CONGREGATION OF NOTrE DAME DE SION UMITED ANNUAL REPORT AND AUDITED FINANaAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
CONGREGATION OF NOTRE DAME DE SION LIMITED LEGAL AND ADMINISTrATIVE INFORMATION Trustees Sr P M Conroy Sr A M Murillo Arévalo Sr G M Nabuurs Sr M O Bablc I518ned 14 Febwuary 20231 Sr l Neculai (appointed 14 February 20231 Sr O (Yshea {appDinted 14 February 20231 Secretary L&P Trustee Service5 Limited Charity number 1178995 Company number 10851948 Reglstered address 34 Chepstow Villas London Wll 2QZ Auditors Sanders l Bickenhall Mansions Bickenhall Street London WIU 68P Investment Manager Cantor Fltzgerald Ireland 23 St Stephens Green Dublin 2 Bankers Lloyds Bank 25 Gresharn Street London EC2V 7HN Allied Irish Banks 3rd Floor l Adelaide Road Dublin 2 Lawyers 8DB Pitmans LLP One Bartholomew Close, London ECIA 7BL
CONGREGATION OF NOTRE DAME DE SION LIMITED CONTENTS Trustee< Report i-ii Independent Audftof s Report 12-15 Statement of Flnanclal Artlvltles 16 Statement of Flnanaal Position 17 Statement of Cash Ilows Notes to the Flnancial Ststements 19-28
CONGREGATION OF NOTRE DAME DE SION LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their report and financial Statements for the year ended 31 December 2023. The finandal ststements have been prepared in accordan with the accountlng policies set out in note I to the financlal statements and comply wFth the Charitvs Memorandum and Articles of Association, the Companies Act 2006 and 'AccountlnB and Reportlng by Charities: Statement of Recommended Prdctice applicable to charities preparing their accounts In atcordance with the Financlal Reportin8 Stsndard appllcable in the UK and Republic of Ireland (FRS 1021" (effective l January 20191. Trustees of the Clity The Trustees, who are also the dirertors for the purpose of company law, who have serrfed during the year and since the year end were as follows: Sr P M Conroy Sr A M Murillo Arévalo Sr G M Nabuurs Sr M O Babic {resigned 14 February 20231 Sr l Neculai {appointed 14 February 20231 Sr O O'shea (appointed 14 February 20231 ObJertive5 and Actlvltles The Charity's main object Is to advan the Chrlstlan religion through the social and charitable work carrled on by the Congregation of Our Lady of Sion 1.the Congregation") throughout the world in accordance wlth the mission and charism of its founder Father Theodore Ratisbonne and to provide for the members of the ConggatIon during their Ilves. The Trustee5 have paid due regard to guidance issued by the Charlty Commission in decldlng what artivities the Charity should undertake. The Charity does not raise funds from the public. The Congregation Is present in many countries. The Charity. through all its activities, whether its national or Intemational charitable work, minlstrles oreducation and trainlng. will advan religion. The Charity will achieve this through the pn)vi5ion of financial support, which will enable programmes and projects to be carried out and achieved. The activities through whlch the Chèrity will achieve its charltable objective are as follows.. Pastoral. educational. reli8ious formatlon and 50clal ministries: Jewish<hri5tian Relations: Interfaith dialogue; Assistance of the poor and needy through the relief of poverty and ecological consequences in areas of the Congregation's ministries: Religiou5 tralnlng and spiritual well-belng of the members of the Congregation,. and Support of the Members in carrying Out their ministries and charitsble activities
CONGREGATION OF NOTRE DAME DE SION LIMtfED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) Public Benefft The Trustees considerthat the artivities and achievements of the Charity illustrate thètthe alms of the Charity are carried out for the public benefit. The Trustees confirm that they have taken into account the best practice guidance on publlc benefit when deciding what activities, the Charity undertakes. Achith*ments and Perforn)ance The Charity supported a number of Regions of the Congregation with the care ofthe sister5 and the promotion of thelr ministries; donations were made as follows:. Reglon A50ciacion Culturdl Educattva Ratisbona. Central America Region Cultural Educativa Colegio de Sion Congregation de Notre Dame de Sion- Mediterranean Region Congregacao das Religiosas Senhora Sion, Brazil Region Not Dème de Sion Inc., Philippines Region Amount 604,982 .591 175.816 7,348 18.223 Donations were also made to support a range of causes. as follows:_ Reclpient Notre Dame de Sion Congwational AccounL Jerusalem Reason for Oonation To support the living expenses and formation for the sisters and ongoing renovations 605.(KM) CongregatM)n of Our Lady of Sion (Rome) Ongoing renovations a89,858 Congregation of Our Lady of Sion IUKI Congregation Centre for Biblical Fom)ation, JerLtsalem The Congregational teams for Jewlsh Christian Relations, Schools. Migrating the Charlsm and for Sophie Stouhlen Formation The Medaille Trust Charity To support their ministries and their educational purposes In support of their minlstrles US.442 68.159 In support of their ministries 3.036 In support of its work 615 In addition, a provision for donations of É6.3m approved in the Charit$ Budget for 2024 was made in the accountsto support a numberof re8lonsofThe Congregatlon and to third part$, as follows: _
CONGREGATION OF NOTRE DAME DE SION LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) Reglon Asociaclon Cultural Educatrva Rati5bona, Central America Region Asociacion Cultural Educativa Colegio de Sion Congregation de Notre Dame de Sion- Mediterranean Region Notre Dame de Sion Congregation Account, Jerusalem Notre Dame de Slon. France, Europe re81011 Notre Dame de Sion Inr., Philippines Region Congregation of Our Lady of Sion ICOLOS UK) Congregacao das Religi05as n Senhora Sion. Brazil Region Congregation Centre for Biblical FormatK•n. Jerusalem Notre Dame de Sion Congregation Account. Rome Via Garlbaldl, Rome Humanitsrian aid and crisi5 relief Support of education facilities throughout the world Reason for Donatlon To support the Ilvlngexpenses and formation for the sisters Amount 42.608 To 5UPPOrt the living expenses and forrnation for the sisters To support the living expenses and formatlon for the sisters 320,755 00.000 To support the living expenses and formation forthe sisters 870,OCK) To support the Itving expenses and formation for the sisters To support the living expenses and formation for the sisters To sUPPOrt the livingexpenses and forn)ation for the sisters To support the livlng expen5 and fomiation for the sisters 00,000 20.(XI) 7,014 94.340 In support of biblical formation. succe55ion planning and the library ,0 In 5UPPOrt of the COnggatIon and for work in Kenya .155,9Ch) Renovation work5 640.500 150,(KJO 00,000 FlnaTr¢ial Review & Resem Pollcy The Charws financial reseNes aim to generate a level of Income to match its tsrget for donations and cost of raising funds over the longer term. This approach is intended to ensure that the level of reserve5 is malntalned, but on occasion the Trustees will approve donations above the annual income generated. In 2023 the Charity received unrestricted donations of 218,892 {2022.' É6,898,9521 and the Charitable expenditure totalled £4,757,842 12022.. 6.310,3641. At 31 December 2023 the Charity had total funds all of which are unrestritted of 0.390,78112022: U5,105,4681, of which U6.280,23112022: 7,827.705) is presented by investments.
CONGREGATION OF NOTRE DAME DE SION LIMrrED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) As the Chority evolve5 the Trustees will consider which other KPIS are appropriate for it. During the transition period, accurate assessment of specific KPIS is not possible. The level of reserves at year end are sufficient to meet Charivs continued obligatlons. Like all charities. we are very consctous of the relattvety recent infiation increases and whilst this had not had an immediate impact on the runnin8 of our Charity, this will be factored in all our future decision making. Plans for the FUre Perlods The Charity plans to continue to advance the Christian reli8ion through the social and charitable work carried on by the Congregation of Our Lady of 5ion throughout the world in accordance with the rnission and charism of its founder Father Theodore Ratisbonne and to provide for the member5 of the Con8re8ation during their INe& Structurn, Governance and Manaeement The Charity is a company limited by guarantee and governed by Memorandum & Articles of AssociatSon as amended by special resolution dated 10 August 2018. The Charty is a registered Charity wtth the UK Charity Commissioner under charitsble number 1178995. Recruitment and Trdlnln8 of Trustees The Trustees are chosen on the basis of their willingness to serve, abillty, governan, experience and support of the ethos, misslon and phik)sophy of the Charlty. The Trustees are well informed about the mission. goveming document and history of the Charity. The Trustees are encouraged to attend appropriate external training courses and et5 to facilitate the undertaking of their role. Or8anisatlonal Structure The Trustees are responsible forthe pollcies. actiwtles and the safeguarding of the assets of the Charlty. The affairs of the Charity are managed by the Board of Trustees who are attountable to the Member5. The Board of Twstees meet gUlarlY to review all aspects of the ChaTitVs activities. When neSsary. they seek advi from the Charitys profe55ional advisors who provide administrative duties and investment advice. The Trusteesare not remunerated for the work that they do. Related Partles The Charity has received donations from various Region5 ofthe Congre8ation of Notre Dame of Sion and supports the life and work of members of the Congregation In areas of need. See Note 16 for further detslls on the related parties. Risk Management The Trustees have considered the risks that a material to the Charity and have ensured thèt there are suitable procedures in place to mitigate these.
CONGREGATION OF NOTRE DAME DE SION LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) Rlsk Management (Conilnued) The Trustees believe that. by monltorlng reserve levels, by ensuring the existence of controls over keyfinancial systems, bytaking regular profe55ional advice, they have established routinely effectlve systems and procedu$ to mitigate those risks. The prindpal risks affecting the Charity and the procedures In place to mitigate these risk5 are". Governance and management which considers the effldency of the Trustee body. Risks considered include lack of plannln& a Trustee body which lacked sufficient skllls or appropriate decision-making procedures. Such risks could include a lack of training / induction or poor stewardship of resources- human, financial and property- The Trustees have addressed these risk5 by operating both annual and longer-term plans. holding regular Trustee meetin8s which include the monitoring of actual perforn)ance against these plans, having meaninthil induction I handover for incoming Trustees, attendin8 Trustee trainlng days. seeklng third party advio as required, etc. Flnancial: The Trustees consider the financial capaclty of the Charity and ensuring it has the available financial resources to continue to cary out its activltie5 both now and in the years ahead. This incorporate5 the management of the operatlng {daY-tday) position, capital requ1Ments and the returns eamed on the Chaflt(s investment portfolios. These risks are mitigated In a variety of way5, includlng bud8etln& the setting of an investment 5trate8y / investment objectives that consider diversity. pruden and liquidty criteria, regular financial and investment reportlng a8ainst budget. cash-flow plannin& and the appointment of Stewardship advisors where neSSary. Investment Polky The Charitrfs financlal reserves have been placed In long tenn investments, the purpose of which is to provide investment income to promote the charitsble objectlves of the Charity and to provide capitsl growth over the long term. A conseNative investment strategy has been adopted. Investment Income and gains will be used in future to fund donations to fvrther the charitable objectives of the Charlty. These funds have an ethical investment screen: they exclude companies that contravene certain ethical criterla and, in most cases, favour stocks that provide positlve benefrts to the communlty. These funds are likely to hold investments that a compatible wrth the CharlS ethos. In this regard. the Investment portfolio avoids ortain areas of the equity market that derlve revenues from unethical sources such as the following". Damage to the envlronment Infringement of human rights Manufacture of armaments and supplies to the military Manufacture of anti-life products Irresponslble marketing of milk substitutes to nursing mothers In thlrd world countries Stem 11 research Cosmetics testing on anlma15 Gambllng
CONGREGATION OF NOTRE DAME DE SION LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) Porno8raphy Tobacco At 31 December 2023. 6,280.231{2O22: U7,872,705) wa5 held in investment funds. These funds are managed by Cantor Fltt8erald Ireland Ltd. In additn, fundstotslling £589,920 (2022: 1.448,320} were held on investment and cUrnt accounts. POS1th Impact Investl We view our Investment portfolio as part of our Mi55ion. AlongsKie our active Minlstrs. we seek to bring about change through positive Impart investin8 in our investment portfolio5. Additlonally, our Investment portfolio avoids Investments deemed to be harmful, such a5 investments in fossil fuel companies or armaments companie5. Avoiding these types of investments Is an important step in ensurin8 that our Investment portfolio15 not Involved In harmful aetNities. While avoiding harmfijl activittes Is Important, we believe that it is even more Important to use our investments to brin8 about positive change in the world. We therefore seek to invest in actlvities that have beneficlal Impacts. for both individual wellbeing and for the environment. We as5e5S these positive impacts under a number of headlngs that we believe are important measures of how our investments are positively affecting the world around us. Below are some of the positlve impacts achleved by the investment portfolio: co, C02 REIEWl4BLC TOP•4E"s OF ¢O,AVCIOE rHEGLOBAL FIlL%SNs emiiied by Ihè erWt4e vJgiv14 avera FOSSIL PUEL FREÈ 53¥ed em15510 4wvaM 10 C02 inpaaTr holp 452 pcople I r.InM qouih 4VErnge ( irt QOviw3r rw Owil 11ty4) VI C$S1O SFOUESTER IITHORAWI ITtsm31.W) hOi15¥) reiWiai* '.v¢f.tyl¥ The Portfollo and the StaINble Dewlopment Goal$ ISDGS) All the investments within the Portfolio cOntrfbe towards the achievement of the Sustainable Development Goals ISDGSI. The SDG5 were developed and odopted byall memberstatesof the United Natlons lo help achieve "a more 5UStalnable future for all". They represent a call to action to end poverty, protect the planet and promote prosperity and people's wellbelng by 2030. They integrate and balance the three dimensions of sustainable development: economlc, social and envlronmental. Achievin8 the SDGS on a global basis requlres collaboration between govemments. the private sector. cEvll society and atizens alike. The Portfollo plays a role in the realisation of the goals.
CONGREGATION OF NOTRE DAME DE SION LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) Additionally, the Su5talnable Development Goals ISDGS) are closely aligned wlth the charitable objectives of religious organisations. Slnce the publication of Laudato Si, Pope Francls has made 5tronB commitment to sustainable development. His appeal to ° ..every person living on this planet for an inclusive dialogue about how we are shaping the future of our planev, provldes firm ethical foundatlon for actions that need to be taken urgently at all levels. Pope Franci speech ahead of the Unlted Natlons General Assemblvs formal adoption of the 17 SDGs 8ave further support to the ambitious and transformational vision of the goals. Environmental Impact 13 MeaSurnent of carbon emi55ions is cruclal to help us understand the role our investment portFolio plays in the climate crisis, while tsking measures to address It. Limwting carbon emissions interacts with several SDGS, helping add$5 Climate Action in particular. Climate justice is another aspect addressed in our portfolio, as climate change predominantly impacts those who've done the least to contribute to pollution and have less resources to deal with it. Therefore, control of cartn emissions in our portfolio also contributes to reducing poverty ISDGII, reducin8 inequallty ISDGIO} and preseThinB life on land ISDG15) and In the oan(5DGI4l **+t 10 The Portfollo Includes a number of carbon sink-type investments. whlch sequester or draw carbon dioxide {C021 from the atmosphere. Forestry In partlcular isa very effective carbon sink, as trees absorb carbon dioxide as part of thelr growing pro$5. Therefore. the presence of forestry funds means that any carbon emlssion5 from the majority of the portfollo are effectively offset entirely by the forestry Investments. Put another way, thls means that the Portfolio In aggregate will sequester {withdrawl 428 tonnes of C02e from the atmosphere per annum while an unScened portfollo of the same slze woukl produce c. 4,016 tonnes of C02e. We believe that these extremety stron8 carbon emission 5tatlstiC5 Makes the Portfol very much part of the solution to cllmate change, rather than part of the problem. Following the Trustees decision to entirely divest from fossil fuels in earty 2017. the Portfolio now holds no fo11 fuel reserves. The Portfolio ensures no exposure to companles that own thernial coal. oil gas sereS and other unconventional sources of reserves such as oil sands, shale oil. and shale gas.
CONGREGATION OF NOTRE DAME DE SION LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) Many of these reserve5 will become "stranded" and may not be useable If we are to keep the targeted temperature rise la5 a result of global warming) below 2 degree5 Celsius. Hence, in addition to the impart, not holding these assets reduces the financlal rlsk wlthin the portfollo. The chart below shows the fossll fuel resernes held by Investment5 wlthin the PortfoS10 across the ma5or fossll fuels in comparlson to an unscreened portfolio. As the chart shows. the Portfolio holds no fossil fuel reserves at all. This is a key metrlc to ensure that the Portfolio is not supporting fossil fuel activities that are diametricalty opposed to the impact the Portfolio 15 trying to achieve elsewhere In the investmenty namely promoting transition from fossil fue15 to sustainable energy. Fossll Fuel Re*r¥es(thw5 of tonnos peram in¥ested) XA Renewobk Eneryy Given the importance of promotinB renewable energy sources to address dimate change. any Investor interested in impact investlng generally seeks a high level of neWable power output from their investment portfolio. Within the Portfolio. renewable power is produced bya number of investments based in Ireland. Europe, the US and the developing world. We note some of the key impact metrics of these funds below:
CONGREGATION OF NOTRE DAME DE SION LIMrrED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 {continued) ReTrvwable Eneigy Fund RenewatleenÈngyfvnd hokling onshorearKloffsFw>re wiecis EnergYfor3tsjD FK)uses FerannL Awxdsernis5k)ns of4WX4)OTffirEsof C02 perannum I,(KX),OCI) Mwh ofrenvwalJeFyYè1 Feramurn Stslar In¢orne Fund Fund hOIng3Pp1oX.4o 5dar Flanisin Euio Energy for150,IxX) htrjses perTruM Avoid5emi55icnsof162,OWtonrEs ofCO2 per annurn O Mwh 0frenÈyrdb tx)4¥er wannum The benefrt of generating renewable power can be measured by how much fossil fuel Wer land resultin8 C02 emlsstonsl It replaces. In 2023. the Portfolio avolded the release of almost 4.731 tonnes of C02e. This 15 equivalent to: Removing 1.022 cars from the roads everyyear 10,881 bae15 of oll saved 3,941 acres of pine fO$t absorbing C02 for one year 520 round trlps around the world by one typScal passenger car {travelling at the equator). In terms of renewable ener8y produd, the Portfolio prodUd 13.449 Mwh in 2023. enough energy to tthver approx. 3.669 homes. Environmentsl protection is a critical aspect of sustalnability addressed by the Portfolio. The forestry investments withln the Portfollo have a mandate to:
CONGREGATION OF NOTRE DAME DE SION LIMrrED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 {continued) Produce sustainable timber: Sequester carbon from the atmosphere; Protect natural resour$ and blodiversity of the area. in orderto minimise the effert on the biodiversity and general environmentsl welfare. Social Impact Job Creatlon Providing employment is one of the best methods of reducing poverty. and therefore it has a number of positive beneficial effects across the SDGS, from poverty reduction (SDGI) to providing Decent Work and Economic Growth {SDG81. As the majority of the job5 created by the impact investments are in the developing world. and tend to favour women as much {if not morel than men. then job creation in these areas improves Gender Equality {5DG51 and Reduces Inequalities ISDGIOI, both between sexes and between the developed and developin8 regions of the world. The Portfolio has a number of funds which provide job creation through thelr economic artivity. The equity funds provide capital to companies that employ anywhere between hundreds to hundreds of thousands, and therefore additional capital from investors should enable these companies to create jobs, albeit that the job ¢atIOn impact from additional investment in these typicalty large, established businesses is low. io
CONGREGATION OF NOTRE DAME DE SION LIMrrED TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) However, other funds that operate in the developin8 worfd tend to produce far higher job creation and comprise the majority of the additional jobs produced for the portfolio as a whole. The new jobs created by an unscreened portfolio of the same size as the Portfolio would only create 43 new jobs. whlle the Portfolio helped create around 74 direct jobs in 2023. Statement of Trustee< ftesponslbillttes The Trustees are responsible for preparln8 the Trustees, Report and the financial ststements in accordance wlth appli(able law and regulations. The Trustees. who are also the Dirertors of Congregation of Notre Ihme De Sion Limited for purpose of company law, are responsible for preparing the Trustee< Annual Report and the financial Statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accountin8 Practice). Company law requiresthe Trustees to prepare financial statements for each financial year. which give a true and fair view of the state of affalrs of the charitable company and of the incoming resources and application of resources. including the income and expenditure. of the charitable company for the year 2023. In preparing these financial Statements. the Trustees are required to: select suitable accounting pollcles and then apply them con5i5tentlv: obseNe method5 and principles in the Charitles SORP: make judgments and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed. 5ubjert to any materlal departures disdosed and explained in the financial statements; prepare the financial statements on the going conrn basi5 unle55 it Ss inapproprfate to presume that the Charity will continue in operation. The Trustee5 are responsible for keeping adequote accounting records that discbse with reasonable accuracy at any tlme the flnancial position of the charitable compony and enable them to ensure that the financial statements comply wlth the Companles Act 21. They are also responsible for safeguardin8 the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are awa". there is no relevant audit information of which the tharitable company's auditors is unaware; and the Trustee5 have tsken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establlsh that the audltors are aware of that informatlon. The Trustee pOrt, Including the strategic report and dirertorf reFrt was approved by the Board of Trustees. Philomena Conro Date aq" , Trustee golq Gertruda Nabu Date Iq. rs, Trustee li
CONGREGATION OF NOTRE DAME DE SION LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONGREGATION OF NOTRE DAME DE SION LIMITED Oplnlort We have audited the financial statements of Congregation of Notre Dame de Sion Limited (the 'charitable compan) for the year ended 31 December 2023 which comprise the statement of financial artivltie& the Statement of financial position. the ststement of cash flows and the note5 to the financial statements. Including a summary of signrficant accounting policies. The finanaal reporting framework that has been applied in their preparation is applicable law and United Kingdorn Accounting Standard5. includin8 Financlal 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 financlal ststements: glve a true and fair view of the state of the charitable company's affalrs as at 31 December 2023 and of Its incoming resources and application of resources, including Its income and expenditu, for the year then ended: have been Properly prepared in accordance with United Kln8dorn Generallv Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 21x16. Basi$ for Oplnlon We conducted ouraudit in accordan with International Standards on Auditing {UK} IISAS IUKI) and applicable law. Our responsibillties under those standard5 are further described in the auditor responsibilitie5 for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includlng the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these qUIrementS. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclu51ons relatingto 80ing cpncem In auditing the financial statements, we have concluded that the trustee use of the going conrn basls of accounting in the preparation of the financial statements is appropriate. Based on the work V have perf0Md. we have not identlfled any material uncertainties relatin8 to events or conditions that, individually or collectively. may cast significant doubt on the charltable company'5 abllty to continue as a 80ing concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responslbllltles and the responsibilities of the trustees with respett to going concern are described in the levant sections of this report. 12
CONGREGATION OF NOTRE DAME DE SION LIMITED INDEPENDENT AUDITOR'S REPORT (continued) TO THE MEMBERS OF CONGREGATION OF NOTRE DAME DE SION LIMITED Other InfomtiOn The other informatlon comprises the informatlon Tncluded in the tru5tees' annual report. other than the flnancial statements and our audltorfs report thereon. The trustees are responslble for the other information. Our opinion on the financial statements doe5 not cover the other information and. except to the extent otherwise explicitly stated In our report, we do not express any form of assurance conclusion thereon. Our responsibilty is to read the other information and. in doin8 so, consider vthether the other Information is materially inconslstent with the financlal statements or our knowledge obtained in the course of the audlt or otherwise appears to be materially rnisststed. If we identify such materlal inconsistencies or apparent material misststements, we are required to determlne whether this glves rise to a material mi55tatement in the flnancial statements themselves. If. based on the work we have perfomied, we conclude that there Is a materlal misstatement of thls other information. we are required to report that fact. We have nothing to report In this regard. Oplnions on other Tnatters prescribed bythe Companie5 Art 216 In our opinion. based on the work undertaken In the course of our audit: the information given in the Trustees, report. which includes the Dlrectors, report and the Strategic report prepared for the purposes of company law. for the financial year for which the financial statements are prepared is consistent with the financial statements: and the Strategic report and the Directors, report included within the Tru5tee5' report have been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors, report included within the Trustees, report. We have nolhing to report in respect of the followlng matters in latiOn to whrch the Companie5 Act 21)J6 require5 US to report to you if, in our opinlon: adequate accounting records have not been kept. or retums adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accountin8 records and returns: or certain dbsclosures of Trustees, muneratIon specified by law are not made: or we have not received all the information and explanations we require for our audit. 13
CONGREGATION OF NOTRE DAME DE SION LIMrrED INDEPENDENT AUDITOR'S REPORT (continued) TO THE MEMBERS OF CONGREGATION OF NOTRE DAME DE SION LIMITED Responsibilities of Trustees As explained more fully in the statement of Trustees, respoTrsibilltle5, set out on page 11, the Trustees. who are also the direttorsof the charitable company forthe purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees detemine is ne$Sary to enable the preparation of financial statements that are free from material misstatemenL whether due to fraud or error. In preparing the financial statements, the Trustees are spOnSible for assessing the charitable companls ability to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern basls of accountin8 unless the Trustees either intend to Ilquidale the charitsble company or to cease operations. or have no realistic alternative but to do so. Auditor responslblllties forthe audit of the Flnanclal Statements Our objectives are to obtain reasonable assurance about whether the financlal statements a5 a whole are free from material misstatement, vthether due to fraud or error, and to issue an auditor's reF>Ort that includes our opinion. Reasonable assuran is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will alway5 detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonabty be expected to influence the economlc decisions of users taken on the basls of these financial ststements. Irregularlties. includlng fraud, are Instsnces of non-compliance with laws and regulations. We deslgn procedures in line with our responsibilitie5. Outlined above, to detect rnaterial misststements in respect of irguIaritie$. Including fraud. The extent to which our procedures are capable of detecting Irregularities, including fraud 15 detsiled below.. The oblertives of our audit, in respect to fraud, are: to Identify and assess the risks of material misstatement of the financial ststements due to fraud: to obtain sufficient appropriate audlt evidence regarding the assessed risks of material misstatement due to fraud. through designing and implementing appropriate responses: and to respond appropriately to fraud or suspected fraud identified durlng the audit. However, the primary responsibility for the preventlon and detection of fraud $ts w5th both those Chaed with governance of the entity and its management. Our approach was as folh)ws: •We Identified areas of laws and regulations that could reasonabty be experted to have a material effect on the financial statements from ourgeneral commercial and settor experlence. and through discussion with the directors and other management (as required by auditin8 standards), and discussed with the director5 and other management the policles and procedures regarding compliance with laws and regulations; •We considered the le8al and regulatory frameworks directly applicable to the financial statement5 reporting framework IFRS 102. the Companies Att 21yJ6 and the Charities Act 20111 14
•We communicated Klentified laws and regulations throughout ourteam and remained alert to
any indlcations of non-compliance throughout the audiL'
•We considered the protrdures and controls that the charltable company has establlshed to
address ri5k5 identlfied. or that otherwlse prevent, deter, and detect fraud; and how senior
management monitors those pro8rammes and control5.
Based on this understsnding we designed our audit procedures to identlfy non
CONGREGATION OF NOTRE DAME DE SION LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlrted Funds General 2023 2022 Income from: Donations Investment income Sundry income 218.892 7SO,810 4.607 6,898.952 720.713 6,789 Totsl Income 974.309 7.626.454 Expenditure on: Charitable actlvlties Raising funds 4.757.842 235.364 6,310.364 210,789 Totsl Expenditure Net {expendItUre)ncOffle forthe year 4,993,206 14,018,897) 6,521,153 1.105,301 Net Ilosses) on fixed assets investments 1695.7901 13.887,7561 Net movement in lunds Fund Balance brought forward Fund Balance carrled forward (4.714,687} {2,782,45S} 45,105,468 47.887,923 40,390,781 45,105,468 The ststement of financial actlvities indudes all gains and losses recognised in the year. All Income and expenditu derive from continulng actwities. The statement of flnanclal activitles also complies with the requirements for an income and expenditure account under the Companies Act 2006. 16
CONGREGATION OF NOTRE DAME DE SION LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 Note5 2023 2022 Flxed assets Investments 46,280,231 47.827,705 46.280.231 4727.705 Current assets Debtors Cash at bankand in hand io 13 14,775 589,920 604,695 1,448.320 IA48,320 Credltoys: arnounts fallln8 due wlthln one vear li 16,494,145) 14,170.5571 Net current liabilltles (5,889A50) (2.72Z,237) Total assets Ilabllltles 40.390,781 45.10SM68 Income funds Unrestricted funds 15 40,390.781 45,105.468 Totsl fvnds 40.390.781 45,105.468 The flnancial statements were approved and authorised for issue by the Board on 29 May 2024. Signed on behalf of the Board of Trustees Philomena Conr Date a9" y,Tr ee Gertruda Nabuurs. Trustee Date a9, _ The notes on ihe pages 19 to 28 form part of these financlal statements. Company re8lstratlon number: 10851948 17
CONGREGATION OF NOTRE DAME DE SION LIMrrED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cashflow from Operating Activities Net cash labsorbed)/ provlded by operating actl¥ltles 12 12.358.762) 12,358.7621 3.995.458 3,995,458 Cashflow from Investing actlvlties Charitable artivtties Purchases of irwestments Wlthdrawals of fijnds from Investment Interest received Net cash generated/(usedlby iMstIng actlvltles 56,165 (5.104,320) 1.5(K),CKIO 362 1.500,362 15.048,1551 Chaym in cash and ca$h equlvalent In the year 1858.4LKI) 11,052,697) Cash and cash equivalent at l January 1,448.320 2,501,017 Cash and cash equlvalent at 31 December 13 589.920 1,448.320 18
CONGREGATION OF NOTRE DAME DE SION LIMITED NOTE5 TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING pouaES Charity Infom1 Congre8atlon of Notre Dame de Slon Limited is a private company Ilmited by Buarantee incorporated In England and Wales. The registered office is 34 Chepstow Vlllas. London. England, wii 2QL The Charity constitute5 a public benefit entity as defined by FRS 102. The financial ststements have been prepared in accordan with the Charitys Memorandum and Articles of Association5, the Companies Act 21x16 and "Accountlng and Reportin8 by CharFties Statement of Recommended pract0 applicable to charities preparing their accounts in accordance with the financial Reportine Stsndard applicable in the UK and Republic of Ireland IFR51021 (effective l January 20191". The financial statements are prepared in Euros vthich Is the functlonal currenry of the Charfty. Monetsry amouTrts in these financial statements are rounded to the nearest É. The financial ststements have been prepared under the historical cost convention. modified to include certain Investments at fair value. The princlpal accounting policies adopted are set out below. 1.2 GohYGcoNN The flnancial statements Show that the are liablllties of around É6m. The Charlty will fund these liabilities with proceeds from the sale of some Investments from the portfolio. The TTUStees continue to adopt the going concem basi5 of accounting in preparing the financial statements. There are no material uncertainties In reect of the charivs Status as a going conom. 1.3 CHARWAbLE FUNDS Unrestricted funds are available for use at the dlscretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. 1.4 IpKOMiMG RESOUR Income 15 recogni5ed vthen the Charity is legally entrtled to it after any performance conditions have been met. the amounts can be measured reliably. and it is probable that income will be received. 19
CONGREGATION OF NOTRE DAME DE SION LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING pouaES 1.4 INCOMING RESOURCES (Continued) Cash donations are recognised on recelpt. other donations are cOgnised once the Charity has been notified of the donatlon, unle55 performance conditions require deferral of the amount. Investment income is earned through holding assets for investment pufposes such as shares and property. It Includes dlvidends. interest and rent. Where It Is not prarticable to identify investment management Costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is Included when the amount can be measured reliably- Interest income Is recognised using the effective interest rnethod and dlvidend and rent income is recognlsed asthe Charitws right to receive payment 15 established. 1.5 RESOURCE5 ExpÈNDeD Liabllities are reco8nised as expenditure a5 soon as there is a legal or constructive obligation committing the Charity to that expenditure. it Is probable that a transfer of economic benefits will be requlred in settlement and the amount of the obllgatlon can be measured rellably. Expenditure is accounted for on an accruals basls and has been classified under headings that aggregate all c05t related to the category. Where costs cannot be directly attributed to particular headin8S. they have been allocated to actmties on a basis corssistent wlth the use of resources. It 15 catsgorised under the following headings Expenditu on charstable activities Includes costs incurred by the Charity in the delivery of its actNitie5 and selyi5for its beneficiarles. It includes both coststhat can be allocated dlrectly to suth act]tIeS and those wsts of an indirect nature nece55ary to support them. Support costs are those that assist the work of the Charity but do not directty represent charitable activities and include governance costs. Irrecoverable VAT is charged against the category of reSoUrS expended for which It was incurred. 1.6 CASHAP4DCA5H EquivALÉNTS Cash and cash equivalents include cash in hand, deposits held at call with banks. other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilitles. 20
CONGREGATION OF NOTRE DAME DE SION LIMrrED NOTES TO THE FINANCIAL sfATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING pouaES {CONTINUED) 1.7 FINANOALIPRvMEPf5 The Charity has elected to appty the provisions of Sertion 11'8asic Financlal Instruments, and Section 12 '0ther Flnancial Instruments Issues, of FRS 102 to all its financial instruments. Financial instruments are recognlsed In the Charws balan Sheet when the Charity becomes party to the contractual provlslon5 of the Instrument. Basic Finan¢ial Assets Basic financial assets. which include debtors and cash and bank balans, are Inltially measured at transaction pr1 including transartion costs and are subsequently carried at mortised cost using the effettive interest method unless the arrangement constitutes a financing transaction. where the transaction Is measured at the present value of the future retripts discounted at a market rate of interest. Finanaal a55ets classified as retrivable within one year are not amortised. Basic Financial Llabllltles Basic financSal liabilities. induding creditors and bank loans are inltially recognised at transattion price unless the arran8ement constitute5 0 financlng transaction. where the debt instrument is measured at the present value of the fvture payments discounted at market rate of Interest. Flnancial Ilabilities classlfied a5 payable within one year are not amortised. Debt Instruments are subsequentfy carried at amortised cosr. using the effective interest rate method. Trade creditors are obligations to pay forgoods or services that have been acquired In the ordinary course of operations from supplier5. Amounts payable are classified as current Ilabilities rf payment is due wlthin one year or less. If not. they are presented as non- current liabilities. Trade creditors are recognised initialty at transaction price and subsequently measured at amortised cost using the effertive interest method. Dere¢ognltlon of Finandal Liablllties Financial liabilities are derecognised when the Charity's contractual obl[tIonS expl or are discharged or cancelled. 1.8 TAXAn(Y4 The company is a registered Charity and 15 not subject to corporation tax or income tax on its charitable activities. 21
CONGREGATION OF NOTRE DAME DE SION LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING paEs (CONTINUED) 1.9 INVESTMEpirs Investments are recogni5ed initially at cost which is norn)ally the transaction price excludlng tran5aCtlon costs. Subsequently, they are measured at falr value with changes recognised in 'net 8ains I (losses} on investments. in the SOFA rf the share5 are publicly traded or their fair value can otherwise be measured reliably. Where held as an on80in8 Investment they are induded as red assets. 1.10 FOREIGN CURRENCY Assets and liabilities in foreign currencies are translated into euros at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into euros at the rate of exchange ruling at the date of transartion. Exchange differences are taken into account in arrlvlng at the net movement In fund5. CRITICALACCOUNTING ESTIMATES AND JUDGEMENTS In the application of the Charlty's accounting polKies, the trustees are required to make jud8ements, estimate5 and assumptions about the carrying amount of assets and liabiltties that are not readlly apparent from other sources. The estimate5 and associated assumptions are based on historical experience and other factors that are considered to be relevant. Artual results may differ from these estlmates. The estimates and undertylng assumptions a reviewed on an ongoing basls. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods vthere the revision affects both cUrnt and fvture periods. DONATION INCOME Unrestrfcted Funds General 2023 2022 Donations and glfts 218.892 698,952 Included in the above are donatlons of (218,892 12022". £6,884,433} received from connected charities. See Note 16 for further infonnation on the material donations from those charities. 22
CONGREGATION OF NOTRE DAME DE SION LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 INCOME FROM INVESTMENTS Unrestrfrted Funds General 2023 2022 Income from listed Investments Interest receivable 750,448 362 750,810 720.646 67 720,713 QIARITABLE AcllviTY EXPENDITURE Unrestrirted Funds Genernl 2022 Donations Support costs Governan costs- auditorfs remuneration for audit Services Governance costs- auditorfs remuneration for other seNlce5 Other currenc¥ exchange movements 4,529.742 154,640 6.062.710 123,702 27,961 24.322 40.784 4,715 4.757.842 43,912 55.718 6.310,364 Included in the above are donations to connected charitles. See Note 16 for further information on the material donations to those tharities. The amount for donation5 indleS an accrual for future donati{$, see Note 17 for further infomiation. RAISING FUNDS Unrestrkted Funds General 2023 2022 Investment Management fees Financial management fees Company secretariol fees 235,364 197,609 6.035 7.145 210,789 235,364 23
CONGREGATION OF NOTRE DAME DE SION LIMITED NOTES TO THE FINANCIAL STATEMENT5 (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 srAFF, TRUSTEES AND KEY MANAGEMENT PERSONNEL REMUNERAnoN AND EXPENSES During the year, the Charity had one employee12022: 11. The Charivs key management personnel are its Trustees who received no remuneration during the year. Duringthe year. travel expense5 amountin8 to a.07912022: É1.9961 were pald in total to 4 trustees. 2023 20ZZ Wage5 and Salaries Penslon costs Socrdl welfare costs 46.435 3.245 18,875 68,555 46.029 3,614 19.681 69.324 There were no employees whose employee benefits (excluding employer pension costs) exceeded É70.OCX). NET GAINS/(LOSSES) ON INVESTMENTS Unrestrlcted Funds General 2023 2022 Realised & Unreallsed11055es)/galns I695.7) 1695.79)) 13,887,756) 13,887.7561 FIXED ASSET INVESTMENTS 2023 2022 Marketvalue ljanuary Additions during the year Sold during the year 47,827,705 4.858,384 14.866,039 47,820,050 750,448 46.194,090 5,104.320 51,298.410 720,646 156.1651 Investment Income Charitable activitie5 paid out of investments Donations paid in investments Funds withdrawn Cost of generating fund5 pald Unrealised {10ssesllgains Market Value 310ecember 99.625 (l,5,0c0I 1194.1021 1695.75Y)I 46.280,231 1247,4301 13,887,756) 47,827,705 24
CONGREGATION OF NOTRE DAME DE SION LIMITED NOTES TO THE FINANCIAL sfATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 Investments at fair value comprises 2023 Equities Securities Bonds Cash withln investment portfolio 20,483,076 21.881,917 3,507,201 408,037 46.280,231 21,758.981 22,415,852 2,409,739 1,243,133 47.827,705 10. DE8TORS 2023 Prepayments 14,775 11. CREDITOR&. AMOUP4TS FAWNG wrrHIN ONE YEAR 2023 2022 Other Creditors 6.494.145 4.170.557 Included In Other Creditors are amounts payable to connected charities, see related party note 16 for further information. 12. RECONCULIAnoN OF NEf INCOMV(EXPENDITURE) TO NEf CASH FLOW FROM OPERATING AcfiviTIES 2023 2022 Net m¢)vement In funds Investment Income Interest Income (Increase)Idecrease in debtors Increase/{decrease) in creditors (Galnslllosses in investments Fees paKI other than by cash tk)nations reiVed other than by cash Net cash provlded by opeTatlng actlvltles {4,714.6871 1750,4481 {3621 114,775) 2,323.588 695,PJO 201.757 199,6251 12.358,762 12.782,4551 1720.646} 1.536 3.361,837 3.887.756 247.430 3.995,458 25
CONGREGATION OF NOTRE DAME DE SION UMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 13. ANALYSIS OF CASH AND CASH EQUIVALENTS 2023 Cash in hand Total cash and cash equfvalen¢s 589.920 589.920 1,448,320 1,448.320 IQ FUNDS RECONaLIATION Unrestrlrted Fund5 2023 20Z2 Balance as at l January Net income Unrealised investment (lossesllgains Balance as at 31 December 45.105.468 14.018,897} 1695,790} 40,390.781 47,887.923 1,105.301 13.887,7561 45,105,468 15. ANALYSIS OF NEf ASSEfs BEtWEEN FUNDS Unrestrkted Funds 2022 Fixed asset investments 46.280,231 47.827,705 Current assets 604.695 1,448.320 Current liabilities 16,494,145) 14.170.557) 40,390,781 45.105,468 16. RELATED PARTY TRANSAcfioNS During the year the Charity received donatlons without any re5trirtions, as follows: . Region Congregation of Our Lady of Sion (Romanial Congregatlon of Our Lady of Sion (Australia) Congregation of Our Lady of Sion IUKI Congregatton of Our Lady of Sion IRome} Amount for 2023 99,625 120.150 123.480 5,430,126 1,330.827 26
CONGREGATION OF NOTRE DAME DE SION UMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 16. RELATED PARTY TRANSACTIONS (Contlnued) The Charily supported several Regions of the Congregation with the care of the sisters and the promotion of their ministries. This included donations. as follows: Re8ion Asociacion Cultural Educatlva Ratisbona, Central America Region Asociacion Cultural Educotiva Colegio de Sion Congregation de Notre Darne de Sion, Mediterranean Region Notre Dame de Sion. France. Europe Congregacao das Religiosa5 n Senhora Sion, Brazil Notre Dame de Slon COn8gatIOnal Account. Jerusalem Notre Dame de Slon Congregational Account, Rome Congregation of Our Lady of Sion (UK) Congregation Center for Biblical Formation Amount for 2023 742,608 Amount for 2022 1,065,537 320,755 2,(KK} 80,480 55,fJXI 400.000 94.340 27,955 490,591 1.205,OLXJ 2,155.K) Q7.014 153,889 686,239 121,302 These donatlons include both pald and net accrued amount5. For the connerted charities, there are (64.536 of negative net accruals. due to a reduction in the accruals for 2023, compared to 2022. For the regions with negatlve net amounts for 2023, the table below gives a breakdown of the amounts donated in 2023 and the total amounts in 2023 and 2022, including accruals: Re8ion Amount Pald In 2023 Totsl Amount for 2023. incl. acmials Totsl Amount for 2022. incl. accruals 43,316 Congregation of Our La(ty of Sion IUKI for education purposes Notre Dame desion Inc., Philippine5 forthe care of the sisters and the promotion of their ministries Works at Via Garibaldi, Rome 10.292 1É18,1171 18,223 1£1,7771 84,472 189,858 IU4,642) 875,0 27
CONGREGATION OF NOTRE DAME DE SION UMrrED NOTES TO THE FINANCIAL ATEmENTs (Continued) FOR THE YEAR ENDED 31 DECEMBER 2023 17. PROVISIONS AND CONnGENT LIABILTIES The Charty has a duty to support the member5 of the Congre8ation and their ministries, this includes providing the various Regions of the Congregation with thelr working capital budget. This duty represents an obligation under applicable GAAP. This obligation reqUIS a provision to be made for expenses that a known and can be measured reliably. The draft budgets for the Regions have been submitted and approved. Therefore, provlslon of 6.321,11712022: £4,012,364) has been made in these accounts for the donations payable included in the budget. The amounts relating to donatlons paid In Note 16 include both the amounts paid and net amounts accrued. At the board meeting on 12th October 2023. it was confimied that the Con8re8ation of Our Lady of Sion (COLOS UK) would transfer its beneficial interest in the Grandbourg Trustee Company to the Charity ICNDS Ltd) on I" January 2024. The GrandbOU Trustee Company was the registered owner of properties included in the accounting records of Congregation of our Ladv of Sion {COLOS UK) at a combined c05t or market value of approximately É25 million and the Congre8ation of Notre Dame de Sion Ltd {CNDS Ltd) was the sole shareholder and beneficiary. The community in Costs Rlca is searching for a new property. The Charity has an obligation to provide the funding forthe purchase. currently the value of the acquisition is unortain, and no provision has been made. 28