## **Sisters of Our Lady of the Missions CIO** ## **Annual Report and Accounts** 31 December 2024 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|11| |**Accounts**|| |Statement of financial activities|15| |Balance sheet|16| |Statement of cash flows|17| |Principal accounting policies|18| |Notes to the accounts|22| 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 Audit 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 2024 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 2024. The accounts have been prepared in accordance with the accounting policies set out on pages 18 to 21 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 2024 ## **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: -  select suitable accounting policies and then apply them consistently; -  observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102); -  make judgements and estimates that are reasonable and prudent; -  state whether applicable United Kingdom 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 presume that the charity will continue in operation. 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 2024 ## **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 2024 ## **Activities and performance** In the year 2024, 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 13 sisters attended the program from Bangladesh, India, Myanmar and Vietnam. 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$ 24,500 (twenty-four thousand five hundred 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, India 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 2024, a grant of US$ 47,500 (forty-seven thousand five hundred dollars) was sent to the Philippines to cover these costs. ## _**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. In 2024 the congregation decided to bring together the novices of Bangladesh and Kenya for a common formation program. This meant that the accommodation facility needed to be renovated for this program. A grant of US$ 50,000 (fifty thousand dollars) was given to Kenya for this purpose. Sisters of Our Lady of the Missions CIO **5** **Report of the trustees** Year to 31 December 2024 ## **Activities and performance** (continued) ## _**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 councillors. 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 assist the CLT in the administration of the generalate. The trustees approved a grant of €100,000 (one hundred thousand euros) towards the operational cost of the Generalate House. ## _**RNDM Renewal and Pilgrimage 2024**_ 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 2024, there were twenty participants from Australia, Bangladesh, India, Kenya, Latin America, Myanmar, Philippines, and Vietnam. The program received a CIO grant of €70,000 (seventy thousand euros) towards the cost of the program. ## _**Enlarged General Council Meeting in France**_ This year the Congregation Leadership Team organized a ten-day meeting of all the province and region leaders. The venue of the meeting was in St Rambert en Bugey, France. This meeting focused on the ongoing life and mission of the congregation, particularly in view of the upcoming congregation chapter 2026. The trustees approved a grant of € 30,000 (thirty thousand euros) to cover the cost of accommodation, food, fees of the facilitators and travel. ## _**Capacity building for Formation Personnel**_ The congregation leadership team organized a training program for all formators of the congregation who are responsible for training younger members. The focus of this meeting was the study of congregation documents, policies related to formation and skills in accompaniment of the trainees. The trustees approved a grant of € 30,000 (thirty thousand euros) for this program. ## _**Scholarship for Salota Aimalefoa**_ Sister Salota Aimalefoa is originally from Samoa, and is missioned to Kenya where she is involved in women’s development projects. After a period of more than ten years in this demanding ministry, she requested for an opportunity for spiritual renewal. She participated in a three-month sabbatical session at Shalom Center, Texas, USA. The trustees approved a grant of US$ 20,000 (twenty thousand dollars) for Salota’s sabbatical program. Sisters of Our Lady of the Missions CIO **6** **Report of the trustees** Year to 31 December 2024 ## **Activities and performance** (continued) ## _**Upkeep of Congregation Heritage site – Sturry**_ The upkeep of the common heritage site of Sturry is an ongoing project for the congregation. This year a grant of £ 2,376.00 (two thousand three hundred- and seventy-six-pounds sterling) was given to this project. ## **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 centre in Davao will need grants to host the annual formation programs. Two sisters 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. The congregation has opened a new mission insertion in Lindi, Tanzania with a view to establish a primary school and to be involved in pastoral works of the Diocese. It is expected that this new project will be partially supported by grants from the CIO. In 2026, the congregation will hold the 29[th] Ordinary Congregation Chapter in Hua Hin, Thailand. We hope to access a fund to cover the cost of this meeting. ## _**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. Sisters of Our Lady of the Missions CIO **7** **Report of the trustees** Year to 31 December 2024 ## **Financial report for the year** ## _**Income and expenditure**_ In the year to 31 December 2024 total income amounted to £812,843 (2023 – £143,931). Total expenditure amounted to £437,338 (2023 – £422,308), which included grants of £314,903 (2023 – £292,013) to support the work of the Congregation overseas. The net income for the period before investment gains was £375,505 (2023 – net expenditure before investment gains of £278,377). Investment gains totalled £540,404 (2023 – gains of £344,655). As a consequence, there was a net increase in funds (or net income) in the period of £915,909 (2023 – net income of £66,278). ## _**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. Sisters of Our Lady of the Missions CIO **8** **Report of the trustees** Year to 31 December 2024 ## **Financial report for the year** (continued) ## _**Investment review**_ 2024 was the year of global political elections, from USA, India, The EU, France and the UK to name only a few. Each had their own effect on the investment markets. The most prominent revolved around the election of Donald Trump in November and the political and economic landscape that created. Weakness in financial markets that occurred in July were soon reversed and markets rallied strongly after Trump’s election. But what has been consistent over the last 3 years or so the returns have remained very concentrated in the largest 7-10 stocks in the world market. The US was a little uncertain of what to make on a potential Trump tariff regime, it potential effect on global trade and inflation. In the UK markets struggled with the initial messaging after a landslide Labour victory. The policy decisions and the talk of a tough budget, which was delivered in November, proved a headwind for economic growth. France was rocked by Macron calling an election before the Olympics, but resulted in a hung parliament and a polarised political landscape. But in the end Donald Trump has dominated the news cycle and often through contradictory statements – both as a negotiation tactic and a means of keeping global attention focused on him. He appears intent on steering the US and the world in a different direction, involving a rebasing of both domestic and foreign policy. It is based, we think, on ‘realpolitik’ rather than idealism, a mercantilist trade view, cheap energy and low interest rates. This represents a major change to the world macro-economic framework, and a challenge to conventional economic approaches. Given heightened risks, it is essential that our investment philosophy – grounded in diversification, liquidity, quality at reasonable valuations, and robust risk controls – remains central to an investment portfolio. Trump has succeeded in galvanising European leaders toward accelerated change – most notably Germany abandoning the debt break and increases in infrastructure and armaments spending. China too has boosted fiscal stimulus, but consumer confidence remains deeply depressed with a 46% savings rate; a slight uptick in the consumer could translate to a meaningful uplift in Chinese equity outlook. It is notable that policy in the US is tightening, while in Europe and China it is easing. Over the past two years markets have been dominated by AI and the Magnificent 7, which make up 35% of the US market and generated over 50% of returns in both years, on the grounds that these companies could achieve monopolistic profits from AI development. With the advent of Deepseek there is now a suggestion that the AI adopters, rather than AI suppliers, will reap most benefits, raising concerns that much of the vast capital expenditure made by the likes of Microsoft, Amazon and Alphabet may not yield adequate returns on investment. Sisters of Our Lady of the Missions CIO **9** Report of Ihe trustses Year to 31 Dec8rnber 2024 Flnan¢i•l rgport for tho year Iconlinuedl Investméntpollcy (contlnued) The charities investments, as always. are made up of inveslments in USS. É and £. to help mat¢h the grant making requirements of the charbty and as such the investment retums have a signrficant translation effect on the returns. The fund$ returned 7.20A for the year but more importanlty the relums eovered the grant making aclivity for the year and an adjustment for inflation. This was in line with the Iruste8s' expecL*ions. Reserwes pollcy Given that the charity was only estsblished within the past ten years. r( is not possible lo project ils level and pattern of futurè expenditure wf(h accuwy at the present time. The situation will becomg c￿arer as the years pa8s. In the meantime, the trustees are content for the charity lo hold several years of anticipated unrestrieled fund expenditure as free reserves. The Iruslees consider this level of free reserves appropriate in th8 exceptional circumstsnces created by both the Covid-19 pand8rnic and the more recent geopolrti¢al and macroeconom tensions. In addition. it is important for the charty lo have sufficient reseNes to enable it to respon¢J lo an urgént need in any provincelregion orto pwde immediatefinancial assistance as necessary. The trust885 will review this F**2024**
**Total**
**funds**
**£**|2023
Total
funds
£| |---|---|---| |**Income from:**
Donations and legacies
1
Investments and interest receivable
2
**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 income (expenditure) before gains on investments**
5
Net gains on investments
**Net income and net movement in funds**
**Reconciliation of funds:**
Fund balances brought forward at 1 January 2024
Fund balances carried forward at 31 December 2024|
**686,754**

**126,089**|10,683
133,248| ||**812,843**|143,931| ||**91,430**
**314,903**

**16,508**
**14,497**|82,862
292,013
18,506
28,927| ||**437,338**|422,308| ||
**375,505**
**540,404**|(278,377)
344,655| ||**915,909**
**7,875,089**|66,278
7,808,811| ||**8,790,998**|7,875,089| 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 **15** Balance sheet 31 December 2024 2024 2024 2023 2023 Ngt8s Fix•d a¥i•ts In￿stments 8,323.129 7,501,363 Cutrènt 88g•ts Debtors Cash hèld by In￿$￿ent managers 624 485.780 486,404 388,980 393,¥2fj Current Ilabllltle8 Crsdttors." 1811iNJ du8 within one y&ar Net current aw4ets Totsl ngt assets 10 I18￿33) {20,2 467,869 8,790,998 373,728 7,875,089 R•pre8•ntod by: Th• Ineom• fund8 olthe charlty Unrestricted ftjnds 8,790,998 8,790,998 7.875,089 7,875,089 Approved by the tru$tg8s and signod on their behaw by.. Trustee Sister Josephine Kane Approved by the trustees on.. /*fv/- Charity number.. 1163766 Sisleys of Our Lady of tha Missions CIO 16 ## **Statement of cash flows** Year to 31 December 2024 |Notes|
**2024**
**£**|2023
£| |---|---|---| |**Cash flows from operating activities**
Net cash provided by (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 investing activities**
**Change in cash and cash equivalents in the period**
**Cash and cash equivalents at 1 January 2024**
B
**Change in cash and cash equivalents due to exchange rate**
**movements**
**Cash and cash equivalents at 31 December 2024**
B|

**266,570**|(368,425)| ||

**126,089**
**(978,103)**
**696,741**|133,248
(607,348)
113,207| ||**(155,273) **|(360,893)| ||
**111,297**


**388,980**

**(14,497)**
|(729,318)
1,147,225
(28,927)| ||
**485,780**|388,980| ## **Notes to the statement of cash flows for the year to 31 December 2024** ## **A Reconciliation of net movement in funds to net cash provided by (used in) operating activities** |**activities**||| |---|---|---| ||**2024**
**£**|2023
£| |**Net movement in funds (as per the statement of financial activities)**
**Adjustments:**
Gains on investments
Exchange rate movements on investments and cash
Investment income and interest receivable
(Decrease) increase in creditors
Decrease in debtors
**Net cashprovided by (used in) operating activities**|**915,909**
**(540,404)**
**14,497**
**(126,089)**
**(1,665)**
**4,322**|66,278
(344,655)
28,927
(133,248)
14,050
223| ||**266,570**|(368,425)| ## **B Analysis of cash and cash equivalents** |**Analysis of cash and cash equivalents**||| |---|---|---| ||**2024**
**£**|2023
£| |**Total cash and cash equivalents:**Cash held byinvestment managers|**485,780**|388,980| 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 **17** **Principal accounting policies** Year to 31 December 2024 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 2024, with comparatives for the year to 31 December 2023. 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 **18** **Principal accounting policies** Year to 31 December 2024 ## **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: -  Expenditure on raising funds comprises investment management fees. -  Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity. Such costs include grants made in accordance with the charity’s objects and costs incurred in support of the Congregational Leadership Team and international meetings/administration. Sisters of Our Lady of the Missions CIO **19** **Principal accounting policies** Year to 31 December 2024 ## **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. ## **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. Sisters of Our Lady of the Missions CIO **20** **Principal accounting policies** Year to 31 December 2024 ## **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 **21** **Notes to the accounts** Year to 31 December 2024 ## **1 Income from: Donations and legacies** |**2**
||**2024**
**£**|2023
£| |---|---|---|---| ||Legacies|**686,754**|10,683| ||**Income from: Investments and interest receivable**|**2024**
**£**|2023
£| ||Income from listed investments|**126,089**|133,248| ## **3 Expenditure on: Grants, donations and support of missionary work and ministry** ||**2024**
**£**|2023
£| |---|---|---| |Contribution to the Generalate of the Congregation
RNDM Renewal Programme
RNDM International Formation Center, Davao
Enlarged General Council
Support of missionary work and ministry of the Congregation in:
. Myanmar
. Kenya
. Ireland
. The Philippines
Allocated support and governance costs (note 4)|**84,053**
**61,045**
**44,918**
**24,761**
**—**
**55,579**
**7,160**
**37,387**|172,406
—
—
—
23,736
30,429
9,959
55,483| ||**314,903**
**16,508**|292,013
18,506| ||**331,411**|310,519| No grants or donations were made to individuals during either period. **4 Support and governance costs** |**Support and governance costs**||| |---|---|---| ||**2024**
**£**|2023
£| |Office and administrative costs
Governance costs – Auditor’s remuneration
. Current year
. Prior years
Other professional fees
**Total funds**|**585**
**10,000**
**—**
**5,923**|456
9,000
3,675
5,375| ||**16,508**|18,506| Sisters of Our Lady of the Missions CIO **22** **Notes to the accounts** Year to 31 December 2024 ## **5 Net expenditure before gains on investments** This is stated after charging: ||**2024**
**£**|2023
£| |---|---|---| |Auditor’s remuneration
. Current year audit fees
. Prior years audit fees
. Preparation of financial statements *|**7,900**
**—**
**2,100**|7,000
3,675
2,000| * In common with many other charities of our size and nature the Sisters of Our Lady of the Missions CIO uses its auditors to assist with the preparation of the financial statements. ## **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**||| |---|---|---| ||**2024**
**£**|2023
£| |**Listed investments**
At 1 January 2024
Additions at cost
Disposals at book value (proceeds: £696,741; losses: £16,887)
Unrealised gains on revaluation
**Market value at 31 December 2024**
**Cost of listed investments at 31 December 2024**|**7,501,363**
**978,103**
**(713,628)**
**557,291**|6,662,567
607,348

(123,457)
354,905| ||**8,323,129**|7,501,363| ||**6,880,579**|6,620,116| |**Investment**
SPDR S&P US Div USD
iShares MSCI World
iShares MSCI Wo Mi USD
3.25 US TreasuryNotes 24|**2024**|**2024**||2023|2023| |---|---|---|---|---|---| ||**Percentage**
**of portfolio**
**%**|**Market**
**value**
**£**|Percentage
of portfolio
%||Market
value
£| ||**5.7**
**10.1**
**5.2**
—|**475,699**
**844,733**
**431,629**
—|5.9
9.5
5.1
5.3||442,662
709,018
381,352
395,317| Sisters of Our Lady of the Missions CIO **23** **Notes to the accounts** Year to 31 December 2024 ## **8 Investments** (continued) At 31 December 2024, 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 2024 comprised the following: ||**2024**
**£**
**606,430**
**5,115,172**
**2,490,599**
**110,928**
**8,323,129**|2023
£
560,490
4,108,399
2,606,145
226,329
7,501,363| |---|---|---| |UK equities
Overseas equities
Fixed interest
Alternative investments||| ## **9 Debtors** |**Debtors**||| |---|---|---| ||**2024**
**£**
**624**|2023
£
4,946| |Prepayments and accrued income||| ## **10 Creditors: amounts falling due within one year** ||**2024**
**£**
**18,535**|2023
£
20,200| |---|---|---| |Accruals||| ## **11 Reconciliation of movement in unrealised gains** ||**2024**|2023| |---|---|---| ||**£**|£| |Unrealised gains at 1 January|**881,247**|533,720| |Add/less: in respect to disposals in the year|**4,012**|(7,378)| |Net gains on revaluation in the year|**557,291**|354,905| |**Unrealisedgains at 31 December**|**1,442,550**|881,247| ## **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 2024 total expenditure includes grants of £307,743 (2023: £282,054) to support the work of the Congregation in Rome, the Philippines, Myanmar and Kenya, and £7,160 to the Ireland Province for the formation for one of the sisters from India who is training in Ireland (2023: £9,959 for the formation for one of the sisters from Myanmar). There were no other transactions with connected or related parties during the year (2023 – none). Sisters of Our Lady of the Missions CIO **24** ## **Notes to the accounts** Year to 31 December 2024 ## **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**