harfty Regl•tratlon Mo. 1188020 Company Reglstratlon No. CE020748 (England and Wal•$l SISTERS OF ST JOSEPH OF THE APPARITION CIO TRUSTEES, REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 SISTERS OF ST JOSEPH OF THE APPARITION CIO LEGAL AND ADPJIINISTRATIVE INFORMATION Trust••$' Si$l•r J Arrowgmilh Slsler M McNamara Sister T Cooney Sist•rA Callaghan Sister M J J Aye SlsterA Papaiologou Sister F Ciobanu Charlty number 1188025 Company numb•r CE020748 Prlnclpal address Convent of St. Emilie Grange Road 8owdon Vale Cheshlre WA14 3EZ T•l•phone 0161928 4412 E-mall provbur slapp.org Audltors AzetsAudrt Services Alph8 House 4 Greek Street Stockport SK3 8AB Bankers Royal Bank of Scouand plc Drummond Hous• 1 Redheughs Avenue Edinburgh EH12 9JN Sollcltor• Stone King LLP Broad Quay Hou58 Bri8101 8S14DJ Inv•stm•nt managern 8arclay8 4th floor. Brldgewaler Hou8a Counlerslip Flnzels Rèach 8rlslol BS16BX SISTERS OF ST JOSEPH OF THE APPARITION CIO CONTENTS Page Trustees, report Statement of Irustee8' re8ponslbilllle8 Ind¢pendenl audrtor3' reptyt 8-10 Statement of financial a(*viligs 11 Balance sheet 12 Notes lo the accounts 13.22 SISTERS OF ST JOSEPH OF THE APPARITION CIO TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their report and accounts for the year ended 31 December 2023 INTRODUCTION The Sisters of Sl Joseph of the Apparition CIO 1188025 Ipreviously Charitable Trust 226571) Is part of an international Roman Catholic Religious Congregation supporting many Sisters worfdwde It was foundèd in France in 1832 and is divided into individual provinces. Ils Generalate is now located in R¢Jne. The accounts accompanying this report a￿ the accounts of the CIO of which the assets of the Congregation in England are hekl. MISSION The Sisters of Sl Joseph of the Apparition CIO aims lo support the religious and other charitsble works Carri￿ on by the members of the Congregation 8fKI to care for those membets throughout their lives wrthin the Cong￿gatiOn. Their overall objective is to further the knO￿edge of God's love for humanity through the lives and action$ of its members working lor the wellbeing of people, whether directly through their own involvement, or indirectly when that 18 impossible, by financially supporting other charities in a positson to do so. )en setting the objectives and planning the work of thè charty for the year, and when encouraging the work of individual sisters and lay staff, the trustees have given careful considèration lo the Charity Commission's general guidance on public benefit and in path'cular to Ils supplementsry 9uidane£ on the advancement of reh.gion and fee charging. The original objective or mission of the Charity in this Province was to proviije care homes for aged, infim and indigent people who could contribute according to their means, the deficiency in Ihar wntribulions being mad up, as far as pos%ble, by donations Irom fn'ends. These objectives were subsequently widened- in line wth the spirit of the Order and the needs and opportunitses which aros8- to include the provision of schools. hospitals and social work. In recent years our dired involvement has been considerably reduced due lo the lack of candidales to the Religious Life and the consequent In￿e0$e in the average age of the Sisters of the Provlnts. However, they are currently involved in.. CaTin9 for the membèrs of ttte congregation Social 8nd pastor81 work Operation of 8 nursing home Supporting their Religious Order Inlemational missionary work Supporting other Charities who do Similar work. STRUCTURE. GOVERNANCE AND MANAGEMENT Govèrninc• In terms of Canon Law, the Congregation is govemed al an intemational level by the SLtperior Genwal and her General Council who live in Rome. The Gèneral Council Members a￿ elected every six years al 8 General Ch8pler which is a meeting of representatives of all the Prownces of the Congregation. The English congregation beeame part of a larger European Province in 2019. The management of this Province consists of a European Provinc￿1 Sister and a team of Sisters, called Counallors. In temis of Civil Law the Charity is govemed by the Constitution of the Sisters of St Joseph of the Apparition CIO, agr¢ed by the applicants on 03 January 2020. and registerèd on 18 February 2020. Registered Charity number 1188025 SISTERS OF ST JOSEPH OF THE APPARITION CIO TRUSTEES. REPORT (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 Current Trustees Sister Mary McNamara- Chair ofTruslees and Bursar Sister JanetArrowsmilh- Management Team Sister Gabriel Cooney- Management Team Sister Marie Ju Ju Aye- Management Team Sister Anita Callaghan Sislef Agni Papaiologou- for her lime on th$ European Council Sister Florenline Ciobanu- for her ts'me on the European Council Slructurn and manag•m8nt reportlng The trustees are ultimately responsible for the polioes, activities and assets of the charity. They rneet regularty lo review developments with regard lo the Charity or its activities. When necessary, the trustees s&k advice and support from tho charity's profeswonal advisers. The day to day management of the Lady of the Vale Nursing Home is delegated to the extemal management company Careport Limited with appropriate members of the qualified management team in house. Rlsk m•nogoment In line wth the requirement for trustees lo undertake a risk assessment exercise, and rew)rt on tr￿ same in theif annual report, the trustees have looked at the risks the Congrègation face8 and have rewewed the measures already in place or need1ng to be pul in place, lo deal with Ihern. Having assessed the major risks to which the charity is exposed, the trustees belièvo that ty monitoring ￿e1Ve levels, by ensuring ttjnlrols exist over key financial systems, and by examining the operational and business ri5k8 faced by the charity. they have established effective systems lo mrtig81e those risks. ACTMTIES AND SPECIFIC 08JECTIVES AND RELEVANT POLICIES In setting our objectives and planning our activities the Trustees have given careful consideration lo the Charity Commission's general guidance on public benefft. 1. Carlng for the mem￿r5 of the Congregatlon The Congregation has an obligation to provide care for ils mefnbers, none of whom have ￿50Yr¢eS of their own and all of ¥thom. as committed members. have devoted a signfficanl part of their lives lo the care of the elderly, poor and marginaliz8d in society. The Truslegs feel they must make adequate arrangements for any ¢onts'ngencies vthich might arise. 2, Splrftual, Soclal and pastoral work The aims of the trustees in this area, where Possible, are to enable all members of the Congregation lo carry out meaningful social and pastoral work wlhin the eommunty 8fter assessing their skills and th8 needs of the Ioc81 area SISTERS OF ST JOSEPH OF THE APPARITION CIO TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 3. Lady ofthe Valo Nurslng Homg The philosophy of care al the home is lo ensure a homely, friendly and open atmospherè among residents and staff whilst maintaining the privacy, dignity, rights and quality of lrte of all reS￿entS. In operating the Home the trustee5 aim lo provide excellent care by employing high quality staff, and ensure that the home meets the required standards 2nd is financially viable. 4. Supporting Int•Tnation•l misslonary work The Charity provides the only financial support fof the Congregation's heawhcare and educalFon81 mission in Peru and supports inlemalional projects wherevei a need arises. 5. Donations and support of missionary work and minlslry Donations In Support of missionary work ind ministry overseas are deeided on by the TrL¢slees. The Charity supports the work of several other charities, including CAFOD, serving needs in underdeveloped eounlries. Thè Chalily also gives support lo organisalions In the Unrted Kingdom and Ireland whose work is wlhin the obJ'ecl$ of the Charity. The Charity does not regard itseff as a grant-making entity. Other Speclflc Objectlves and Relevant Pollcles: Protectlon of Chlldren and Vulnerable Adults Along wth all other organisalions who serve in the community, the Trustees recognise the absOl￿e necessity of ensuring the protection and safely of 811 those the Charity serves. The Trustees are committed to implementing all policies and procedures of the Catholic Safeguarding organisalions. One ol Ihe gslers has been nominated as Safeguarding link. Investment poll The Chanty's investments are managed by Barclays. There are no restrictions on the Charity's power to invest. The investment slralegy is aulhorised by the Trustees and takes into account income requirements, the rtsk profile and the investment manager's view of the mark¢l prosp9¢1$ in the medium term. The policy is lo maximise total retum through a diversified portfolio whilst providing a level of income advised by the Trustees from time lo lime. There is also an Ethical Policy precluding investment in any company which, Ifter reasonable enquiry, clearly Mas significant proffts from an activity which is o)nlrary to the objectives of the Christsan Church. The performance of the portlolio and the Charity's investment strategy are reviewed by the Trusleeg who meet wrth the investment managers every year. prO￿rtY Management Policy The trustees have adopted the management of their propety Portfolio by an annual reMew of the p￿PertIeS and land held wrthin the charity. Decisions may be made al different times rf, for example, a let property becomes vacant. The Suilabilty of the accommodatson for the 8geing sisters will be fully revwfftl each year, as the desire is lo keep the Sisters in their own community home for as long as possible. Consideration will be made of the sustainability of any propety in order to avoid situations where costs wll in¢urrod on a property that will be ¢108ed in the very near future. Before signing any contract conceming propety, the trustee8 must discuss the issue in depth wlh advice from external professionals. All major Oecisions have lo be submitted to thè European Provincial Team. Permission is then obtained to sell or buy through the Provincial who is obliged to obtain permission from the General Superior in Rome. SISTERS OF ST JOSEPH OF THE APPARITION CIO TRUSTEES. REPORT ICONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 ACHIEVEMENTS AND PERFORMANCE 1. Care of membern of the Congregation The ChafTty continued to a85151 members of the Congregation in their charitable and religious work, and also atten(J lo their physical and spiritual needs. Members of the congregation are given the opportunity for private worship and lo continue lo develop their knowledge and trust in Jesus through quiet prayer, study of the Bible and spiritual retreat. 2. Splrltual. Soclal and pastoral work The SisleTr, where wssible, continued throughout the year to carry out as many forms of social and pastoral work in order to lulfil their individual ministries. This VK•rk enables the Charity lo reath oui lo those in need wrthin society generally. Four Sisters from Myanmar now Wofk here under our sponsorship. Three Sisters are based In the deprived area of Whenshawe, Manchester and one Sister is the Superior of the Bowdon Convent in Cheshire. 3. Lady of the Vale Nur6ing Hom• The quality of caTr being provided in rhe Home has been malnlained 8nd continues to meet the requirnmenls oflhe Quality Care Commiss￿n. The Trustees made the deusion to employ an extemal Management Company Careport Ltd lo oversee the day to day management ol Ihe Nursng Home in place of the Sisters themselves, and also lo fvrther improve the Nursing Home. The Trustees continue lo monitor the management of the nursing home. The Charity donated £10,15212022 £12,519) to the Home, from a restricted fund to assist families in need of finanryal help. The trustees feel that this is an important work to support and ale prepared lo assist financially in speaal rcumstances, such as COVID-19 has affeded the occupancy levels and therefore the income of the home. The home continued to struggle financially in 2023 due to the Russian invasion of Ukraine, leading to Wort￿ide high inflation, especially of gas Supplies. The Trustee$ have made cash loans lotalling £200,000 lo the homè to enable it to continue. 4. Internatlonal mlgslonary y￿rk During the year the ch8rity transferred £211,521 in Solidarity giving lo various COLtnlries {2022 £186,850}. The Trustees again supported their work in Peru . £40,00012022 £40,000). The English Charity now supports the Irish charity- £84,263 {2022 £86.850). 5. Donatlon8 and 811PPOrt of ml88Sonary work and mlnlstry General Fund Alms g¢ving tolalled £121,083 12022 134,854}. This was donated mainly lo UK charities and individuals. Some of the UK charities have overseas operations. Restricled Fund Alms giving lotalled £80.66112022 63.344) This is a fund 'man89ed' by the 51ste￿ to assist the'elderly over 55. in the UK only,. This can include the charity nursing home and the sisters. SISTERS OF ST JOSEPH OF THE APPARITION CIO TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 FUTURE PLANS The trustees will eLJntinue lo monitor the activities ol the charity ar￿ make changes wher8 necessary as t￿Y continue to.. care for the sisters and to monllor the needs of the sisters as they grow older and, rf necessary, adapt the charity's plans in respect of property needs and the provision of care lo elderty members. To encourage our fundamental missionary spirit, in facllilating inlemational communities while living and helping in a multicultural area. operate a care home, vla 8 management company, and, in p8rticular lo provide qualty of care for residents in a dignified and friendly environment.. support the Congregation's work in the Far East. Latin America and the Middle East and for the tr￿tee6 lo satisfy themselves that the funds are applied lor their intended purpose. make don81ions lo charities lo enable missionary and ministy work to be carried in the UK and around the world lo further the kr￿lledge of God's love for humanity. RESERVES POLICY AND FINANCIAL POSITION The balance sheet shows total reserves of £38.776.959. Of this £31.052,731 is represented by properties plus investments used to support the work of the Slsters. Induded in the Investments are..: A designated lund, being the Sisters Penson Fund. This is to prov¢de 8UPkK)rt for the sisters in their retirement. A Restricteil Fund, being the Leeming Fund. This is to provide help, restricled lo people living in the UK and aged over 55 years. This can be donated lo Chaflties in the UK or individuals who need help lo slay in their own home. The charity is proud lo work with Maggies lo relieve the sudden financial pressures of ill heallh due lo a cancer diagnosis and medical treatment. The reader wll di5￿M from the foregoing that the tharity carries out a diverse range of activities and is responsible for ￿Te and supp(xt of sisters whose average age is increasing and whose needs are changing. The trustee5 have examined the need for free reserves i.e. those unrestrided funds not invested in tangible fixed asset5, designated for specific purposes or otherwse commrtted. The trustees consider that, given the nature ol the chanty's work and its commilmenls, the level of free rèservès should be approximately equal lo 8 month5, experKtllu￿. Dlsclosure of Infomiatlon to audltors Each of the Trustee's has confirmed that there is no information of whith they are aware which is ￿levant to the audit, but of which the auditor is unaware. They have further confirmed that they have tsken appropriate steps to identify such relevant information and lo establish that the auditors are aware of such infomiation. SISTERS OF ST JOSEPH OF THE APPARITION CIO TrUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Audltors lots Audil Serth8 were 8PPOtnted auditLy¥ to tho compony, a r•BoluliDn propoling that thèy h rmpwlrtsd be put to th• m•rt*ors. On behaff ofth• board of trust￿, Sl•t•r M McN•marn Tru•tee la SISTERS OF ST JOSEPH OF THE APPARITION CIO STATEMENT OF TRUSTEES. RESPONSIBILITIES The Iruslees,. who are also the directors of Sister5 of Sl Joseph of the Apparition CIO for the purpose of company law, are responsible for preparing the Trustees. Report and the accounts in accordince with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Aceounling Practice). Company law requires the trustees, to prepare accounts for each finawal year which give 8 true and fair view of the stsle of affairs of the charity and of the incoming resources and application of resource5, induding the incorne and expenditure, of the tharitable company for that year. In preparing these a￿OUnt$. the trustees, are required lo.. select suitable a￿UntIng policies and then apply them con5iStenWy'. - observe the methods and prin¢iplgs in the Charities SORP., make judgements and e$timate$ that are reasonable and prudent; and prepare Ihe a￿OuntS on the going concem basis unless it 1$ inappropriale to presume that the charty will ontinue in operation. The trustees. are responsible for keeping adequate accourbting records that disclose with reasonable accuracy al any time the financial position of the charity and enable them to ensure that the accounts comply wth the Companies Act 2006. They are also ￿sponsible lor safeguarding the 85sels of the Charity and hence br taking reasonable steps for the prevention and detection of fraud and other irregularities. SISTERS OF ST JOSEPH OF THE APPARITION CIO INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SISTERS OF ST JOSEPH OF THE APPARITION CIO Oplnlon We have audi18d the acwunts of Sisters of St Joseph of the Apparition CIO for the year ended 31 December 2023 sel out on pages 11 to 22. The finanaal reporting framework that has l)een applied in Iheir preparation is applicable law and United Kingdom Accounting Stan(taTds Iunited Kingdom Generally Accepted Accounting Pradiee}. This report is made solely to the charitable company's memb8rs, as a body, in accordance with Chapter 3 01 Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the chartsble eompany's members those matters we arè required lo stale to them in an auditors, report and for no other purpose. To the lullesl extent permitted by law, we do rK>t accept or assume responsibility to anyone other than the charitable company and its members as a body. for our audit work. for this report, Of for the opinions we have formed. In our opinion the finanual statements.. give a true and fair view of stale of the charty'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 wth United Kingdom Generally Accepted Aceounting Practice.. and have been prepared in accordance wKh the requirements of the Charits'esAd 2011. Basis for opinion We conducted our audit in accordance with Intemabonal Stsndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilth'es under those standards are further described in the Auditors, responsbililies for the audr( of the financial statements section of our report. We a￿ independent of the charity in accordance wrth the ethical requirements that are relevant lo our audit of the financial slalemenls in the UK, induding 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. Concluslon$ relatlng to golng concern In audrting the finan¢ial statgments, we have ¢onduded Ihal th8 Iw$tees' use of the going con¢em basis of acwuntr'ng in the preparation of the financial Statements 1$ appropriate. Based on the work we have performed, we have not Klentified any material uncertainlies relating to evenl$ or conditions that, individually or collectively, may cast $ignifi¢anl doubl on the charity's ability to ts)nlinue as a going concern for a period ol at least ￿1ve months from when the finanaal statements are authorised for Issue. Our responsibilities and the responsibilities of the tharity wth respect to going concern are described in the relevant section$ of this report. Other Inlormallon The other infomalion comprise8 the infom)allon induded in the annual report other than the financial ststements and our auditor's report thereon. The trustees's a￿ responsible for the other informats'on contained thin the annual report. Our opinion on the finanaal statements does not cover the other information and we do not express any form of assurance conclusion Ihereon. Our responsibility is lo rèad thfj other information and, in doing so. con&der whether the other information is materially inconsistent ￿th the finanaal slalemenls or OUT knowledge obtained in the course of the audit, or otherwise appears lo be materially rnisststed. If we identfy such matertral incongslencies or apparent material misstslemenls. we are rèquired to determine whether this give$ rise lo material misstatement in Ihg financial slalement$ themselves. If, based (n Ihe work we have performed, we condude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in thi5 regard. SISTERS OF ST JOSEPH OF THE APPARITION CIO INDEPENDENT AUDITORS, REPORT (CONTINUED) TO THE MEMBERS OF SISTERS OF ST JOSEPH OF THE APPARITION CIO Mattsrs on *thlch wo Jr• requlred to report by exceptlon È have nothing lo report in respect of thè following mattets in relation lo vthieh the Charities Act 2011 require us lo report to you if, in our opinion.. the infomialion given in the financial slalements is ineonsistent in any ma18rial respect the report,. or sufficient accounting reocrds have not been kept,. Qr the financial 5talemenls are not in agreement with the accounting records., or we have not recieved 811 the information and explainations we require for our audit. Re¥ponslbllit•s of trustses As explained more fvlly in the statement of respon$ibif(ies, the twsleeg are responsible for the preperation ot the financial statements and for being satisfied that they give 8 ture and fair view, and for such intemal control, as the Iruslees determine is necessary to enable the preperation of the financial statements that are free from material misstalemenl, vthdher due lo fraud or error. In preparing, the financial slalemenls, the trustees are responsible for assessing the thairty's abilty to continue as a going concem, disclosing. as applicable, matters related to going eonceTn and using the going eoncem basis of accounting unless the trustees either intend lo cease operations or have no ￿aliStIC alteiantive but lo do so. Audltorf8 r•sponslbllltles for thè audlt of Ihe financlal stat•m•nts Wè have bèen appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objeth'ves are to obtain reasonable assurance about whether the financial stslemenls as a whole are free from material misstatement. whether due lo fraud or error. and lo issue an auditors. report that indudes our opinion. Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducied in accordance with ISAS IUKI will always delect a material misslalemenl when rt exists. Misstatement$ arise from fraud or error 8nd are considered material rf, individually or in the aggregate. they could reasonably be expected lo influence the economic derywons of users taken on the basis of these financi81 statements. A further description of our responsikn'lities 1$ available on th8 Financial Reportiry Council's website at. https'.I www.frc.org.uklauditorsrgsponsibililies. This descripts'on forms part of our audilorfs report. Extent lo whlch the audlt was con51dered capable of detectlng Irregularftles, Includlng frnud IrregularitEs. including fraud, are instances of non-compliance wlh laws and regulations. We de&gn procedures in line with our respon$ibilf(ies, outlined above and on the Financial Reporting Council's website, lo dele¢t material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity. ils activities, ils control environment, 8nd likely ftrture developments, induding in Telation lo the legal and regulatory framework applicable and how the enb'ty is complying with that fiamework. Based on this understanding, we identify and assess the risks of malenal misstatement ol the financ￿1 slalements, whether due to fraud or error, design and perform aut1il procedures responsive lo those risks, and obtain audrt ewdenee that is sufficient 8nd appropriate lo provide a basis for our opinion. This includes consideration of the risk of 8Cts by the entity that were contrary to applicable laws and regulations, Including fraud. In response lo the risk of irregularities and non-compliance with laws and regulations, including fraud, we clesigned procedu￿$ which induded". Enquiry of management and those charged wlh governance around actual and potentKal liligalion and claims as well as actual. suspected and alleged fraud., Reviwng minutes of meetings of Ihosg charged wth governance., Assessing the extent of compliance with the laws and regulations considered to have 8 direet material effect on the financial slalemenl$ or the operations of the company through enquiry and inspeetion., Reviewing financial statement disdosures and testing to supporting documentation to asses$ compliance wlh applicable laws and regulalion5', Perforniing audit work over the risk of management bias and override of controls, induding lesling of joum*l enlnes and other adjustments for appropriateness, evaluating the business ration81e ol significant transactions outside the nomial course of business and reviewng accountr'ng estsmates for indicators of potential bias. SISTERS OF ST JOSEPH OF THE APPARITION CIO INDEPENDENT AUDITORS. REPORT (CONTINUED) TO THE MEMBERS OF SISTERS OF ST JOSEPH OF THE APPARITION CIO Because ol the inherent limitations of an audit, there is a risk that we bMII not detect all irregularities, ineluding those leading lo a malefial misstalemenl in the financial slalemenls or non