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2023-12-31-accounts

Sisters of Our Lady of the Missions CIO

Annual Report and Accounts

31 December 2023

Charity Registration Number 1163766

Contents

Reports

Reports Reports
Reference and administration details of the
charity, its trustees and advisers 1
Report of the trustees 2
Independent auditor’s report 12
Accounts
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Principal accounting policies 19
Notes to the accounts 23

Sisters of Our Lady of the Missions CIO

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

Trustees Sister Rose Mary Harbinson
Sister Josephine Kane
Sister Lissy Sebastian
Inno van den Berg
Derek Wilson
Registered address 108 Spencer Road
London
HA3 7AR
Correspondence address Via di Bravetta 628
00164 Roma
Italy
Telephone +39 333 248 7864
Charity registration number 1163766
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Investment managers Victoria Private Investment Office
28 Charles Street
London
W1J 5EN
Citi Private Bank
Citigroup Centre
33 Canada Square
London
E14 5LP
Solicitors Stone King LLP
Upper Borough Court
Upper Borough Walls
Bath
BA1 1RG

Sisters of Our Lady of the Missions CIO 1

Report of the trustees Year to 31 December 2023

The trustees present their report together with the accounts of the Sisters of Our Lady of the Missions CIO (the “charity”) for the year to 31 December 2023.

The accounts have been prepared in accordance with the accounting policies set out on pages 19 to 22 and comply with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The principles set out in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) have been followed in the preparation of this report and accounts.

Introduction

The Sisters of Our Lady of the Missions CIO was established on 29 September 2015 as a charity to separate the restricted “grant making funds” of the Charity for Roman Catholic Purposes Administered in Connection with the Congregation of Our Lady of the Missions (Charity Registration Number 233599) into a separate charity, with separate trustees directly focused on the grant making activities the funds are segregated for.

The charity is governed by a Constitution dated 29 September 2015 and is registered with the Charity Commission, Charity Registration No. 1163766.

Principal activities and aims

The principal aims of the charity are to help support the special aims of the Sisters of the Congregation of Our Lady of the Missions (“the Congregation”, also known as Religieuses de Notre Dame des Missions or RNDM) to extend the Kingdom of God chiefly through the work of Christian education, pastoral care and development of the human person. The particular focus is women and children, especially those who are marginalised by poverty, ill health, unjust social structures and a lack of opportunity to sustain themselves. This has led the Sisters to become involved in health care projects, setting up schools and orphanages and basically responding to the needs of their situation. The project work is always dictated by the needs of local communities.

Our RNDM sisters find mission in many areas but they are broadly defined under education, health care, social development and pastoral work. The essence of the charity is to help the sisters of RNDM continue in their mission and also to help the charism of our foundress Euphrasie Barbier and their communities to continue and thrive.

Today, the Sisters live and work in 21 different countries from the UK and Ireland to New Zealand, India, Myanmar, Vietnam, Bangladesh, South Sudan and Kenya, with many other countries as well. Thanks to the lives and work of the early missionary Sisters, the Sisters are blessed with young, dynamic women from these countries who have become Sisters of Our Lady of the Missions and continue to work among their own people. The aims of the charity are to provide solidarity funding for the Sisters of the Congregation of Our Lady of the Missions, to help finance scholarships for the future education of the Sisters, and to help maintain the charism of the Congregation across its international reach.

Sisters of Our Lady of the Missions CIO 2

Report of the trustees Year to 31 December 2023

Governance, structure and management

Members’ liability

The members of the CIO are those trustees in office for the time being. If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

Governance

The Leader of the Congregation appoints the trustees for a period of three years. At any one time, there must be a minimum of three trustees.

The names of the trustees who served during the period are set out as part of the reference and administration details on page 1 of this report and accounts. Except where stated, all trustees were appointed on the date of incorporation and served throughout the period.

Trustees’ responsibilities statement

The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial period which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the Constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Sisters of Our Lady of the Missions CIO 3

Report of the trustees Year to 31 December 2023

Governance, structure and management (continued)

Structure and management reporting (continued)

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet regularly to review developments with regard to the charity or its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including investment managers, solicitors and accountants.

Key management personnel

The trustees consider that they comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis.

The trustees receive no remuneration in respect of their duties.

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity, its investments and its finances. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

The trustees continue to review and update the risks as well as the documents and procedures in place.

The trustees believe that the charity’s principal risk will arise from the fact that it donates significant sums in support of the wider Congregation. The vast majority of donations sent overseas are to fund projects administered directly by members of the Congregation. Whether or not the funds are used here in Great Britain or overseas, the trustees will always ensure that they are fully briefed about and familiar with the work of a potential recipient of funds, that funds are transferred via bank transfer, that proof of receipt is obtained and that, wherever possible (and always in the case of monies sent overseas), a full written report of how the monies have been utilised and applied is obtained from the recipient.

The charity's principal asset comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The trustees meet regularly with the investment managers and the managers’ performance and that of the portfolio are monitored. The investment strategy is assessed regularly to ensure it remains appropriate to the charity's needs – both now and in the future.

Sisters of Our Lady of the Missions CIO 4

Report of the trustees Year to 31 December 2023

Activities and performance

In the year 2023, the trustees approved grants for Sisters’ Living, Formation and International missioning in Davao, Kenya, Myanmar, Philippines and Rome. Several other grants were approved during the year. The details of all the grants given are included in this narrative report.

RNDM International Formation Center, Davao

The Congregation has an International Formation Center in Davao City, southern Philippines. Every year this Center offers a six-month formation program for all members who are preparing for their perpetual profession. This year 21 sisters attended the program from Bangladesh, India, Myanmar, Vietnam and the Philippines. Following this training period, the sisters were missioned to United Kingdom, Canada and France as well as to their own home countries. A grant of US$ 20,000 (twenty thousand dollars) was given to this Center. The grant covered the cost of the formation program, international home leave, visa renewals and upkeep of the property.

RNDM Region – Philippines

The sisters in the Philippines are engaged in developmental work among the indigenous people of Mindanao, particularly the Menubo tribe in the province of Sultan Kudarat, Mindanao. The sisters are involved in adult education and basic health awareness programs. They also provide accommodation and food for girls from remote villages who attend school. The sisters have an eco-farm to support food needs of the community.

Philippines being the only Christian country in Asia, it is also a suitable place for further education and spiritual formation of our members. This year there were sisters from Bangladesh, Vietnam and Myanmar who completed various academic and spiritual formation programs in Manila. The movement of members internationally involves additional costs such as visas, residency permits, language learning, mission orientation programs and medical needs. In 2023, a grant of US$ 50,000 (fifty thousand dollars) was sent to the Philippines to cover these costs.

RNDM Province – Myanmar

The Congregation has 75 members of Burmese nationality and they live and work among the many rural communities in the country. Their works include education, healthcare and pastoral care. The sisters work with people on the margins, particularly those vulnerable to human trafficking and illegal migration along the Thai-Myanmar boarder. The trustees approved a grant of US$ 30,000 (thirty thousand dollars) towards the mission of the sisters in Myanmar.

Sisters of Our Lady of the Missions CIO 5

Report of the trustees Year to 31 December 2023

Activities and performance (continued)

RNDM Province – Kenya

The Congregation has been present in Kenya for more than fifty years now. Several young Kenyan women have become members of the Congregation. Their missionary work among the poor includes care of differently abled children and youth, health care and pastoral care in the Diocese of Machakos. In the Diocese of Meru the sisters are involved in education and pastoral care. The missionary activities of the sisters in Kenya are largely reliant on external sources of donations. A grant of US$ 37,000 (thirty-seven dollars) was given to them for their living costs and formation.

Generalate House – Rome

The Generalate House in Rome is the head office of the Congregation. This is the home of the Congregation Leadership Team (CLT), which consists of the Congregation Leader and four councilors. This team has the oversight of all the members and activities of the whole Congregation across the world. Their responsibilities include regular visits to different parts of the Congregation in Asia, Africa, Latin America, the Pacific and Europe for meeting with members as well as for reviewing the missionary activities that they are engaged in. The Congregation Leadership Team appoints leadership teams at intermediate levels and offers training to various groups of members. A team of hired collaborators such as accounting and operations personnel assists the CLT. The trustees approved a grant of €100,000 (one hundred thousand euros) towards the operational cost of the Generalate House.

RNDM Renewal and Pilgrimage 2023

Every year the Congregation Leadership Team organizes a spiritual renewal program for those sisters who have had several years in missionary involvements. This program aims to provide a space for spiritual refreshment and prayer as well as a pilgrimage to the heritage sites of the Congregation in France, England and Rome. In 2023, there were twenty participants from Australia, Bangladesh, India, Kenya, Latin America, Myanmar, Philippines, and Vietnam. The program received a CIO grant of €57,000 (fifty seven thousand euros) towards the cost of the program.

Capacity building workshop for Mission Promoters and Bursars – Rome

This year the Congregation Leadership Team organized a two weeks’ capacity building training in Rome for sisters from across the congregation. 22 participants upgraded their skills in project management, fund raising, evaluation and monitoring of missionary activities and basic skills in accounting and finance management. The trustees approved a grant of € 25,000 (twenty-five thousand euros) to this project to cover the cost of accommodation, food, fees of resource persons and travel.

Scholarship for Rita Kyi Kyi Aung

Sister Rita Kyi Kyi Aung is a member of our Congregation in Myanmar. After completing six years in the role of province leader, she was given an opportunity for further education. She studied at the Spirituality Institute for Research and Education, which is part of the South East Technological University, Dublin, Ireland. The trustees approved a grant of € 11,500 (eleven thousand five hundred euros) for Rita’s course fees.

Sisters of Our Lady of the Missions CIO 6

Report of the trustees Year to 31 December 2023

Activities and performance (continued)

Scholarship for Matta Bich Huyền

Sister Matta Bich Huyền is from Vietnam and she was given the opportunity to complete a Diploma program in Spiritual Direction at Heart of Life Institute, Melbourne, Australia. The trustees approved a grant of US$ 18,300 (eighteen thousand three hundred dollars) towards her course fees and personal needs. She has returned to Vietnam as a qualified spiritual director. Currently she is involved in parish ministry and the spiritual accompaniment ministry.

Future plans

Going forward, the trustees foresee that the usual grants will need to be made available to our members ministering in Latin America and Kenya and in the Philippines in the short term. The international formation center in Davao will need grants to host the annual formation programs. Two sisters from India will attend six months’ spiritual formation studies in Rome. A grant will be needed to cover their course fees.

The annual “Pilgrimage to our Roots” program for members who have been in ministry for 25 or more years will be continued. The program includes a visit to our heritage sites in Lyon France, Sturry United Kingdom and in Rome.

Rome Generalate House will continue to need an annual grant of € 100,000 (one hundred thousand euros) towards its operational costs.

Preservation of Heritage Sites in France and England

The primary heritage sites of the Congregation are in England and France. There is an ongoing cost of upkeep of these sites. There will be an annual grant to these sites depending on the nature of renovation/restoration activities that are approved each year.

“Care of our Common Home” projects

The Congregation has a clear commitment to work towards environmental healing and restoration. Our members around the world are already engaged in actions that help the healing of the planet in the context of where they live and work. A chosen collective action is to plant 500,000 (five hundred thousand) trees between 2022 and 2026. Trustees support this vision and they will be open to give grants to this worthy project.

Financial report for the year

Income and expenditure

In the year to 31 December 2023 total income amounted to £143,931 (2022 – £215,675).

Total expenditure amounted to £422,308 (2022 – £288,936), which included grants of £292,013 (2022 – £192,410) to support the work of the Congregation overseas.

The net expenditure for the period before investment gains was £278,377 (2022 – net expenditure before investment losses of £73,261). Investment gains totalled £344,655 (2022 – losses of £537,691). As a consequence, there was a net increase in funds (or net income) in the period of £66,278 (2022 – net expenditure of £610,952).

Sisters of Our Lady of the Missions CIO 7

Report of the trustees Year to 31 December 2023

Financial report for the year (continued)

Investment policy

The trustees expect that the investments will be managed in accordance to the investment principles that are in line with the teaching of the Catholic Church and with an understanding of the nuances of Catholic Social Teaching. The trustees expect the investment advisors to manage the investments that adhere to the risk tolerances of the charity whilst also looking to optimise return.

Investment Objectives

The objective is for income and capital growth with moderate to high investment risk.

Ethical criteria

The Congregation of Our Lady of the Missions CIO adheres to an ethical policy that seeks not to invest directly in equities that are mainly involved in the manufacture and/or supply of goods and services, which would not be in accordance with social teachings of the Roman Catholic Church and the teachings of the Gospel. The portfolio manager and our advisor understand our policy and give complete co-operation regarding our ethical concerns.

ESG (Environmental, Social and Governance) factors and active stewardship

We expect our investment managers to adhere to the UN Principles for Responsible Investment.

Withdrawals

For the purpose of the charity, the trustees will be making grants each year and the expected level of the grant making will be discussed and made clear to the investment advisors.

Risk

The levels of capital volatility are monitored to ensure that the risk profile of the investments remains appropriate for the needs of the Congregation of Our Lady of the Missions CIO.

Time Horizon

The assets should be invested with a long-term, 5 or more years, time horizon.

Reporting

The manager will report to the trustees at regular agreed intervals as to the progress and relative performance of the Fund.

Investment review

We entered 2023 with talk of most major economies at or near recession and there seemed to be little cause for celebration. But as 2023 came to a close a more optimistic outlook for investors emerged as forecasters who had predicted more gloom, following 2022’s successive rate hikes, were proven wrong.

Sisters of Our Lady of the Missions CIO 8

Report of the trustees Year to 31 December 2023

Financial report for the year (continued)

Investment review (continued)

However, it took a few twists and turns to get to this point. Inflation and interest rates. A tug of war between inflation and interest rates played out across continents. Inflationary pressures started to build as economies reopened after the pandemic and supply couldn’t keep up with demand. Many central banks had the delicate task of curbing inflation without it stifling the economy. The UK grappled with sticky inflation, and this posed some challenges to both consumers and policymakers.

At the start of the year inflation hit a record 10.7% (Consumer Price Inflation) and Prime Minister Rishi Sunak made it one of his election pledges to halve it. This was achieved in October when it declined from 6.7% to 4.6%,2 but it’s still higher than the US (3.2%) and the eurozone’s (2.9%).

Meanwhile, the US saw CPI inflation easing this year from soaring over 9% in the middle of 2022. While the Fed initially downplayed the possibility of interest rate cuts, it changed its stance in December 2023 with the announcement that the Federal Funds target rate would stay between 5.25% and 5.5% and signalled that it expects to cut interest rates in 2024.

The US stock market performance has been mixed this year as not all sectors enjoyed success. In March, the SVB collapse sent shockwaves through the financial sector and there were concerns of contagion. But this was stopped by the Fed’s intervention with the provision of emergency loans for the financial institutions that were in distress.

Despite the rocky start, US stock markets have been one of the better performers overall. However, the S&P 500 has been mainly buoyed by the performance of a group of companies known colloquially as the ‘Magnificent 7’, which include technology giants Alphabet, Microsoft and Nvidia. These tech stocks captured the interest of investors following rapid progress in Artificial Intelligence (AI).

AI will be an area to watch in 2024, especially given the potential for the technology to deliver economic and productivity growth. However, with recent strong performance, investors could be vulnerable to a correction should sentiment around AI stocks sour.

But the longer the US economy defies pessimistic forecasts there is a good chance there will be a broader lift in performance outside of the ‘Magnificent 7’ . This broadening out is already occurring as the US is seeing a resurgence in small caps and this could be the light at the end of the tunnel that investors have been hoping for.

Overall, the US economy surprised on the upside in 2023, particularly as there was talk among economists of a potential downturn. However, this didn’t happen mainly due to a strong labour market, robust consumer spending and elevated company earnings.

European markets had a stronger period at the start of the year than the US, as they avoided the worst of the energy crisis and was further supported by better company earnings and economic data. They also benefited from the belief of a China resurgence out of the pandemic, which is an important export market for Spain and Germany. However, European stocks have been overshadowed by US equity performance, particularly tech giants, and as sentiment around China grew weaker as its expected comeback didn’t materialise.

Sisters of Our Lady of the Missions CIO 9

Report of the trustees Year to 31 December 2023

Financial report for the year (continued)

Investment policy (continued)

China’s economy reopened in October 2022 and there were great hopes that it would lead to further global economic growth, but this soon fizzled out due to weaker consumer consumption, which had not returned to pre-pandemic levels.

As disenchantment with China continued investors turned their attention on other emerging markets such as India and Mexico and Asian developed markets including Japan

Bonds are generally viewed as relatively safe, but 2022 was the worst year on record for this asset class as the Fed’s aggressive rate hikes impacted on them negatively, with long-term bonds being the hardest hit.

However, 2023 was a better year for bonds. They became more attractive as yields soared to 15-year highs prompting UK investors to return to UK government bonds as their risk/return profile became more attractive.

Meanwhile in the US, restrictive monetary policy and increasing government borrowing drove US Treasury yields (inflation adjusted) up to levels not seen in over a decade. Yields could stay elevated due to high US public debt and an unwillingness by Congress to curb government spending. Bonds also became more attractive when it became more likely that inflation in America had peaked and the Fed wouldn’t raise interest rates further.

With interest rates having potentially peaked and some cuts forecast in the US in 2024 the fixed income momentum has remained strong.

As always currency plays a strategically important element to the investment returns. With the majority of grants made in US$ and in €, the greatest % of the investments are made in these currencies though the accounts are reported in £. In $ terms the investment portfolio made over 11% for the year and significantly the returns were substantially higher than the grants and expenses of the charity over the year.

Reserves policy

Given that the charity was only established within the past ten years, it is not possible to project its level and pattern of future expenditure with accuracy at the present time. The situation will become clearer as the years pass. In the meantime, the trustees are content for the charity to hold several years of anticipated unrestricted fund expenditure as free reserves. The trustees consider this level of free reserves appropriate in the exceptional circumstances created by both the Covid-19 pandemic and the more recent geopolitical and macroeconomic tensions. In addition, it is important for the charity to have sufficient reserves to enable it to respond to an urgent need in any province/region or to provide immediate financial assistance as necessary. The trustees will review this policy as time passes and the level and pattern of expenditure evolves.

Sisters of Our Lady of the Missions CIO 10

Report of the trustses Year to 31 Decerter 2023 Flnanclal report for the year (continued) Fln8nclalposltlon The balance sheel Shows total fvnds of £7.88 million at 31 Decemkr 202312022 - £7.81 million}. Funds whlch are avallable to support any of the work of the charity in Ihe future {i.e. free reserves) are those shown on th8 balance sh8et as unresIr￿ted. These amounted to £7.88 million at 31 December 2023 {2022 - £7.81 million) and. in the light of the charty's commilment lo support the Congregation for the bng temi, they are deemed •J8quate but not excessive. Signad on b&haW of th8 trustaes Trustee - Sister Josephine Kane Approved by the trustees on.. Sisler8 of Our Lady of th& Missions CIO 11

Independent auditor’s report 31 December 2023

Independent auditor’s report to the trustees of the Sisters of Our Lady of the Missions CIO

Opinion

We have audited the accounts of the Sisters of Our Lady of the Missions CIO (the ‘charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. 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 accounts:

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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.

Sisters of Our Lady of the Missions CIO 12

Independent auditor’s report 31 December 2023

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 there is a material misstatement in the accounts or a material misstatement of the other information. 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.

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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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.

Sisters of Our Lady of the Missions CIO 13

Independent auditor’s report 31 December 2023

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

Sisters of Our Lady of the Missions CIO 14

Independent auditor’s report 31 December 2023

Auditor’s responsibilities for the audit of the accounts (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. 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.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

16 October 2024

Sisters of Our Lady of the Missions CIO 15

Statement of financial activities Year to 31 December 2023

Notes
2023
Total
funds
£		 2022
Total
funds
£
Income from:
Donations and legacies
1
Investments and interest receivable
2
Gains on currency conversion
Total income
Expenditure on:
Raising funds
. Investment management fees
Charitable activities
. Grants, donations and support of missionary work and ministry
. Administrative expenses
4
Losses on currency conversion
Total expenditure
Net expenditure before gains (losses) on investments
5
Net gains (losses) on investments
Net income (expenditure and net movement in funds
Reconciliation of funds:
Fund balances brought forward
at 1 January 2023
Fund balances carried forward
at 31 December 2023
10,683

133,248
—		 —
97,623
118,052
143,931 215,675
82,862
292,013

18,506
28,927		 85,932
192,410
10,594
—
422,308 288,936

(278,377)
344,655		 (73,261)
(537,691)
66,278
7,808,811		 (610,952)
8,419,763
7,875,089 7,808,811

All recognised gains and losses for the period are included in the statement of financial activities.

All income, expenditure, gains and losses in the above two financial periods related to unrestricted funds.

All of the charity’s activities derived from continuing operations during the above two financial periods.

Sisters of Our Lady of the Missions CIO 16

Balanc8 sheet 31 December 2023 2023 2023 2022 2022 Notes Flxed aJ•ets Investrntrnts 7.501J63 6.662,567 Current a•$•ts Dèbtors Cash hekl by investrnent m?nag•rs 5.189 1,147,225 1,1S2,394 388.980 393.926 Currfynt Ilabllltl•s Creditors.. arnounts tslllng ¢Jug within ono ygar Net ¢urrenta58•ts Tot41 net a￿ets 10 120,2001 16,150 373,726 7.876,089 1,146.244 7.808,811 R•pr•s•nted by: The Income lund• ofthg charfty Unrestricted funds 7,875,069 7.875,089 7,808,811 7.808,811 Approved by the truslees and signed on their behaw by.. Trustee Sister Josephine Kane Appfoved by the trustees on: Sisters of Our Lady of the Missions CIO 17

Statement of cash flows Year to 31 December 2023

Notes
2023
£		 2022
£
Cash flows from operating activities
Net cash used in operating activities
A
Cash flows from investing activities
Investment income and interest received
Payments to acquire investments
Receipts from disposals of investments
Net cash (used in) provided by investing activities
Change in cash and cash equivalents in the period
Cash and cash equivalents at 1 January 2023
B
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at 31 December 2023
B

**(368,425) **		 (291,536)


133,248
(607,348)
113,207		 92,454
(921,833)
1,421,689
**(360,893) ** 592,310

(729,318)


1,147,225

(28,927)
 300,774
728,399
118,052

388,980		 1,147,225

Notes to the statement of cash flows for the year to 31 December 2023

A
B		 Reconciliation of net movement in funds to net cash used in operating activities
2023
£
2022
£
66,278
(610,952)
(344,655)
537,691
28,927
(118,052)
(133,248)
(97,623)
14,050
(2,600)
223
—
(368,425)
(291,536)
2023
£
2022
£
388,980
1,147,225		 operating activities
2023
£
2022
£
66,278
(610,952)
(344,655)
537,691
28,927
(118,052)
(133,248)
(97,623)
14,050
(2,600)
223
—
(368,425)
(291,536)
2023
£
2022
£
388,980
1,147,225
Net movement in funds (as per the statement of financial activities)
Adjustments:
(Gains) losses on investments
Exchange rate movements on investments and cash
Investment income and interest receivable
Increase (decrease) in creditors
Decrease in debtors
Net cash used in operating activities		 66,278
(344,655)
28,927
(133,248)
14,050
223		 (610,952)
537,691
(118,052)
(97,623)
(2,600)
—
(368,425) (291,536)
Analysis of cash and cash equivalents 2023
£		 2022
£
Total cash and cash equivalents:Cash held byinvestment managers 388,980 1,147,225

No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).

Sisters of Our Lady of the Missions CIO 18

Principal accounting policies Year to 31 December 2023

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

Basis of preparation

These accounts have been prepared for the year to 31 December 2023, with comparatives for the year to 31 December 2022.

The accounts have been prepared in accordance with 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 (Charities SORP FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 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 to make significant judgements and estimates.

Other than the allocation of governance and support costs between the various categories of expenditure, the key area of judgement is estimating future income and expenditure flows for the purpose of assessing going concern (see below and note 8).

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts.

The trustees continue to communicate with their investment managers and, whilst there are concerns over the volatility in world stock markets arising from geopolitical events and the macroeconomic climate, they acknowledge also that the charity is a long term investor. As such, the charity will be able to wait for markets to stabilise over time whilst the trustees keep a watching brief.

Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charity’s financial position or going concern. The trustees have concluded that the charity will have sufficient resources to meet its liabilities as they fall due.

Sisters of Our Lady of the Missions CIO 19

Principal accounting policies Year to 31 December 2023

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

The principal sources of income are donations, legacies, investment income from listed investments and interest receivable.

Donations, including contributions receivable from the Province and Regions, receivable in cash or investments, 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.

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.

Donations received in the form of investments are recognised at their market value on the date of the transfer.

Income from listed investments is recognised once the dividend has been declared and notification has been received of dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Other income includes exchange gains on currency conversion. See below for the accounting policy for foreign currencies.

Expenditure recognition

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. The classification between activities is as follows:

Sisters of Our Lady of the Missions CIO 20

Principal accounting policies Year to 31 December 2023

Expenditure recognition (continued)

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial period are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued but are disclosed as financial commitments in the notes to the accounts.

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support including in the form of financial procedures.

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.

Support and governance costs are apportioned using percentages based on the direct expenditure incurred on each of the activities of the charity i.e. the support of the Congregational Leadership Team and international meetings/administration and the support of missionary work and ministry.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised as 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.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) in 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 period. Unrealised gains and losses are calculated as the difference between the fair value at the period 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 period in which they arise.

Sisters of Our Lady of the Missions CIO 21

Principal accounting policies Year to 31 December 2023

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash held by investment managers

Cash held by investment managers is classified as a current asset as it is used to fund the ongoing expenditure of the charity.

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.

Fund structure

Unrestricted funds comprise 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into Sterling at the rate 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 transaction. Exchange differences are taken into account in arriving at the net movement in funds.

Services provided by members of the Congregation

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

Sisters of Our Lady of the Missions CIO 22

Notes to the accounts Year to 31 December 2023

1 Income from: Donations and legacies

Income from: Donations and legacies
2023
£		 2022
£
Legacies 10,683 —
2
Income from: Investments and interest receivable
Income from listed investments		 2
Income from: Investments and interest receivable
Income from listed investments		 2023
£		 2022
£
Income from listed investments 133,248 97,623

3 Expenditure on: Grants, donations and support of missionary work and ministry

2023
£		 2022
£
Contribution to the Generalate of the Congregation
RNDM International Formation Center, Davao
RNDM Renewal Programme
Support of missionary work and ministry of the Congregation in:
. Myanmar
. Kenya
. Ireland
. The Philippines
Allocated support and governance costs (note 4)		 172,406
—
—
23,736
30,429
9,959
55,483		 25,550
34,532
43,368
29,362
—
18,500
41,098
292,013
18,506		 192,410
10,594
310,519 203,004

No grants or donations were made to individuals during either period.

Support and governance costs
2023
£		 2022
£
Office and administrative costs
Governance costs – Auditor’s remuneration
. Current year
. Prior years
Other professional fees
Total funds		 456
9,000
3,675
5,375		 794
4,800
—
5,000
18,506 10,594

5 Net expenditure before gains (losses) on investments

This is stated after charging:

2023
£		 2022
£
Auditor’s remuneration
. Current year
. Prioryears		 9,000
3,675		 4,800
—

Sisters of Our Lady of the Missions CIO 23

Notes to the accounts Year to 31 December 2023

6 Staff costs and remuneration of key management personnel

The charity did not employ any staff in either financial period.

The trustees consider that they alone comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. They have received no remuneration or reimbursement of expenses in connection with their duties as trustees in either financial period.

7 Taxation

Sisters of Our Lady of the Missions CIO is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

8 Investments

Investments
2023
£		 2022
£
Listed investments
At 1 January 2023
Additions at cost
Disposals at book value (proceeds: £113,207; losses: £10,250)
Unrealised gains (losses) on revaluation
Market value at 31 December 2023
Cost of listed investments at 31 December 2023		 6,662,567
607,348
(123,457)
354,905		 7,700,114
921,833
(1,550,675)
(408,705)
7,501,363 6,662,567
6,620,116 6,128,847
Investment
SPDR S&P US Div USD
iShares MSCI World
iShares MSCI Wo Mi USD
3.25 US TreasuryNotes 24		 2023 2023 2022 2022
Percentage
of portfolio
%		 Market
value
£		 Percentage
of portfolio
%		 Market
value
£
5.9
9.5
5.1
5.3		 442,662
709,018
381,352
395,317		 7.1
9.3
5.7
6.2		 470,375
617,421
376,706
415,089

At 31 December 2023, the charity’s investment portfolio included the following holdings which represented a material proportion of the total value of the fixed asset investment portfolio at that date:

Listed investments held at 31 December 2023 comprised the following:

2023
£		 2022
£
UK equities
Overseas equities
Fixed interest
Alternative investments		 560,490
4,108,399
2,606,145
226,329		 541,216
3,758,265
2,140,222
222,864
7,501,363 6,662,567

Sisters of Our Lady of the Missions CIO 24

Notes to the accounts Year to 31 December 2023

9 Debtors

Debtors
2023
£
4,946		 2022
£
5,169
Prepayments and accrued income

10 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023
£
20,200		 2022
£
6,150
Accruals

11 Reconciliation of movement in unrealised gains

2023 2022
£ £
Unrealised gains at 1 January 533,720 1,090,074
Add: in respect to disposals in the year (7,378) (147,649)
Net gains (losses) on revaluation in the year 354,905 (408,705)
Unrealisedgains at 31 December 881,247 533,720

11 Transactions with connected and related parties

The CIO awards grants to, and receives grants from, other parts of the Congregation, which are considered to be related parties as the Leader of the Congregation appoints the trustees of the CIO.

In the year to 31 December 2023 total expenditure includes grants of £282,054 (2022: £173,910) to support the work of the Congregation in Rome, the Philippines, Myanmar and Kenya, and £9,959 (2022: £18,500) to the Ireland Province for the ongoing formation for one of the sisters from Myanmar who is training in Ireland.

There were no other transactions with connected or related parties during the year (2022 – none).

12 Members’ liability

The members of the CIO are those trustees in office for the time being. If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

Sisters of Our Lady of the Missions CIO 25