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2023-12-31-accounts

Charity registration number 1183036

Company registration number 11798424 (England and Wales)

CONGREGATION OF OUR LADY OF SION (UK) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

CONGREGATION OF OUR LADY OF SION (UK)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Sister Brenda Dorrian Sister Anne Lee Sister Maureen Cusick Charity number 1183036 Company number 11798424 Principal address 34 Chepstow Villas London W11 2QZ Registered office 1 Bickenhall Mansions Bickenhall Street London W1U 6BP Auditor Sanders 1 Bickenhall Mansions Bickenhall Street London W1U 6BP Bankers Lloyds Bank 25 Gresham Street London EC2V 7HN

CONGREGATION OF OUR LADY OF SION (UK)

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 9
Statement of financial activities 10
Statement of financial position 11
Statement of cash flows 12
Notes to the financial statements 13 - 23

CONGREGATION OF OUR LADY OF SION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The object of the Order is to promote a world of justice, peace and love by promoting racial and social harmony. The trustees have considered the Charity Commission's general guidance on public benefit when reviewing the aims and objectives.

The policies adopted to achieve that object and which have been unchanged during the year remain in the fields of inter-faith work, education, spirituality and the caring services. These will be developed both short term and long term as the needs arise.

In common with many religious Orders in the United Kingdom & Ireland, the age profile of the members of the Order is changing as existing members grow older and the number of new vocations becomes minimal. The Order has an obligation, both moral and legal, to provide care for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to promote peace and justice and education.

The Congregation has a leadership team for coordination and planning of events and support of the sisters.

Many of the activities of previous years' reports remain true but always there are adjustments and developments and sometimes closure of certain activities.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

CONGREGATION OF OUR LADY OF SION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.

Achievements and performance

Activities and Achievements

The Order continues to be involved in Jewish Christian Relations and interfaith dialogue in various towns and cities in the United Kingdom and the Republic of Ireland. The work of the Diocesan Advisor in interfaith continues to develop in Manchester. The Order gives courses in Judaism and Jewish Christian Relations via Zoom.

The Order continues to run courses from home and in parishes on Biblical study, Judaism and interfaith relations and are meeting an increased interest in this area. They also organise catechetical programmes for young people in parishes and schools.

Some members of the Order offer spiritual guidance in various situations and accompany people on their faith journey. There is also involvement in Church ministry.

The Centre for Dialogue and Encounter continues to offer courses on scripture, Jewish Christian relations and spirituality. These have been well attended and the conference facilities have been in demand by outside groups who fit into our ethos.

The Order cares for all the sisters and as the age profile of the Order changes so too does the need to provide more and increasingly expensive care for the members. The particular care needs of each member will be addressed as necessary, and the appropriate care will be provided for each member of the Order.

The trustees consider that the Order continues to meet its objectives.

Financial review

The charity is part of the wider Congregation of Our Lady of Sion. The Order is undergoing an international restructuring which includes resources being shared and managed at a international level, this is known as the shared management of resources. As part of this restructuring surplus funds are transferred to Congregation of Notre Dame de Sion Limited (Charity Number 1178995), a connected charity under the common control of the same Order.

The charity will be provided with funds to meet its requirements from the International Fund and is no longer expected to hold its own reserves. An annual budget will be prepared and approved and if the charity is forecast to have a deficit in funds the shortfall will be met by Congregation of Notre Dame de Sion Limited. Should additional funds be required due to unforeseen circumstances, an application for additional funding would be made to Congregation of Notre Dame de Sion Limited that would be reviewed and supported on a case-by-case basis.

The charity has been assured that Congregation of Notre Dame de Sion Limited will support the shortfall of funds of the charity and that it has the means to support the charity.

CONGREGATION OF OUR LADY OF SION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial Position

The balance sheet shows total funds of £23,668,078 (2022: £23,015,527) of which £35,615 (2022: £35,615) was restricted. The main reduction in assets was due to the donation of surplus funds to Congregation of Notre Dame de Sion.

Financial Performance

The total income of the Unrestricted Fund for the year was £683,966 (2022: £4,906,355). The main source of the higher income in 2022 was from the sale proceeds of three vacant properties. During the year the charity also received a legacy of £Nil (2022: £35,615) specifically for the Sion Centre for Dialogue and Encounter and this receipt was recognised as a Restricted Fund.

The total resources expended during the year out of the Unrestricted Fund was £846,415 (2022: £5,553,473) (see notes 6 and 7). In 2022 the main expense was the donation of the property sales proceeds of £4,630,594. There were no expenditure out of the Restricted Fund.

Net gains of £815,000 (2022: £150,000) in the year relate to an increase in value on all of the investment properties. The market values of the investment properties were broadly in line with the wider property market.

Reserves policy

As explained in the Objectives and activities paragraph of the Trustees' Report the charity carries out a variety of both long term and short term projects including the care and support of the members of the Order.

The trustees have examined the requirement for the free reserves which are those unrestricted funds not invested in fixed assets, investment properties, designated for specific purposes, restricted funds or otherwise committed. The trustees consider that, given the nature of the Order's work, the international shared management of resources with the wider Congregation, the reserve should represent approximately 24 months expenditure. The estimated free reserves at 31st December 2023 were £989,730 (2022: £1,293,393). The free reserve at the year-end does not cover the estimated expenditure for the 24 month period after the year end date. The deficit will be funded by Congregation of Notre Dame de Sion Limited.

Principal funding sources

The charity does not receive any external funding except under the shared management of resources from Congregation of Notre Dame de Sion Limited as described above. The Order's main investments were in property until 31 December 2023. On 1 January 2024, the charity donated all of its fixed asset properties and investment properties to Congregation of Notre Dame de Sion Limited.

Risk management

The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining free reserves at the level stated above will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks which are faced and confirm that systems have been established to mitigate the significant risks.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to those risks.

CONGREGATION OF OUR LADY OF SION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Future plans

The charity plans to continue the activities outlined above in the forthcoming years subject to satisfactory funding arrangements.

The charity will work towards developing as an international organisation by working more closely with Sisters of Our Lady of Sion throughout the World. In the coming year there will be a greater emphasis on working internationally.

As mentioned above the charity has donated funds to the connected charity Congregation of Notre Dame de Sion Limited which will be supporting the international charitable work.

On 1 January 2024, the charity donated all of its fixed asset properties and investment properties to Congregation of Notre Dame de Sion Limited.

Structure, governance and management

The charity is a company limited by guarantee and governed by Memorandum & Articles of Association dated 30 January 2019. The Charity is a registered charity with the UK Charity Commissioner under charity number 1183036.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Sister Brenda Dorrian Sister Anne Lee Sister Maureen Cusick

Appointment of trustees

The trustees are eligible, in committee, to appoint additional trustees under the terms of the Articles of Association. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Organisational structure

The board of trustees comprises members who meet regularly and are responsible for the strategic direction and policy of the charity. The Order meets regularly throughout the year to make decisions on operational matters, including finance, employment and other performance related activities.

Trustee induction and training

The trustees are usually familiar with the practical work of the charity before being appointed. To date, all trustees have been appointed from among the members of the Order.

The trustees are the key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day to day basis. The trustees are members of the Order and whilst their living and personal expenses are borne by the charity, they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or key management personnel.

The charity is part of the wider Congregation of Our Lady of Sion and works closely with them and implementing the wider policy and strategy. However, the day to day activities are controlled and carried out by its own members and trustees.

Related parties

The charity is connected to the Congregation of Notre Dame de Sion Limited, a charitable company, registered in England and Wales, by virtue of being under the common control of members of the same Order.

CONGREGATION OF OUR LADY OF SION (UK)

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Statement of trustees' responsibilities

The trustees, who are also the directors of Congregation of Our Lady of Sion (UK) for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

Auditor

In accordance with the company's articles, a resolution proposing that Sanders be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report, including the strategic report, was approved by the Board of Trustees.

Sister Anne Lee Trustee Dated: 23 September 2024

Sister Maureen Cusick Trustee Dated:23 September 2024

CONGREGATION OF OUR LADY OF SION (UK)

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF CONGREGATION OF OUR LADY OF SION (UK)

Opinion

We have audited the financial statements of Congregation of Our Lady of Sion (UK) (the ‘charitable company’) for the year ended 31 December 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees' annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the trustees' annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CONGREGATION OF OUR LADY OF SION (UK)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CONGREGATION OF OUR LADY OF SION (UK)

Matters on which we are required 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 or the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities set out on page 5, the trustees (who are also the directors of the charitable company for the 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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

CONGREGATION OF OUR LADY OF SION (UK)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CONGREGATION OF OUR LADY OF SION (UK)

Auditor's responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit 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 during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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

CONGREGATION OF OUR LADY OF SION (UK)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CONGREGATION OF OUR LADY OF SION (UK)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Smith (Senior Statutory Auditor) for and on behalf of Sanders

23 September 2024

Chartered Accountants Statutory Auditor

1 Bickenhall Mansions Bickenhall Street London W1U 6BP

CONGREGATION OF OUR LADY OF SION (UK)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
3
223,658
Investments
4
460,308
Other income
5
-
Total income
683,966
Expenditure on:
Raising funds
6
81,145
Charitable activities
7
765,270
Total expenditure
846,415
Net gains/(losses) on
investments
13
815,000
Net income/(expenditure) and
movement in funds
652,551
Reconciliation of funds:
Fund balances at 1 January
2023
22,979,912
Fund balances at 31
December 2023
23,632,463		 Restricted
funds
2023
£
-
-
-
-
-
-
-
-
-
35,615
35,615		 Total
Unrestricted
funds
2023
2022
£
£
223,658
797,386
460,308
429,876
-
3,679,103
683,966
4,906,365
81,145
46,292
765,270
5,507,181
846,415
5,553,473
815,000
150,000
652,551
(497,108)
23,015,527
23,477,020
23,668,078
22,979,912		 Restricted
funds
2022
£
35,615
-
-
35,615
-
-
-
-
35,615
-
35,615		 Total
2022
£
833,001
429,876
3,679,103
4,941,980
46,292
5,507,181
5,553,473
150,000
(461,493)
23,477,020
23,015,527

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CONGREGATION OF OUR LADY OF SION (UK)

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
15
Investment properties
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
20
Unrestricted funds - general
21
Net assets		 2023
£
£
3,607,733
19,035,000
22,642,733
44,030
994,655
1,038,685
(13,340)
1,025,345
23,668,078
35,615
23,632,463
23,668,078		 2022
£
£
3,616,519
18,220,000
21,836,519
150,625
1,134,586
1,285,211
(106,203)
1,179,008
23,015,527
35,615
22,979,912
23,015,527		 2022
£
£
3,616,519
18,220,000
21,836,519
150,625
1,134,586
1,285,211
(106,203)
1,179,008
23,015,527
35,615
22,979,912
23,015,527
21,836,519
1,179,008
23,015,527
35,615
22,979,912
23,015,527

The financial statements were approved by the Trustees on 23 September 2024

Sister Anne Lee Sister Maureen Cusick
Trustee Trustee
Company Registration No. 11798424

CONGREGATION OF OUR LADY OF SION (UK)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
27
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(594,912)
(9,745)
-
464,726
454,981
-
(139,931)
1,134,586
994,655		 2022
£
£
(4,718,729)
(45,778)
4,631,292
420,457
5,005,971
-
287,242
847,344
1,134,586

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Congregation of Our Lady of Sion (UK) is a private company limited by guarantee incorporated in England and Wales. The registered office is 1 Bickenhall Mansions, Bickenhall Street, London, W1U 6BP.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of land and buildings and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The charity at the year-end has net assets of £23.67m (2022: £23.02m). It is part of the shared management of resources with the wider Congregation. In the event of a deficit, as part of this arrangement, the Charity would be funded by a charity under common control, Congregation of Notre Dame de Sion Limited, the resource holding entity of the Congregation. At the time of approving the accounts the trustees have received a letter of support from Congregation of Notre Dame de Sion confirming that support and a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds include the legacy for Sion Centre of Dialogue and Encounter.

1.4 Income

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be measured reliably and it is probable that the income will be received. The following specific policies are applied to particular categories of income:

Income from donations and legacies

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as expenditure as 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 required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure is categorised under the following headings:

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. Support costs are allocated directly to support of members of the Congregation and their ministry.

1.6 Tangible fixed assets

All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised.

Freehold land and buildings are those designed as, and used wholly or mainly for, private residential accommodation. Where the original cost of certain freehold properties is not readily available, it has been estimated by the trustees. Otherwise all other properties are stated at cost or deemed cost. Such buildings are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value. Disposals and additions to freehold land and buildings are accounted for on legal completion of the relevant transaction.

Permanent diminution in the value of fixed assets is charged to the Statement of Financial Activities where the amount can be quantified with reasonable accuracy.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 10% straight line
Computers 20% straight line
Motor vehicles 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently they are measured at trustees' estimate of fair value based on guidance from estate agents and professional valuers at each reporting date with changes in fair value recognised in 'net gains / (losses) on investments' in the Statement of Financial Activities.

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

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.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Taxation

The charity is exempt from tax on its charitable activities.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Foreign exchange

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

2 Critical accounting estimates and judgements

Preparation of the accounts requires the trustees to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include:

3 Donations and legacies

Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
general
2023
2022
2022
£
£
£
Donations and gifts
14,699
572,796
-
Legacies received
-
-
35,615
Pensions and salaries
208,959
224,590
-
223,658
797,386
35,615		 Total
2022
£
572,796
35,615
224,590
833,001

4 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Rental income 460,308 429,876
5 Other income
Total Total
2023 2022
£ £
Net gain on disposal of tangible fixed assets - 3,679,103

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

6 Raising funds

Unrestricted Unrestricted
funds funds
general general
2023 2022
£ £
Investment management costs
Investment property management 33,306 32,627
Upkeep of rental properties 47,839 13,665
Investment management costs 81,145 46,292

7 Charitable activities

Unrestricted
Unrestricted
funds funds
2023 2022
£ £
Staff costs 92,531 64,701
Care services 171,227 274,927
Sisters' living and ministry expenses 152,996 124,514
Donations and gifts 18,897 4,650,961
Premises and support costs 204,989 214,522
Education, training and spiritual direction 53,332 41,699
693,972 5,371,324
Share of support costs (see note 8) 51,498 116,057
Share of governance costs (see note 8) 19,800 19,800
765,270 5,507,181

Charitable activities costs are in support of members of the Congregation and their ministries. Included in the above amounts is a foreign exchange loss of £466 (2022: £913). Donations and gifts include transactions with a related party. Further details of the transactions are included in Note 25 related party transactions.

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8
Support costs
Accountancy
Legal and professional
Audit fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
26,690
-
24,808
-
-
19,800
51,498
19,800
51,498
19,800		 2023
£
26,690
24,808
19,800
71,298
71,298		 Support
costs
Governance
costs
£
£
52,933
-
63,124
-
-
19,800
116,057
19,800
116,057
19,800		 2022
£
52,933
63,124
19,800
135,857
135,857

Total fees payable to the auditors are £86,203 (2022: £149,360). Of this £19,800 (2022: £19,800) are for audit fees, £42,535,(2022: £105,692) are for other accountancy and consultancy services and £23,868 (2022: £23,868) are property management fees. Property management fees are included in Raising Funds in Note 6 and all other costs are included in Support costs.

9
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
Loss/(profit) on disposal of tangible fixed assets
10
Auditor's remuneration
Fees payable to the charity's auditor and associates:
For audit services
Audit of the financial statements of the charity		 2023
2022
£
£
18,531
18,218
-
(3,679,103
2023
2022
£
£
19,800
19,800		 2023
2022
£
£
18,531
18,218
-
(3,679,103
2023
2022
£
£
19,800
19,800
2022
£
19,800

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. As members of the Order, the trustees' living and personal expenses during the year were borne by the charity.

12 Employees

No employee received emoluments more than £60,000 per annum. The average monthly number of employees and full time equivalent during the year was:

2023 2022
Number Number
5 4

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

12
Employees
Employment costs
Wages and salaries
Social security costs
Defined contributon pension costs		 (Continued)
2023
2022
£
£
90,720
62,428
305
1,138
1,506
1,135
92,531
64,701		 (Continued)
2023
2022
£
£
90,720
62,428
305
1,138
1,506
1,135
92,531
64,701
64,701

13 Gains and losses on investments

Unrestricted Unrestricted
funds funds
2023 2022
Gains/(losses) arising on: £ £
Revaluation of investment properties 815,000 150,000

14 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

15 Tangible fixed assets

Cost
At 1 January 2023
Additions
At 31 December 2023
Depreciation and impairment
At 1 January 2023
Depreciation charged in the year
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Land and
buildings
Fixtures and
fittings
£
£
3,546,135
304,416
-
7,750
3,546,135
312,166
-
257,282
-
6,096
-
263,378
3,546,135
48,788
3,546,135
47,134		 Computers Motor vehicles
£
£
35,681
111,976
1,995
-
37,676
111,976
33,421
90,986
1,417
11,018
34,838
102,004
2,838
9,972
2,260
20,990		 Total
£
3,998,208
9,745
4,007,953
381,689
18,531
400,220
3,607,733
3,616,519

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

15 Tangible fixed assets

Tangible fixed assets
Freehold
Long leasehold		 (Continued)
2023
2022
£
£
2,930,252
2,930,252
615,883
615,883
3,546,135
3,546,135		 (Continued)
2023
2022
£
£
2,930,252
2,930,252
615,883
615,883
3,546,135
3,546,135
3,546,135

Land and buildings are used by the Sisters for their own occupation and these buildings are not depreciated. Their value and condition are reviewed annually by the trustees who are satisfied that the residual value of these properties is not materially less than their book value.

16 Investment property

Investment property
Fair value
At 1 January 2023
Net gains or losses through fair value adjustments
At 31 December 2023		 2023
£
18,220,000
815,000
19,035,000

Investment property comprises freehold properties. The fair value of the investment property has been arrived at using the trustees' estimation of market value for similar properties in the relevant locations and based on guidance from estate agents and professional valuers.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:

Cost
Accumulated depreciation
Carrying amount
17
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2023
£
1,838,563
-
1,838,563
2023
£
24,553
19,477
44,030		 2022
£
1,838,563
-
1,838,563
2022
£
130,856
19,769
150,625

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

18 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2023
£
1,819
5,226
2,207
4,088
13,340		 2022
£
938
-
5,095
100,170
106,203

Accruals and deferred income includes deferred income of £Nil (2022: £67,082) in respect of rent invoiced for periods after the year end.

19 Retirement benefit schemes
2023 2022
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 1,506 1,135

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Movement
in funds
Balance at Incoming Balance at
1 January 2023 resources 31 December
2023
£ £ £
Sion Centre for Dialogue and Encounter 35,615 - 35,615

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

21 Unrestricted funds

Unrestricted funds

Balance at
1 January 2023
£
General fund
22,979,912
22,979,912
22
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
December 2023 are
represented by:
Tangible assets
3,607,733
-
Investment properties
19,035,000
-
Current assets
989,730
35,615
23,632,463
35,615		 Movement in funds
Incoming
resources
Resources
expended
Gains and
losses
Balance at
31 December
2023
£
£
£
£
683,966
(846,415)
815,000
23,632,463
683,966
(846,415)
815,000
23,632,463
Total
Unrestricted
funds
Restricted
funds
Total
2023
2022
2022
2022
£
£
£
£
3,607,733
3,616,519
-
3,616,519
19,035,000
18,220,000
-
18,220,000
1,025,345
1,143,393
35,615
1,179,008
23,668,078
22,979,912
35,615
23,015,527		 Movement in funds
Incoming
resources
Resources
expended
Gains and
losses
Balance at
31 December
2023
£
£
£
£
683,966
(846,415)
815,000
23,632,463
683,966
(846,415)
815,000
23,632,463
Total
Unrestricted
funds
Restricted
funds
Total
2023
2022
2022
2022
£
£
£
£
3,607,733
3,616,519
-
3,616,519
19,035,000
18,220,000
-
18,220,000
1,025,345
1,143,393
35,615
1,179,008
23,668,078
22,979,912
35,615
23,015,527
23,632,463
Total
2022
£
3,616,519
18,220,000
1,179,008
23,015,527

23 Operating lease commitments

Lessor

At the reporting end date the charity had contracted with tenants for the following minimum lease payments:

2023 2022
£ £
Within one year - 224,423

24 Events after the reporting date

On 1 January 2024, the charity donated all of its fixed asset properties and investment properties, valued at £22.6m, to Congregation of Notre Dame de Sion Limited.

CONGREGATION OF OUR LADY OF SION (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

25 Related party transactions

During the year the charity entered into the following transactions with related parties:

The Congregation of Notre Dame de Sion Limited, a charitable company registered in England and Wales (Charity number 1178995), is a related party by virtue of being under common control of the members of the same Order.

During the year, the charity received donations from Congregation of Notre Dame de Sion Limited totalling £Nil (2022: £559,993). During the year, the charity donated £Nil (2022: £4,634,682) to Congregation of Notre Dame de Sion Limited.

On 1 January 2024, the charity donated all of its fixed asset properties and investment properties, valued at £22.6m, to Congregation of Notre Dame de Sion Limited.

26 Analysis of changes in net funds

The charity had no material debt during the year.

27
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Fair value gains and losses on investment properties
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
(Decrease) in creditors
Cash absorbed by operations		 2023
2022
£
£
652,551
(461,493)
(460,308)
(429,876)
-
(3,679,103)
(815,000)
(150,000)
18,531
18,218
35,095
54,515
(25,781)
(70,990)
(594,912)
(4,718,729)

Cash and cash equivalents consist of cash at bank and in hand amounting to £994,655 (2022: £1,134,586).