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2022-03-31-accounts

The Congregation of the Sisters of Nazareth Charitable Trust

Annual Report and Audited Accounts 2021 – 2022

Charity Registration Numbers

England and Wales: 228906, Scotland: SC040507

Contents

Reference and Administrative Details of the Charity, its Trustees and Advisers .......................... 2 Introduction – About Us............................................................................................................. 3 Our Heritage .............................................................................................................................. 5 Message From The Regional Superior ........................................................................................ 7 Yearly review ............................................................................................................................. 8 Trustees’ Report ...................................................................................................................... 10 Management and Trustees ...................................................................................................... 11 Risk management .................................................................................................................... 15 Income and Expenditure .......................................................................................................... 16 Independent Auditor’s Report to the Trustees of The Congregation of the Sisters of Nazareth Charitable Trust ....................................................................................................................... 18 Statement of Financial Activities Year ended 31 March 2022 ................................................... 22 Balance Sheet .......................................................................................................................... 23 Statement of cash flows ........................................................................................................... 24 Principal Accounting Policies 31 March 2022 ........................................................................... 26 Notes to the Accounts 31 March 2022 ..................................................................................... 31

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Reference and Administrative Details of the Charity, its Trustees and Advisers

Trustees

Sister Doreen Marie Cunningham Chair from 7th October 2019 Sister Teresa Bernadette Fallon appointed 29th January 2013 Sister Madeleine Merriman appointed 7th October 2015 ended 17[th] October 2022 Sister Celine Marie Donnelly appointed 17[th] October 2022

Officers

Regional Superior – UK Region Sister Doreen Cunningham Chief Executive Officer – UK Region Richard Whitby resigned 15 May 2022 Acting Chief Executive Officer -UK Region Michael Anderson appointed May 2022

Administrative Details

Principal Office Larmenier Centre 162 East End Road London N2 0RU Email: uk.administration@nazarethcare.com Website: www.sistersofnazareth.com Charity Registration Numbers: 228906 (England and Wales) SCO40507 (Scotland) Auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Principal Bankers Barclays Bank plc Acorn House 36-38 Park Royal Road London NW10 7JA Principal Solicitors Stone King LLP 13 Queen Street Bath BA1 2HJ

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Introduction – About Us

Who We Are

The Congregation of the Sisters of Nazareth, UK Region is one Region of the worldwide Congregation. In this Region we have 12 sites which provide care for the elderly and young children. There are 57 Sisters who are spread across 10 communities.

Our Vision

To continue to provide care that promotes health and quality of life for all in our care and services to the local community where possible.

Our Mission

To promote and deliver with Nazareth Care quality caring services based on the compassion of Christ and in line with our Mission statement.

Our Aims and Objectives

Our Philosophy

Our Values

Our core values are based on Scripture, the heritage and tradition of the Sisters of Nazareth. All who are associated with the work of Nazareth are expected to demonstrate a commitment to these values:

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"Blessed are the gentle for they shall possess the earth". Matt 5.5

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Our Heritage

The Congregation of the Sisters of Nazareth (“the Congregation”) is an international Roman Catholic Religious Congregation. It was founded in Hammersmith, England in 1851 by Victoire Larmenier, where its Generalate (governing body) is still located. It is divided into five Regions across the world: American, Australasian, Ireland, South African and United Kingdom (UK Region).

Victoire and 5 companions came to London in April 1851 at a time when England was predominantly Protestant and Catholics for the most part were in a state of extreme poverty and everywhere the aged Catholic poor were forced to seek shelter in workhouses.

Victoire Larmenier Foundress of Sisters of Nazareth 1827-1878

Their first house was in Brook Green and the first resident was received on 14 April 1851. From there the Sisters collected alms and food around London in order to care for the old and young who they took into their Home. As the numbers cared for grew each year, the need for larger and more suitable premises became urgent. In 1856 land was bought at Hammersmith for the sum of 3,000 guineas, most of which was donated by generous benefactors.

On 9 October 1857 the first old people and children were moved into the new building which was named Nazareth House. From our beginnings there we spread around the world. Most of the work of the Congregation takes place within “Nazareth Houses” which are substantial buildings operated mainly as care homes for older people. The Congregation owned 37 such houses across its Regions on 31 March 2017. The operation of the care homes is the responsibility of Nazareth Care Charitable Trust (herein known as “NCCT”). In addition, NCCT through subsidiary entities (collectively known as Nazareth Care) has developed three retirement villages in the UK, catering for older people who are looking for support while maintaining an independent lifestyle. They also operate one Day Nursery for young children and work with other religious orders supporting them to care for their older Sisters.

The legacy of our heritage continues today through our partnership with Nazareth Care carrying on our commitment to providing nursing and residential care, reaching out across communities to support the people in our care, regardless of their socioeconomic, ethnic, religious or spiritual background.

The accounts accompanying this report are those of The Congregation of the Sisters of Nazareth Charitable Trust which holds certain of the assets of the Congregation in England, Wales, Scotland and Northern Ireland and which is now responsible for the care of the Sisters in the UK region and for supporting and enabling the individual ministry of those Sisters.

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Mission Statement of the Sisters of Nazareth

“We, the Sisters of Nazareth, aim to share the love of God through our ministries of care and education and our openness to respond to the needs of the times.”

“Whatsoever you do to the least of my people you do to me.” Words of Jesus Christ (1 Matt 25:40)

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Message From The Regional Superior

We never thought that COVID-19 would be something that we would have to live with. Thankfully, with the mass distribution of vaccinations and boosters we are in a much better situation than we were a year ago and are beginning to feel a sense of normality again. As restrictions lessen, we pray that everyone will continue to be safe and able to continue life as normal as possible while taking all necessary precautions. The trustees are so grateful to the Nazareth Care Team for the great dedication they have shown throughout the pandemic and as they continue to take careful precautions.

As one crisis is managed, another becomes concerning. This year particularly has proved increasingly difficult in recruiting permanent staff to our care homes which is not only a problem within Nazareth, but nationally. We would like to thank Michael Anderson, Acting CEO for Nazareth Care, and his team for the way in which they are responding to this challenge. We are pleased that the sisters are able to support the team with some of their new initiatives.

As we continue to witness climate changes and the way it has negatively affected the lives of so many people over the past year, we realise that care for our creation must be one of our highest priorities. The sisters have taken very seriously their commitment in trying to do as much as they can to protect our environment including the planting of trees.

The introduction of an Ongoing Formation Director last year has proved very successful throughout the region. She has developed a three- year programme which has already started and which the sisters are finding very helpful. The programme was devised from the suggestions of the sisters to help equip them both spiritually and in learning new skills.

The death of our Vocations director at a young age came as a huge shock to the region. Sister Frances, who was also the Vocation Promoter for the Bishops Conference of England and Wales and Conference of Religious, was very dedicated to her role as vocation director and organised many special events within the region and in other countries. She is very sadly and fondly missed in the region. We are very pleased however that young women are still making contact with us as they discern their vocation and we are grateful to the vocation link sisters for their support in promoting vocations.

Sister Doreen Cunningham Regional Superior

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Yearly review

The main achievements of the Charity during the 2021/22 year include:

1. Supporting the sister charity including assisting with the recruitment of care staff as well as financially.

2. Undertaking a review of safeguarding practices in the region.

3. The introduction of Lay Pastoral Care Coordinators for our Care Homes.

4. Three novices making their first profession in September 2021 and shortly after returning to the African Region to continue their religious journey as Sisters of Nazareth.

5. The completion of the refurbishment project at one of our sites.

Overseas Staff

At a time in which there is a national shortage of social care staff, we are pleased to be in a position to support our sister charity in their sponsoring of overseas staff. Part of this process involves providing 3 months accommodation to each staff sponsored at the location at which they will work. The sisters have offered Nazareth Care temporary accommodation at various sites throughout the region. Sisters, in their governance role, have also been involved in the interviewing of these staff. The sisters are excited about the prospect of accommodating these people as it is in keeping with the mission of our foundress, especially in relation to our core value of hospitality and look forward to having them as part of our Nazareth family.

Review of safeguarding practices

The charity has become a member of the new Religious Life Safeguarding Service (RLSS) for England and Wales. This is a ‘one church’ approach. It offers training and support to the Congregation and will be audited by the Catholic Safeguarding Standards Agency (CSSA). Survivors of abuse within the church will be very much supported within this new project.

The Introduction of Lay Pastoral Care Coordinators in our Care Homes

Historically pastoral care to residents, their relatives, staff and visitors was mainly provided by the sisters. With the increasing age and frailty of our sisters, a decision was made to recruit lay pastoral care coordinators. This has been introduced this year to our Northampton and has proved very positive. The pastoral care coordinator has a monthly plan in place and supports people of all faiths and none. It is hoped to gradually recruit lay pastoral care coordinators in all of our houses with the support of the sisters.

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Newly professed Sisters

We had the great joy of sharing in the celebration of the first professions of three young sisters. Their Professions took place at our Hammersmith House and was greatly enjoyed by all the Sisters. The Sisters have since returned to Africa where they will continue living out their religious life.

We have had five new novices come from Africa and Australia to do their Novitiate training, part of which involves spending time in the various Nazareth Houses. They always enjoy their experience with Residents and Children and their help is always greatly appreciated by Sisters and Staff.

Birkenhead Refurbishment

We were pleased to finally see the completion of the refurbishment of our care home at Birkenhead. It had been delayed much longer than had been anticipated, partly due to COVID 19 restrictions. In addition to the refurbishment of the care home, an eight bedded unit was built.

Cardiff Roof

Our Cardiff building is a very large building, part of which is a listed building. Areas of the roof have been repaired over the past year.

Challenges

The Congregation’s main challenge going forward in this Region is the age and numbers of Sisters. We are currently 57 Sisters in the region divided into 10 Communities with only two under the age of 50 years. We are very fortunate however to have our Novitiate in Hammersmith, so we have a number of young women doing their novitiate training in the UK each year from other Countries.

The issue of historic abuse of children in the Congregation’s care continues to impact on our activities today. In May 2019, a report was issued by the Scottish Child Abuse Inquiry following the testimony in 2018 of the survivors of abuse in four residential children’s homes in Scotland operated by the Congregation. The Congregation formally apologised for any mistreatment of those in our care and deeply regrets any harm or shortcomings in the care that was provided. The Congregation has and continues to co-operate with the Scottish Inquiry.

Future plans

Promoting our Core Values across the region

To have a greater focus on our Core Values throughout our charity in conjunction with our sister charity.

Delivery of our Heritage programme

Two Sisters have been appointed to complete the delivery of our Heritage programme at all of our sites throughout the region within the coming financial year.

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Hammersmith refurbishment

There have been numerous meetings and discussions over the year to determine the best plans for the refurbishment of the care home and convent. It is hoped that the project will have commenced by September 2023.

Appointment of a new Vocations Director for the Region

A new Vocations director to be appointed. In the meantime, the Vocation Link sisters will continue to promote vocation work within the region. Young women continue to make contact with the Congregation and some have spent time visiting or living within our Communities to help them discern their vocation.

Trustees’ Report

31 March 2022

The Trustees present the report and accounts for the year ended 31 March 2022 of the Congregation of the Sisters of Nazareth Charitable Trust (“the Charity”), which operates throughout the United Kingdom (UK).

– The accounts have been prepared in accordance with the accounting policies set out on pages 25 29 of the attached accounts. They comply with the Charity’s Trust Deed, the Charities Act 2011 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 United Kingdom and Republic of Ireland (FRS 102), effective from accounting periods commencing 1 January 2015 or later.

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed within the Principal accounting policies under Critical accounting estimates and areas of judgement.

With regard to the next accounting period, the year ending 31 March 2023, our planning processes, including financial forecasts, take into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure.

Looking forward to twelve months from the date of signing up to December 2024, the Charity's forecast, along with a cash flow forecast and scenario planning, show that the Charity has sufficient funds and liquidity to enable it to remain a going concern.

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Management and Trustees

Governance

The worldwide Congregation is governed by the Superior General and her General Council, who together with supporting staff, are referred to as ‘the Generalate’. They are elected by the Congregation’s General Chapter which meets in session every six years: the 26[th] such Chapter took place in June 2018. Those elected may only serve a maximum of two consecutive 6 year terms in the same office.

In the UK, the Congregation was incorporated under the name of ‘The Congregation of the Sisters of Nazareth Charitable Trust’ by order of the Charity Commission on 7 October 2005, (Charity Registration Numbers: 228906 (in England and Wales) and SCO40507 (in Scotland)).

The Charity is governed by a Deed of Trust dated 16 January 2005.

The Superior General appoints the Trustees of the Charity. As all Trustees are Sisters, they have a detailed knowledge of the work and structure of the Charity.

Following their appointment, new Trustees work for a time alongside existing Trustees. They also meet with the Charity’s senior staff and its legal, accounting, investment and property advisers to obtain a full brief on their responsibilities and to fully acquaint them on the Charity’s position.

Details of the Trustees who were in office during the year or at the date on which this report was signed are set out below:

Current Trustees of the Charity

Sister Doreen Cunningham – Chair (from 7 October 2019)

‘Sister Doreen Marie trained as a Registered Nurse in Liverpool and has a degree in Health and Social Care. She also completed a Postgraduate Diploma in leadership and management at Loughborough University. She has worked in a number of our homes in the UK. From 2018 until October 2019, she held the position of Chief Nursing Officer for Nazareth Care Charitable Trust, UK Region. In July 2019 she was appointed to take position as UK Regional Superior and Chair of the Charity effective from October 2019.

Sister Teresa Bernadette Fallon

Sister Teresa trained as a Registered General Nurse at Southampton University Hospital in the 1970s and has worked as a care home manager at several Nazareth Houses in the United Kingdom, Northern Ireland and Australia. She has completed courses on Social Work Management, Health Education and Continuing Care of the Dying Patient and Family. She was appointed Superior at Nazareth House Cheltenham in 2006 and became a Regional Councillor for the UK Region in November 2012 and reappointed in 2019 and again in 2022. She was appointed Superior to Nazareth House Cardiff in October 2013 to October 2019 and then appointed as Superior to Nazareth House Finchley in 2019.

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Sister Madeleine Merriman

Sister Madeleine Carmel Merriman has completed a Postgraduate Diploma in Leadership and Management at Loughborough University. She has worked as a Child Care Manager in several houses in the UK and served on a board of school governors for 10 years. Sister completed a Diploma in Counselling at the University of Lancaster. She was appointed as Superior at Nazareth House Northampton in 2009, at Crosby in 2013, and at Southend in 2016 until it closed in April 2020. She was appointed Superior in Cardiff in May 2020. She was appointed Regional Councillor in 2014 for the UK Region and reappointed in 2019. She stepped down on 17[th] October 2022. The board is most grateful to Sister Madeleine for her hard work throughout her terms as trustee.

Sister Celine Marie Donneelly

Sister Celine Marie Donnelly trained a Registered Nurse in London. She worked as a Nurse and Registered Manager in our various homes. She completed a Postgraduate Diploma in Leadership and Management at Loughborough University. She has been in the role of Local Superior in our Lancaster and Cheltenham houses and is currently superior in our Hammersmith House. She was appointed Regional Councillor to the UK region on 17[th] October 2022.

Key management personnel

The Trustees consider that they together with the Chief Executive Officer and the senior management team comprise the key management of the Charity in charge of directing and controlling, running, and operating the Charity on a day to day basis.

All Trustees are members of the Congregation 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.

The pay of the Chief Executive Officer and senior management team is reviewed annually.

Trustees’ Responsibilities Statement

The Trustees are responsible for preparing the Trustees’ report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales and in Scotland requires the Trustees to prepare accounts for each financial year giving a true and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity for that period.

In preparing these accounts, the Trustees are required to:

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Observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the Charity’s Trust Deed. 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.

Structure and Management Reporting in the UK

The Congregation in the UK (England, Wales, Scotland and Northern Ireland) comprises of 11 communities of Sisters each of which is the responsibility of the Regional Superior and her Council. Each community has a Sister Superior. Throughout the year there is regular contact and communication between each of the communities and the Regional team.

Since April 2012, care homes and nurseries in the UK have been managed by Nazareth Care Charitable Trust, operating under the auspices of the Congregation of the Sisters of Nazareth UK Region. The UK regional office is based in the grounds of Nazareth House Finchley, in North London.

The Charity’s Trustees continue to be supported by the senior management team of Nazareth Care Charitable Trust which acts in an advisory capacity to the board and assists in the review of the Congregation’s business focus. When necessary, the Trustees seek advice and support from the Charity’s professional advisers, including property consultants, solicitors, and accountants.

Fundraising

The Trust is committed to high standards in fundraising. We are registered with the Fundraising Regulator and continue to monitor and update our data protection policies to make sure that our fundraising activities and communications with our Friends and supporters comply fully with the latest regulations.

Our fundraising materials and communications clearly highlight that:

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not be sent.

We ensure that our fundraisers receive relevant training and have access to coaching. We treat all donors with dignity and compassion.

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Risk management Four key risks faced by the Charity

1.Historical allegations and public inquiries

There is a risk of reputational damage to the Sisters and the Congregation.

Proceedings into the historic abuse of children formally in the Congregation’s care continue. In May 2019, a report was issued by the Scottish Child Abuse Inquiry following the testimony in 2018 of the survivors of abuse in four residential children’s homes in Scotland operated by the Congregation. The Congregation formally apologised for any mistreatment of those in its care and deeply regrets any harm or shortcomings in the care provided. The Congregation has and continues to cooperate with the Scottish Inquiry and the Inquiries held in England and Wales and with those government as they set up their redress scheme. All residential children’s homes in each of these countries have been closed for many years.

Actions taken to mitigate the risk

We continue our practice of co-operating with all Inquiries and providing ongoing support. Following the passing of the Redress for Survivors (Historical Child Abuse in Care) (Scotland) Act 2021, the Charity, on behalf of the Congregation, entered into a new agreement with the Scottish Government to contribute to the payments made by Redress Scotland to former children in our care regarding claims of abuse. This was accompanied by a further apology by the Congregation, as published on the gov.scot website. We continue to cooperate with the Scottish Government, Redress Scotland and survivor organisations to support claimants and potential claimants with access to their records and to provide individual apologies when requested, and with other Inquiries, as necessary.

Historical incidents within the Congregation’s past are predominantly addressed by the Charity including reviewing practices and continuing to cooperate fully with all public Inquiries and with individuals making their own enquiries or civil proceedings. Many safeguarding risks are covered by insurance. The charity is cooperating with the Religious Life Safeguarding Service and the CSSA.

2. COVID-19 poses a risk to our residents, staff and sister’s safety.

Actions taken to mitigate the risk:

We continue to follow the policies and procedures of Nazareth Care and Government guidance.

3. A loss of spirit or mission .

The risk increases as the number of Sisters in the Congregation decreases.

Actions taken to mitigate the risk:

There are several programmes available in the region to ensure the mission is well understood and communicated such as Victoire’s Legacy and the Core Values of the organisation. Sisters remain intrinsic to each house and are visible throughout the majority of houses. Where there is no Community of Sisters on site the sisters continue to make regular visits.

4. Income and Cash Flow

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Funding and Cashflow are insufficient to support ongoing operations. Actions taken to mitigate the risk:

Income and Expenditure

A summary of the results can be found on page 21 of the attached accounts.

Income was to £2.9 million (2021: £6.7 million) with £1.4 million being generated from donations and legacies. The reduction in income was mainly due to the discontinued operations of the Belfast site.

Expenditure amounted to £4.6 million (2021: £7.4 million).

Financial position

The balance sheet shows total funds of £37 million (2021: £38.7 million).

Reserves Policy

Unrestricted funds at 31 March 2022 amounted to £36.7 million and comprised the tangible fixed asset fund and the general fund.

The tangible fixed assets fund totalling £32.8 million, represents the net book value of the Charity’s land and buildings and other tangible fixed assets, less loans that are being used to finance the refurbishment and development of property owned by the Charity. These net assets are essential to the continued mission of the Charity and include care establishments leased to Nazareth Care Charitable Trust.

The general fund totalling £3.9 million, comprises those assets not designated by the Trustees or restricted in their application as of 31 March 2022. The fund includes monies to cover temporary shortfalls in income due to timing differences and amounts to enable the Charity to cope with unforeseen emergencies.

The aim of the Trustees is that the general fund (or free reserves) should equate to between six- and twelvemonths’ ongoing expenditure. On 31 March 2022, the Trustees believe the Charity’s free reserves to be adequate but not excessive. The general fund of £3.9 million would cover six months ongoing expenditure.

The Charity holds one restricted fund totalling £283,370. The balance of the restricted fund of £283,370 comprises the balance of past property proceeds from the disposal of a property in Wavertree, in the Roman Catholic Archdiocese of Liverpool, which are restricted to use within the Archdiocese.

Employees, Volunteers and Members of the Congregation

The Trustees wish to record their recognition and appreciation for the professionalism and commitment of all their staff, volunteers and individual members of the Congregation.

Employed staff are clearly our biggest asset, and we thank them for the contribution that they make. NCCT strives to provide excellent working conditions for its staff. We aim to provide an open and inclusive environment where every member of staff is empowered to make a real difference.

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The majority of our houses also have a Friends of Nazareth group operating within them, which is a team of dedicated volunteers who give their time to a number of causes. Volunteers can be fundraisers or visitors. The Trust has recognised that if we are to continue to provide an excellent service to our residents against a backdrop of financial pressures, then we need to extend the use of volunteers to raise funds for those extra items and activities that our service users require.

Approved by the Trustees and signed on their behalf by:

Sister Doreen Marie Cunningham Trustee and Regional Superior

Date approved: 26[th] January 2023

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Independent Auditor’s Report to the Trustees of The Congregation of the Sisters of Nazareth Charitable Trust

31 March 2022

Opinion

We have audited the financial statements of The Congregation of the Sisters of Nazareth Charitable Trust (‘the charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the 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 charity 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 trustee's 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.

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Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 12 - 13, the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

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.

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Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

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. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the charity were, General Data Protection Regulation (GDPR), Health and safety legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

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 noncompliance 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. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

For and on behalf of Crowe U.K. LLP

London

30 January 2023

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Crowe U.K. LLP is eligible for appointment as auditor of the charity under regulation 10(2) of the Charities Accounts (Scotland) Regulations by virtue of its eligibility under section 1212 of the Companies Act 2006.

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Statement of Financial Activities Year ended 31 March 2022

Income:
Donations and legacies
Investment income and interest
receivable
Rental income
Charitable activities
. Charges for residential and care
services for adults
Other income
. Miscellaneous income
Total income
Expenditure:
Charitable activities
. Provision of residential and care
services for adults and support of
the Sisters and their ministry
. Donation to Nazareth
Care Charitable Trust
(Registered Charity No.
1113666)
.Loss on disposal of Belfast operations
(Profit)/Loss on disposal of asset
Total expenditure
Net (expenditure)
income before net gains
on investment properties
Net realised gains on disposal of
investment properties
Net (expenditure) income and net
movement in funds
Reconciliation of funds:
Fund balances brought forward at 1
April 2021
Fund balances carried forward at 31
March 2022		 Continuing operations
Discontinued operations
2022
Total funds
£
Notes
Unrestricted
funds
£
Restricted
funds
£
Unrestricted
funds
£
Restricted
funds
£
Unrestricted
funds
£
Restricted
funds
£
2021
Total funds
£
1
923,498
491,899
—
—
1,415,397
1,039,300
200,641
1,239,941
2
79,814
—
—
—
79,814
89,034
—
89,034
1,391,813
—
—
—
1,391,813
1,361,252
—
1,361,252
—
—
—
—
—
4,017,891
—
4,017,891
4,687
—
—
—
4,687
30,913
—
30,913
2,399,812
491,899
—
—
2,891,711
6,538,390
200,641
6,739,031
3
2,642,258
491,899
—
—
3,134,157
7,144,399
200,641
7,345,040
—
—
—
—
—
93,745
—
93,745
23
—
—
1,450,741
1,450,741
—
(8,033)
—
—
—
(8,033)
(45,117)
—
(45,117)
2,634,225
491,899
1,450,741
—
4,576,865
7,193,027
200,641
7,393,668
—
—
—
—
—
—
—
—
5
(234,413)
—
(1,450,741)
—(1,685,154)
(654,637)
—
(654,637)
36,933,381
283,370
1,450,741
—
38,667,492
39,038,759
283,370
39,322,129
18
36,698,968
283,370
—
—
36,982,338
38,384,122
283,370
38,667,492

Please see note 23 on discontinued operations.

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Balance Sheet

31 March 2022

Notes 2022
£		 2022
£		 2021
£		 2021
£
Fixed assets
Tangible assets
9
Investment properties
10
Current assets
Debtors: amounts falling due after one
year
11
Debtors: amounts falling due within one
year
12
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due
within one year
13
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after one
year
14
Total net assets
The funds of the charity:
Restricted funds
15
Unrestricted funds
. Tangible fixed assets fund
16
. Designated funds
17
. General fund		 103,660
304,185
4,423,034		 40,382,847
471,186		 114,660
491,813
5,621,503		 41,476,108
471,186
40,854,033
3,269,388		 41,947,294
4,096,664
4,830,879
(1,561,491)		 6,227,976
(2,131,312)

32,766,144
5,617,978
46,043,958
(7,376,466)
38,667,492
283,370
36,698,968		 283,370
38,384,122
36,982,338 38,667,492

Approved by the Trustees and signed on their behalf by:

Sister Doreen Cunningham Chair of Trustee Date of approval: 26[th] January 2023

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Statement of cash flows

Year ended 31 March 2022

Notes 2022
£		 2021
£
Cash flow from operating activities:
Net cash provided by operating activities
A
Cash flow from investing activities:
Interest and rents from investments
Proceeds from the disposal of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from the disposal of investments
VAT refund receivable
Net cash used in investing activities
Cash flow from financing activities:
Repayments of borrowing
Cash inflows from new borrowing
Net cash (used in) provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2021
B
Cash and cash equivalents at 31 March 2022
B		 663,983 2,034,860
79,814
150,000
(1,560,183)
—
—		 89,034
324,000
(1,587,952)
—
—
(1,330,369) (1,174,918)
(546,795)
14,712		 (626,924)
971,767
(532,083) 344,843
(1,198,469)
5,621,503		 1,204,785
4,416,718
4,423,034 5,621,503

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Notes to the statement of cash flows for the year to 31 March 2022

A Reconciliation of net movement in funds to net cash provided by operating activities

2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Gains on investments
Impairment loss
Net (gain) loss on disposal of tangible fixed assets
Interest and rents from investments
(Increase) decrease in debtors
(Decrease)/Increase in creditors
Net cashprovided by operating activities		 (1,685,154)
1,661,542
—
1,450,741
(8,033)
(79,814)
198,628
(873,927)		 (654,637)
1,701,694
—
(45,117)
(89,034)
1,009,669
112,285
663,983 2,034,860

B Analysis of cash and cash equivalents

2022
£		 2021
£
Total cash and cash equivalents:Cash at bank
and in hand		 4,423,034
5,621,503

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Principal Accounting Policies 31 March 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 March 2022 with comparative information given in respect to the year to 31 March 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS

102) (Charities SORP FRS 102) issued on 16 July 2014, the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the 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) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn.

The Charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the Trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

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Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above under Critical accounting estimates and areas of judgement.

The most significant areas of judgement that affect items in the accounts are detailed in the Critical accounting estimates and areas of judgement section.

With regard to the next accounting period, the year ending 31 March 2023, our planning processes, including financial forecasts, take into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure.

Looking forward to twelve months from the date of signing up to December 2024, the Charity's forecast, along with a cash flow forecast and scenario planning, show that the Charity has sufficient funds and liquidity to enable it to remain a going concern.

Income recognition

Income is recognised in the period in which the Charity has entitlement to the income, the amount of income can be measured reliably, and it is probable that the income will be received.

Income comprises donations and legacies, investment income and interest receivable, rental income, charges for residential and care services and other income.

Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the Charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Charity, and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Legacies are included in the statement of financial activities when the Charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the Charity. Legacies are treated as restricted income in the statement of financial activities as they are restricted to the community that receives them.

Entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the Charity that

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a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the Charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash, or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the Charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

Rental income is recognised when payment is due under the terms of the relevant rental or lease agreement.

Income derived from the levying of charges for residential, care and support services is measured at the fair value of the consideration received or receivable, excluding discounts and rebates.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accrual’s basis. The classification between activities is as follows:

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued for but are disclosed as financial commitments in the notes to the accounts.

In allocating expenditure to headings, no significant apportionments have had to be used. All expenditure is stated inclusive of irrecoverable VAT.

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Governance costs

Governance costs include expenditure on compliance with constitutional and statutory requirements and have been allocated entirely to the expenditure on provision of residential and care services for adults and the support of the Sisters and their ministry.

Tangible Fixed Assets

All assets and improvements to existing assets with a cost of more than £1,500 and with an expected useful life exceeding one year are capitalised. The Charity has opted to adopt a policy of not revaluing its tangible fixed assets, which are stated at cost.

A review for impairment of a tangible fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any tangible fixed asset may not be recoverable.

Freehold Land and Buildings

Freehold land and buildings are included at cost, net of depreciation and any impairment provision.

Freehold buildings are depreciated from their first complete year of occupation at a rate of 2% per annum on the straight-line basis in order to write the cost of each building off over its estimated useful economic life to the Charity.

Long Leasehold Buildings

Long leasehold buildings are included at cost and are depreciated once the lease reduces to 50 years at a rate of 2% per annum on the straight-line basis.

Other Tangible Fixed Assets

Other tangible fixed assets are capitalised and depreciated at the following annual rates in order to write them off over their estimated useful lives:

Fixed Asset Investment Properties

Investment properties are included on the balance sheet at their open market value at the end of the financial period. Realised and unrealised gains (or losses) are credited (or debited) to the Statement of Financial Activities in the year in which they arise. In accordance with the Charities SORP FRS 102, no depreciation is charged against investment property.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but

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less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the Charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Funds Structure

Restricted funds represent voluntary income received to the benefit of specific homes whose assets are otherwise unrestricted. Such income is usually expended within the financial year in which it is received. Details of unexpended balances, if any, are provided in note 15.

The remainder of the Charity’s funds are unrestricted. The general fund comprises those monies which may be used towards meeting the charitable objectives of the Charity and which may be applied at the discretion of the Trustees.

Within the unrestricted funds the Trustees have designated amounts for specified purposes. Details of these are given in note 17.

Within the unrestricted funds there is also the tangible fixed assets fund which represents the net book value of the Charity’s land and buildings and other tangible fixed assets less loans that are being used to finance the refurbishment and development of property owned by the Charity.

Services Provided by Members of the Congregation

For the purposes of these accounts, no monetary value has been placed on the care, administrative and other services provided by the members of the Congregation.

Pension costs

All eligible members of staff are auto-enrolled in a workplace pension scheme. Employer contributions to the scheme are charged to the statement of financial activities in the year in which they are payable to the scheme.

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Notes to the Accounts 31 March 2022

1. Donations and Legacies

Legacies
Covenanted salaries and pensions of
individual religious
Covenanted stipends received by
individual religious
Glasgow Building Fund donations
Other donations
Total funds		 Unrestricted
funds
£
Restricted
funds
£		 Total
2022
£
Unrestricted
funds
£
Restricted
funds
£
Total
2021
£
—
376,368
494,334
—
429,164
—
—
—
115,531		 376,368—
112,026
112,026
494,334571,260
—
571,260
429,164468,040
—
468,040
—
—
—
115,531—
88,615
88,615
923,498
491,899		 1,415,3971,039,300
200,641
1,239,941

Covenanted salaries and pensions and covenanted stipends represent the salaries and pensions and stipends respectively of individual Sisters donated by the relevant Sister to the Charity under a deed of covenant.

2. Investment Income and Interest Receivable

£ Unrestricted
funds		 Restricted
funds
£		 Total 2022
£
Unrestricted
funds
£
Restricted
funds
£
Total 2021
£
Income from rental
properties
Bank interest
Total funds		 79,791
23		 —
—		 79,791
88,762
—
88,762
23
272
—
272
79,814 — 79,814
89,034
—
89,034

3. Provision of Residential and Care Services for Adults and Support of the Sisters and their Ministry

Staff costs
Premises
Care and welfare
Management and
administration of the
Care Homes
Depreciation
Governance costs (note 4)
Total funds		 Unrestricted
funds
£
61,179
179,109
661,912
57,636
1,661,542
20,880		 Restricted
funds
£
—
49,190
442,709
—
—
—
491,899		 Total
2022
£
Unrestricted
funds
£
Restricted
funds
£
Total
2021
£
61,179
2,349,539
180,577
2,530,116
228,299
527,510
20,064
547,574
1,104,621
1,558,644
—
1,558,644
57,636
986,132
—
986,132
1,661,542
1,701,694
—
1,701,694
20,880
20,880
—
20,880
2,642,258 3,134,157
7,144,399
200,641
7,345,040

The costs of providing residential and care services include the living and personal expenses of individual Sisters, all of whom are either directly or indirectly involved in such work.

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4. Governance Costs

Unrestricted
funds
£		 Restricted
funds
£		 Total 2022
£
Unrestricted
funds
£
Restricted
funds
£
Total
2021
£
Audit and accountancy
services		 20,880 — 20,880
20,880
—
20,880
Total 20,880 — 20,880
20,880
—
20,880

5. Net (Expenditure) Income and Net Movement in Funds

This is stated after charging:

Total
2022
£		 Total
2021
£
Staff costs (note 6)
Auditor’s remuneration and audit costs, including VAT
Statutory audit
Depreciation		 61,179
20,880
1,661,542		 2,530,116
20,880
1,701,694

6. Staff Costs and Remuneration of Key Management Personnel

Staff costs during the year were as follows:

Staff costs during the year were as follows:
2022
£		 2021
£
Wages and salaries
Social security costs
Other pension costs
Payments to agency staff
Staff costs per function were as follows:
Management		 53,692
3,192
4,295		 2,288,096
158,789
41,468
61,179
—		 2,488,353
41,763
61,179 2,530,116
61,179 2,530,116

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There was no employee (2021 – one) earning £60,000 per annum or more (including taxable benefits but excluding employer pension contributions).

2022
Number
2021
Number
—
—
1
Total
2022
Total
2021
1
169		 2022
Number
2021
Number
—
—
1
Total
2022
Total
2021
1
169		 2022
Number
2021
Number
—
—
1
Total
2022
Total
2021
1
169
£60,000 - £70,000
£70,001 ‐ £80,000
The average number of employees during the year was:
Management 1 169

The key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day to day basis comprise the Trustees, the Chief Executive Officer and the senior management team. The total remuneration (including taxable benefits and employer's pension contributions) of the key management personnel for the year was £61,179 (2021 - £154,366).

7. Trustees’ expenses and remuneration and transactions with Trustees

As members of the Congregation, the Trustees’ living and personal expenses during the year were borne by the Charity, but they received no remuneration or reimbursement of expenses in connection with their duties as Trustees or key management during the year (2021 - £nil).

As members of the Congregation, none of the Trustees have resources of their own as all earnings, pensions and other income have been donated to the Charity under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by the Trustees to the Charity was £35,237 (2021 - £35,143).

8. Taxation

The Congregation of the Sisters of Nazareth Charitable Trust is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

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9. Tangible Fixed Assets

Cost
At 1 April 2021
Additions
Disposal
At 31 March 2022
Depreciation and impairment
At 1 April 2021
Charge for year
Disposal
At 31 March 2022
Net book values
At 31 March 2022
At 1 April 2021
10. Investment Properties		 Freehold land
and buildings
£
Long
leasehold
buildings
£
Furniture
and
equipment
£
Motor
vehicles
£		 Freehold land
and buildings
£
Long
leasehold
buildings
£
Furniture
and
equipment
£
Motor
vehicles
£		 Total
£
61,470,499
104,500
1,007,249
255,096
1,402,584
—
80,678
76,922
(804,482)
—
(644,614)
(84,521)		 62,837,344
1,560,184
(1,533,617)
62,068,601
104,500
443,313
247,497		 62,863,911
20,612,145
16,720
535,797
196,574
1,595,956
2,090
42,560
20,936
(122,672)
(364,001)
(55,041)		 21,361,236
1,661,542
(541,714)
22,085,429
18,810
214,356
162,469		 22,481,064
39,983,172
85,690
228,957
85,028		 40,382,847
40,858,354
87,780
471,452
58,522		 41,476,108
Market value
At 1 April 2021
Disposals at book value (proceeds: £nil, gains: £nil)
At 31 March 2022		 2022
£		 2021
£
471,186
—		 471,186
471,186 471,186

Investment properties are included above at estimated market value and are all located within Blackburn Retirement Village. Valuations were carried out on the investment properties during the year by local firm of estate agents. There are no restrictions on the disposal of the investment properties. Two of the five investment properties incur service charge costs while the other three properties are being rented.

11. Debtors: Amounts Falling Due After One Year

11. Debtors: Amounts Falling Due After One Year
2022
£		 2021
£
Amount due from Nazareth Care Charitable Trust (note 21) 103,660 114,660

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12. Debtors: Amounts Falling Due Within One Year

12. Debtors: Amounts Falling Due Within One Year
2022
£		 2021
£
Prepayments and accrued income
Charges for care services
Amount due from The Congregation of the Sisters of Nazareth Generalate
(note 21)
Amount due from Nazareth Care Charitable Trust (note 21)
Amount due from NRV (Blackburn) Limited (note 21)
Other debtors
Amounts due from NRV (Glasgow) Limited		 —
23,581
240,106
11,500
—
28,998
—		 17,743
142,673
240,106
25,212
52,461
3,004
10,614
304,185 491,813

13. Creditors: Amounts Falling Due Within One Year

13. Creditors: Amounts Falling Due Within One Year
2022
£		 2021
£
Expense creditors
Bank loans
Other creditors
Taxes and social security
Loan from the Congregation of the Sisters of Nazareth Generalate (notes 14
and 21)
Amount due to Nazareth Care Charitable Trust (note 21)
Accruals and deferred income
Amount due to NRV Development (Plymouth) Limited (note 21)		 —
218,424
—
1,942
249,600
610,063
241,356
240,106		 75,396
271,476
724
39,637
249,600
683,345
571,028
240,106
1,561,491 2,131,312
14. Creditors: Amounts Falling Due After One Year
2022
£		 2021
£
Loan from the Congregation of the Sisters of Nazareth Generalate (note 21)
Bank loans		 5,482,734
1,658,349		 5,677,185
1,699,281
7,141,083 7,376,466

The Charity signed a loan agreement with the Congregation of the Sisters of Nazareth Generalate (CSNG) in April 2020 in respect of an advancement of £4,614,832. The loan comprises two parts. Part A has already been advanced to the Region under a loan agreement dated 25 October 2013 and consists of the outstanding balance owing on the Funds Transfer Date, which is £2,736,729. Part B is the balance owing under a loan agreement with The Royal Bank of Scotland and repaid by the Generalate to The Royal Bank of Scotland on the Funds Transfer Date. The balance on this loan is £1,878,103.

The loan is repayable by 2036 with interest accruing at 3% per annum. The loan balance at 31 March 2022 was £4,148,716 (including interest of £130,210).

On 25 July 2018, the charity entered into a loan agreement for £1.5 million with the Congregation of the

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Sisters of Nazareth Generalate (CSNG) in order to fund the expansion and development of Nazareth House Birkenhead. The loan carries an interest rate of 3% and is fixed throughout the term of the loan. No repayment of the principle or interest will be required until one calendar year from the first quarter day after the completion date. The loan balance at 31 March 2022 was £1,583,618 (2020 – £1,526,866) including interest of £46,789 (2021 – £30,230).

On 2 March 2016, The Congregation of the Sisters of Nazareth Charitable Trust entered into a loan agreement for £1 million with Barclays Bank plc in order to fund the refurbishment of Nazareth House, Finchley. The loan carries an interest rate of 2.75% above the official Bank of England Base Rate and is due to be repaid within 5 years of the first drawdown of the Facility. The loan balance at 31 March 2022 was £680,877 (2021 - £697,934). £61,176 of the loan is repayable before 31 March 2022 (note 13). The loan is secured on Nazareth House, Finchley, of which the Charity is the freeholder.

On 11 November 2016, The Congregation of the Sisters of Nazareth Charitable Trust entered into a loan agreement for £1.5 million with Barclays Bank plc in order to fund the refurbishment of Nazareth House, Cheltenham. The loan carries an interest rate of 2.75% above the official Bank of England Base Rate and is due to be repaid within 5 years. The loan is secured on Nazareth House, Cheltenham. The loan balance at 31 March 2022 was £1,195,896 (2021 - £1,272,823). £157,248 of the loan is repayable before 31 March 2022 (note 13).

15. Restricted Funds

15. Restricted Funds
At 1 April
2021
£
—
283,370
283,370
At 1 April
2020
£
—
283,370
283,370		 Income
£
491,899
—
—
Income
£
200,641
—
200,641		 Expenditure
£
(491,899)
—
—
Expenditure
£
(200.641)
—
(200.641)		 At 31
March 2022
£
Restricted donations and legacies
Property proceeds under restrictive covenant		 —
283,370
283,370
At 31
March 2021
£
—
283,370
283,370
Restricted donations and legacies
Property proceeds under restrictive covenant

The restricted donations and legacies fund represents monies given specifically for the benefit of individual homes whose assets are otherwise unrestricted. The amounts include donations towards the rebuilding of Nazareth House Hammersmith.

Property proceeds under restrictive covenant represents the remaining balance of the proceeds of the disposal of a property in Wavertree, in the Roman Catholic Archdiocese of Liverpool, which are restricted to use within the Archdiocese.

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16. Tangible fixed assets fund

16. Tangible fixed assets fund
Tangible fixed assets
. At 1 April 2021
. Movements in the year
. At 31 March 2022
Less: Loans to finance refurbishment and development of property		 At 31
March 2022
£
32,766,144
7,616,703
40,382,847
(7,609,107)
32,773,740		 Restated
At 31
March 2021
£
33,799,415
6,864,271
40,663,686
(7,897,542)
32,766,144

The tangible fixed assets fund represents the net book value of the Charity’s land and buildings and other tangible fixed assets (excluding those used in respect to the provision of residential care for older people in Northern Ireland) less loans that are to be used to finance the refurbishment and development of property owned by the Charity.

A decision was made to separate this fund from the general fund in recognition of the fact that the assets are used in the day to day work of the Charity, and the fund value would not be realisable easily if needed to meet future contingencies.

17. Designated Funds

The unrestricted funds of the Charity include the following designated funds, which have been set aside out of unrestricted funds by the Trustees for specific purposes:

At 1
April 2021
£		 New
designations
£		 Utilised/
released
£
—		 At 31
March 2022
£
Total designated funds: Care services fund — — —
At 1
April 2020
£		 New
designations
£		 Utilised/
released
£
(1,501,269)		 At 31
March 2021
£
Total designated funds: Care services fund 1,501,269 — —

The care services fund represented those net assets applied in the provision of care services at Nazareth House Belfast. From April 2021 the charity discontinued its operations in Belfast. The fund balance has been moved to the general fund.

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18. Analysis of Net Assets Between Funds

18. Analysis of Net Assets Between Funds
Fund balances at 31 March 2022
are represented by:
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due after one
year
Total net assets		 Restricted
funds
£
Designated
funds
£
Tangible
fixed assets
fund
£
General
fund
£
—
—
40,382,847
—
—
—
471,186
283,370
—
(468,024)
3,454,042
—
—
(7,141,083)—
283,370
—
32,773,740 3,925,228		 Total
2022
£
40,382,847
471,186
3,269,388
(7,141,083)
36,982,338

No unrealised gains or losses on investment properties have arisen.

Restricted
funds
£
Designated
funds
£
Tangible
fixed
assets
fund
£
—
—
40,663,686
—
—
—
283,370
—
(521,076)
—
—
(7,376,466
)
283,370
—
32,766,144		 General
fund
£		 Total 2021
£
Fund balances at 31 March 2021
are represented by:
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due after one
year
Total net assets		 812,422
471,186
4,334,370
—		 41,476,108
471,186
4,096,664
(7,376,466)
5,617,978 38,667,492

19. Contingent Liabilities

At 31 March 2022, The Congregation of the Sisters of Nazareth Generalate was funding legal and other costs incurred relating to statutory inquiries that have been established in Northern Ireland, Scotland and England and Wales, into the alleged historical abuse of children. The inquiries are at various stages, with the Historical Institutional Abuse Inquiry in Northern Ireland having reported in January 2017, the England and Wales Independent Inquiry into Child Sexual Abuse has published an interim report and continues to hear evidence, and the Scottish Child Abuse Inquiry publishing their report into the Sisters of Nazareth in May 2019.

The Congregation of the Sisters of Nazareth Generalate expects to incur further legal costs in relation to all three inquiries. It is not possible at the present time to provide any meaningful estimate of future costs, some of which may be covered by insurance. It is also not possible to provide any meaningful estimate of the future costs of ongoing claims being brought against the Congregation for which there

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is no reliable estimate of the value or probability of a claim being paid, some of which may be covered by insurance.

Redress schemes have been established, in March 2020 for Northern Ireland, and in December 2021 for Scotland. England and Wales have not yet announced their intentions. An agreement has been reached to contribute to the cost of redress payments in Scotland and the cost of contributions has been included in these accounts as expenditure. The actual payments will be paid according to an agreed schedule of contributions. No agreement has been reached for Northern Ireland and it is not possible at the present time to provide any meaningful estimate of future contributions, if any.

20. Capital Commitments

At 31 March 2022 the Charity had capital commitments of £nil (2021 - £nil)

21. Related Parties and Connected entities

The Charity is connected to The Congregation of the Sisters of Nazareth (the Congregation), an unincorporated international religious congregation, founded by Victoire Larmenier and recognised by the Vatican, currently comprising 216 Sisters worldwide. The Superior General of the Congregation appoints the Trustees of the Charity.

The Charity is connected also to two other registered charities, details of which are given below:

Name Registration numbers etc Principal activities
The Congregation of the
Sisters of Nazareth
Generalate (CSNG)		 A registered charity (Charity
Registration No 1138876 (England
and Wales))
The support of the Congregation and its
work throughout the world.
Nazareth Care Charitable
Trust		 A registered charity (Charity
Registration No 1113666) and a
company limited by guarantee
(Company Registration No
5518564 (England and Wales),
and SC042374 (Scotland)).		 The provision of nursing, residential and
care services to older people in need
through the operation of 13 homes
within England, Wales and Scotland.
The provision of estate management and
support services to older people at the
retirement villages in Blackburn and
Plymouth.
Nazareth Care Ireland A registered charity (Charity
Registration No 20154622
(Ireland)) and a company limited
by guarantee (Company
Registration No 592523 (Ireland)).
The provision of residential and care
services to older people in need through
the operation of homes within Ireland.

In the case of CSNG the Superior General of the Congregation also appoints the trustees. In respect to Nazareth Care Charitable Trust, the Superior General of the Congregation is the sole member of the charitable company. The Charity and Nazareth Care Charitable Trust have three Trustees in common. None of the Trustees of the Charity are Trustees of CSNG.

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At no point during the accounting period did any of the three charities control one or more of the others. As a consequence, consolidated accounts are not prepared.

21. Connected entities (continued)

Nazareth Care Charitable Trust has a number of subsidiary companies with which it forms the Nazareth Care Charitable Trust Group. Details of the subsidiaries are as follows:

Name Registration numbers etc Principal activities
NRV Development (Blackburn)
Limited		 Company Registration No
05906057(England and Wales)		 The development of a retirement
village in Blackburn.
NRV Development (Plymouth)
Limited		 Company Registration No
05940933(England and Wales)		 The development of a retirement
village in Plymouth.
NRV (Blackburn) Limited Company Registration No
06297407 (England and Wales)		 The provision of management
services at the retirement village in
Blackburn.
Nazareth Catering Limited Company Registration No
06740428 (England and Wales)		 A company providing catering
services to the retirement villages.
NRV Management (Plymouth)
Limited		 Company Registration No
08461398 (England and Wales)		 The provision of management
services at the retirement village in
Plymouth.
Name Registration numbers etc Principal activities
Nazareth Home Care Limited Company Registration No
08461286 (England and Wales)		 The provision of domiciliary care
services until February 2018.
The provision of care services for
other religious organisations from
February2018.
Larmenier Care Home
Management Limited		 Company Registration No
09382120 ( England and Wales)		 The provision of care services for
other religious organisations.
This company was dissolved on 30
October 2018.
NRV Management Glasgow Limited Company Registration No
09382077 (England and Wales)		 The provision of management
services to the retirement
apartments at Nazareth House
Glasgow.
NRV Development Glasgow Limited Company Registration No
09382096 (England and Wales)		 The development of retirement
apartments at Nazareth House
Glasgow.

Consolidated accounts of the Nazareth Care Charitable Trust Group are prepared and filed with the Charity Commission for England and Wales, the Office of the Scottish Charities Regulator and Companies House.

During the year there have been a number of transactions between the Charity and its connected entities, details of which are given in the paragraphs below.

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The Congregation of the Sisters of Nazareth Generalate (CSNG)

At 31 March 2022 the Charity was owed £240,106 (2021 – £240,106) from CSNG being grants authorised but not paid across as at that date (see note 12). At 31 March 2022 the Charity owed CSNG £5,732,334 (2021 – £5,926,785) (see notes 13 and 14) being a loan of £4,148,716 for the redevelopment of Nazareth House Glasgow and a loan of £1,583,618 (2021 – £1,526,866) for the redevelopment of Nazareth House Birkenhead.

During the year to 31 March 2022, the Charity paid £20,000 (2021 – £65,145) as a contribution to the Congregation of the Sisters of Nazareth Generalate. CSNCT also gave gifts to CSNG worth £7,700 (2021 – £7,700).

Nazareth Care Charitable Trust (NCCT)

At 31 March 2022, the Charity owed £610,063 (2021 - £683,345) to NCCT being £608,345 (2021 - £608,345) (see note 13) in respect to building and refurbishment works at Nazareth House Cheltenham and £1,718 (2021 – £nil) for expenditure paid for by NCCT. In addition, the Group was owed £240,106 (2021 ‐ £240,106) being £240,106 (2021 – 240,106)in respect of the contribution for the convent owed to NRV Development (Plymouth) Limited.

In addition, at 31 March 2022 the Charity was owed £115,160 by NCCT (2021 - £139,872) being £115,160 (2021 - £138,660) being loan repayments in respect to loans for the building and refurbishment works at Lancaster Day Nursery, £11,500 (2021 - £24,000) of which was payable within one year. During the year the Charity donated £nil (2021 - £93,745) to NCCT.

During the year to 31 March 2022, the Charity received management stipend income of £421,880(2021 – £458,590) and rental income of £1,284,248 (2021 – £1,245,411) from Nazareth Care Charitable Trust. Additionally, the Charity made payments to Nazareth Care Charitable Trust totalling £3,500 (2021 - £49,961) in relation to care home fees at the Glasgow and Hammersmith communities.

NRV (Blackburn) Limited

During the year NRV (Blackburn) Limited collected rent from the residents of the Blackburn Retirement Village on behalf of the Charity. At 31 March 2022, a balance of £nil (2021 - £52,461) (see note 12) was owed to CSNCT by NRV (Blackburn) Limited. Retirement villages

Under the terms on which NRV Development (Blackburn) Limited sells apartments within the retirement village, should the purchaser for any reason wish to vacate the property at any time and not sell it on the open market, NRV Development (Blackburn) Limited undertakes to buy back the unit. This option was removed for sales completed after September 2013. It was calculated that the maximum liability to NRV Development (Blackburn) Limited in the event that several leaseholders simultaneously exercise the buy back option would be £750,000. Should NRV Development (Blackburn) Limited not have sufficient funds to meet this liability, the Charitable Trust has agreed to meet any shortfall. At 31 March 2017 the fund stood at £30,815. During the year ended 31 March 2018 three apartments costing £332,915 were bought back and the fund has been fully utilised (see note 17).

NRV Development (Plymouth) Limited

At 31 March 2022, the Charity owed £240,106 (2021 - £240,106) to NRV Development (Plymouth) Limited for six apartments purchased from NRV Development (Plymouth) Limited. The six apartments are used as a convent by CSNCT.

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NRV Management (Glasgow) Limited

At 31 March 2022, the Charity was owed £nil (2021 - £10,614) by NRV Management (Glasgow) Limited in respect of a service charge refund for void fees paid.

Other related party transactions

There were no other related party transactions other than those disclosed above (2021 – none).

22. Post Balance Sheet Events

The charity and Nazareth Care Charitable Trust entered into a loan agreement. The charity loaned Nazareth Care Charitable Trust £1.07M.

23. Discontinued Operations

From April 2021 the charity discontinued its operations in Belfast. The income and expenditure associated with Belfast are therefore disclosed as discontinued operations in the Statement of Financial Activities.

24. Ultimate Control

The Congregation of the Sisters of Nazareth Charitable Trust, which is constituted as a trust, is controlled by the Congregation of the Sisters of Nazareth by virtue of the fact that the Superior General of the Congregation appoints the Trustees.

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