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2022-12-31-accounts

CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

ANNUAL REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2022

CHARITY NUMBER 232406

CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR YEAR ENDED 31ST DECEMBER 2022

CONTENTS

3 Reference and Administrative Details
4to5 Trustees Report
6 Independent Examiners Report
7 Statement of Financial Activities
8 Balance Sheet
9 to 14 Notes to the Financial Statements

CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE ALTAR

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 31ST DECEMBER 2022

CHARITY NO. 232406 CONSTITUTION TRUSTEES The Rev. Derek Laverty PROVINCIAL SUPERIOR VICE PROVINCIAL ECONOME BURSAR PRINCIPAL ADDRESS 372 Uxbridge Road Ealing London W53LH BANKERS Lloyds Bank PLC 3 Chandos Place Bletchley Milton Keynes MK2 2SL

Adopted 20th November 1962 and the New Constitutions were promulgated on 22nd May 1989.

The Rev. Christopher McAneny The Rev. Derek Laverty

The Rev. Michael Ruddy, SS.CC. (Appointed 7th June 2022) The Rev. Derek Laverty, SS.CC. (Resigned 7th June 2022)

The Rev. Vincent Fallon, SS.CC. (Appointed 7th June 2022) The Rev. Fergal Maguire SS.CC. (Resigned 7th June 2022)

The Rev. Christopher McAneny (Appointed 7th June 2022)

SOLICITORS SBP Law Glade House 52-54 Carter Lane London EC4V5EF

INDEPENDENT EXAMINER

Brown Warner LLP 38 Northgate Newark-on-Trent NG241EZ

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE ALTAR

TRUSTEES REPORT

YEAR ENDED 31ST DECEMBER 2022

The trustees present their annual report and financial statements for the year ended 31st December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities Act 2011 and 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable in charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)' (effective 1 January 2019).

OBJECTS AND ACTIVITIES, ACHIEVEMENTS, PERFORMANCE AND FUTURE

The objects of the charity are to follow the Constitutions and Statutes of the Congregation as renewed and approved by The Congregation for Institutes of the Consecrated Life and Societies of Apostolic Life as given at Rome on 9th day of July 199 0.

The trustees continued their work of administering and looking after the trust funds during the year to enable the work of the Religious Order to continue. The trustees confirm that they have referred to the guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities.

The Congregation works maintaining and supporting missions abroad. While from its Ealing house which is designated as a formation house looks to train future priests. The Congregation also worked with various parishes until September 2022.

The trustees continued their assistance from the mission fund with donations made during the year to the India projects and Ukraine appeal.

The trustees consider that the charity has performed well during the year and maintained its funds' strength which will be used in the future to carry out the charity's objectives.

The trustees will continue to encourage the Congregation's mission urging the Brothers into evangelizing action for which they enter into the interior dynamism of Christ's Love for his Father and for the World, especially for the poor, the afflicted, the marginalized and those who have not heard the Good News of Jesus Christ.

FINANCIAL REVIEW

Income consisted of donations to the trust funds through Christmas and Easter offerings to the Brothers, Mass Stipends and sundry donations. There is also pension income in respect of Brothers who are now of retirement age and salary income is received for one brother until September 2022. There was a decrease in the overall income of £42,161 during the year due to Brothers retiring from parishes.

Expenditure decreased by £9,233 during the year mainly due to lower donations made.

Reserves Policy

The trustees carry out an annual review of its free reserves policy (that is those funds not tied up in fixed assets, designated or restricted funds) in the light of risks and future plans. The trustees have established a policy to have a minimum free reserve of between 3 to 6 months of resources expended, which equates to £12, 000 to £24,000. This will enable the charity to continue to meet its objectives if it faces loss of income, increases in costs or delays in receipts. At present the free reserves are within this level. Should the charity face loss of income the Order in Ireland would support any shortfall.

Risk Management

The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to mitigate the significant risks.

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

TRUSTEES REPORT (Continued) YEAR ENDED 31ST DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Congregation of Brothers of the Sacred Hearts of Jesus and Mary and of Perpetual Adoration of the Most Blessed Sacrament of the Altar is a Roman Catholic Religious Order of Priests and Lay Brothers carrying on charitable work in England. The formal charitable trust deed establishing the charity was created on the 20th day of November 1962.

The Congregation is an Apostolic Religious Congregation of Pontifical right founded by Pierre Coudrin and Henriette Aymer de la Chevalerie. Brothers and Sisters united in the same charism and the same mission, form a single congregation approved as such in 1817 by Pope Pius VII.

Recruitment and Appointment of Trustees

A Provincial Council consisting of the Provincial Superior and three other brothers nominate and appoint the trustees of the charity.

Organisational Structure

The Congregation all meet together every three years for a Chapter which decides the policies and principles to be followed for the three years ahead. A Provincial Superior is appointed by the Chapter to ensure the decisions of the Chapter are carried out and the Provincial Superior will also decide all day to day management decisions for the three year period.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standard (United Kingdom Generally Accepted Practice).

The law applicable to charities in England & Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for the year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the accounts comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. They are also responsible for safeguarding the assets and hence for taking reasonable steps for the prevention and detection of fraud and breaches of law and other irregularities.

The trustees report was approved by the Board of Trustees.

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

INDEPENDENT EXAMINERS REPORT

YEAR ENDED 31ST DECEMBER 2022

Independent Examiners' Report to the Trustees of Congregation of Brothers of the Sacred Hearts of Jesus and Mary and of Perpetual Adoration of the Most Blessed Sacrament of the Altar.

I report to the trustees on my examination of the financial statements of Congregation of the Sacred Heart of Jesus and Mary and of Perpetual Adoration of the Most Blessed Sacrament of the Altar (the charity) for the year ended 31 December 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions give by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extent regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

David Brown FCA Brown Warner LLP Chartered Accountants

Date (& �.bc...r ?o23.

38 Northgate, Newark-on-Trent, England NG24 1 EZ

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE ALTAR

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31ST DECEMBER 2022

Income and endowments from:
Donations&appeals
Legacies
Charitable activities
Stipends
Salary income
Pensions
Investment Income
Interest receivable
Total income
Expenditure on:
Raising funds
Fundraising and publicity
Chari
table Activities
Provision of charitable acivities
Donations
Toal expenditure
Net income/(expenditure)
before Transfer
Transfer Beteen Funds
Net income/(expenditure)
for the year
Other gains & (losses)
Net movement of funds
Balances at 1st January 2022
Balances at 31st December 2022
Note
3
3
2
7		 Designated
Funds
£
7,861
0
0
0
0
78
7,939
0
85
15,000
15,085
(7,146)
0
(7,146)
0
(7,146)
68,291
61,145		 Unrestricted
Funds
37,979
0
11,210
4,689
21,581
0
75,459
0
47,429
0
47,429
28,030
0
28,030
0
28,030
901,066
929,09		 2022
£
45,840
0
11,210
4,689
21,581
78
83,398
0
47,514
15,000
62,514
20,884
0
20,884
0
20,884
969,357
990,241		 2021
£
56,097
6,468
23,276
6,654
32,893
171		 2021
£
56,097
6,468
23,276
6,654
32,893
171
125,559
266
49,481
22,000
71,747
53,812
0
53,812
0
53,812
915,545
969,357

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

OF THE MOST BLESSED SACRAMENT OF THE AL TAR

BALANCE SHEET

YEAR ENDED 31ST DECEMBER 2022

FIXED ASSETS
CURRENT ASSETS
Debtors
Cash at Bank & in Hand
CREDITORS:Amounts fa ing
due within one year
Net Current Asset
NET ASSETS
FUNDS
Designated Funds
General Unrestricted Fund
Note
4
5
6
7		 2,264
405,300		 2,264
405,300

2022
£
596,258
393,983		 2,108
375,582		 2,108
375,582


2021
£
604,382
364,975
407,564 377,690
13,581 12,715
990,241
61,145
929,096		 969,357
68,291
901,066
990,241 969,357

The notes at pages 9 to 14 form part of these accounts. The financ;,,1 statements we,e app,oved by the Trustees on / 1 / 2023 ) 1..../ rit.. w(�e Rev. ChOstophe, McAneny

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE ALTAR

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2022

1 ACCOUNTING POLICIES

Charity information

Congregation of the Sacred Heart of Jesus and Mary and of Perpetual Adoration of the Most Blessed Sacrament of the Altar is a charity which follows the Constitutions and Statues of the Congregation as renewed and approved by The Congregation for Institutes of the Consecrated Life and Societies of Apostolic Life as given at Rome on 9 th day of July 1990.

The charity is registered with the Charity Commission of England and Wales with the charity number 232406. The principal address is 372 Uxbridge Road, Ealing, London, WS 3LH.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 201 1 , FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable in charities preparing their accounts in accordance with Republic of Ireland (FROS102)" (effective 1 January 20 19). This is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statement 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 for Charities applying FRS 102 rather than the version of the Statement Recommended Practice which is referred to in the regulations but which has since been withdrawn.

The financial statements are prepared in sterling which is the functional currency for the charity and rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold property and to include certain financial instruments at fair value.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis for accounting in preparing the financial statements.

1.3 Charitable Funds

General Fund represents unrestricted income which may be spent generally for furthering the religious and charitable work of the Congregation.

Designated Funds represent funds set aside by the trustees for specific purposes.

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2022

1.4 Incoming Resources

All income are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.

Legacies are recognised on receipt or otherwise if the charity ahs been notified of an impending distribution, the amounts is known, and receipt is expected.

Income received by way of the Fathers' pension income, stipends and salaries earned are included when receivable.

Investment income is included when receivable.

1.5 Resources Expended

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.

Costs of raising funds comprise the costs associated with attracting income.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs includes those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.

1.6 Depreciation of Tangible Assets

Depreciation is provided on all tangible assets at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:

Freehold buildings 2% on valuation Furniture and equipment 25% on cost Motor vehicles 25% on reducing balance

The trustees own the freehold premises at Ealing Common, London, W5 which are used to house and train students who join the Congregation with a view to reaching ordination into the priesthood.

1.7 Impairment of Fixed Assets

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

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE ALTAR

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2022

1.8 Cash and bank

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.10 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.

1.11 Taxation

The charity is exempt from tax on its charitable activities.

1.12 Intangible Income

A substantial contribution to activities of the Congregation is supplied in the form of voluntary services and donated facilities. The financial benefit of the intangible income has not been recognised in these accounts as by their nature it would be impractical to quantify in monetary terms.

2 DONATIONS PAID 2022 2021
£ £
Mission Fund
Rome Generalte - UK Mission DSDI India 0 5,000
Rome Generalte - Indian Priests Studies 0 2,000
Donation - P Eustaguio School in Kinshasa - Building Project 0 10,000
Donation - Diocese De Pembe Sede, Mozambique
- Pe Edegard Silva Junior 0 5,000
Donation - Caritas lnternationalis - Ukraine Appeal 5,000 0
Donation - UK Mission DSDI India 10,000 0
Total donations paid 15,000 22,000

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2022

3 EXPENDITURE

EXPENDITURE
-m
0 C
-;; :1a
8 �
£
111
�
;f.		 J!(I)
.0 CD
!! :t!
·;:: >
111:.::i
.c u
(J -(
£		 CD
£
TOTAL
2022
£		 TOTAL
2021
£
Staff costs 0 12,837 0 12,837 11,526
Depreciation O 8,124 0 8,124 8,534
ProfiULoss on disposal O 0 0 0 (2,601)
Mission Costs 0 85 0 85 275
Educational & House Running 0 17,519 0 17,519 18,733
Repairs & Maintenance O 553 0 553 5,853
Travel and Motor O 1,271 0 1,271 0
Telephone O 1,145 0 1,145 1,447
Examiner's Remuneration 0 0 2,400 2,400 2,400
Accountancy, tax & Consolidation 0 0 3,580 3,580 3,580
___ o_ 41,534 5,980 47,514 49,747
Staff Costs 2022
£		 2021
£
Wages & Salaries 3,850 4,040
Brothers Allowances 0 0
Pension 1,457 1,535
Health Insurance Costs 7,530 5,951
12,837 11,526

No employee earned from than £60,000 per annum (2021-nil).

The key management personnel of the charity comprise trustees, the principal superior and the econome bursar. The total remuneration including employer national insurance and pension of key management personnel during the year was Nil (2021 Nil).

The average number of employees during the year was 4 (2021: 4) with all staff involved in providing either support to the governance of the charity or support services to charitable activities.

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2022

4 TANGIBLE FIXED ASSETS

Freehold
Direct Charitable
Premises
£
Cost or Valuation
At 1st January 2022
700,000
Additions
0
Disposals
0
At 31st December 2022
700,000
Depreciation
At 1st January 2022
110,000
Charge for year
5,000
Disposals
0
At 31st December 2022
115,000
Net Book Values
At 31st December 2022
585,000
At 31st December 2021
590,000		 Motor
Vehicles
£
23,400
0
0
23,400
9,589
2,665
0
12,254
11,146
13,811		 Furniture &
Equipment
£
5,970
0
0
5,970
5,399
459
0
5,858
112
571		 Total
£
729,370
0
0
729,370
124,988
8,124
0
133,112
596,258
604,382

The Freehold property was valued on 2nd February 2000 by Derek F Grimshaw F.S.V.A. of Grimshaw & Co at a value of £700,000 (Historic cost £16,500).

5
DEBTORS
Prepayments
6
CREDITORS - Am ounts falling due within one year
Accruals
2022
£
2,264
2,264
2022
£
13,581
13,581		 2021
£
2,108
2,108
2021
£
12,715
12,715

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CONGREGATION OF BROTHERS OF THE SACRED HEARTS OF JESUS AND MARY AND

OF PERPETUAL ADORATION OF THE MOST BLESSED SACRAMENT OF THE AL TAR

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31ST DECEMBER 2022

7 ANALYSIS OF CHARITABLE FUNDS

ANALYSISOF CHARITABLE F UNDS
Balance Incoming Outgoing Balance
1.1.22 Resources Resources Transfers 31.12.22
£ £ £ £ £
Designated Funds
Mission Fund 68,291 7,939 (15,085) 0 61,145
General Unrestricted Fund 901,066 75,459 {47,429l 0 929,096
969,357 83,398 (62,514) 0 990,241

a Analysis of Net Assets between Funds

Analysis of Net Assets between F unds
General Designated Total
Fund Fund InterFund Funds
£ £ £
Tangible Fixed Assets 596,258 0 0 596,258
Current Assets 346,419 61,145 0 407,564
Current Liabilities {13,581} 0 0 {13,581}
929,096 61,145 0 990,241

b Purpose of Funds

General Unrestricted Funds

Income and expenditure arising from the day to day running of the premises used to house and train students who joined the Congregation with a view to reaching ordination into the priesthood and to support the existing Brothers' living costs to enable them to carry out their work on behalf of the charity.

Mission Fund

The purpose of the fund is to provide general support of missions abroad as needs are identified and requests received.

8 TRUSTEE'S REMUNERATION AND EXPENSES

The trustees received no remuneration (2021: nil), two trustees Father Christopher McAneny and Father Derek Laverty have the use of the charity's motor vehicles and all motor, living and other expenses are paid by the charity to enable them to carry out their work on behalf of the charity.

9 PENSION SCHEME

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £1,457 (2021: £1,535).

9 CONNECTED CHARITIES

The Congregation maintains close links with other members of the Order established and Constituted in other countries. These links enable the communities to support one another depending on needs as and when they arise.

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