**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.
- In Dublin, the ministry includes Jewish Christian Relations and Interfaith Dialogue as well as teaching Scripture and Theology.
- In Manchester the community is involved in Parish work, Jewish Christian Relations, Interfaith Dialogue, as well as Spiritual Direction and retreats.
- In Birmingham the sisters do voluntary work with Refugees as well as parish ministry in Catechetics and visiting elderly people in Care Homes.
- In Salisbury, the ministry includes Bible study groups, Spiritual direction, and pastoral work.
- In Worthing the sisters are involved in Parish ministry and supporting people in Care homes.
- In London, the sisters are involved in Jewish Christian Relations, and coordinate weekly Zoom courses on Scripture and Theology. Other sisters are involved in parish work and ecumenical activities run by the Churches Together in Notting Hill and the Kensington and Chelsea Interfaith Steering Group. One sister supports people in prison. Some sisters offer regular Spiritual accompaniment. Our house in Central London continues to welcome sisters and friends from around the world who come for meetings and study.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
- 1 -
## **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.
- 2 -
## **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.
- 3 -
## **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.
- 4 -
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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
- 5 -
## **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:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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:
- the information given in the trustees' report (incorporating the strategic report and the directors' report) 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 trustees' report have been prepared in accordance with applicable legal requirements.
- 6 -
## **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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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.
- 7 -
## **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:
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations;
- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (Charities SORP (FRS102), the Companies Act 2006 and the Charities Act 2011);
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
- We considered the procedures and controls that the charitable company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
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.
- 8 -
## **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
- 9 -
## **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.
- 10 -
## **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**||
- 11 -
## **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|
|---|---|---|
- 12 -
**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
- Pension and salaries income is accounted for on a receivable basis.
- Cash donations and legacies are recognised on receipt. Other donations are recognised once the company has been notified of the donation, unless performance conditions require deferral of the amount.
- Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included in these accounts.
- 13 -
## **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:
- Costs of raising funds include the fees paid in relation to investment property management and the upkeep costs of investment properties.
- Expenditure on charitable activities includes costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes costs that can be allocated directly to such activities, those costs of an indirect nature necessary to support them and donations made to the international Order as part of the shared management of resources.
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.
- 14 -
## **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.
- 15 -
## **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:
- estimating the residual value of tangible fixed assets;
- estimating the market value of investment properties
## **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|
- 16 -
## **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.
- 17 -
## **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|
- 18 -
## **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|
- 19 -
## **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|
- 20 -
## **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|
- 21 -
## **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
- General funds are available for use at the discretion of the trustees in furtherance of the objectives of the charity.
|**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.
- 22 -
## **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).
- 23 -