. The depreciation rates used are as follows:

Freehold land not depreciated Freehold buildings 50 years on a straight-line basis (2% per annum) Leaseholder improvements 10 years on a straight-line basis (10% per annum) for refurbishments or component-based for new assets, varying from 10 to 50 years (2% to 10% per annum) Motor vehicles 4 years on a straight-line basis (25% per annum)

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The Charity does not acquire put options, derivatives or other complex financial instruments.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Financial instruments

The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised 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 held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure.

Investment properties

Investment properties are stated at their fair value at the balance sheet date.

The Congregation of the Sisters of Nazareth Generalate 31

Principal accounting policies 31 March 2025

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 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 acquisition. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Funds structure

Restricted funds are monies given by a donor for specific purposes that can only be spent on the purpose for which they are given. Details of these funds are given in note 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 represents the net book value of the tangible fixed assets used to further the Charity’s objectives and work. Movements on the fund are shown in note 15.

The General Fund comprises those monies which may be used towards meeting the charitable objectives of the Charity and which may be applied at the discretion of the trustees.

Services provided by members of the Congregation

For the purpose of these accounts, no monetary value has been placed on the administrative and other services provided by the members of the Congregation.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.

Pension contributions

Contributions in respect of defined contribution pension schemes and personal pension schemes are charged to 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 outstanding contributions at the year end. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

The Congregation of the Sisters of Nazareth Generalate 32

Notes to the accounts 31 March 2025

1 Donations and legacies

Donations and legacies
	2025 £	2024 £
Legacies Pensions of individual Religious donated under a deed of covenant Donations - American Area - U.K. Region - Australasian Region - Irish Region - African Region - Other Other voluntary income	110,545 119,738 386,085 221,352 506,339 341,733 24,523 6,579 3,198	470,906 221,714 428,969 7,091,261 371,790 291,089 10,000 7,759 33,698
	1,720,092	8,927,186

Donations from the UK Region (CSNCT) include the proceeds of the sale of Nazareth House, Southend.

2 Investment income and interest receivable

Investment income and interest receivable
	2025 £	2024 £
Interest receivable - Bank interest - CCLA Charities Deposit Fund interest - Rental income – investment properties - Interest on loans to connected entities (note 21)	15,750 428,902 2,281 425,346	67,502 201,797 2,988 458,064
	872,279	730,351

3 Supporting the regions of the Congregation

Supporting the regions of the Congregation
	2025 £	2024 £
Staff costs (note 7) Maintenance of Sisters Travel IT and website development Professional fees: finance and legal Novitiate Premises Governance costs (note 5) Foreign exchange losses Depreciation – Hammersmith development Loan write down Other	346,668 81,014 160,847 64,301 33,503 58,575 81,437 23,806 299,200 247,272 523,266 115,890	320,844 125,242 86,118 49,109 138,270 36,728 129,518 25,928 310,915 247,472 - 83,042
	2,035,779	1,553,186

The Congregation of the Sisters of Nazareth Generalate 33

Notes to the accounts 31 March 2025

Support costs incurred by the Charity are detailed in the table in Note 3. They comprise the governance costs and the support functions of IT expenditure and Professional fees: finance and legal.

4 Grants and donations in support of the Congregation’s work

Grants and donations in support of the Congregation’s work
	2025 £	2024 £
The Congregation of the Sisters of Nazareth, Irish Region The Congregation of the Sisters of Nazareth, Australasian Region Grants to the U.K. Region: - General - Nazareth House Southend - Nazareth House Hammersmith - Congregation of the Sisters of Nazareth Charitable Trust, UK Region - Scottish redress provision - Other donations	26,689 1,540,088 67,628 1,637 4,023,329 - 307,546 21,280	19,815 514,403 111,709 137,286 2,023,685 2,750,000 18,793 12,871
	5,988,197	5,588,562

Claims for alleged historic abuse in the UK have been paid on behalf of the Congregation by our insurers and totalled £4,052,367 in 2025 (2024: £3,569,576). The expenditure has been netted off in the Statement of Financial Activities against the income from insurers of £4,052,367 in 2025 (2024: £3,569,576).

5 Governance

Governance
	2025 £	2024 £
Legal and professional fees Audit and accountancy fees	4,300 19,506	7,400 18,528
	23,806	25,928

6 Net income/(expenditure) and net movement in funds for the year

This is stated after charging:

	2025 £	2024 £
Auditor’s remuneration including VAT Statutoryaudit(currentyear)	19,506	18,528

7 Staff costs and remuneration of key management personnel

Staff costs and remuneration of key management personnel
	2025 £	2024 £
Wages and salaries National Insurance costs Other pension costs	301,133 27,773 17,761	276,374 25,907 18,563
	346,667	320,844

The number of employees earning £60,000 per annum or more (including taxable benefits but excluding employer pension contributions) during the year was as follows:

The Congregation of the Sisters of Nazareth Generalate 34

Notes to the accounts 31 March 2025

	2025 Number	2024 Number
£90,001 - £100,000 £130,001 - £140,000 £140,001 - £150,000	1 - 1	- 1 -

The average number of employees during the year was:

	2025	2024
Administration Management	3 1	4 1

The key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day to day basis comprise the trustees and the Congregational Chief Executive. The total remuneration (including taxable benefits, employer’s national insurance and employer's pension contributions) of the key management personnel for the year was £179,977 (2024: £170,419).

8 Trustees’ expenses and remuneration and transactions with trustees

The charity's trustees are all members of the Congregation and consequently their living and personal expenses, all of which are consistent with the amounts paid in respect to other members of the Congregation, are borne by the Charity. No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees (2023 – none).

As members of the Congregation, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the Charity under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by the trustees to the Charity was £69,719 (2024: £195,386).

9 Taxation

The Congregation of the Sisters of Nazareth Generalate is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

10 Tangible fixed assets

Cost At 1 April 2024 Additions At 31 March 2025 Depreciation At 1 April 2024 Charge for the year At 31 March 2025 Net book values At 31 March 2025 At 31 March 2024	Motor vehicles £	Cemetery £	Property refurbishment £
	19,500 -	1 -	--- 2,813,417 30,300
	19,500	1	2,843,717
	19,500 -	- -	1,154,311 247,272
	19,500	-	1,401,583
	-	1	1,442,134
	-	1	1,659,106

The Congregation of the Sisters of Nazareth Generalate 35

Notes to the accounts 31 March 2025

In 2014, at the time of disposing of Nazareth House Isleworth, the Charity entered into a 999-year lease in respect to the cemetery on that site at a peppercorn rent. This is disclosed on the balance sheet as a tangible fixed asset at the value of £1.

There is an informal arrangement between The Congregation of the Sisters of Nazareth Charitable Trust, which owns the property at Nazareth House, Hammersmith, and the Charity, that the Charity may use space on the site of Nazareth House Hammersmith. The Charity has paid for the cost of refurbishing one of the buildings used. This has been funded from a restricted donation and the cost of refurbishment has been shown as a tangible asset and as a restricted fund. The remainder of the restricted donation is shown as a restricted fund until it is spent.

In previous years, other buildings have been refurbished or extended. These are being treated as leaseholder improvements and are being depreciated according to the depreciation policy.

11 Investments

Investments
	2025 £	2024 £
Investments Market value at 1 April 2023 Additions at cost Disposals at book value Net gains / (losses) on revaluation Market value at 31 March 2024	17,811,977 - (2,000,000) (235,571)	17,468,623 - (1,750,000) 2,093,354
	15,576,406	17,811,977

Investments held at 31 March 2025 comprised the following:

	2025 £	2024 £
Property U.K. common investment funds	275,000 15,301,406	204,000 17,607,977
	15,576,406	17,811,977
Cost of listed investments at 31 March 2025	15,732,562	17,427,238

The Charity owns two residential investment properties in Wellingborough, Northamptonshire that were gifted many years ago to the Charity and another local charity. In 2019 the Charity purchased the local charity’s share of the properties and now owns both properties outright.

In preparation for the purchase, an independent valuation was carried out. Both properties are held in our accounts at the market value, taking into account the incumbent tenants and the fair rent clauses in their tenancies. The intent is to revalue the properties periodically or if there is a material change in the condition or circumstances of the properties.

The income due from the properties is treated as income from operating leases. The leases are registered with fair rent clauses, preventing a market rate of rent from being charged. They do not have expiry dates and the arrangement will continue for as long as the tenants wish to remain in the properties. The income received in 2024/25 was £2,281. It is expected that a similar amount will be received in each future year.

The Congregation of the Sisters of Nazareth Generalate 36

Notes to the accounts 31 March 2025

12 Debtors

Debtors
	2025 £	2024 £
Loan to The Congregation of the Sisters of Nazareth Charitable Trust Loan to NRV Development (Blackburn) Limited Loan to NRV Development (Plymouth) Limited Loan to Irish Region of The Congregation of the Sisters of Nazareth in respect to the Dublin, Mallow and Belfast developments Loan to Australasian Region of The Congregation of the Sisters of Nazareth in respect to development at Christchurch New Zealand* Legal claims reimbursed by insurance Other debtors and prepayments	5,218,568 - 240,106 6,399,004 1,434,906 3,120,588 96,232	5,567,440 523,266 240,106 7,378,157 1,554,054 1,682,559 21,331
	16,509,404	16,966,913

• Details in respect to each of these loans and the contribution due are given in note 19.

During the year the two Irish Region loans were consolidated and a new loan agreement signed, covering Dublin, Mallow and Belfast.

The legal claims debtor represents the expected amount to be reimbursed by our insurers in relation to the settlement of legal claims against the Congregation, which are shown as a provision in Note 13. The above debtors are due for receipt as follows:

	2025 £	2024 £
Amounts falling due within one year Amounts falling due after one year	5,447,194 11,062,210	3,134,380 13,832,533
	16,509,404	16,966,913

13 Creditors and provisions:

Amounts held on behalf of individual members of The Congregation of the Sisters of Nazareth Congregation of the Sisters of Nazareth Charitable Trust Trade Creditors Sundry Creditors Accruals and Deferred income Social Security Creditor Scottish Redress Scheme	2025 £ 149,548 240,106 14,594 47,326 276,627 8,035 3,174,136	2024 £ 150,173 240,106 3,190 17,866 347,475 9,221 3,366,590
	3,910,372	4,134,621
	2025 £	2024 £
Amounts falling due within one year Amounts falling due after one year	1,261,236 2,649,136	1,268,031 2,866,590
	3,910,372	4,134,621

The Congregation of the Sisters of Nazareth Generalate 37

Notes to the accounts 31 March 2025

Provisions

Provisions	Provisions	Provisions
	2025 £	2024 £
Legal claims	3,120,588	1,682,559
	3,120,588	1,682,559

The Congregation ran children’s homes across England & Wales, Scotland and Northern Ireland until they closed in the 1980s. The legal claims provision represents ongoing claims at the year end for compensation in respect of alleged historic abuse of children in the Congregation's care. These amounts are expected to be paid within the next financial year. The vast majority is expected to be covered by insurance, shown as a debtor in Note 12. Further detail is provided in the contingent liabilities note.

14 Financial Instruments

At the balance sheet date, the Charity held financial assets at an amortised cost of £25,926,725 (2024: £27,927,828) and Financial liabilities at an amortised cost of £1,261,235 (2024: £1,268,031). The total income received in respect of financial assets held at amortised cost totalled £444,652 (2024: £269,299). The Charity held assets at fair value through income and expenditure of £15,301,406 (2024: £17,607,977). Movements in the year through the statement of financial activities comprised losses of £235,571 (2024: gain £2,093,354).

15 Movement in funds

Restricted funds Development Fund – Hammersmith Unrestricted funds Property Fund – Designated Sisters Support Fund – Designated Tangible Fixed Assets Fund General Fund	At 1 April 2024 Net movement in funds At 31 March 2025 7,141,290 (4,023,329) 3,117,961 24,500,000 (1,000,000) 23,500,000 7,000,000 - 7,000,000 1,659,107 (216,972) 1,442,135 1,281,335 (427,125) 854,210 41,581,732 (5,667,426) 35,914,306	At 1 April 2023 Net movement in funds At 31 March 2024
		9,164,975 (2,023,685) 7,141,290 17,500,000 7,000,000 24,500,000 7,000,000 - 7,000,000 1,906,579 (247,472) 1,659,107 1,405,276 (123,941) 1,281,335
		36,976,830 4,604,902 41,581,732

The net movement in the Property Fund and the General Fund includes a transfer of £1,000,000 from the Property Fund to the General Fund to ensure the General Fund is kept within it’s target range of 6-12 months expenditure.

The restricted funds of the Charity represent a restricted donation that is being used to refurbish an asset.

The unrestricted funds of the Charity include the following designated funds, which have been set aside out of unrestricted funds by the trustees for specific purposes:

Property Fund

The Property Fund of £23.5m is set aside to provide loans or grants to regions requiring support for substantial building works.

The Congregation of the Sisters of Nazareth Generalate 38

Notes to the accounts 31 March 2025

Sisters’ Support Fund

The Sisters’ Support Fund of £7m is retained to provide Sisters who need nursing, care or other support, with the means to purchase it should public funding not be available. It is intended that care will usually be provided within one of the care homes operated by the Congregation.

Tangible Fixed Asset Fund

The unrestricted funds also include the Tangible Fixed Assets Fund which represents the net book value of the Charity’s tangible fixed assets used to further the Charity’s objectives and work. A decision was made to separate this fund from the General Fund in recognition of the fact that the assets are used in the day to day work of the Charity, and the fund value would not be realisable easily if needed to meet future contingencies.

16 Analysis of net assets between funds

Fund balances at 31 March 2025 are represented by: Tangible fixed assets Listed investments Investment property Net current assets Total net assets Fund balances at 31 March 2024 are represented by: Tangible fixed assets Listed investments Investment property Net current assets Total net assets	Designated funds £ Tangible Fixed Assets Fund £ General Fund £ Restricted Fund £ Total 2025 £
	- 1,442,135 - - 1,442,135 12,183,445 - - 3,117,961 15,301,406 275,000 - - - 275,000 18,041,555 - 854,210 - 18,895,765
	30,500,000 1,442,135 854,210 3,117,961 35,914,306
	Designated funds £ Tangible Fixed Assets Fund £ General Fund £ Restricted Fund £ Total 2024 £
	- 1,659,107 - - 1,659,107 10,607,977 - - 7,000,000 17,607,977 204,000 - - - 204,000 20,688,023 - 1,281,335 141,290 22,110,648
	31,500,000 1,659,107 1,281,335 7,141,290 41,581,732

The total unrealised gains as at 31 March 2024 constitute movements on revaluation and are as follows:

	2025 £	2024 £
Unrealised gains / (losses) included above: On investments Total unrealised gains / (loss) at 31 March 2025 Reconciliation of movements in unrealised gains Unrealised gains at 1 April 2024 In respect to disposals in the year Net gains / (losses) arising on revaluation in the year Total unrealisedgain /(loss) at 31 March 2025	1,505,844	1,919,779
	1,505,844	1,919,779
	1,919,779 (89,182) (324,753)	(97,377) (38,099) 2,055,255
	1,505,844	1,919,779

The Congregation of the Sisters of Nazareth Generalate 39

Notes to the accounts 31 March 2025

17 Contingent liabilities and contingent assets

At 31 March 2025, the Charity was funding legal and other costs incurred relating to statutory inquiries that have been established in Northern Ireland, Scotland and England and Wales, into the alleged historical abuse of children. The inquiries are at various stages, with the Historical Institutional Abuse Inquiry in Northern Ireland having reported in January 2017, the England and Wales Independent Inquiry into Child Sexual Abuse has published its final report in October 2022, and the Scottish Child Abuse Inquiry published its report into the Sisters of Nazareth in May 2019.

The Charity does not expect to incur any further legal costs in relation to the three inquiries. It does incur legal costs relating to claims brought against the Congregation in all three jurisdictions. It is not possible at the present time to provide any meaningful estimate of future costs or the probability of a claim being paid, some of which may be covered by insurance.

Redress schemes have been established, in March 2020 for Northern Ireland, and in December 2021 for Scotland. England and Wales have not yet announced their intentions. An agreement has been reached to contribute to the cost of redress payments in Scotland and the cost of the agreed contributions has been included in previous accounts as expenditure. The actual payments are being paid according to an agreed schedule of contributions. No agreement has been reached for Northern Ireland and it is not possible at the present time to provide any meaningful estimate of future contributions, if any.

18 Other commitments

The Charity has provided a guarantee to Allied Irish Bank to support a loan taken out by the Irish Region for building works.

The Charity has provided a letter of comfort to Barclays Bank plc in respect to banking facilities the Bank may make available to The Congregation of the Sisters of Nazareth Charitable Trust.

At 31 March 2025, the Charity did not have any future capital commitments (2024: nil).

19 Related parties: connected entities

The Charity is connected to The Congregation of the Sisters of Nazareth (the Congregation), an unincorporated international religious organisation recognised by the Vatican.

The Charity is also connected to two other UK registered charities:

Name	Registration numbers etc.	Principal activities
The Congregation of the Sisters of Nazareth Charitable Trust (CSNCT)	A registered charity (Charity Registration Nos 228906 (England and Wales) and SC040507 (Scotland))	 The support of the religious ministries and works by members of the Congregation (the Sisters) in the United Kingdom and the care of those Sisters.  Ownership of 13 homes in England, Wales, and Scotland known as Nazareth Houses and which are used to provide nursing, residential and care services to older people in need, and a nursery.

The Congregation of the Sisters of Nazareth Generalate 40

Notes to the accounts 31 March 2025

Nazareth Care Charitable Trust (NCCT)	A registered charity (Charity Registration Nos 1113666 (England and Wales) and SC042374 (Scotland)) and a company limited by guarantee (Company Registration No 5518564 (England and Wales))	 The provision of nursing, residential and care services to older people in need through the operation of 12 homes within England, Wales and Scotland, and a nursery.  The provision of management and support services to older people at the retirement villages in Blackburn, Glasgow and Plymouth.

The Superior General of the Congregation is also a trustee of the Charity. She appoints the trustees of CSNCT and is the sole member of NCCT and appoints their trustees. CSNCT and NCCT have three trustees in common.

At no point during the accounting period did any of the three charities control one or more of the others. As a consequence, consolidated accounts are not prepared.

The Charity owes CSNCT £240,106 in respect of a grant that remains owing. This sum is included in creditors (note 13).

NCCT has a number of subsidiary companies with which it forms the Nazareth Care Charitable Trust Group. Consolidated accounts of the Nazareth Care Charitable Trust Group are prepared and filed with the Charity Commission and Companies House.

The Charity has a financial relationship with the following NCCT subsidiaries:

Name	Registration numbers etc.	Principal activities
NRV Development (Blackburn) Limited	Company Registration No 05906057 (England and Wales)	The development of a retirement village in Blackburn.
NRV Development (Plymouth) Limited	Company Registration No 05940933 (England and Wales)	The development of a retirement village in Plymouth.

During the period there have been a number of transactions between the Charity and its connected entities. The detail of grants and donations provided to connected entities is shown in Note 4. Details of the indebtedness between the Charity and its connected entities and of commitments is given below.

The Congregation of the Sisters of Nazareth Charitable Trust

The Charity made a loan to CSNCT towards the cost of development and construction of a new Nazareth House care home on the existing site in Glasgow. The loan is repayable by 2035 with interest charged at a commercial rate. The balance at 31 March 2025 was £3.62 million (2024: £3.89 million). In 2018/19 the Charity agreed a loan of up to £1.5 million towards the refurbishment of the Nazareth House care home in Birkenhead with interest charged at a commercial rate. The balance at 31 March 2025 was £1.60 million (2024: £1.68 million). The Charity owes CSNCT £0.24m (2024: £0.24m) in respect of a grant to fund a retirement village in Plymouth that remains owing.

NRV Development (Blackburn) Limited

In 2012, the Charity agreed a loan to NRV Development (Blackburn) Limited for up to £4.2 million to be used to part-finance the construction of apartments and bungalows at the Larmenier Retirement Village, Preston New Road, Blackburn. At 31 March 2025, the loan balance was £0.523m (2024: £0.523m). A provision for the full loan amount (£0.523m) has been included in 2024/25.

The Congregation of the Sisters of Nazareth Generalate 41

Notes to the accounts 31 March 2025

NRV Development (Plymouth) Limited

The Charity loaned NRV Development (Plymouth) Limited £6.1m to build a retirement village in Plymouth. The majority of the loan has been repaid and £0.24m (2024: £0.24m) is due from NRV Development (Plymouth) to repay the remainder.

The Charity has a financial relationship with two overseas connected charities:

Irish Region

Several loans have been provided to the Irish Region to finance refurbishment works at the Dublin, Mallow and Belfast Nazareth Houses. The previous loans were consolidated into a new loan agreement that was signed on 4 April 2022. At 31 March 2025, the balance of the loans, when converted to Sterling, amounted to £6.399 million (2024: £7.378 million) and is due to be repaid by 2034. Repayment of the loan commenced in 2023. Interest is charged at a commercial rate.

The remaining external funding for the redevelopments in Ireland comes from a commercial bank loan taken out by the Irish Region. The Charity has provided a guarantee in respect of this loan and funding for any cost overruns.

Australasian Region

A loan of £5 million, converted into New Zealand dollars, was approved by the trustees in December 2014 to assist in financing the rebuilding of Nazareth House Christchurch. The loan will be repaid between 2018 and 2028, with interest charged at a commercial rate. Repayments have commenced; however, only the amount to cover the interest were received in this financial year and the balance at 31 March 2025 was £1.43 million (2024: £1.55 million). The reduction in the value of the loan was caused by foreign exchange variations.

20 Ultimate control

The trustees of the Charity are the Superior General and General Councillors of the Congregation ex officio .

21 Custodian funds

As at 31 March 2025, the Congregation of the Sisters of Nazareth Generalate held funds on behalf of Nazareth House Aids Fund in Standard Bank of South Africa. This bank account acts as a holding account for money coming in and out of the Charity. These assets are not included in these financial statements. The value of the funds held in the bank account at 31 March 2025 was £14,579 (2024: £11,116).

The Congregation of the Sisters of Nazareth Generalate 42