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2021-08-31-accounts

Institute of the Sisters of Notre Dame De Namur British Province

Annual Report and Accounts

31 August 2021

Charity Registration Number 232411 (England and Wales) SC038746 (Scotland)

Contents

Reports
Reference and administrative information 1
Trustees’ report 3
Independent auditor’s report 23
Accounts
Statement of financial activities 28
Balance sheet 29
Statement of cash flows 30
Principal accounting policies 32
Notes to the accounts 40

Institute of the Sisters of Notre Dame De Namur British Province

Reference and administrative information 31 August 2021

Trustees The Notre Dame Trustee Co Limited
Sister Elizabeth Brady - resigned 15 August 2021
Sister Ann Byrne - resigned 15 August 2021
Sister Mary Josephine McCallum - resigned 15 August 2021
Sister Mary McClure – appointed 15 August 2021
Sister Catherine Darby – appointed 15 August 2021
Sister Margaret Walsh – appointed 15 August 2021
Directors of The Notre Dame Trustee Sister Mary McClure
Co Limited Sister Catherine Darby
Sister Margaret Walsh
Provincial Moderator Sister Mary McClure
Provincial office The Provincialate
266 Woolton Road
Liverpool
L16 8NF
Telephone 0151 665 0600
Website www.snduk.org
E-mail ukprov@sndden.org
Charity registration numbers 232411 (England and Wales)
SC038746 (Scotland)
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Principal bankers Barclays Bank plc
North Manchester Business Banking
Victoria House
6 Market Place
Wigan
WN1 1QS
Stockbrokers J M Finn & Co Limited
25 Copthall Avenue
London
EC2R 7AH

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Reference and administrative information 31 August 2021

Solicitors Brabners LLP Horton House Exchange Flags Liverpool L2 3YL McSparran McCormick Waterloo Chambers 19 Waterloo Street Glasgow G2 6AH Property advisers and agents Carter Jonas The White House Greenhalls Avenue Warrington WA4 6HL

Property marketing agents CBRE Limited One St Peter’s Square Manchester M2 3DE

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Trustees’ report 31 August 2021

The trustees present their report together with the accounts of the Institute of the Sisters of Notre Dame De Namur British Province (the “charity”) for the year ended 31 August 2021.

The accounts have been prepared in accordance with the accounting policies set out on pages 32 of the attached accounts and comply with the charity’s trust deed, applicable laws and the requirements of 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).

Introduction

The Institute of the Sisters of Notre Dame De Namur (the “Congregation”) is an international Roman Catholic religious congregation supporting 988 sisters worldwide. It was founded in 1804 in Amiens, France. Its Generalate is located in Rome.

The Congregation is organised into units called Provinces. A Province is a legal body and is usually defined geographically to facilitate the mission of the Congregation in national and local areas. Each Province has its own structure of governance which makes provision for a Provincial Superior, known in Great Britain as the Provincial Moderator, who together with a Provincial Leadership Team takes responsibility for the leadership and administration of the British Province.

The accounts accompanying this report are the accounts of the charitable trust on which the assets of the Congregation in Great Britain are held.

Mission

The Sisters of Notre Dame De Namur are a group of religious women whose main aim is to contribute to the advancement of the Roman Catholic religion by means of involvement in education, broadly conceived.

By caring for individual members of the Congregation throughout their lives with the Congregation, the charity aims to enable and support the sisters to live out their faith and to put that faith into practice through a wide variety of religious and other charitable works.

When setting the objectives and planning the work of the charity for the year, and when encouraging the work of individual sisters, the trustees have given careful consideration to the Charity Commission’s guidance on public benefit.

At their last General Chapter the sisters repeated their commitment to create a more just and loving world, continuing to choose Gospel imperatives as a way of life that “calls us to recommit to actions that lead to transformation within ourselves, society, Church and our Notre Dame Congregation”. The sisters are committed to fulfilling their mission by ministering to the whole of creation, to our world and to one another. Every six years the Congregation reviews its life-in-mission, sets new directions, make policies and necessary changes to existing legislation in response to changing times.

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Mission (continued)

The General Chapter planned for July 2020 was postponed because of the pandemic restrictions. The re-scheduled Chapter took place on Zoom. The delegates met as a whole body for three days each month from October 2021 through to December 2021. Work continued in delegates' committees between general sessions during these months. By the end of December a new Congregational Leadership Team had been elected and a way forward for the order agreed.

The theme of this Chapter is “Renew –Transform – Go”.

The works or ministries of the sisters of the Congregation fall into the following main areas:

Members of the Congregation are given the opportunity for private worship and to continue to develop their knowledge and trust in Jesus and the Church through quiet prayer, study of the Gospel and spiritual development. In addition, members of the Congregation celebrate and pray with the wider community including people of all faiths and none. They do this through the provision of spiritual guidance or by just being available to listen in times of need, through the giving of retreats and the celebration of the Liturgy through prayer groups and church services. Some members of the Congregation write and/or edit books and publish their work in the area of spirituality, religious education, catechesis, ecology and interfaith.

A current example of this is found in in the work of Sister Magdalen Lawler who is a freelance retreat and conference leader, facilitating retreats at home and abroad. During lockdown she was able to continue her work through Zoom. Many people tuned in to each event. These included retreats sponsored by retreat centres in Ireland, Yorkshire and London as well as days of prayer and a preparation for Holy week 2021.

Sister Magdalen is also the author of 5 books on the subject of Art and Spirituality. The quieter period of lockdown gave her the opportunity to review and republish Pathways to God’s Goodness, The Spirituality of Julie Billiart, originally published in 2001 This publication is now being used in schools and retreat centres around the country.

Sister Isabel Smyth serves as the Secretary for Interreligious Dialogue for the Scottish Catholic Bishops. She plans, organises and manages dialogues with faith communities and participates in various interfaith events and dialogues. She works to promote Scottish Interfaith Week and encourage the need for good interfaith understanding as a way of peace both within the Catholic Church and throughout our world.

Sister Kathleen McGhee writes this about her ministry:

“The focus of my ministry is Pastoral Accompaniment. I accompany twenty people in any month: priests, deacons, religious sisters and lay people. It plays a supportive role in the lives of these people who are, in the main, holding responsible and often demanding roles in the Church. This accompaniment is also part of the initial and ongoing formation of the deacons in the Liverpool Archdiocese.

In addition, I accompany three religious communities, two active groups and one monastic. This includes the regular facilitation of a Provincial Team.

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Mission (continued)

The Dympna Centre, of which I have been a trustee for many years, is winding up. As Chair of the Board this has meant giving a lot of time to communicating with lawyers and putting effort into ensuring a gracious ending to the charity.”

The Congregation’s work of education continues through the involvement of members in teaching, educational support and administration in educational establishments as well as membership of school governing bodies. They also work with children and adults with learning disabilities, people with special needs, multiple impairments or both. Many sisters are actively engaged in religious education programmes and have pioneered programmes for families and those with special needs. Sisters who are now unable to be actively involved in this work continue to support schools, Hope University and other learning centres by attending special events and by their friendship, encouragement and prayer.

The Sisters of Notre Dame De Namur are trustees of three voluntary aided schools – Notre Dame Catholic College, Liverpool; St Julie’s High School, Liverpool; and Notre Dame High School, London. Some sisters serve on the governing bodies of these three schools and one sister serves as a governor for Notre Dame, Sheffield.

During the most severe restrictions at St Julie’s High School, Liverpool, sixth formers presented a weekly ‘Julie Show’. This was made available online to every member of the school community as well as all the sisters in the province. The attached link shows something of their learning and their appreciation of the life and work of St Julie https://www.youtube.com/watch?v=LIMnyfmWT3I.

St Julie’s staff nominated Sister Margaret Walsh for the Joe Symon Prize in September 2020. This prize is presented as a recognition of a person’s total commitment to the School, in this case for “setting up excellent governance of our school, ensuring we remain faithful to St Julie and the Sisters of Notre Dame, seeing us through times of great change including the move into a new school building as well as turning up for event after event and meeting after meeting.”

Sister Anne Marie Niblock is Headteacher at Notre Dame RC Girls’ School in Southwark, London. She kept the school open every day during lockdown, including holidays, in order to support key workers and vulnerable children. As well as providing laptops and internet access for disadvantaged students; breakfast and lunch for those in school; vouchers and food parcels for disadvantaged families; Sister Anne Marie reached out to several other schools in providing a “meals on wheels” lunch service. Since schools reopened fully, Sister Anne Marie has continued to reach out to local schools both in leading a Faith Partnership of Catholics schools in the Local Authority and as the Link Headteacher with the Diocese.

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Mission (continued)

Sister Rosemary O’Callaghan works as Counsellor Chaplain at Notre Dame RC Girls’ School in Southwark, London. During lockdown, she contacted every member of staff, supporting them as they tried to cope with online teaching and new ways of working. She then phoned students in Years 10 and 11 as well as vulnerable students. Since restrictions have lifted her workload has greatly increased since one of the effects of lockdown has been increased family tensions and mental health issues.

Sister Margaret Jenkins has a crucial supportive role with students in Notre Dame Catholic College, Liverpool particularly with those who struggle in mainstream education. She provides opportunities for students to talk about their problems and feelings in a safe environment. Her office is a haven for those who cannot cope at lunchtime in the dining room. She works alongside pupils to help them complete difficult work projects and currently she has a particular care for pupils suffering the effects of Covid. Margaret works alongside the chaplain in extending a practical outreach to the families of students. She is a listening compassionate presence to students and staff alike.

Over the years the governance of many secondary schools was passed from the sisters to local dioceses or local education authorities. Many have retained Notre Dame in their name. Close links continue to grow and be strengthened through the “Notre Dame Schools and Colleges Network” supported by Sisters Catherine Darby and Anne Marie Niblock.

The Annual Conference 2020 for representatives from each school along with their head teachers took place via Zoom. In the face of the demands of Covid the head teachers asked to meet monthly via ZOOM facilitated by Sister Catherine Darby. This has created a ‘sacred space’ for mutual support and reflection.

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Mission (continued)

♦ Education (continued)

The link between Liverpool Hope University and the Province remains close. This is evidenced by the lease of a residence for two of the trustees on the university campus. The Vice Chancellor and staff have welcomed the presence of Sisters of Notre Dame as this enables continuing informal contact between

staff, students and sisters. The proximity of the campus to the new Provincialate offices also keeps open the communication between the University and the Province.

The trustees also support the head teacher of St Julie’s Catholic High School and the Deputy Head of Notre Dame Catholic College, Liverpool, who have replaced the Notre Dame sisters on the University Council.

In addition, the university's library holdings have been strengthened by the donation of books by Sister Maura O’Carroll and Sister Mary Charles Murray. These now form a special collection called the Notre Dame Collection, which is available for staff and students.

Certificate in Pastoral Ministry and Diploma in Pastoral Leadership

Sister Catherine Darby together with Mrs Veronica Murphy were able to continue to coordinate and lead these opportunities for adult faith formation and training in leadership. This work is a collaboration between the Northern Province Dioceses of England and Wales in partnership with the Institute of Pastoral Studies, Loyola University Chicago.

Graduation was celebrated via Zoom in December 2020 as it wasn’t possible for students to gather in person and mark their achievements as happened in the previous year. https://youtu.be/BXSccs31ngY.

♦ Social and pastoral work

The charity enables and supports individual members of the Congregation in ministry and outreach work thereby furthering the message set out in the Gospel to love one another. In order to provide direct service to the materially poor, and since most sisters are of retirement age, many sisters freely give their services in diverse ministries.

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Mission (continued)

♦ Social and pastoral work (continued)

Some work for social justice, in adult literacy programmes, on safeguarding boards, in hospices, with the elderly, as hospital chaplains, prison visitors, as well as with socially deprived women and children suffering from the stress of their situation. Others serve on a vast variety of groups in their neighbourhoods, parishes and dioceses. They are to be found in some of the poorest parishes in the land. Sisters are working with refugees and asylum seekers in various parts of the country. Sisters with training and experience in a number of disciplines give service to individuals and groups as counsellors, psychologists, facilitators and assessors. It is worth noting that the sisters go on participating in these ministries well into their senior years.

During the social restrictions of the pandemic the majority of sisters were in the vulnerable age range. However, this did not prevent them continuing to be outgoing and aware of the needs of other people. Many became experts in new forms of communication. Everyone is now familiar with Zoom! Sisters participated in regional and international Zoom meetings as well as local gatherings. Through online conversations they formed new friendships with people they had never met. They also continued their own learning particularly in relation to the environment and the climate crisis.

Some examples:

Psychotherapy

Sister Gail Taylor, an adult psychoanalytic psychotherapist, found a way of continuing her work during the pandemic restrictions. She writes:

When the Covid epidemic changed our lives and lockdown was imposed, it had a very significant effect on all our lives. In my work of psychoanalysis, where I would normally see patients several times a week in my safe consulting room, this was not possible. I adapted to an online way of working, where I was able to continue to ‘see’ patients and allow their analysis to continue. For many, it would be a very anxious and distressing time and to suddenly stop treatment would have been very disruptive and frightening. While, online psychoanalysis is not ideal, it allowed something to continue while we observed the social restrictions.

Caring for Survivors of abuse

Sister Agnes Szraga gives support to groups and individual survivors of in-care childhood abuse. She does so through listening, advising on current related legislation and informing them of where they can find help.

Sister Mary McClure has set up a "Survivors of Abuse Panel" as part of her role working for the Bishops Conference, Scotland in order to provide pastoral support for the victims of abuse.

Sister Kate Mulligan is involved with an agency which assists disadvantaged people especially children, to access basic needs for survival.

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Mission (continued)

Social deprivation

Sister Maureen McGuigan was able to continue her work with a local credit union in a deprived area. She kept in touch with families through offering telephone support, thus enabling people to access funding and avoid debt.

During the long months of lockdown sisters in the Childwall and Birkdale communities were busy raising funds for the homeless and disadvantaged families by making Birthday, Christmas and All Occasion cards, jewellery and knits as well as knitting bonnets and jackets for premature babies.

Asylum Seekers

Sister Kathleen Ashurst received the Queen's Award for Voluntary Service 2021 on behalf of the Volunteers of Asylum Link Merseyside. This national award, the equivalent of an MBE, was given for their service since 2001, especially during the Covid Lockdown.

Sister Kathleen writes:

Because I am the only remaining volunteer from the original group, the trustees asked me to receive the award from the Lord Lieutenant on behalf of all the Volunteers. It was a great honour. The applause when I received the crystal trophy developed into a standing ovation. It all contributed to the recognition of Asylum Seekers and Refugees. It was a tribute to people who have been through so much .

Our Canon Lawyers

Sister Rachel Harrington, who lives in London and Sister Ishbel Macpherson, who lives in Glasgow, have doctorates in Canon Law. They remain two of the very few women who are fully qualified canonists. Historically, canon law and tribunal work was in the hands of clergy and it was only in 1983 that lay men and women were able to be judges.

Both Rachel and Ishbel fulfil the role of Judge in a number of diocesan and regional tribunals in England, Wales and Northern Ireland. Rachel serves on an Inter-Diocesan Tribunal which serves seven dioceses in Ireland. Much of their work can be done from home so both sisters were able to continue throughout the months of lockdown.

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Mission (continued)

The British Province assists in the education and formation processes for our sisters in Africa and South America in a variety of ways. It helps support sisters working in the world’s poorest countries and with the most disadvantaged people – for example in Nigeria, Peru, Kenya, South Africa and Zimbabwe. Two sisters from Britain still work in Nigeria giving service in healthcare and educational programmes, the promotion of justice and peace and the empowerment of the poor. Other sisters fundraise for overseas development work by making Birthday, Christmas and All Occasion cards, making jewellery and knitting blankets. Many sisters also keep in touch with the younger generation of sisters in other parts of the world letter-writing. This is found to be a valued means of sharing experience, listening and offering encouragement.

Archives

One of the duties of the Provincial Administration is to ensure that the archives are kept safely and that they are up to date.

The Sisters of Notre Dame were founded in the year 1804 and first came to England in 1845. The archives, therefore, cover the hundred years since the foundation of the British Province in 1920 and also include a large collection of documents relating to the life and work of the sisters who ministered in England and Scotland from 1845. The former dedicated archive building has been converted into accommodation for three sisters from the Childwall Community on the ground floor and the new reduced-size Provincialate on the first floor. Space is reserved on each floor for the archives storage and office. The work of the archives has been entrusted to a team of sisters. They receive and catalogue documents and respond to enquiries about the life and work of the sisters. These mainly come from research projects and family members.

Activities, specific objectives and relevant policies

Through our developing understanding of ‘Mission’ we search anew in each time and place for ways to spread the Gospel and to take our stand with the poor of the earth. According to our tradition we value education as fundamental.

As well as reaching out to the poor and needy, we care for the individual members of our Province by enabling and supporting them in living out their vocation and putting it into practice through a wide variety of educational, social, pastoral and religious works.

Caring for members of the Congregation

The Sisters of Notre Dame De Namur are committed to the care of their aged, sick and infirm sisters. In Britain all of the sisters are over 60 years of age; with 23 in their 90s; 52 in their 80s; 40 in their 70s; and five in their 60s. The sisters aim to keep the elderly as active as possible for as long as possible and provide care which enhances life. There are facilities provided in two communities to meet the differing needs of an ageing group.

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Activities, specific objectives and relevant policies (continued)

♦ Activities and specific objectives (continued)

Caring for members of the Congregation (continued)

After some years of consultation with all the sisters a decision was made to close Parbold due to reduced numbers of sisters as well as the cost of running three convents with care and nursing facilities. The first part of 2021 was spent preparing for this closure by arranging the transfer of sisters to either the Birkdale or Childwall communities. Both of these houses required adjustment and building in order to provide extra accommodation. The cost of these facilities, which includes long-term nursing and assisted living care, is set out in the attached accounts.

The sale of the Parbold property was due to be contracted at the end of July but the buyers withdrew their offer on the exchange date. Since then it has been re-marketed and is now under offer.

It is of particular importance that a high standard of care is maintained. To ensure this the sisters employ lay managers who co-ordinate the staff, update their training and take responsibility for maintenance of the buildings. In this way, the sisters can be confident as employers that staffing legislation, health and safety requirements and general good practice are all in place. An extensive programme of staff training using external agencies has been provided over the past years. The training is largely continued and updated ‘in house’ with external support when required. There is also in place an on-going programme of staff training. Currently we employ 83 members of staff.

Impact of Covid-19

Due to their age and medical conditions most of the sisters, but in particular those who live in the large care communities, were considered vulnerable. Leaving and visiting the convent took place for essential reasons only, for example limited medical treatment. Meetings and events were cancelled or postponed or took place online. Although the restrictions have altered, the sisters continue to limit contact with others. We continue to keep the procedures for the safety of staff and sisters under review, adapting as the situation changes.

♦ Relevant policies

Grants and donations policy

Whilst the trustees agree to support organisations whose work is within the objects of the charity, the charity does not regard itself as a grant making entity and applications for grants and donations are not invited.

Investment policy

Under the Trust Deed of the charity, the trustees may invest the charity’s money, according to the law for the time being in force. The stockbrokers J M Finn and Co Limited offer their advice after taking account of the charity’s ethical policy. The trustees, on the advice of the professional and lay advisers, review the policy annually. Catholic Social Teaching informs our investment policy. It also enhances the development of the charity and the achievement of its objectives. The requirements of the Charities Act, to seek out the best possible returns within acceptable levels of risk, are fulfilled. To achieve this we maintain a diversified investment portfolio.

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Activities, specific objectives and relevant policies (continued)

Fundraising policy

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data; it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.

Looking to the future

In common with many religious congregations in Britain, the age profile of the members of the Province is increasing as existing members grow older and the number of new vocations decreases. At present the average age is 83.

The Province has an obligation, both moral and legal, to provide care for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to the work of education of the poor and marginalised in society. As the age profile of the Province increases so too does the need to provide care for the sisters. At present, 61 members of the Province are in need of varying levels of nursing care (2020: 61). When hospitalisation is required, stays are kept to a minimum and sisters convalesce in one of the two large communities as they are able to give the care and support necessary.

Over the next decade, the trustees expect the proportion of sisters requiring care to increase. As a consequence, the trustees are giving careful consideration to the impact of this on the work of individual members of the Province, the property requirements of the Province and the financial implications.

Achievements and performances

Whilst only 2 (2020: 3) sisters are now in paid employment, the majority of able sisters perform some sort of voluntary, charitable or pastoral work.

Of the 83 staff employed by the Sisters of Notre Dame, most have vocational qualifications ranging from BTEC to the Registered Manager qualification. Staff members are well trained to take on additional responsibility either within our houses or within the wider community.

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Achievements and performances (continued)

SPRED

The SPRED Religious Education program supported individuals with learning difficulties and volunteers during the year and the charity continues to expand and develop. There are groups serving parishes throughout Glasgow, where young people and adults with disability become full, active members of their parish community. The work was pioneered by a Sister of Notre Dame who continues to take an active part in this work.

♦ Education

Every year sisters organise a residential conference for Notre Dame schools and colleges at which staff from the three schools for which we are still trustees gather with staff from the seven former Notre Dame schools and colleges to share experience and practice. An appropriate speaker is invited to introduce the key theme at each conference. A great deal of work and organisation enabled the conference to take place virtually in autumn of 2020. It was greatly welcomed as a valuable resource at a challenging time for schools.

Financial review

Results for the year

A summary of the year’s results can be found on page 28 of this report and accounts.

During 2021 total income amounted to £3,999,184 (2020: £3,262,214). £3,401,744 (2020: £3,022,761) was received by way of donations and legacies. This figure includes salaries and pensions of the sisters amounting to £2,676,389 (2020: £2,818,825) covenanted to the charity and legacy income of £717,892 (2020: £177,763). Investment income and interest receivable totalled £219,700 (2020: £215,967).

Expenditure totalled £4,184,527 compared to £4,829,877 in 2020 with staff costs continuing to represent a significant proportion of this and amounting to £2,200,567 (2020: £2,224,493).

Expenditure incurred on maintaining the members of the Province and supporting them in their pastoral work and ministry (excluding staff costs) amounted to £1,863,251 (2020 £2,478,053). The 2020 costs include an impairment provision of £490,000 made to reduce the value of one of the charity’s properties as the market value of the property was considered to be less than its book value. Further details of the impairment are given in note 5 to the attached accounts.

Expenditure on raising funds was £41,506 (2020: £39,328) and included fees paid to the charity’s stockbrokers of £29,846 (2020: £27,962).

Net expenditure for the year before investment gains and losses, therefore, was £185,343 (2020: £1,567,663). Investment gains amounted to £737,456 (2020: losses £61,470). Hence, there was a net increase in funds for the year of £552,113 (2020: decrease £1,629,133).

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Financial review (continued)

Investment performance

The stockbrokers continue to be guided by the trustees’ investment policy set out earlier in this report and comply with the ethical guidelines given to them.

There was significant increase in the value of the portfolio in excess of our target of 10%.This was at the expense of our income which at 2.7% is below our expected 3% The trustees consider this reasonable at the current time. Our investment performance is in line with investment performance generally and slightly exceeded our benchmark. Because of the relatively modest size of the portfolio, any variation away from that target has only a marginal effect on the viability of the charity. Our brokers are instructed to conduct the portfolio in a medium risk manner.

The trustees will continue to review performance but, given that they view their investments as being for the long term, they remain confident that the policy adopted is appropriate for the charity.

Reserves policy and financial position

Reserves policy

The reader will discern from the foregoing that the charity carries out a diverse range of activities and is responsible for care and support of sisters whose average age is increasing and whose needs are changing. The trustees recognise the need to provide adequately for the maintenance of the sisters in their retirement.

Total restricted funds held at the end of the year are £10,733 (2020: £15,722) With the exception of these small restricted funds, all of the charity’s assets are held as unrestricted funds.

Those unrestricted funds represented by tangible fixed assets are shown as a separate tangible fixed assets fund in recognition of the fact that the tangible fixed assets are essential to the day-to-day work of the charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

Similarly, those properties held as programme related investments are held as a separate designated fund - the programme related investments fund. These investments comprise land and buildings owned by the charity but used by other charity and not-for-profit organisations with charitable objectives consistent with those of the charity. It is the intention of the trustees that such assets should continue to be used for these purposes for as long as needed and as such their value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.

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Financial review (continued)

Reserves policy and financial position (continued)

Reserves policy (continued)

The trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work and its commitments and the sources of its cash flows, the level of free reserves should be equal to at least six months’ expenditure. The current level of reserves reaches this target.

The rationalisation that took place in the year will be consolidated to improve liquidity and build sufficient reserves to sustain the care of the elderly sisters to the end of their lives in the face of diminishing incomes and increasingly costly care needs.

In 2017, the trustees established a sisters’ retirement fund to provide for the future costs of providing nursing care to elderly sisters who have dedicated their working lives to the charity. The amount currently designated is restricted to the funds available to the charity. Further sums will be designated as they become available.

The trustees review their reserves policy annually.

Financial position

The balance sheet shows total reserves of £26.4 million (2020: £25.8 million). Of this, £17.7 million (2020: £18.4 million) is represented by the net book value of properties and other tangible fixed assets essential for the support and work of the sisters whilst £2.1 million (2020: £2.1 million) comprises funds represented by properties classified as programme related investments.

As noted above, the trustees established a sisters’ retirement fund in 2017. This amounts to £4.5 million (2020: £3.1 million), and is represented by investments. In the context of the total sum that will be needed in future years to provide for the sisters as they grow older, this amount is not large enough. However, it is hoped that further sums can be designated in future years as they become available following property disposals.

Funds available to support the work of the sisters in the future, in particular the support of the Province’s ministry and its development and charitable work overseas, are shown as general funds on the balance sheet and amount to £2.1 million (2020 - £2.2 million). This figure needs to be considered in the light of annual expenditure of over £4 million, the increasing age profile of the sisters and the need for the charity to continue to support the work of the Congregation, both in this country and overseas. The sisters are also aware of the importance to the charity of the investment assets and the income generated therefrom. Given the continuing volatility in world stock markets, the low interest rates and the continuing challenges of Covid, there is a real need to retain monies to enable the long term financial stability of the charity. As noted above, the trustees believe that the charity’s free reserves are adequate, at the current time. As noted elsewhere in the trustees’ report the trustees are developing plans to dispose of properties surplus to their needs to generate funds to meet the charity’s ongoing financial needs.

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Financial review (continued)

Tax exemptions etc.

The beneficiaries of the work of the charity have the assurance that all of the income of the charity must be applied for charitable purposes in furtherance of the charity’s object of furthering the Roman Catholic faith. The charity enjoys tax exemption on income from its activities and on its investment income and gains provided these are applied for its charitable aims. As a charity, it is also entitled to a reduction of 80% on business rates on the property it occupies for its charitable purposes, and a 50% reduction in Council Tax for its properties that are occupied by members of the Congregation. The financial benefits received as a result of these exemptions are all applied for the purposes of furthering the Roman Catholic faith by enabling and supporting the sisters to live out their vocation and to put it into practice through a wide variety of religious and other charitable works.

The nature of the charity’s activities means that it is unable to reclaim VAT input tax on its costs as it is exempt for VAT purposes. The charity also pays tax as an employer through the national insurance contributions it makes.

Future plans

The charity is working with the Congregation to update its strategy to continue the mission of the Sisters of Notre Dame de Namur in all of the global areas in which it operates whilst balancing this against the need to care for the increasingly elderly sisters who have sustained this mission in years gone by. The strategy will determine where resources are targeted. The sisters are working to maximise those resources by seeking to obtain the optimum efficiencies in their operational costs and care provision. To achieve this the trustees are looking at their property portfolio with an aim to release capital to meet the charity’s financial obligations. To this end the three large, care-giving convents were reduced to two during the year.

Governance, structure and management

Governance

In terms of Canon law, the Congregation is governed at an international level by the General Moderator and her Congregational Leadership Team. They are elected every six years at a General Chapter which is a meeting of representatives of all provinces of the Congregation. The British Province is governed by the Provincial Moderator and her Provincial Leadership Team, who are elected by members of the Province in accordance with the Province’s Government Plan. Appointments to the Provincial Leadership Team are ratified canonically by the Congregational Leadership Team.

The Congregational Leadership Team is accountable to the General Chapter which is the Supreme Legislative Authority in the Congregation. The most recent General Chapter was postponed because of Covid but has just taken place.

In terms of Civil law, the British Province of the Congregation is an unincorporated body registered under the Charities Act, Charity Registration Number 232411, and governed by a Trust Deed dated 31 December 1953. The charity is also registered in Scotland with the Charity Registration Number SC038746.

Institute of the Sisters of Notre Dame De Namur British Province 16

Trustees’ report 31 August 2021

Governance, structure and management (continued)

Governance (continued)

The members of the Provincial Leadership Team are also the trustees and the directors of the corporate trustee, The Notre Dame Trustee Co Limited, which is registered as a trust corporation.

The members of the Provincial Leadership Team are chosen for their personal qualities, their understanding and experience of the ministries of the sisters throughout Britain and their ability to work with and lead the sisters of the Province.

As all trustees are members of the Congregation they have a detailed knowledge of the work of the charity and of its structure. On being appointed, new trustees are required to spend at least one full day with those trustees leaving office. They also meet with the Congregation’s legal, accounting, investment and property advisers over the course of several days to obtain a full briefing of their responsibilities and the charity’s position.

All trustees are members of the Congregation and as such their living and personal costs are borne by the charity. However, they receive no remuneration or expenses for their services as trustees.

The present trustees were appointed in May 2021 and took office on 15 August 2021. On appointment as trustees, the sisters participate in a detailed induction programme which is devised as part of the handover process and involves lay managers, consultants and professional advisers so as to explain their duties as trustees.

Trustees are encouraged to attend various relevant training sessions where appropriate such as: Conference of Religious conferences; safeguarding conferences; finance workshops; spiritual and theological development courses; and ICT training.

The names of the trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts and brief biographical details on each of the trustees in office at 31 August 2021 is given below:

Sister Mary McClure

Sister Mary McClure was appointed as Provincial Moderator in August 2021. She previously served on the Provincial Leadership Team from 2009 to 2014 and has also served on the General Government Team between 1996 and 2000, where she worked with the units in the USA, South America and Africa. She has been involved at all levels of education: primary and secondary teaching; higher education as a senior lecturer in Theology and Post-Graduate Teacher Education, and has published in the field of Religious and Moral Education. Mary offers 'facilitation' for communities and schools and has worked as a chaplain/counsellor in a secondary school. She has held management roles in a number of organisations that educate, empower and safeguard women.

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Trustees’ report 31 August 2021

Governance, structure and management (continued)

Governance (continued)

Sister Catherine Darby

Sister Catherine Darby was appointed to the Provincial Leadership Team in August 2021. She has served on two previous teams from 1999 to 2004 and from 2004 to 2009. Catherine’s professional background is in education: her experience ranges from teaching in primary schools in Lancashire and London, ten years as adviser for primary schools in the Shrewsbury Diocese and her most recent ministry is in parish and adult faith formation. This latter ministry led to her being one of the two UK coordinators to initiate and liaise with the Institute of Pastoral Studies, Loyola University, Chicago and the northern dioceses a Certificate in Pastoral Ministry. She was also a collaborator in establishing an inter-diocesan certificate for a Diploma for Pastoral Leadership in Pastoral Ministry. Catherine was asked to be a member of the group setting up a pilot project for the formation of lay pastoral associates in the Liverpool Archdiocese.

Sister Margaret Walsh

Sister Margaret Walsh was appointed to the Provincial Team in August 2021. She has worked in both secondary and higher education. After teaching in secondary schools she moved into an advisory service for adult theological education. As an advisor she worked with teachers, clergy and laypeople. Later she was appointed to be the director of an ecumenical college where she taught degree courses for Manchester University to students who were preparing for ministry in the various Christian denominations. This work included working with leaders in the local Muslim community. After retiring from full-time teaching she served as chair of governors at St Julie’s Catholic High School, Liverpool. She also worked with the Sisters of Notre Dame as co-ordinator of their International Heritage Centre in Namur, Belgium.

Key management personnel

The trustees consider that they are the key management personnel of the charity responsible for directing and controlling the charity and running and operating the charity on a day to day basis. In this they are advised and supported by the Business Manager and the Finance Manager who implement the trustees’ decisions, as outlined below.

The pay of the Business Manager and the Finance Manager is reviewed annually by the trustees and normally increased in line with inflation. Consideration is given also to any changes in roles or responsibilities and pay is benchmarked against similar roles to ensure that it is in line with market rates and is fair.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet regularly to review developments with regard to the charity or its activities and make any important decisions. They are assisted in this task by the Business Manager and the Finance Manager who deal with finance, resources and secretarial matters. The lay managers provide a link between successive Provincial Leadership Teams but possess no executive authority. They, together with external advisers, advise the trustees as to their legal and fiscal responsibilities and duties and provide training in these matters.

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Trustees’ report 31 August 2021

Governance, structure and management (continued)

Structure and management reporting (continued)

When necessary, the trustees seek advice and support from the charity’s professional advisers including property consultants, investment brokers, solicitors and accountants.

The Provincial Moderator or a member of the Provincial Team is required to visit each sister regularly and throughout the year there is a system of accountability operational throughout the Province to ensure that the General Moderator and her Congregational Leadership Team are aware of the progress and development of the ministries carried out by the sisters of the Province. A visit by the General Moderator and Congregational Leadership Team is made to the British Province at least once every six years, the most recent having taken place in September and October 2016.

The sisters are housed in a variety of communities and residences throughout Britain. Currently these are: two llarge communities with care provision; one community of seven sisters; three communities of two sisters; and 38 residences of individual sisters.

The two large communities are administered by local Moderators and they are assisted in this task by lay managers.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees’ report and 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 which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that year. In preparing accounts giving a true and fair view, the trustees are required to:

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Trustees’ report 31 August 2021

Governance, structure and management (continued)

Statement of trustees’ responsibilities (continued)

The trustees are responsible for keeping proper 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, the relevant 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 constitution. 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.

Risk management

In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks the Congregation faces and have reviewed the measures already in place, or needing to be put in place, to deal with them.

Trustees and senior management are responsible for overseeing the risk assessment each year, focusing on internal and external risk factors.

The Covid pandemic has clearly presented us with challenges and threats to the well-being of our charity and its activities which could not have been foreseen. The trustees recognise their responsibility for the management of risks faced by the charity and the sisters.

We note above the financial and operational effects of Covid. Over and above these, the five areas identified for particular attention within our risk management strategy are:

Governance and management looks at the risk of the Congregation, and hence the charity, suffering from a lack of direction, at the skills and training of its members and staff, and the good use of its resources. The main risk in this area is the diminishing numbers of sisters. The trustees are working with the rest of the Congregation on a strategy for the future that addresses this reality practically and financially.

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Trustees’ report 31 August 2021

Governance, structure and management (continued)

Risk management (continued)

Operational looks at the risks inherent in the charity’s activities. These include:

The pandemic has had a significant impact on the operation of the charity. The age profile of the sisters and the fact that the most elderly and vulnerable of them live in large communities has meant that it has had to operate differently to keep them and the staff caring for them safe. To do this they have followed Government guidance. It has been a challenging time for the sisters who, in common with so many, continue to observe restrictions for the protection of themselves and others.

Testing and especially the vaccine has eased the pressure on the convents and but challenges remain in making sure there are sufficient staff to give the care that is needed. As ever the trustees are grateful for the loyalty and professionalism of our colleagues who have worked incredibly hard in difficult circumstances.

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.

Fortunately, the main source of income of the charity is donations of sisters’ pensions and salaries which have not been affected by the current crisis. There have been some increases in costs, with wage pressure linked to staff shortages being a particular issue. The reduction of three large houses to two was delayed because Covid security measures meant delays to sisters moving. The main concern is the effect that the pandemic and the UK exit from the European Union will have on the economy generally, and on the property market in particular. The charity is dependent on property sales to support future activities. With the Congregation we are involved in a strategic review to ensure our financial viability in the future and, as outlined in the accounts, they have provided funds to facilitate this.

The charity’s assets comprise listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed with the help of reputable stockbrokers adhering to a policy agreed by the trustees. The trustees meet regularly with the stockbrokers and the performance of the portfolio is monitored.

The investment strategy is assessed regularly to ensure it remains appropriate to the charity’s needs – both now and in the future.

During the pandemic, we have maintained communications with our investment managers and, whilst there are concerns over stability we are long term investors. We have benefited from a significant recovery, but will continue to keep a watching brief.

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Trustees’ report 31 August 2021

Governance, structure and management (continued)

Risk management (continued)

Reputational looks at possible damage to the Congregation’s, and hence the charity’s, reputation.

The charity is working with the Conferences of Religious in England and Scotland to support their work on safeguarding issues and to ensure that the charity can fully co-operate in any enquiry, should it be required to. The care of the sisters is undertaken with reference to the charity’s Child Protection and Vulnerable Adults policy under the guidance of the Province Protection Officers who are responsible for guiding, reporting and ensuring that the best practice in the care of all of the sisters is adhered to at all times.

Laws, regulations, external and environment looks at the effects of government policies, the consequences of non-compliance with laws and regulations and poor risk assessment in the charity’s care facilities and elsewhere.

Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

Employees and members of the Congregation

The trustees wish to record their recognition of the professionalism and commitment of all their staff and the individual members of the Congregation. Their dedication and positive approach are very much appreciated.

Approved by the trustees and signed on their behalf by:

Catherine Darby SND

Trustee

Approved by the trustees on: 20 April 2022

Institute of the Sisters of Notre Dame De Namur British Province 22

Independent auditor’s report Year to 31 August 2021

Independent auditor’s report to the trustees of Institute of the Sisters of Notre Dame De Namur British Province

Opinion

We have audited the accounts of Institute of the Sisters of Notre Dame De Namur British Province (the ‘charity’) for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statements of cash flows principal accounting policies and the notes to the accounts. 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 accounts:

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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements, that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.

Institute of the Sisters of Notre Dame De Namur British Province 23

Independent auditor’s report Year to 31 August 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 there is a material misstatement in the accounts or a material misstatement of the other information. 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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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.

Institute of the Sisters of Notre Dame De Namur British Province 24

Independent auditor’s report Year to 31 August 2021

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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Independent auditor’s report Year to 31 August 2021

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

As a result of our procedures we did not identify any key audit matters relating to irregularities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Institute of the Sisters of Notre Dame De Namur British Province 26

Independent auditor’s report Year to 31 August 2021

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. 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.

Buzzacott LLP 26 April 2022 Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Institute of the Sisters of Notre Dame De Namur British Province 27

Statement of financial activities Year to 31 August 2021

2021 2020
Notes Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
£
Income from:
Donations and legacies
1
Investments and interest
receivable
2
Charitable activities
. Book royalties
. Other
Other sources
. Surplus on disposal of tangible
fixed assets
3
Total income
Expenditure on:
Raising funds
4
Charitable activities
. Support of members of the
Congregation and their ministry
5
. Programme related investments
6
. Grants and donations
7
Total expenditure
Net expenditure before
investment gains (losses)
10
Net gains (losses) on the
revaluation and disposal of listed
investments
Net income (expenditure) and
net movement in funds
Reconciliation of funds:
Fund balances brought forward at
1 September 2020
Fund balances carried forward at
31 August 2021
3,396,116

219,700
755
17,586
359,399		 5,628
—
—
—
—		 3,401,744
219,700
755
17,586
359,399		 3,009,961
215,967
154
17,837
5,495		 12,800
—
—
—
—		 3,022,761
215,967
154
17,837
5,495
3,993,556 5,628 3,999,184 3,249,414 12,800 3,262,214
41,506
4,050,514
81,170
720		 —
4,948
—
5,669		 41,506
4,055,462
81,170
6,389		 39,328
4,692,319
81,150
2,160		 —
2,039
—
12,881		 39,328
4,694,358
81,150
15,041
4,173,910 10,617 4,184,527 4,814,957 14,920 4,829,877
(180,354)
737,456		 (4,989)
—		 (185,343)
737,456		 (1,565,543)
(61,470)		 (2,120)
—		 (1,567,663)
(61,470)
557,102
25,807,579		 (4,989)
15,722		 552,113
25,823,301		 (1,627,013)
27,434,592		 (2,120)
17,842		 (1,629,133)
27,452,434
26,364,681 10,733 26,375,414 25,807,579 15,722 25,823,301

All recognised gains and losses are included in the above statement of financial activities.

All of the charity’s activities derived from continuing operations during the above two financial periods.

Institute of the Sisters of Notre Dame De Namur British Province 28

Balance sheet 31 August 2021

Notes 2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Tangible assets
13
Investments
. Listed investments
14
. Programme related investments
14
Current assets
Debtors
16
Cash at bank and in hand
Liabilities
Creditors: amounts falling due
within one year
17
Net current liabilities
Total net assets
The funds of the charity:
Funds and reserves
Restricted funds
18
Unrestricted funds
. Tangible fixed assets fund
19
. Programme related investment fund
20
. Designated funds
21
. General fund		 696,782
943,308		 18,663,291
5,899,162
2,064,022		 183,416
807,835		 19,404,279
5,182,737
2,064,022
26,626,475
(251,061)		 26,651,038
(827,737)
1,640,090
(1,891,151)		 991,251
(1,818,988)
17,663,291
2,064,022
4,500,000
2,137,368		 18,404,279
2,064,022
3,150,000
2,189,278
26,375,414 25,823,301
10,733
26,364,681		 15,722
25,807,579
26,375,414 25,823,301

Approved by the trustees and signed on their behalf by:

Margaret Walsh SND

Trustee

Approved on: 20 April 2022

Institute of the Sisters of Notre Dame De Namur British Province 29

Statement of cash flows Year to 31 August 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income and interest received
Proceeds from the disposal of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from the disposal of listed investments
Purchase of listed investments
Net cash provided by investing activities
Cash flows from financing activities:
Loan received
B
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 September 2020
B
Cash and cash equivalents at 31 August 2021
B
**(1,063,806) **		 (1,111,322)


221,426
1,094,399
(137,577)
188,057
**(165,181) **		 213,509
190,495
(58,271)
167,410
(164,068)
1,201,124 349,075



**— **		 1,000,000

137,318


809,286
 237,753
571,533

946,604		 809,286

Notes to the statement of cash flows for the year to 31 August 2021

A Reconciliation of net movement in funds to net cash used in operating activities

2021
£		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation
Impairment of tangible fixed assets
Amortisation of programme related investments
Release of capital grant in respect to programme related investments
Gains (losses) on investments
Investment income and interest receivable
Surplus on disposal of tangible fixed assets
Increase in debtors
(Decrease) increase in creditors
Net cash used in operating activities		 552,113
283,809
—
16,667
(16,667)
(737,456)
(219,700)
(359,399)
(515,092)
(68,081)		 (1,629,133)
301,990
490,000
16,666
(16,666)
61,470
(215,967)
(5,495)
(126,900)
12,713
(1,063,806) (1,111,322)

Institute of the Sisters of Notre Dame De Namur British Province 30

Statement of cash flows Year to 31 August 2021

B Analysis of changes in net debt

Analysis of changes in net debt
At 1
September
2020
£		 Cash
flows
£		 Non-cash
movements
£		 At 31
August
2021
£
Cash at bank and in hand
Cash held by stockbrokers for re-investment
Debt due within one year
. Loan from The Sisters of the Notre Dame
De Namur Generalate
Totals		 807,835
1,451		 135,473
1,845		 —
—		 943,308
3,296
809,286 137,318 — 946,604
(1,000,000) — — (1,000,000)
(190,714) 137,318 — (53,396)

C Reconciliation of net cash flow to movement in net debt

Reconciliation of net cash flow to movement in net debt
2021
£		 2020
£
Increase in cash
Cash inflow - loan from The Sisters of the Notre Dame De Namur
Generalate
Changes in net debt arising from cash flows
Movement in net debt in year
Net debt at 1 September 2020
Net debt at 31 August 2021		 137,318 237,753
— (1,000,000)
— (1,000,000)
137,318
(190,714)		 (762,247)
571,533
(53,396) (190,714)

Institute of the Sisters of Notre Dame De Namur British Province 31

Principal accounting policies 31 August 2021

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 August 2021 with comparative information given in respect to the year to 31 August 2020.

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 (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and applicable Charities Accounts (Scotland) Regulations.

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 to make significant judgements and estimates.

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

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Principal accounting policies 31 August 2021

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 at least one year from the date of approval of these accounts.

The trustees acknowledge and recognise the continuing impact of the Covid-19 pandemic on the charity and have concluded that there will continue to be some negative consequences such as the impact on investment income, difficulties in liquidating capital, and the physical absence of key personnel. However, 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. With regard to the next accounting period, the year ending 31 August 2022, the most significant areas that affect the carrying value of the assets held by the charity are the performance of the investment and property markets (see the investment policy and the risk management sections of the trustees’ report for more information).

In addition to the above, the long term impact following the emergence of the global Covid19 pandemic is still unknown. Therefore, it is not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, suppliers and the wider economy. Estimates used in the accounts are subject to a greater degree of uncertainty and volatility. Future income and expenditure flows have been estimated in order to assess the impact if any on going concern.

The trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

Income recognition

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

Income comprises donations and legacies; investment income from listed investments and programme related investments; interest receivable; income from charitable activities; the surplus on disposal of tangible fixed assets and miscellaneous 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.

Institute of the Sisters of Notre Dame De Namur British Province 33

Principal accounting policies 31 August 2021

Income recognition (continued)

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.

Income from listed investments is recognised once the dividend has been declared and notification has been received of the dividend due. Income from programme related investments comprises rental income from properties used by voluntary aided schools and other registered charities for purposes consistent with the objects of the Institute of the Sisters of Notre Dame De Namur British Province, and is recognised when due under the lease arrangements with the entities. Income from all investments is accounted for only when the receipt of such income is probable and the amount can be measured reliably.

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.

Income from charitable activities comprises income in respect to book royalties; income from the sale of calendars and other sundry income. Income in respect to book royalties is recognised on an accruals basis.

A surplus on the disposal of tangible fixed assets or on the disposal of programme related investments is defined as the difference between the sale proceeds and the net book value of the asset at the time of disposal and after deducting any costs associated with the disposal. Where legal completion takes place subsequent to the year end but an exchange of contracts has taken place prior to the year end, any surplus on disposal is accounted for in the year of exchange unless completion was conditional on certain acts being carried out by the charity between the year end and completion.

Miscellaneous income is measured at fair value and accounted for on an accruals basis.

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 accruals basis. All expenses are allocated to the applicable expenditure headings. The classification between activities is as follows:

Institute of the Sisters of Notre Dame De Namur British Province 34

Principal accounting policies 31 August 2021

Expenditure recognition (continued)

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of financial procedures, provision of office services and equipment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice. Governance costs are apportioned using percentages based on the expenditure incurred on the activities of the charity.

The majority of expenditure on support and governance is allocated to the charitable activities of care of members of the Congregation and enabling their ministry, with a small proportion allocated to expenditure on raising funds.

Tangible fixed assets

All items of furniture and equipment or groups of such assets costing more than £5,000 and with an expected useful life exceeding one year are capitalised. Computers are capitalised regardless of cost.

Institute of the Sisters of Notre Dame De Namur British Province 35

Principal accounting policies 31 August 2021

Tangible fixed assets (continued)

Specialised buildings comprise large residential convents. They are stated net of depreciation at deemed cost 31 August 2014 (see above) with additions since that date stated at cost minus depreciation. Depreciation is provided at 2% per annum on a straight-line basis in order to write off the buildings over their estimated useful economic life to the charity.

An impairment review in respect to a particular class of asset is carried out if events, or changes in circumstances, indicate that the carrying amount of any tangible fixed asset may not be recoverable.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Institute of the Sisters of Notre Dame De Namur British Province 36

Principal accounting policies 31 August 2021

Fixed asset investments (continued)

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 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.

Institute of the Sisters of Notre Dame De Namur British Province 37

Principal accounting policies 31 August 2021

Grants from the Department for Education

Grants received from the Department for Education and used to fund the development of the properties used by the voluntary aided schools have been credited against the valuation of the properties held as programme related investments and are shown in note 15.

In the event of the sale or disposal by other means, of any asset for which a capital grant was received, the charity is required to repay to the Secretary of State for Education the same proportion of the proceeds of the sale or disposal as equates with the proportion of the original cost met by the Secretary of State. If the value of the property falls below the amount of the grant received, then a proportion of the grant is released to the statement of financial activities as a credit against the revaluation.

Fund accounting

The reserves are used to fulfil the charity’s missions. The reserves policy is set out in the trustees' report.

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

The tangible fixed assets fund represents the net book value of those tangible fixed assets used for the support of the sisters and their ministry net of loans secured against such properties. 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.

The programme related investments fund represents the value of the charity’s programme related investments. These investments comprise land and buildings owned by the charity but used by other charitable and not-for-profit organisations with objectives consistent with those of the charity. It is the intention of the trustees that such assets should continue to be used for these purposes and as such their value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.

The designated funds are monies or other assets set aside out of general funds and designated for specific purposes by the trustees.

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.

Pension costs

In order to comply with the auto enrolment requirements introduced by the Pensions Act 2008, the charity offers its employees membership of a defined contribution pension scheme. Contributions to the scheme are debited to the statement of financial activities in the year in which they are payable to the scheme. The assets of the scheme are held independently of the charity.

Institute of the Sisters of Notre Dame De Namur British Province 38

Principal accounting policies 31 August 2021

Leased assets

Rentals payable under operating leases and interest under hire purchase arrangements are taken to the statement of financial activities on a straight line basis over the lease or hire purchase term.

Foreign currencies

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

Services provided by members of the Congregation

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

Institute of the Sisters of Notre Dame De Namur British Province 39

Notes to the accounts 31 August 2021

1 Income from: Donations and legacies

2021 2020 2020
Unrestricted
funds
£		 Restricted
funds
£		 Total
£

Unrestricted
funds
£		 Restricted
funds
£


Total
£

2,818,825

177,783

26,153

3,022,761
Salaries and pensions of individual
religious received under Gift Aid or
Deed of Covenant
Legacies receivable
Other donations and gifts
Total funds		 2,676,389
717,892
1,835
—

—

5,628		 2,676,389
717,892
7,463
2,818,825

177,783

13,353
—

—

12,800
3,396,116
5,628		 3,401,744
3,009,961
12,800

Legacies receivable include £650,928 from the estate of a member of the Congregation who died in 1924. The legacy arises following the distribution in to that estate of proceeds from the sale of land held on trust for the benefit of the deceased.

2 Income from: Investments and interest receivable

Unrestricted
funds
£


Restricted
funds
£		 Total
2021
£


Unrestricted
funds
£		 Restricted
funds
£		 Total
2020
£
Income from listed investments
. UK fixed interest
. UK equities
. UK unit trusts
. Overseas unit trusts
. Overseas equities
Interest earned on deposit
accounts
Income from programme related
investments
. Rental income
Total funds		 1,229
87,011
34,502
2,255
13,930
—

—

—

—

—		 1,229
87,011
34,502
2,255
13,930
1,461

91,931

19,849

3,719

15,751		 —
—
—
—
—
1,461

91,931

19,849

3,719

15,751
138,927
—		 138,927
132,711		 —
132,711
(397) — (397) 2,106 —
2,106
81,170
—		 81,170
81,150		 —
81,150
219,700 — 219,700
215,967		 —
215,967

3 Income from: Other sources – Surplus on disposal of tangible fixed assets

Included within surplus on disposal of tangible fixed assets is £193,179 in respect to the disposal of land situated at Cardross Road, Dumbarton. The charity had entered into an agreement with a Promoter under which the Promoter would apply for planning permission (including listed building consent regarding a derelict chapel on the site) and market the land for development during an agreed promotion period. Following the successful sale of the land for development, the Promoter was entitled to a defined proportion of the sale receipts with the charity being entitled to receive a minimum value of £500,000. The surplus of £193,179, therefore, is stated after deducting the amount payable to the Promoter under the agreement.

Institute of the Sisters of Notre Dame De Namur British Province 40

Notes to the accounts 31 August 2021

4 Expenditure on: Raising funds

Unrestricted
funds
£		 Restricted
funds
£		 Total
2021
£		 Unrestricted
funds
£


Restricted
funds
£		 Total
2020
£
Stockbrokers’ fees
Allocated support costs (note 8)
Total funds		 29,846
11,660		 —
**— **
29,846

11,660		 27,962
11,366
—

—		 27,962
11,366
41,506 **— **
41,506		 39,328
—		 39,328

5 Expenditure on: Support of members of the Congregation and their ministry

Unrestricted
funds
£		 Restricted
funds
£		 Total
2021
£		 Unrestricted
funds
£		 Restricted
funds
£		 Total
2020
£
Premises
Staff costs
Sisters’ living and personal expenses
Education, training and spiritual
renewal
Depreciation
Specific expenditure in relation
to potential property disposals
. Impairment of property
. Legal, professional and similar
costs in relation disposal of property
Management costs (including
allocated support costs of £221,537
(2020 - £215,951) (note 8)
Total funds		 386,205
2,033,453
1,050,547
1,876
283,809
—
14,805
279,819		 3,327
—
—

1,543
—
—

—
78		 389,532
2,033,453
1,050,547
3,419
283,809
—
14,805
279,897		 315,815
2,060,728
1,154,926
3,178
301,990
490,000
86,102
279,580		 —
—
—
2,022
—
—
—
17		 315,815
2,060,728
1,154,926
5,200
301,990
490,000
86,102
279,597
4,050,514 4,948 4,055,462 4,692,319 2,039 4,694,358

As noted in the trustees’ report, the contract for the sale of charity’s property at Parbold, Lancashire was due to be agreed at the end of July but the buyers withdrew their offer before exchange of contracts. Since then, the property has been re-marketed and is now under offer once again. The charity had incurred legal, professional and similar costs in relation to the aborted sale which have been written off during the year. In the prior period, as explained in note 13 to these accounts, the trustees had been advised that the sale proceeds that might be achieved would be less than the net book value of the property and hence an impairment provision was deemed necessary during the year to 31 August 2020. The impairment provision remains appropriate when assessed in relation to the new offer.

Institute of the Sisters of Notre Dame De Namur British Province 41

Notes to the accounts 31 August 2021

6 Expenditure on: Programme related investments

Unrestricted
funds
£		 Restricted
funds
£		 Total
2021
£


Unrestricted
funds
£		 Restricted
funds
£


Total
2020
£
81,150
—
16,666
(16,666)
81,150
Rent
Maintenance
Amortisation
Capital grant no longer repayable
following disposal of property
(see below)
Total funds		 81,170
—
16,667
(16,667)
—

—
—
—		 81,170
—
16,667
(16,667)
81,150

—

16,666
(16,666)
—

—

—
—
81,170 — 81,170
81,150
—

In the past, the charity had received capital grants from the Department for Education in respect to the property disposed of. However, as explained in note 15, the trustees are of the opinion that capital grants received from the Department for Education, recovered from the disposal proceeds of the original property and used subsequently to fund the purchase of a new building have been reinvested in buildings to be used for the provision of state education. As a consequence, they do not deem any such capital grants to be repayable at the current time. An amount equivalent to the amortisation of the leasehold property is eliminated from grants repayable to offset the annual amortisation charges.

7 Expenditure on: Grants and donations

Unrestricted
funds
£		 Restricted
funds
£


Total
2021
£


Unrestricted
funds
£		 Restricted
funds
£		 Tota
2020
£
Grants in support of the missionary
work and ministry of Institute of The
Sister of Notre Dame De Namur
British Province:
. Overseas Notre Dame missions
Other grants and donations
Total funds		 —
720		 5,669
—
5,669

720
1,000

1,160
12,881

—		 13,881
1,160
720 5,669
6,389
2,160
12,881		 15,041

8 Support costs

Support costs
Raising
funds
(note 4)
£		 Support of
members
and their
ministry
(note 5)
£		 2021
Total
£		 Raising
funds
(note 4)
£



Support of
members
and their
ministry
(note 5)
£





2020
Total
£
Provincial administration
. Staff costs
. Office costs
Governance costs (note 9)		 8,356
2,295
1,009
158,758

43,598

19,181		 167,114
45,893
20,190		 8,188
2,244
934
155,577

42,626

17,748
163,765

44,870

18,682
11,660
221,537		 233,197 11,366
215,951
227,317

The charity allocates its support costs on a basis consistent with the use of resources.

Institute of the Sisters of Notre Dame De Namur British Province 42

Notes to the accounts 31 August 2021

9 Governance costs

Governance costs
Unrestricted
funds
£		 Restricted
funds
£		 Total
2021
£		 Unrestricted
funds
£


Restricted
funds
£		 Total
2020
£
Professional fees 20,190 —
20,190		 18,682
—		 18,682

10 Net expenditure before investment gains (losses)

This is stated after charging (crediting):

Total
2021
£		 Total
2020
£
Staff costs (note 11)
Auditor’s remuneration
. Statutory audit fee (including VAT) – current year
. Statutory audit fee (including VAT) – prior year
Depreciation
Impairment of tangible fixed assets (note 13)
Rental income
Operating lease charges
. Equipment
. Land and buildings		 2,200,567
18,840
5,160
283,809
—
(81,170)
4,418
8,590		 2,224,493
18,450
232
301,990
490,000
(81,150)
4,418
8,472

11 Staff costs, key management personnel and trustees’ remuneration

Staff costs during the year were as follows

Total
2021
£		 Total
2020
£
Wages and salaries
Social security costs
Pension costs
Agency staff
Redundancy costs		 1,763,187
115,407
25,836		 1,965,522
120,722
28,253
1,904,430
27,413
268,724		 2,114,497
38,003
71,993
2,200,567 2,224,493

The average number of employees during the year expressed as both full time equivalent (FTE) and average numbers, analysed by function, was:

2021
**average **		 2020
average		 2021
FTE		 2020
FTE
Central administration and support
Support of members of the congregation
and their ministry		 5
121		 5
139		 3
73		 3
82
126 144 76 85

No employee earned £60,000 per annum or more (including taxable benefits) during the year (2020 – £nil).

Institute of the Sisters of Notre Dame De Namur British Province 43

Notes to the accounts 31 August 2021

11 Staff costs, key management personnel and trustees’ remuneration (continued)

The trustees consider that they together with the Business Manager and the Finance Manager comprise the key management personnel of the charity in charge of directing and controlling, running and operating the material charitable activities on a day to day basis. The total remuneration (including taxable benefits and employer’s pensions contributions) of the Business Manager and the Finance Manager for the year was £111,415 (2020 - £111,531).

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 during the year (2020 - £nil).

12 Taxation

Institute of the Sisters of Notre Dame De Namur British Province is a registered charity and, therefore, is not liable to income tax or corporation tax on income on gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

13 Tangible fixed assets

Land and buildings Land and buildings Furniture
and
equipment
£		 Motor
vehicles
£		 Total
£
Non-
specialised
£
Specialised
£
Cost or deemed cost
At 1 September 2020
Additions
Disposals
At 31 August 2021
At cost
At deemed cost
Depreciation and impairment
At 1 September 2020
Depreciation charge for the
year
On disposals
At 31 August 2021
Net book values
At 31 August 2021
At 31 August 2020		 9,892,500
—
(735,000)		 11,500,001
216,800
—		 734,121
31,625
(116,173)		 482,245
29,396
(47,332)		 22,608,867
277,821
(898,505)
9,157,500 11,716,801 649,573 464,309 21,988,183
—
9,157,500		 —
11,716,801		 649,573
—		 464,309
—		 1,113,882
20,874,301
9,157,500 11,716,801 649,573 464,309 21,988,183
328,168
—
—		 1,870,000
220,561
—		 579,192
38,847
(116,173)		 427,228
24,401
(47,332)		 3,204,588
283,809
(163,505)
328,168 2,090,561 501,866 404,297 3,324,892
8,829,332 9,626,240 147,707 60,012 18,663,291
9,564,332 9,630,001 154,929 55,017 19,404,279

Institute of the Sisters of Notre Dame De Namur British Province 44

Notes to the accounts 31 August 2021

13 Tangible fixed assets (continued)

As explained under principal accounting policies, freehold land and buildings are included in the accounts at their valuation as at 31 August 2014. This valuation has been deemed to be cost under the transitional arrangements set out in FRS 102 and will apply going forward with additions from 1 September 2014 or later accounted for at cost. The revaluations were part of a rolling programme that resulted in each property being revalued at least every five years. The reviews of the valuations were carried out every five years by Messrs Stanley Hicks, Chartered Surveyors, in accordance with guidelines set by the Royal Institution of Chartered Surveyors for accounts purposes in accordance with the Practice Statements and Guidance Notes set out in the eighth edition of the RICS Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors (The Red Book). In the intervening years, the valuations were reviewed by the trustees for significant impairment and, if necessary, valuations were adjusted downwards.

The freehold land and buildings were acquired many years ago and precise figures for the historical cost of the properties are not available. However, it is known that the original purchase price on many of the properties was insignificant in today’s terms.

Barclays Bank plc holds a legal charge over a property with a market value of approximately £1 million.

Impairment

An impairment provision is included within the accounts where there are indications that the net realisable value of a property is less than its net book value. Indications that may give rise to this conclusion include:

In such cases an impairment provision is included in order to reduce the net book value of the relevant property to equate to its actual or estimated net sale proceeds.

As explained in note 5, one of the charity’s freehold properties situated in Parbold, Lancashire has been marketed for sale. In preparing for the disposal during the year to 31 August 2020, indications were that the sale proceeds that might be achieved would less than the net book value of the property then stated in the accounts. Consequently, an impairment provision of £490,000 was made in the accounts for the year to 31 August 2020 in order to reduce the net book value to the selling agent’s guide price less anticipated costs of disposal. The impairment provision was included within support of members of the Congregation and their ministry as specific expenditure in respect to potential property disposals and is explained further in note 5 above.

Institute of the Sisters of Notre Dame De Namur British Province 45

Notes to the accounts 31 August 2021

14 Listed investments

Listed investments
2021
£		 2020
£
Listed investments
Market value at 1 September 2020
Additions at cost
Disposals at book value (see below)
Net unrealised investment (losses) gains
Market value at 31 August 2021
Cash held by stockbrokers for re-investment
Cost of listed investments at 31 August 2021		 5,181,286
165,181
(175,065)
724,464		 5,246,098
164,068
(165,655)
(63,225)
5,895,866
3,296		 5,181,286
1,451
5,899,162 5,182,737
3,363,843 3,348,330

Disposals at book value included above are made up of the following:

2021
£		 2020
£
Proceeds
Realised (gains) losses		 188,057
(12,992)		 167,410
(1,755)
175,065 165,655

Listed investments held at 31 August 2021 comprised the following:

2021
£		 2020
£
UK fixed interest
UK equities
UK unit trusts
Overseas equities
Overseas unit trusts		 297,815
2,673,708
1,074,502
1,573,242
276,598		 294,737
2,240,284
1,035,652
1,376,047
234,566
5,895,865 5,181,286

At 31 August 2021, listed investments included the following individual holdings deemed material when compared with the overall valuation of listed investments as at that date:

Percentage
%		 Value
£
Findlay Park American Fund
Polar Capital TechnologyTrust ordinary25p		 8.9
7.7		 526,265
451,840

All listed investments were dealt in on a recognised stock exchange.

Institute of the Sisters of Notre Dame De Namur British Province 46

Notes to the accounts 31 August 2021

15 Programme related investments

Programme related investments include certain properties not used directly by the charity but which are used by other charitable and not-for-profit organisations for purposes consistent with the charity’s objectives. In some cases rents are received but in other cases no formal rental agreement is in place.

2021
£		 2020
£
At 1 September 2020
Lease amortisation
Capital grant released to offset amortisation (note 6)
At 31 August 2021		 2,064,022
(16,667)
16,667		 2,064,022
(16,666)
16,666
2,064,022 2,064,022

As explained under principal accounting policies, the above properties are included in the accounts at a valuation carried out initially in 1999. During 2012 the trustees carried out a review of these valuations in order to ascertain whether or not there has been any impairment to the values given the current economic climate, the nature of the properties and their locations. The review was carried out by the trustees but with professional assistance from their property advisers. Certain properties were found to be included in the accounts at a figure that was deemed to be in excess of their market value and as such, an impairment provision was included in the 2012 accounts.

In the past, the charity had received capital grants from the Department for Education in respect to the property disposed of in 2015. The trustees are of the opinion that such grants, where recovered from the disposal proceeds of the original property, have been reinvested in new buildings to be used for the provision of state education. As a consequence, they do not deem any such capital grants to be repayable at the current time. During the year ended 31 August 2013 an amount was eliminated from the grants repayable figure to reflect the amount not recovered from the disposal of the original property. In subsequent years, an amount equivalent to the amortisation of the leasehold property has been eliminated from grants repayable to offset the annual amortisation charge.

Programme related investments comprise:

2021
£
7,366,666
(5,302,644)
2,064,022		 2020
£
7,383,333
(5,319,311)
2,064,022
Voluntary aided schools
Less Grants received from Department for Education

Further details in respect to the properties and their use are given below:

Institute of the Sisters of Notre Dame De Namur British Province 47

Notes to the accounts 31 August 2021

15 Programme related investments (continued)

Voluntary aided schools

The Sisters of Notre Dame support the development and operation of three voluntary aided schools.

The school in Kirkdale, Liverpool is subject to a 30 year lease with the Council which commenced in September 2013. A premium of £500,000 was paid and rent of £81,170 per annum is payable. The charity, in turn, is renting the building to the school. As previously, no formal arrangement exists between the school and the charity for the occupation of the building. The school has undertaken to pay a rent to the charity of £81,170 per annum.

The land and buildings of the other two schools located in Woolton, Liverpool and Southwark, London are provided rent free.

16 Debtors

Debtors
2021
£		 2020
£
Prepayments and accrued income
Legacies receivable
Miscellaneous debtors		 17,789
654,894
24,099		 34,330
130,000
19,086
696,782 183,416
Creditors: amounts falling due within one year 2021
£		 2020
£
Monies administered by the charity on behalf of individual members of
the Institute of the Sisters of Notre Dame De Namur British Province
Loan from the Generalate of the Institute of the Sisters of Notre Dame De
Namur - Sisters of Notre Dame De Namur, Inc. (see below)
Expense and other creditors
Amounts payable in respect to tangible fixed asset additions
Accruals and deferred income
Taxes and social security costs
570,470

1,000,000
129,703
140,244
30,352
20,382		 638,368
1,000,000
121,904
—
32,147
26,569
1,891,151 1,818,988

17 Creditors: amounts falling due within one year

Monies administered by the charity on behalf of individual members

The monies administered by the charity on behalf of individual members of the Institute represent funds introduced by sisters. As they are repayable on demand they are included as creditors repayable within one year. However, they would be repaid only if a sister were to leave the Congregation or be paid out in accordance with her Will should she die. If a sister were to leave the Congregation, this would require a certain amount of planning. On the death of a sister, her estate would take time to be administered and settled. In both situations, therefore, the charity would have time to prepare for sufficient liquid funds to be made available. Therefore, although the charity has net current liabilities it is not foreseen that this will give rise to cash flow difficulties.

Institute of the Sisters of Notre Dame De Namur British Province 48

Notes to the accounts 31 August 2021

17 Creditors: amounts falling due within one year (continued)

Loan from the Generalate of the Institute of the Sisters of Notre Dame de Namur

2021
£		 2020
£
—
1,000,000
1,000,000
Loan balance at 1 September 2020
Advances during the year
Loan balance at 31 August 2021		 1,000,000
—
1,000,000

On 19 September 2019, the Sisters of Notre Dame De Namur British Province entered into an agreement with The Congregational Mission Office of the Sisters of Notre Dame De Namur, Inc., the Generalate of the Congregation of the Sisters of Notre Dame, whereby the Generalate will provide the charity with loan finance of up to £2,750,000. £1,000,000 was advanced to the charity during the year to 31 August 2020. No further advances have been made.

The amount advanced will be repaid from the sale proceeds of one of the charity’s properties. Should the net proceeds received from the sale of the property be insufficient to repay the amount advanced, the charity’s trustees will work with the Congregational Leadership Team to renegotiate the plan for repayment.

Under the terms of the agreement the charity has agreed to provide detailed financial information to the Generalate on a regular basis and has agreed not to borrow any additional amounts from any third party without the express written approval of the Generalate, with the exception that the charity may use the agreed Barclays Bank overdraft facility of £250,000 while this is available. The charity will inform the Generalate if the bank overdraft exceeds £100,000.

The agreement does not require the payment of interest.

18 Restricted funds

The income funds of the charity include restricted funds comprising the following donations and grants held on trusts and to be applied for specific purposes:

Sundryrestricted funds At 1
September
2020
£
Income
£
Expenditure
£
At
31 August
2021
£
15,722 5,628 (10,617) 10,733
At 1
September
2019
£
Income
£
Expenditure
£
At
31 August
2020
£
Sundryrestricted funds 17,842 12,800 (14,920) 15,722

Institute of the Sisters of Notre Dame De Namur British Province 49

Notes to the accounts 31 August 2021

19 Tangible fixed assets fund

Tangible fixed assets fund
2021
£		 2020
£
At 1 September 2020
Net movement in year
At 31 August 2021		 18,404,279
(740,988)		 20,322,998
(1,918,719)
17,663,291 18,404,279

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets less the outstanding balance on the Congregational loan which is repayable on disposal of the charity’s property.

A decision was made to separate this fund from the general fund and other designated funds of the charity in recognition of the fact that the tangible fixed assets are essential to the dayto-day work of the charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

20 Programme related investment fund

Programme related investment fund
2021
£		 2020
£
At 1 September 2020 and 31 August 2021 2,064,022 2,064,022

The programme related investment fund represents the value of the charity’s programme related investments. As explained in note 15, these investments comprise land and buildings owned by the charity but used by other charitable and not-for-profit organisations with objectives consistent with those of the charity. It is the intention of the trustees that such assets should continue to be used for these purposes for as long as needed and as such their value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.

21 Designated funds

The income funds of the charity includes the following designated fund which has been set aside out of unrestricted funds for a specific purpose.

Sisters’ retirement fund 2021
£		 2020
£
At 1 September 2020
Designated during the year
At 31 August 2021		 3,150,000
1,350,000		 3,150,000
—
4,500,000 3,150,000

The sisters’ retirement fund represents monies set aside by the charity’s trustees to provide for the future costs of providing nursing care to elderly sisters who have dedicated their working lives to the charity.

Institute of the Sisters of Notre Dame De Namur British Province 50

Notes to the accounts 31 August 2021

22 Analysis of net assets between funds

General
fund
£		 Tangible
fixed assets
fund
£
Programme
related
investment
fund
£		 Sisters’
retirement
fund
£
Restricted
funds
£		 Total
2021
£
Fund balances at 31 August
2021 are represented by:
Tangible fixed assets
Listed investments
Programme related investments
Net current (liabilities) assets
Total net assets		 —
1,399,162
—
738,206		 18,663,291
—
—
(1,000,000)		 —
—
2,064,022
—
—

4,500,000

—
—		 —
—
—
10,733		 18,663,291
5,899,162
2,064,022
(251,061)
2,137,368 17,663,291 2,064,022 4,500,000 10,733 26,375,414
General
fund
£		 Tangible
fixed assets
fund
£
Programme
related
investment
fund
£		 Sisters’
retirement
fund
£

Restricted
funds
£		 Total
2020
£
Fund balances at 31 August 2020
are represented by:
Tangible fixed assets
Listed investments
Programme related investments
Net current (liabilities) assets
Total net assets		 —
2,032,737
—
156,541		 19,404,279
—
—
(1,000,000)		 —
2,064,022
—
—
3,150,000

—
—		 —
—
—
15,722		 19,404,279
5,182,737
2,064,022
(827,737)
2,189,278 18,404,279 2,064,022 3,150,000 15,722 25,823,301

The total unrealised gains on listed investments as at 31 August 2021 constitute movements on revaluation and are as follows:

on revaluation and are as follows:
2021
£		 2020
£
Unrealised gains included above:
On listed investments
Total unrealised gains at 31 August 2021
Reconciliation of movements in unrealised gains:
Unrealised gains at 1 September 2020
Add: In respect to disposals in year
Add: net (losses) gains arising on revaluation in the year
Total unrealisedgains at 31 August 2021		 2,532,023 1,832,956
2,532,023 1,832,956
1,832,956
(25,397)
724,464		 1,874,692
21,489
(63,225)
2,532,023 1,832,956

23 Department for Education grants and contingent liabilities

The original costs of the properties used by the voluntary aided schools have been funded by capital grants from the Department for Education. The total grants received are shown in note 15.

In the event of the sale or disposal by other means, of any asset for which a capital grant was received, the charity shall if it does not reinvest the proceeds, repay to the Secretary of State for Education the same proportion of the proceeds of the sale or disposal as equates with the proportion of the original cost met by the Secretary of State.

Institute of the Sisters of Notre Dame De Namur British Province 51

Notes to the accounts 31 August 2021

24 Custodian funds

At 31 August 2021 the charity was holding £37,504 (2020 - £21,848) and £10,866 (2020 - £10,976) on behalf of the Generalate of the Congregation of the Sisters of Notre Dame and the Nigerian Province of the Congregation respectively. The movement on the funds held by the charity comprised monies received of £154,289 (2020 - £147,990) and monies paid of £148,086 (2020 - £154,334). These funds are not included in the accounts of the charity.

25 Related party transactions

The Congregation of the Sisters of Notre Dame de Namur is made up of all the sisters worldwide, including those of the British Province. The Congregational Leadership Team, or Generalate, is elected by and is accountable to the Congregation. The General Moderator, assisted by the rest of the Generalate, has the authority and the responsibility for the overall governance of the Congregation.

In the year to 31 August 2020 the Generalate of the Congregation made a loan of £1 million to the British Province. Details of this loan and movements thereon are shown in note 17.

The charity owns the share capital of The Notre Dame Trustee Company Limited, a company incorporated in England and Wales. The Notre Dame Trustee Company Limited is also a trustee of the charity. The company has trust corporation status. Its main object is to act in the role of custodian trustee for the charity and as nominee of the charity in the holding of any trust assets and to do all such other things as are incidental or conducive to this main object. The trustee company holds as nominee the property and investments of the charity. The trustee company is otherwise dormant.

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 £60,421 (2020 - £61,402).

There are no other related party transactions requiring disclosure (2020 – none).

26 Commitments under operating leases

At 31 August 2021, the charity had future commitments under non-cancellable operating leases as follows:

leases as follows:
Equipment Land and buildings
2021
£		 2020
£		 2021
£		 2020
£
Amounts due within one year
Amounts due between two and five years		 4,648
12,127		 4,418
5,495		 5,349
10,698		 8,472
21,179
16,775 9,913 16,047 29,651

Institute of the Sisters of Notre Dame De Namur British Province 52

Notes to the accounts 31 August 2021

27 Ultimate control

The charity, which is governed by a trust deed, was controlled throughout the period by the British Province of the Congregation of the Sisters of Notre Dame by virtue of the fact that the Provincial Moderator and the other members of the Provincial Team, are elected by the members of the Congregation. The Provincial Team are the trustees and the directors of the corporate trustee, The Notre Dame Trustee Company Limited. The Province does not hold any assets, incur liabilities or enter into any transactions in its own right. Assets and liabilities of the Province in Britain are vested in the trustees of the charity, who undertake all transactions entered into in the course of the Province’s charitable activities.

Institute of the Sisters of Notre Dame De Namur British Province 53