THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCE OFGREAT BRITAIN AND IRELAND (Registered Charity Number: 234184) (Charity Registered in Seotland Nurnber: SC03916S) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 S laysmac LLP Chartered Accountants Registered Auditors London THE CONGRECATiof4 OF THE DAUGHTERS OF WISDOM PROVINCE OFGREAT BRITAIN AND IRELAND CONTV.NTS Page Legal and Administrative tktails Trllstees, Report 2-12 Auditor'5 Report 13-15 Statement of financial Aclivilie5 16 Balance Sheet 17 Stat¢ment of Cash Flows 18 Notes to the Financial Statements 19-28 THF. CONGREGATION OFTHF, DAUGHTERS OFWISDOM OTHFRWISV. KNOWN AS'SISTERS OF LA SAGESSE" LEGALAf4DADMINISTRATIVE DETAILS Re8lStered Charity Nufflber 234184 Scottish Registered Charities Number SC039165 Charities Regulatory Authority (Ireland) 20007140 D¢l¢gation Leader Sister Maureen Seddon Delegation Treasurer SisteT Siobhat) Boyle Named Trustees Sister Maur¢en Seddon Sister Patricia Rcilly Sister Marie Turner Sister Siobhan Boyle Address Provincial Administration Wi%dom House Romsey Hampshir¢ S0518EL Principal Bankers CAF Bank Kings Hill Avenue Kings Hill. West Malling Kent ME19 4JQ Soliciiors Stone King LLP 13 Que¢n Square Bath BAI 2HJ Auditor Haysmac LLP 10 Qu¢¢n Street Place London EC4R IAG Investment Managers Brewin Dolphin 12 Smithfield Str¢¢t London ECIA9BD Governing Instrument Trust deed dated 2 March 1964 Objects Su¢h charitable purposes which advance the religious and other chaTiiable work for th¢ titne being carried on by or under thc direction of the Congregation as the Trustees, with the approval of the Provincial, shall froni time io (inie think fit. THE CONGREGATION OFTHE DAUGHTERS OF WISDOM TRUSTECI S, REPORT FOR THE YEAR ENDED JI DECEMBER 2024 The trnslees pr¢seni ¢h¢ir report and the financial Statements of the Charity for the yeai. end¢d 31 De¢ernbeT 2024. The financial statem¢nts have bcen prepared in aecordance with tlie accountlllg policies, set out ot) pages 19 and 20, and comply with the Charity's trust deed, applicable law and the requiiEment5 of the Statement of Recommended Practice foi. Charities (SORP 2019 2nd edition). THE CONGREGATION OFTHE DAUGHTERS OF WISDOM l. The Congregation is an Inteii]ational R¢ligiou.% Congregation founded in Fixnce in 1703. It is administered by a Congregational Leader and her Council, who are appoinred every six yeais at a Geneial Chapter of r¢pirsentatlV¢5 Of all the Entities of the Congregation worldwide. The Congregational Leadership Teatn is based in Paris. I'he Congregational Leadership Team has been in office since June 2024 and ha5 a mandate unlil Jun¢ 2030. 2. Situated throughout the fIve continents, the Daughters of Wisdom cornmit themselves to radically living the Gospel Vdlues. In a rapidly changing WOTld where the domination of the economy, climate chang¢ and the ever-growing gap beiween the rich and poor generates injustice and violence, the Si5tei'5 endeavour to be a voice for the voiceless, participating in collective actitsns that oppose the causes of injustice and promote the value5 of justi¢¢, peace, and respect for creation. AIM AND PURPOSV. OFTHE CHARITY The principal objective of the Charity is lo apply the assets of the Trust for such charilable purposes as shall advance the religious and other charitable woi'k carri¢d oui by the Congirgation of the Daughters of Wisdom. By caring for individual members of the Congregation throughout their lives, the Charity aim5 to enabl¢ atjd support the Sisters to live out their lives as fully as possible as Daughteis of W￿$doM through a variety of mini51ries and their witness ¢0 the Gospel values. When 5¢ttÉng the objectives and planning rhe work of the Charity for the year, and when discerning the mini5trie5 of individual Sisters, the Trustees have uiven careful consideration to the Charity Commission's general guidance on public benefit and in particular, to 115 supplementary guidance on the Advancement of R¢ligion. With the IEducing number of Sistei's in the Delegation and theii. advan¢ing years, the variety of minisii'i¢s in which they are actively engaged is changin& Ihey fulfil their mission and rninistty in diverse areas of their capabiliiies. Th¢se in¢lude'. Reneetion a￿d Prayer The Sisters of the Delegation are called to a lif¢ of prgyeT and apostolic service which they expressed for many years in ministry such as 5¢hools, nursing and in many forms of pastoral care in parishes wherever the Sister5 wcrc located, both in the UK and overseas. Whilst their capabilities to carry on ihe physiLal aspects of such tasks have diminished. Ihe Sisters maintain their life of pi'ayei. and connections with many of the works in which they were involved. Prayer is part of th¢ Sisters, cominunal lif¢ togeiher and is the way in whith they can continue to be involved in the works of th¢ Congregation throughout the world. Members of the Deles)diion have continued to meet via Zoom for shared pray¢r and reflection and have continued to use this Inethod lo keep in touLh with one another and support those who livc at a distance fiDm another Sister. Th¢ charism and spiritualiiy of the Daughters of Wisdom animates the life of all the sisters and is especially promoted in the Wisdom Centres in Romsey and Dublin. Supported by and in collaboration with their lay staff, the Sisters offer a space of prayer, IEflection and quiet in a calm setting for diverse groups and needs. The Sisters in Romsey welcome to rheir gardens and the labyiinth those seeking a quiet space or who simply want to qppre¢iate the beauty of nature. They are also pleased to welcome into this spac¢ families with children, when the quict of the space is briefly interrupted by joy, laught¢i', and shricks of enjoyment. The Friends of Wisdom, an international lay assuciation of the Daughters of Wisdom continued to m¢et both online ahd in person in Ron)sey. A new group of five began in February 2022 accompanied by two of the Sisters. four of ihem Enade theiT cominitment aftei. Easter 2024. A third group began thc formation programnie online in Septeinber 2023. All Cont￿￿lle to participate on a r¢gular basi5. THE CONGREGATION OFTHE DAUGHTERS OFWISDOM TRUSTEES, REPORT {eontlnued) FOR THE YEAR ENDED 31 DECEMBER 2024 Social hnd pastoral ministry Meinbers of ihe Del¢gaiion of Great Britain and Ireland (GBII air involved in diverse forn)s of social and pastoral minisiry. The main aim of the Si5t¢rs is to help (he pgor and marginaliscd in Society regardless of their pcrsonal backgniund, gendcr, or individual circumstance5. Their ministry of welcome is evident in both the Wisdom Centre bnd in their community homes where the Sisiers and the strdff welcoine people lo participaie ID planned activities or who seek the comfort and joy of companionship and prayer. The ministry of 'pre5ence' is of paraniount iniportance especially for those Sisters who ar¢ no longer able to engage in active ininisiiy. Worklng A5 an internfitlonal Congreg4tlon Daughtcrs of Wisdom as members of a woi'ldwid¢ Congregation of religious women participate in international me¢tings and works of the Congregation ouiside Great BTlt&in and Ireland. Soine spent most of thcir active ministry overseas while others participated in projects and initiatives in conjunclion with Sisters froEn othei. entiiies. A Sist¢i' from the Delegation ha5 served throughout this period as Execulive Director of UNANIMA Lnternational in New York. The Delegation Continues to support noi only the memb¢rs of the Delegation of Great Britain and Ireland, bui also to remit funds to the Genei'alate to SUPPOlt the mission of the Congr¢gaiion to the poorest and marginalised in under-developed and emerging communiti¢s in the various parts ofthe world wh¢re (he Congregation is present. In 2024, the Trustees agre¢d to support the re¢onstruction of a home for vulnerabl¢ girls in Bangalore- The Asha Deep Project. The Daughters of Wisdom agreed to support this project in 2024 and would be Sympathetic to r¢quests for further support in future years. The number of Sisters in the D¢legaiion on 31 December 2024 was.. Below UK stste pension age (66yrs) Over pettsionable ag¢ (2023.. 1) (2023.. 29) 27 During this period none of the Sisters re¢eived salaries and only a few received a stipend, including the Sister whose ministry is based at the Uniied Natiot)s in New York. Any income received by the Sistejs 15 oovenanted to the Charity in accordance with iheir vow of povety. rtd The Del¢gation Leader and the Delegation Treasurer partiC￿p￿ted in the General Chapter from 22 June to 23rd July in Angers, France. Before and aftcr the General Chapter, a delegation Assembly took place which included Sistei'5 unable to travel to participate via Zoom. OBJECTIVES AND ACTIVITIES Throughout the Delegation th¢ Sisters, mainly retired and on a voluntary basis, are involved in a div¢rsity of ministries. I eveiything tliey do, the Sisters aim to i'eveal thc compassionate face of Wisdom. In every sphere oftheii. activity. they se¢k to work with people who are excluded from mainstream society, refugees, people who have been trafficked, abused, who are homeless or are di'ug addicts, or who have Tnental health needs. All are invited io join Wisdom's banquet just a5 Jesus embodied in his life the uliimat¢ Model of inclusivity and abundance. THE CONGREGATION OFTHE DAUGHTERS OFWISDOM TIIUSTEES, REI PORT (continued) FOR THE YEAR ENDED 31 DECEMBER2024 Typical examples of individual activities 2re'.- OutsEa¢h to Caribbean and ethnic minority communitie5 Visiting sick and housebound people in their home$ and in care homes Working with and on behalf ofhom¢1¢55 people and refugees Spiritual accompaniment Parish visiting Involvemenl in Justice and Pe2¢¢ Group5 Ecumenical and interfaith activities Teaching English to migrants and refugees Support (o ex-pi'isoners who live und¢i' licence in the community Support to vulnerable Fainilie5. On¢ Sister resident in each jurisdiction held the position of Safeguarding Representative in Ireland, Scotland and Englandlwales. ILLUSTRATIONS OF THE SISTERS, WORK Set out below are some exainples of ihe Sist¢rs' Tninistries of which collaboration fornis an important part. These illustrate the range of their work and the coniribution whi¢h they make io society'.- Wlsdom C¢nlre, Romsey Having developed several new niillistries in recent years, lor 2024. Wisdom Centre anticipated further expansion of Cominunity aiid wellbeing d¢tivities. However. with 2 Staff rnember absent for almost half a year, the team, supportcd by the Daughters of Wisdom and volunteei's, successfully focused I'esources on the ali'eady scheduled pi'ogramme. Despite manifest challenges, planned spii'itual events and spirTrtual group5 achieved an increase in expected attendanc¢ with an upward trend on prior yedf5. A&Tainst a backdrop of declining Church attendanc¢, Our Ecumenical appi'oach and inclusion of spiritual and well-being t¢&chings from other traditions continues to widen th¢ sp¢ctrum of participation. We have four active volunteers in Wisdoin Centre. Many groups and reflective days are volunteer-led, and two Daughters of Wisdom ¢ontinue to volunieet at the Centre. 2024 has been anoiher positiv¢ year for Wisdom Ccntre. Another key staff membcr's absence will further impact activities in early 2025. We thank our volunteers, Staff. and DW lead¢Thhip team for supporting our activilies during a moTe challenging year than expected. Marle Louise Ho￿se, Romsey Marie Louise Hous¢ was built because th¢ Sisters had a vision of the needs of the future and realised that ihere was a n¢¢d io provide nursing caT¢ both for Sisters and for people in the area. Marie Louise House opened in June 2005 with accommodation for 46 residents. The initial 15-yeai' lease to Flealthcare Management Trust was succeeded by a 10-year lease that will be in place until May 2030. At the end of 2024 three Sisters were resident in Mai'ie Louise House. Marie Louise House is managed by thc Healthcaie Management Trust (14MT}, a i'egi5teird charity. It is open to people of all faiths and none. The Home is run on an ¢cumcnical basis.. services air arranged with the diffeient local church ministers aTkd parishioTher5. At the end of 2022, a new CEO for I IMT wa5 appotnted and be¥an a review of its opera(ions and effe¢liveness in 2023. Following this review, HMT published a five-ycar strategy in 2024. At present no major changes are planned that will influence the coniinuing op¢ration of Marie Louise House. The Trllstees readily acknowledge the dedication aiid hard work on the part of the Hon)e Mana¥ei' and all the local strowth/income perfoi'mance and industry benchmarks. The Truste¢s are content that the investments pei'foiTred as well as could be expected during 2024 and exprcssed their continued eonfidence in the inveshnent tnanageTS and in the quality of infoi'ination provided by thein. THE CONGREGATION OFTHE DAUGHTERS OF WISDOM TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER2024 FINANCIAL REVIEW Result5 for the year A summary of the year'5 results can be found in the Statemeni of Financial A¢tivities on page 16 of this repoi1 and accounts. During the year ended 31 December 2024 total income amounted to £1.088,836 (2023.. £1.209,431), Income was in line with expeclations other than the iE)vestment portfolio incoine, as noted above. The Delegation continues lo face a decline sn i'e¢urring Incoining Resourc¢s a5 the number (>f Sisters reduces only a few now re¢eive regular slipend5 and none receives a salary. The valu¢ of funds on the balance sheet are also affected, though only to a small dew'ee by th¢ movement in the pound.. euro exchange rate as most of its funds are now held in stei'ling. Expenditure of £1,988,266 (2023= £1,959.188} include a donation toward5 the work and running expenses of the Congregation's General Administration in lieu of project funding in 2023. Throughout the year, a number of Sisters were resident in Marie Louise House, lor which a fee is paid to th¢ home's managing Lompany, Health¢aTe Managem¢t]t Trust,. the average number of Sisters resident in Marie Louise House in 2024 was threc, plus occasional periods of recuperation and rehabilitation for some Sisters following a stay in hospital. Net ¢xpenditure b¢fore gaIn￿{loSSeS) on investments for the year was, therefore. £899.430 (2023.. £749,757). Investm¢nt gains this yeai. amounted to £717,448 (2023.. £535,345). The Lead¢rship Team Jt501ved during 2016 that any communitie5 that receive financial support from lh¢ Delegation for tlieir ongoing living costs should no longer remit lo the Delegation a portion of funds held by them at the end of the y¢ai'. Communiti¢$ ihat continue to have incorne greater thpn their needs still i'emit three quarters of their y¢ar-end surpllls to support other eommuniti¢s in the Delegation. The number of communities whtss¢ income is greater than they need has dropp¢d dramatically in r¢cent years, while the number of communities supported by ¢¢ntral funds is it]creasing. Financial posltlon and reserves policy FinuKciolposilion At the end of the year to 31 Deceinb¢r 2024 the total funds of the Charity wei'e £18,489.246 (2023.. £18,671,228). Of this some £8 million is represertted by properties and other tan¥ible fixcd assets essential foi. the support and work of the Sisters. £8.35 million was designated to meet th¢ eommitment to provide for the care of the older members of the Charity, which is part of the purpose of the Charity. In 2018 the Tiustees agreed t(Tr draw down froit) the Fund to ¢over 50/• of the nursing liome fees for Sisters of the Delegation. Funds expended from th¢ Designated Re5¢rves during the year totall¢d £165.905 (2023= £150.453). THE CONGRECATION OFTHE DAUGHTERS OFWISDOM TRUSTEES, REPORT leoThtillued) FOR THE YEAR ENDED 31 DECEMBER 2024 FINANCIAL REVIEW {continued) Re.¥erves policjp This report demonstrat¢s the range of activitie5 which the Chariiy ¢ontinues to carry out and the Tesponsibility the Charity has for the care and sllpport of its menibers. All the Sisters have devoted the whole of theii. working lives to the Congregation and are dependent upon it for all iheir tcmporal material need4. Although Sisters invariably continue to perform charilable work long past norn)al retircment and pension age if they are healthy enough to do so, Ihe work is mainly non-remtJn¢rative, and the Delegation must provide for their needs and Èn some cases nursing care. The Trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed essets, designat¢d for specific purposes, or otherwise committ¢d. The Trusiees consider that. given the nature of the Charity's work and it5 commitments, the level of free reserves should be not less ihan twelve months expenditure. At 31 December 2024 fr¢e reserves represenitd some 14 months of expenditure, which the Trustces believe is suffitient considering current plans and anticipated inflow of funds from disposal of PToperties that are likely to materialise in th¢ next 12 to 24 months. Restricted Fund5 During a prevtous yeai., a donation was made io ihe Charity whose use wa$ re5tri¢ted by the donor to 'the welfare of the Sister5. The interpretation of the Sisters welfare, has been left 10 lh¢ discretion of the sei'ving Trustees to define but 15 intended to ¢xclude repair5 and renewals to plani and property. The funds can be expended for th¢ir welfare in generdl or for any Sister or Sistei's. There was no draw dowtt Irom thi5 ￿nd in 2024. Key management personnel The Iruslees have identified the General Manager, the FiTtance Manager, and the Wisdom Centre Maiiager as the key management personn¢l for the Charity a5 they directly influ¢nce day to day operation of the whole organi5ation and ils main mission activity resp¢ctiYely. Toral salary paid to ihese personnel was £180.589 in 202412023.. £150,182). The pay for these Posts is set prior to appointinent of th¢ individuals paying irgard to the rnai'kct rate for equivalent Posts in other chariiies itnd non-charitable organisations. A pay review for all members of staff, En¢luding key managem¢nt personnel. lake5 plac¢ annually during? the budg>eiing ¢ycle and is set prin¢ipally with reference to cost of living and inflationary piEssures balanced against the Charity's prudent maT)agemenl of its resources in the eontext of a deficit budget. In 2024 ihe salary r¢vicw, taking account of the excepiional I'ise in inflaiion, ￿$￿Ited in an increase of 30/0 for all staff salari¢s from January 2024. PLANS FOR FUTURE PERIODS Within the framework of the Guidanc¢ on Public Benefit, the Charity works for th¢.'_ Advancement of religion Advancement of education Advancement of hurnan righrs, conflict IEsolution and reconciliation P]Dmotion ofre5PCCt for the gift of Creation 10 THE CONGREGATION OFTHE DAUGHTERS OFWISDOM TRUSTEES, REPORT {¢ontinued) FOR THEYEAR ENDED 31 DECEMBER 2024 PLANS FOR FUTURE PERIODS (continued) During 2025 lh¢ Charity will..- Continue the irkvestment of further time, effort, and reSoU￿eS inio the ongoing spiritual and human development of Ihe Sisters for mission. During the coming year, the Council of the Congregation will take place in France, at which two Sisters of the Delegation will participate. Continue th¢ developmeT)t of the use of the Wisdom Centre, Romsey, alongside the use of the Labyrinth and other gardens which are open to the local community. Jointly with othcr cortgregatlOll5 and agencies d¢velop the work of Sophia, Ir¢land, to promote th¢ humanity and dignity of homeless and marginalised people. Continue to review the Delegation prop¢rty portfolio and dispose of surplus property and undertake some major d¢¢orating works as requii'ed. Review lis financi41 management, in particular its investment strategy and the designation of funds for ¢aTe of its elderly rnembers. Commence a diseernment process to delertnine the future of the Delegation's ministries and properties. Continue to participate in discussions wilh the Conferences of Religious in England and Wales, Scotland and Ireland about the future diiEction and purpose of ihe respeciive Confei'¢nces. Continue to participate in the review of safeguarding practice for religious orders within the Catholic Church to ¢nsllre that ihe Delegation's practice stays current, relevant, and up io date. and lo prepar¢ for an audit of its safeguarding policies that is likely to take place in 2024 ov 2025. INVESTMENT POLICY The Chariry has a discretionary investment management agreement with Brewin Dolphin. The Tru5t¢e5 meet with the fund managers once every three ro four months and ensui'e that th¢ fund is managed in accordan¢e with their written guidelines and with ihe religious and ethical principles of the ChaTIty. The investment objectiv¢$ are'.- (a) io generate enough income to fund for the foreseeable future that part of the Charity's ODgoing activiti¢S ¢unrntly fund¢d by investinent incoin¢ to maintain the Iral capital value Of the investment fund in the long temi (b) Asset allocation 15 ben¢hmarked againsi the FTSE All Shar¢ Index weightings. At the start of the year the portfolio open¢d wilh a value of £9,734,272, Divid¢nd income for the year of £305.097 was higher Ihan the previous year's incoine of £274,264 and £12,541 less than budgeted for the year. By the end of the year the portfolio had grown to £10,248,391 which repre5¢nls steady growth durin8 the year in rnarket conditions ihgt continue to be Challenging. The Trnstees continue ro have every coDfidence the investment managers to assist tliem in achieving their goal of balanced growth and yield portfolio to support ihe Sisters, needs and inission in future years. AUDITORS On 18 Novembei. 2024 the ¢ompany'5 audiior changed its nan)e from haysmacintyre LLP to Haysmac LLP. THE CONGREGATION OFTHE DAUGHTERS OF WISDOM TRUSTEES, REPORT (contlnued) FOR THE YEAR ENDED 31 DECEMBER 2024 STATEMF.NT OFTRUSTEEIS, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standard5 {>'inancial Reporting Standard 102). Chai'ity law requir¢s the Trustee5 to prepare accounls for each finan¢ial yeai. which give a true and fair view of the State of affairs of the Chai'ity at the year end and of it5 in¢ome and expendilure durin¥ thal year. In prcparing the accounts, the Trustees are requi￿d to'.- select suitable accounting policies and apply them ¢onsistently' observe the m¢thods and prin¢iples of the Charities SORP; make judgements ond estimates that reasonable and prudent,. stale whether applicable accounting stand8rds and statement5 Qf recommended practice h&ve b¢en followed, subject to any departUlES disclosed and ¢xplained in the accounts. prepare the accounts on the going concern basis unless il is inappropriate to presum¢ that the Charity will coniinue in operation. The Tntstees are responsible for ke¢piT)g accounting re¢ords which disclose with reasonable accuracy the financial position of the Charity and which enable rhem to ensure (hat lh¢ accounts comply with the Charities Act 2011, the Charity (Accounts and Repojlsl Regulations 2008 and the provisions of ihe Trust Deed. 1.hey are also r¢sponsible for safeguarding the assets of the Chai'ity and hence for taking re#soiiable steps foi. the prevention and detection of fTaud and o¢h¢r irregulariti¢s. Approved by th¢ Trustees on 15 May 2025 and signed as authorised on their behalf by.. Sistei. Maureen Seddon D. W. Delegation Leader Trustee 12 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CONGREGATION OF THE DAUGHTERS OF WISDOM Opinion We have audited the financial statements of the Congregaiion of the Daught¢rs of Wisdom for the year ended 31 Decemb¢r 2024 which comprise ihe Slatement of Financial Activities, the Balance Sheet, th¢ Statement of Cash Flow5 and the IElat¢d noles to the financial Statements, including a summary of significant dccounting policie5. The financial reporting franiework that has been applied in theii. prepai?tion is applicable law and United Kingdom AccoLTrntiftg Standai'ds, including Financial Reporting Srandard 102 The Financial Reporti￿g Sid￿dal.d applic(7ble in ihe UK Repjiblic oJ'Ji-elttnd (United Kingdom Generally Accepied Accountsng Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as ai 31 Decernber 2024 and of the charity'5 net movemet)t in funds for the year then ended., have been properly prepared in accordance with the requirements of the Charities Act 2011 and the Charities and Trustee Investrnent (Scotland) Act 2(H)5 and regulation 8 of the Charities Accounts {Scotland} regulation5. B49ts for opinion W¢ have been appointed as auditor under section 144 of the Charities Act 2011, and section 44{1)(c) of the Charities and Trusttt Investment (Scotland) Act 2005 and report in accordance with the Atis and relevant regulations made or having effect thereunder. We conducted our audit in accordance with Inieimational Standards on Auditing (UK) (ISAS (UK}} and applicable law. Our responsibilities under thos¢ standards are furth¢i' described in the Auditor's responsibilities for the audit of the financial stal¢ments section of our report. We are independeni of the chai'ity in accoidance with ihe ethical requirements that ar¢ relevant to our audit of th¢ fit]ancial statcm¢nts the UK. including ihe FRC'S Ethical Siandard, and w¢ have fulfilled our other ethical r¢sponsibilitie5 in accordance with these reouirements. We believe that the audit evidence we have obtained 15 sufficient and appropriale to provide a basis for our opinion. Con¢luslons relating to going concern In audiling Ihe fiiiancial statements, w¢ have concluded that the trustees, use of the going con¢¢m basis of accounling in the p￿paratIOn of rhe financial 5tateinents is appropriate. Based on the work we have performed, w¢ have not identified any malei'ial uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to ¢oniinue as a going concern for a period uf al leost twelve months from when the financial statements are authorised for issue. Our responsibilities and ihe responsibilities of the trustees with respect to going concem ar¢ described in the relevant sections of thi5 report. Other informstlon The trustees are responsible for ihe other infoi'mation. The other information comprises the inforn)ation included in the Trustees, Report. Our opinion on ihe financial Statements does not cover the other information and. except to Ihe extenl otherwise expliriily stated in our report, we do not expres5 any fomi of assurallce conclusion theTeon. In connection with our audit of the financial statem¢nts, our responsibility is to read th¢ other infomialion and. in doing so. consider whether the othcr information is materially inconsistent with the financial stat¢menrs or our knowledge obtained in the audit QT Otherwise appeArs to be materially rnisstated. If we identify such material intonsistencies or apparent material misstatements, we are required to determine wheiher theTe is a mat¢rial misstatemcnt in the financial statcmenis or a maierial misstatement of the oihcr information. If, based on the work we have pei'formed, we conclude that Ihere 15 a maiei'ial misstatement of this other infurination, we are required to report ihat fa¢t. We have nothing to ieport in this regard. Matters on which we are requireil to report by exeeption We have nothing to report in rcspect of the following matters in relation to whieh the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulation5 2006 require us to report to you if, in our opinion.. ad¢quate accounling records have no( been kept by the charity. or sufficient and pi'oper aecouniing records have not be¢n kept,. or the charity financial statem¢nts are not in agreement with the accounting records and retums,. or we hav¢ not i'eceivcd all the information and explanations we Irquire for our audit. 13 INDEPENDENT AUDITOR'S REPORT TO THF. TRUSTEES OF THE CONGREGATION OF THE DAUGHTERS OF WISDOM (Continued) Responsibllitie5 of truslees for the financial ¥tolemenls As explained mol'e fully in the Irusiees. r¢spon5ibilities statemeni set out on page 12, the trustees are rcspon5ibl¢ for the preparation of the financial statements and foT being satisfied ihat they give a twe and fail. view, and for such intemal control as the trustees detemiine is n¢ce$5ary to enable the prep&raiion of financial statements that are free from material missratement, wh¢ther due to fraud or e￿or. In preparing the financial statements, Ihe trustees are responsible for assessing the cliarity's ability to continue as a going concern, disclosing, as applicable, matters related io going con¢ern and using ihe going concern basis of accoui)ting unless the Iru5tee5 eitheT intend to liquidate the charity or to cease operations, or have no realistic alteTnative but to do so. Auditor'5 responsibilities for the audit of the finanei&l statements Our objectives are to obtain reasonable assui'ance about whether the financial statements as a whole are free from material misstatemenl, whether du¢ tu fyaud or error, and to 155ue 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 ac¢ordance with ISAS {UK) will always detect a material misstatement when it exists. Misstaterncnts can ai'ise from fraud or error and are considered matcrial if, individually OT Ill the aggregate, they wuld Irasonably be expected to influence the economi¢ decisions of users taken on the basis of these financial statements. Irregularili¢s, including fraud. are instances of non-complian¢¢ W￿th laws and regulations. We design procedures in linc with our r¢5ponsibilities, ouilined above, to detect material mi5Statements in respect of iiT¢gularities, including fraud. The extent to which our procedures ar¢ capable of detecting iircgularities, including fraud is detailcd below.. Based on our undersianding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance wilh laws and regulations related to health and safety regulations, employment law, safeguarding regulations and Charity law, and we considered the extent to which non-compliance might have & mat¢i'ial effect on the financial slatemenls. We also considered thos¢ laws and regulations that have a direct impact on the preparation of th¢ financial statements such as the Chai'ities Act 2011. We evaluated management's incentives and opponunities for fraudulent manipulation of the financial statem¢nts (including the I'isk of oven'ide of controls), and deterniined that the principal risks were related to depreciation ¢haTges. Audit PlDcedures perfom]¢d by the engagement tearn included.. Inspecting minu1¢5 of Trustees. meetings. Reviewing calculations for depre¢iption including irviewing esttinated useful economic lives., Inspecting correspond¢n¢e with regulator5 2nd tax authorilies., Discussions W￿th management including consideralion of known or suspected instan¢es of non-compliance with laws and regulation and fraud., Ev21uating manageiiient's controls designed to prevent and detect irregularitie5' Id¢ntifying and testing journals. Reviewing valuations of inv¢stments', and Challenging assumptions and judgements made by management in their critical accounting estimates. Because of rhe inh¢i'ent limitations of an audit, there is a risk that we will not detect all irrcgularities, including th05¢ leading to a Inatei'ial misstatenient in the financial statements or noii-compliance ivith rcgulation. This risk increases tho more that compliance with a law or regulation is removed from the ¢vents and transaction% reflected in the financial 5tatemcnts, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding ilTegularities OCCUlTing due to fi7ud rather than error, as fiaud involves intentional concealment, forgery, collusion, omission or InislEpresenialion. A fuither descrtp¢ion of our responsibilities for the audit of the financial statements is located on the financial Reporting Council'5 website at.. www.frc.or .uklauditorsi'es ongibilities. This description forms part of our auditor's report. 14 INDEPENDE4f4T AUDITOR'S REPORT TO THE TRUSTEES OF THE CONGREGATION OF THE DAUGHTERS OF WISDOM (continued) Use of our report This report is made 501ely (o the charity's trustees, as a body. in accordan¢¢ with section 144 of the Charities Act 201 l and regulations made under section 154 of that Act, and Section 44(1 l(c) of thc Charitie5 and Trustee Investment (Scotlandl Act 2005 and regulation 10 of the Charitie5 Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that w¢ might stat¢ tv the charily's trust¢¢s those n)alteis we are r£quiTed to slate io thcm in an Auditor's report and for no oEh¢r purpose. To the fullest extent perinitted by law, we do not accept or assume responsibility to anyone other ihan the charity's trustees as a body for our audit worK for this report, or for the opinions we have formed. HaysMa¢ LLP Statutory Au Date.. 10 Qu¢en Street Place London .C4R IAG Haysmac LLP is eligible io act as an audiror in tern)5 of s¢¢tion 1212 of the Companies Act 2006 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024 Unr¢$tricted Reslricled FuJ]ds Funds Total 21124 TotAI 2023 Nol¢$ Income from.. Donation5, legacies and grants Cl)aritdble activities Invesht)ent5 Otlier 1.038 504,083 500,128 83,587 1,038 504,083 500,128 83,587 161,149 496.406 450,912 100,964 Total income 1,088,836 1,088,836 1,209,431 Expenditure ON: Raising funds Charitable aclivilies Communities Education Missions and grants Developm¢nt costs 50,586 50,586 48,526 1,758,492 6,725 52.054 120.409 1,758,492 6,725 52.054 120,409 1,692,947 2,457 84,902 130,356 Total expendlture 1,988,266 1,988,266 1,959,188 Net expeiiditure before net gains on investments (899,430) (899,430) (749,757) Net gains on inv¢stm¢Dts 717,448 717,448 535,345 r4et movements in funds (181,982} {151,982) {2I4,412) Total funds brought forward ai l January 2024 18,663,690 7,538 18,671,228 18,885,640 Totlll fund5 carried forward al 31 December 2024 18,481,708 7,538 18,489,246 18,671,228 The statement of fmaneial 8¢tivities includes all gains and 105ses recognised in the year. All income and expenditure derive from ¢ot)tinuing activities. Details of comparative figures by fund are disclos¢d in note 13. 16 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCF, OF CREAT BRITAIN AND IRF.LAND BALANCE SHEET AS AT 31 DF.CEMBER 2024 2024 2023 Notes FIXED ASSETS Tangible assets Inve51menis Social investments 7,762,127 10.348,528 82,850 8,012,897 10,221,063 88,430 18,193,505 18,322,390 CURRENT ASSETS Debiors Cash at bank and in hand 71,208 935,680 74,580 435,078 1,006,888 509,658 CRFDITORS: amounts falling due within one year (711,147) {160,820) NET CURRENT ASSETS 295,7d I 348,838 TOTAL NET ASSETS 18,489,246 18,671,228 FUNDS Restricted Funds 10 7,538 7,538 Unrestricted Funds General Funds Designated Funds 10.135,825 8,345,883 10,151,902 8,511,788 10 18,489,246 8,671.228 Approved by the Trustee5 on 15 May 2025 and signed as authorised on their behalf by: Sist¢i' Maureen 8eddon D.W Delegation Leader Trustee The accornpanying notes forni part of th¢se accoun15. 17 THE CONGREGAT1014 OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Cash flow5 from operating actlvltles: el ctssli (iised lii)/provided by operrtiliiK uclivliles {587,581) {1,238,245) Cash flows from investing aelivllRe5: Dividend%, interest and ret)ts from inv¢stments Proceed% from the sale of property, plant and equipment Purchase ofpruperty, plant and equipment Proceeds from sale of iiiveslments Purchase of inve5tmcnts Movcment in cash held by investment managers 500,128 450,912 1,470 (11,484) 2,399,634 {2,577,247) 226,167 {1,928} 2,991,967 (2,520,186) 118,202 Nel crtsli providedby/{iiserflii) liivuiliig rtcilwiles 1,088,183 489,452 Change in cash and eash equivalents in the rcportlng period 500,602 (748,793) Cash anif eush equivalents at the beginnlng of the reporting period 435,078 1,183,871 Cash and eash equivalents #t the end of the reporting period 935,680 435,078 2024 2023 Reconciliation of nel expenditure to net cash Ilow from operating activities Net expenditure for the reporting P¢Tiod Deprecialion charge Gain5 on sale of fixed assets {Gains}/losses on investments For¢ign exchang¢ loss on social investments Dividends, int¢Te5t and rents froin investments Decreasel(in¢Tease} in debtoi's Increasol(decrease) in creditors {181,982) 252,698 {214,412) 253,588 (1,350) {535,345) (717,448) 5,580 (5(10,128) 3,372 550,327 {450,912) {27,559) (262,255) Net eash {used in)Iprovided by Investiiig aelivities (587,581) {1,238,245) Analysi5 of cash and c8sh equlvalentS 21124 2023 Cash itt hand 935,680 435,078 Total ea5h cash equivalenls 935.680 435.078 18 THE CONGRECATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IIiELAND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2024 Basis of preparation The financial statements have been prepai'ed in accordance with Accounting and Reporting by Charities.. Stateinent of Recoinniended Praciice applicable to chArities preparing their actounts in accordanc¢ with the Statement of R¢commeiided Praclice for Chai'ities (SORP 2019 Second Edition) and the Fitjancial Reporting Standard applicable in ihe UK and Republi ofireland (FRS 102). The charity constitutes a public benefit entity as defined by FRS 102. Assets and liabilitics are initially recognised at historical cost or transaction value unless otherwise slated in the relevant ac¢ounling poliLy notes. Preparation of accounts on a going eoncerN basls The trustees consider th¢re are no material uncertainties about the charity's ability to continue as a going concern. The trustees believe it is appropriate for the going concern basis to apply to the charity. The review of the ¢hariry's financial perfonnance and reserves posiiion gives the trustee5 every confid¢nce that the charity remains a go￿rtg conceiw for Ihe foreseeable future. Covenanted salaries and pension5 Members, salaries, pensions and superannuation are re¢¢iv¢d undei. deeds of ¢ovenant and are stated in¢lusive of in¢ome tax but net of any deduetions for Irish taxation, social security payments and contributions to occupational pengion schemeg. Donation$ and legacles Donaiion5 and leg8cies are r¢cognised when receivable or when the Charity becomes legally entitled to them. Receipls of property, investments or other gifts in kind are included at maykei value. Oth¢r ineorne All other income is accounted for when the charity becomes entitled to the income and the amourtt can be quantified wilh reasonable accuracy. Expendlture Expenditure on raising fund5 consists of investm¢nt management costs. Charitable expenditure consists o( all exp¢nditure relating to the objects of the ChaTity. All costs are directly attriL)utable to the a¢tivities under whi¢h they have been analysed. 5rr¢coverable VAT is in¢luded witli the category of expense to which it relates. Tangible fixed assets Land and buildings ar¢ stated ai a Truste¢s' 1991 valuation plus subsequent additions at cost, allowance being made where buildings have been demolished. All other assets ar¢ included at cosi. Depreciation is calculated by the siraight line method to wi'iie off the eostlvalue, less antscipated residual value, over th¢ expected usefvl lives of assets as follows. Depi'eeiation is not provided on buildings under CODStruction until they aTe ¢ompleted and bought into use. Firehold and long leasehold buildings Fumiture and equipment Computer equipment Motor vehicles SO years 3to 15years 3 years 415 years 19 THE CONGREIGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND ACCOUNTING POLICIES (Continued) FOR THE YEAR ENDED 31 DECEMBER2024 Investments Quoted investments are valued at their closing middle market price on the balance sheet date and the gatn or loss tak¢n to the Statement of Financial Activities. Iii addition, the Charity hd5 established a pension schemc for certaiji Sisters. The scheme is a defe)Ted annuity contract whereby a cei18in guaranteed sum is payable to the chai'ity at a fixed future dale. No value can r¢pdily be attributed to the ontract as future returns are dependent on bonuses which in lui'n depend on investrnent relums and inflation. Therefore ihe asset included in the balance sheei in respect of this scheme is valued on the basis of premium5 paid to dat¢ in respect of Sisters still in the schem¢. Receipts on maturity are credited to the Statement of Financial Activities n¢t of the relevant premiums. All Inovem¢nts in value are shown in ihe Statement of Financial Activities. Soelal investmcnts Prograinme relaied investments are included at cost. Designated fuNd5 Th¢ trustees have designated funds out of the unTestri¢ted funds to provide for the Charity's commitment to provide for the retirement and care in old age and sickn¢ss of the Chai'ity's memb¢r5. Lump Sums received from member5, occupational pension schemes upon their retirement and transf¢i's from gen¢ral funds arc credited to this fund tog¢ther with income gen￿'#led by designated investmeMt5. Restricted funds Restricted funds are held subject to specific conditions declared by the donor as explained in the financial statements. General funds General fund$ comprise fi2nds which are available to b¢ used for the general PlltV05es of the charity. Foreign eurr¢Ncies T17nsactions in foreign eurr¢ncies are translated at rates prevailing at the date of the transa¢tion. Balanc¢s denominated in foreign curr¢n¢ies are translated at the rate ofexchange prevailing at the year end. Any ex¢hange differen¢cs arising from the translation are dealt with in the Statement of Financial ActiYi(i¢s. Pension scheme Contributions are made to a defjned contribution pension scheme for staff. The contributions are charged to the Statement of FinancTal Activitie5 when they becoine payable. Crltical accollntillg judgements and key sources ofeslimation uncertainty In the application of the accounting polic￿¢S, Iruslees are required to make judgement, estimates, and assumptions about the cariying value of assets and liabilities that are not readily apparent from other sources. The e5titnates and underlying a$5umptions ale based on historical experience and other factors that are ¢on5idered to b¢ relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision5 to ac¢ounting estimates are r¢¢ognised in the period in which the cstimaie is revised if th¢ revision arr￿tS only that pcriod. oi. in th¢ period of Ilie revision and future periods if the revision affe¢ted current and future periods. Judgeinent5 made by th¢ truslees, in the application of these accounting policies that have significant effect on the financial statements and estiinates wilh a significant I'ilk of material adjustn)ent in the next year are deEmed tg be in relation to the depreciation ratcs of tangihle fixed assets and ar¢ discussed above. In the view of the tnjstees, no assurnptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjusiment to their caTrying amounts in the next financial year. 20 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 DONATIOf4S AND LEGACIES 2024 2023 Unrestricted donations Legacies 138 900 842 160,307 1,038 161,149 OTHER If4COME 2024 2023 Other income Gains on disposal of fjxed assets 83,587 99,614 1.350 83,587 100.964 EXPEP4DITURE S#larie5 Depreelatio Other 2024 2023 Rftisiiigfuiids.. Investmeni manAtser's f¢e Clirtrilable ficilvllles.. Communities Education Missions and gi'ants Development costs 50,586 50,586 48,526 386,091 252,698 1,119,703 6,725 52,054 57,051 1,758,492 6,725 52,054 120,409 1,692,947 2,457 84,902 130,356 63.358 449.449 252,698 1,286,119 1,988,266 1,959.188 2024 2023 Missions and charitable grants compri$e'. Generalate of the Congirgation Alms and other charitable donations 60,000 24,902 52,054 52,054 84,902 Expenditure includes.. Auditor's remuneration audit fee 18,8(X) 17,800 21 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELANI) NOTES TO THE FINANCIAL STATEMENTS {¢ontinued> FOR THE YEAR ENDED31 DECEMBER 2024 EXPENDJTURE (eontinued) Comparative an#ly5i$ 2023 Salaries Depreciation Other 202J Rulsliigfiinds.. Investtneni manag¢r's fee Cliftrliahle rteilvilies.. Communities Education Mi%sions and grants Devclopment costs 48,526 48,526 378,279 253,588 1,061,080 2,457 84,902 70,080 1,692,947 2,457 84,902 130,350 60,276 438,555 253.588 1,267,045 1,959,188 STAFF COSTS 2024 2023 Wages and salai'ies Social secui'ity Other pension costs 405,666 28,419 15.364 396,630 27,340 14,585 449.449 438,555 2024 Number 2023 Number The average nwnber of employee% in the year was.. 24 23 No employ¢e ieceiv¢d in exces$ of £60,000 in either year. Total remuneration for key management personnel for the year was £180,589 (2023.. £150,182). TRANSACTIONS WITH THE TRUSTEES The Trustees of the Chariry are all meinbers of a Religious Order. They havo taken vows of poverty under which they renounce all rights to a personal income and assets. They are Iheiefore entirely dependent on th¢ charity foi. all their iving expens¢s. The Trustees do not receive any payinenls OT benefits for carrying out IheiT duties other than iheir living expenses which are met by the Charity, which they receive in their capacity as member5 of the Religious Order. The charity owns a property which is let io the sibling of one trustee at a fair market rent. No rent was owing at the year end. 22 THE CONGREGATION OF THE DAUGHTF,RS OF WISDOM PROV1Tr4CE OF GREAT BRITAIN ATr4D IRELAND NOTES TO THE FINANCIAL STATEMENTS (conlinlled) FOR THE YEAR ENDED 31 DECEMBER 2024 TANGIBLE FIXED ASSETS Freehold Lnnd &rtd BuildinES Nursing Ilome nd Wisdom House Furniture and Fittlngs Motor Vehlcles General Abbey House Tot*1 COST OR VALUATION Ai l January 2024 Additions 1,510,751 3,700,967 6,792.242 634,170 1,928 66,936 12,705,066 1,928 At 31 December 2024 1,510,751 3,700,967 6,792,242 636,098 66,936 12,706,994 DEPREI CIATION At l January 2024 Charge for year 735,654 30,217 788,483 74,019 2,496,747 135,847 606,446 10,518 64,839 2,097 4,692,169 252,698 At 31 D¢eember 2024 765,871 862.502 2,632.594 616,964 66,936 4,944,867 NET BOOK VALUE At 31 December 2024 744,880 2,838,465 4,5 59,648 19,134 7,762,127 At 31 December 2023 775,097 2,912,484 4.295,495 27,724 2,097 8,012.897 Included in GeneTal ffreehold Land and Buildings above are leasehold buildings with a c051 of £474,541 and net book value of £246,947. The depre¢iation charge during ihe year was £9,492. There weTe no additions or disposals duTing the y¢ar. INVESTMENTS Soei81 Investment The Tru5t¢e5 provided financial support in the form of an unse¢ured Social Impact Investment for £82,850 to assist Sophia Houssng Association, Ireland in their plans to expand their services. Th¢ investm¢nt is repayJble in full rowth/income perfoi'mance and industry benchmarks. The Truste¢s are content that the investments pei'foiTred as well as could be expected during 2024 and exprcssed their continued eonfidence in the inveshnent tnanageTS and in the quality of infoi'ination provided by thein. THE CONGREGATION OFTHE DAUGHTERS OF WISDOM TRUSTEES, REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER2024 FINANCIAL REVIEW Result5 for the year A summary of the year'5 results can be found in the Statemeni of Financial A¢tivities on page 16 of this repoi1 and accounts. During the year ended 31 December 2024 total income amounted to £1.088,836 (2023.. £1.209,431), Income was in line with expeclations other than the iE)vestment portfolio incoine, as noted above. The Delegation continues lo face a decline sn i'e¢urring Incoining Resourc¢s a5 the number (>f Sisters reduces only a few now re¢eive regular slipend5 and none receives a salary. The valu¢ of funds on the balance sheet are also affected, though only to a small dew'ee by th¢ movement in the pound.. euro exchange rate as most of its funds are now held in stei'ling. Expenditure of £1,988,266 (2023= £1,959.188} include a donation toward5 the work and running expenses of the Congregation's General Administration in lieu of project funding in 2023. Throughout the year, a number of Sisters were resident in Marie Louise House, lor which a fee is paid to th¢ home's managing Lompany, Health¢aTe Managem¢t]t Trust,. the average number of Sisters resident in Marie Louise House in 2024 was threc, plus occasional periods of recuperation and rehabilitation for some Sisters following a stay in hospital. Net ¢xpenditure b¢fore gaIn￿{loSSeS) on investments for the year was, therefore. £899.430 (2023.. £749,757). Investm¢nt gains this yeai. amounted to £717,448 (2023.. £535,345). The Lead¢rship Team Jt501ved during 2016 that any communitie5 that receive financial support from lh¢ Delegation for tlieir ongoing living costs should no longer remit lo the Delegation a portion of funds held by them at the end of the y¢ai'. Communiti¢$ ihat continue to have incorne greater thpn their needs still i'emit three quarters of their y¢ar-end surpllls to support other eommuniti¢s in the Delegation. The number of communities whtss¢ income is greater than they need has dropp¢d dramatically in r¢cent years, while the number of communities supported by ¢¢ntral funds is it]creasing. Financial posltlon and reserves policy FinuKciolposilion At the end of the year to 31 Deceinb¢r 2024 the total funds of the Charity wei'e £18,489.246 (2023.. £18,671,228). Of this some £8 million is represertted by properties and other tan¥ible fixcd assets essential foi. the support and work of the Sisters. £8.35 million was designated to meet th¢ eommitment to provide for the care of the older members of the Charity, which is part of the purpose of the Charity. In 2018 the Tiustees agreed t(Tr draw down froit) the Fund to ¢over 50/• of the nursing liome fees for Sisters of the Delegation. Funds expended from th¢ Designated Re5¢rves during the year totall¢d £165.905 (2023= £150.453). THE CONGRECATION OFTHE DAUGHTERS OFWISDOM TRUSTEES, REPORT leoThtillued) FOR THE YEAR ENDED 31 DECEMBER 2024 FINANCIAL REVIEW {continued) Re.¥erves policjp This report demonstrat¢s the range of activitie5 which the Chariiy ¢ontinues to carry out and the Tesponsibility the Charity has for the care and sllpport of its menibers. All the Sisters have devoted the whole of theii. working lives to the Congregation and are dependent upon it for all iheir tcmporal material need4. Although Sisters invariably continue to perform charilable work long past norn)al retircment and pension age if they are healthy enough to do so, Ihe work is mainly non-remtJn¢rative, and the Delegation must provide for their needs and Èn some cases nursing care. The Trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed essets, designat¢d for specific purposes, or otherwise committ¢d. The Trusiees consider that. given the nature of the Charity's work and it5 commitments, the level of free reserves should be not less ihan twelve months expenditure. At 31 December 2024 fr¢e reserves represenitd some 14 months of expenditure, which the Trustces believe is suffitient considering current plans and anticipated inflow of funds from disposal of PToperties that are likely to materialise in th¢ next 12 to 24 months. Restricted Fund5 During a prevtous yeai., a donation was made io ihe Charity whose use wa$ re5tri¢ted by the donor to 'the welfare of the Sister5. The interpretation of the Sisters welfare, has been left 10 lh¢ discretion of the sei'ving Trustees to define but 15 intended to ¢xclude repair5 and renewals to plani and property. The funds can be expended for th¢ir welfare in generdl or for any Sister or Sistei's. There was no draw dowtt Irom thi5 ￿nd in 2024. Key management personnel The Iruslees have identified the General Manager, the FiTtance Manager, and the Wisdom Centre Maiiager as the key management personn¢l for the Charity a5 they directly influ¢nce day to day operation of the whole organi5ation and ils main mission activity resp¢ctiYely. Toral salary paid to ihese personnel was £180.589 in 202412023.. £150,182). The pay for these Posts is set prior to appointinent of th¢ individuals paying irgard to the rnai'kct rate for equivalent Posts in other chariiies itnd non-charitable organisations. A pay review for all members of staff, En¢luding key managem¢nt personnel. lake5 plac¢ annually during? the budg>eiing ¢ycle and is set prin¢ipally with reference to cost of living and inflationary piEssures balanced against the Charity's prudent maT)agemenl of its resources in the eontext of a deficit budget. In 2024 ihe salary r¢vicw, taking account of the excepiional I'ise in inflaiion, ￿$￿Ited in an increase of 30/0 for all staff salari¢s from January 2024. PLANS FOR FUTURE PERIODS Within the framework of the Guidanc¢ on Public Benefit, the Charity works for th¢.'_ Advancement of religion Advancement of education Advancement of hurnan righrs, conflict IEsolution and reconciliation P]Dmotion ofre5PCCt for the gift of Creation 10 THE CONGREGATION OFTHE DAUGHTERS OFWISDOM TRUSTEES, REPORT {¢ontinued) FOR THEYEAR ENDED 31 DECEMBER 2024 PLANS FOR FUTURE PERIODS (continued) During 2025 lh¢ Charity will..- Continue the irkvestment of further time, effort, and reSoU￿eS inio the ongoing spiritual and human development of Ihe Sisters for mission. During the coming year, the Council of the Congregation will take place in France, at which two Sisters of the Delegation will participate. Continue th¢ developmeT)t of the use of the Wisdom Centre, Romsey, alongside the use of the Labyrinth and other gardens which are open to the local community. Jointly with othcr cortgregatlOll5 and agencies d¢velop the work of Sophia, Ir¢land, to promote th¢ humanity and dignity of homeless and marginalised people. Continue to review the Delegation prop¢rty portfolio and dispose of surplus property and undertake some major d¢¢orating works as requii'ed. Review lis financi41 management, in particular its investment strategy and the designation of funds for ¢aTe of its elderly rnembers. Commence a diseernment process to delertnine the future of the Delegation's ministries and properties. Continue to participate in discussions wilh the Conferences of Religious in England and Wales, Scotland and Ireland about the future diiEction and purpose of ihe respeciive Confei'¢nces. Continue to participate in the review of safeguarding practice for religious orders within the Catholic Church to ¢nsllre that ihe Delegation's practice stays current, relevant, and up io date. and lo prepar¢ for an audit of its safeguarding policies that is likely to take place in 2024 ov 2025. INVESTMENT POLICY The Chariry has a discretionary investment management agreement with Brewin Dolphin. The Tru5t¢e5 meet with the fund managers once every three ro four months and ensui'e that th¢ fund is managed in accordan¢e with their written guidelines and with ihe religious and ethical principles of the ChaTIty. The investment objectiv¢$ are'.- (a) io generate enough income to fund for the foreseeable future that part of the Charity's ODgoing activiti¢S ¢unrntly fund¢d by investinent incoin¢ to maintain the Iral capital value Of the investment fund in the long temi (b) Asset allocation 15 ben¢hmarked againsi the FTSE All Shar¢ Index weightings. At the start of the year the portfolio open¢d wilh a value of £9,734,272, Divid¢nd income for the year of £305.097 was higher Ihan the previous year's incoine of £274,264 and £12,541 less than budgeted for the year. By the end of the year the portfolio had grown to £10,248,391 which repre5¢nls steady growth durin8 the year in rnarket conditions ihgt continue to be Challenging. The Trnstees continue ro have every coDfidence the investment managers to assist tliem in achieving their goal of balanced growth and yield portfolio to support ihe Sisters, needs and inission in future years. AUDITORS On 18 Novembei. 2024 the ¢ompany'5 audiior changed its nan)e from haysmacintyre LLP to Haysmac LLP. THE CONGREGATION OFTHE DAUGHTERS OF WISDOM TRUSTEES, REPORT (contlnued) FOR THE YEAR ENDED 31 DECEMBER 2024 STATEMF.NT OFTRUSTEEIS, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standard5 {>'inancial Reporting Standard 102). Chai'ity law requir¢s the Trustee5 to prepare accounls for each finan¢ial yeai. which give a true and fair view of the State of affairs of the Chai'ity at the year end and of it5 in¢ome and expendilure durin¥ thal year. In prcparing the accounts, the Trustees are requi￿d to'.- select suitable accounting policies and apply them ¢onsistently' observe the m¢thods and prin¢iples of the Charities SORP; make judgements ond estimates that reasonable and prudent,. stale whether applicable accounting stand8rds and statement5 Qf recommended practice h&ve b¢en followed, subject to any departUlES disclosed and ¢xplained in the accounts. prepare the accounts on the going concern basis unless il is inappropriate to presum¢ that the Charity will coniinue in operation. The Tntstees are responsible for ke¢piT)g accounting re¢ords which disclose with reasonable accuracy the financial position of the Charity and which enable rhem to ensure (hat lh¢ accounts comply with the Charities Act 2011, the Charity (Accounts and Repojlsl Regulations 2008 and the provisions of ihe Trust Deed. 1.hey are also r¢sponsible for safeguarding the assets of the Chai'ity and hence for taking re#soiiable steps foi. the prevention and detection of fTaud and o¢h¢r irregulariti¢s. Approved by th¢ Trustees on 15 May 2025 and signed as authorised on their behalf by.. Sistei. Maureen Seddon D. W. Delegation Leader Trustee 12 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CONGREGATION OF THE DAUGHTERS OF WISDOM Opinion We have audited the financial statements of the Congregaiion of the Daught¢rs of Wisdom for the year ended 31 Decemb¢r 2024 which comprise ihe Slatement of Financial Activities, the Balance Sheet, th¢ Statement of Cash Flow5 and the IElat¢d noles to the financial Statements, including a summary of significant dccounting policie5. The financial reporting franiework that has been applied in theii. prepai?tion is applicable law and United Kingdom AccoLTrntiftg Standai'ds, including Financial Reporting Srandard 102 The Financial Reporti￿g Sid￿dal.d applic(7ble in ihe UK Repjiblic oJ'Ji-elttnd (United Kingdom Generally Accepied Accountsng Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as ai 31 Decernber 2024 and of the charity'5 net movemet)t in funds for the year then ended., have been properly prepared in accordance with the requirements of the Charities Act 2011 and the Charities and Trustee Investrnent (Scotland) Act 2(H)5 and regulation 8 of the Charities Accounts {Scotland} regulation5. B49ts for opinion W¢ have been appointed as auditor under section 144 of the Charities Act 2011, and section 44{1)(c) of the Charities and Trusttt Investment (Scotland) Act 2005 and report in accordance with the Atis and relevant regulations made or having effect thereunder. We conducted our audit in accordance with Inieimational Standards on Auditing (UK) (ISAS (UK}} and applicable law. Our responsibilities under thos¢ standards are furth¢i' described in the Auditor's responsibilities for the audit of the financial stal¢ments section of our report. We are independeni of the chai'ity in accoidance with ihe ethical requirements that ar¢ relevant to our audit of th¢ fit]ancial statcm¢nts the UK. including ihe FRC'S Ethical Siandard, and w¢ have fulfilled our other ethical r¢sponsibilitie5 in accordance with these reouirements. We believe that the audit evidence we have obtained 15 sufficient and appropriale to provide a basis for our opinion. Con¢luslons relating to going concern In audiling Ihe fiiiancial statements, w¢ have concluded that the trustees, use of the going con¢¢m basis of accounling in the p￿paratIOn of rhe financial 5tateinents is appropriate. Based on the work we have performed, w¢ have not identified any malei'ial uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to ¢oniinue as a going concern for a period uf al leost twelve months from when the financial statements are authorised for issue. Our responsibilities and ihe responsibilities of the trustees with respect to going concem ar¢ described in the relevant sections of thi5 report. Other informstlon The trustees are responsible for ihe other infoi'mation. The other information comprises the inforn)ation included in the Trustees, Report. Our opinion on ihe financial Statements does not cover the other information and. except to Ihe extenl otherwise expliriily stated in our report, we do not expres5 any fomi of assurallce conclusion theTeon. In connection with our audit of the financial statem¢nts, our responsibility is to read th¢ other infomialion and. in doing so. consider whether the othcr information is materially inconsistent with the financial stat¢menrs or our knowledge obtained in the audit QT Otherwise appeArs to be materially rnisstated. If we identify such material intonsistencies or apparent material misstatements, we are required to determine wheiher theTe is a mat¢rial misstatemcnt in the financial statcmenis or a maierial misstatement of the oihcr information. If, based on the work we have pei'formed, we conclude that Ihere 15 a maiei'ial misstatement of this other infurination, we are required to report ihat fa¢t. We have nothing to ieport in this regard. Matters on which we are requireil to report by exeeption We have nothing to report in rcspect of the following matters in relation to whieh the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulation5 2006 require us to report to you if, in our opinion.. ad¢quate accounling records have no( been kept by the charity. or sufficient and pi'oper aecouniing records have not be¢n kept,. or the charity financial statem¢nts are not in agreement with the accounting records and retums,. or we hav¢ not i'eceivcd all the information and explanations we Irquire for our audit. 13 INDEPENDENT AUDITOR'S REPORT TO THF. TRUSTEES OF THE CONGREGATION OF THE DAUGHTERS OF WISDOM (Continued) Responsibllitie5 of truslees for the financial ¥tolemenls As explained mol'e fully in the Irusiees. r¢spon5ibilities statemeni set out on page 12, the trustees are rcspon5ibl¢ for the preparation of the financial statements and foT being satisfied ihat they give a twe and fail. view, and for such intemal control as the trustees detemiine is n¢ce$5ary to enable the prep&raiion of financial statements that are free from material missratement, wh¢ther due to fraud or e￿or. In preparing the financial statements, Ihe trustees are responsible for assessing the cliarity's ability to continue as a going concern, disclosing, as applicable, matters related io going con¢ern and using ihe going concern basis of accoui)ting unless the Iru5tee5 eitheT intend to liquidate the charity or to cease operations, or have no realistic alteTnative but to do so. Auditor'5 responsibilities for the audit of the finanei&l statements Our objectives are to obtain reasonable assui'ance about whether the financial statements as a whole are free from material misstatemenl, whether du¢ tu fyaud or error, and to 155ue 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 ac¢ordance with ISAS {UK) will always detect a material misstatement when it exists. Misstaterncnts can ai'ise from fraud or error and are considered matcrial if, individually OT Ill the aggregate, they wuld Irasonably be expected to influence the economi¢ decisions of users taken on the basis of these financial statements. Irregularili¢s, including fraud. are instances of non-complian¢¢ W￿th laws and regulations. We design procedures in linc with our r¢5ponsibilities, ouilined above, to detect material mi5Statements in respect of iiT¢gularities, including fraud. The extent to which our procedures ar¢ capable of detecting iircgularities, including fraud is detailcd below.. Based on our undersianding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance wilh laws and regulations related to health and safety regulations, employment law, safeguarding regulations and Charity law, and we considered the extent to which non-compliance might have & mat¢i'ial effect on the financial slatemenls. We also considered thos¢ laws and regulations that have a direct impact on the preparation of th¢ financial statements such as the Chai'ities Act 2011. We evaluated management's incentives and opponunities for fraudulent manipulation of the financial statem¢nts (including the I'isk of oven'ide of controls), and deterniined that the principal risks were related to depreciation ¢haTges. Audit PlDcedures perfom]¢d by the engagement tearn included.. Inspecting minu1¢5 of Trustees. meetings. Reviewing calculations for depre¢iption including irviewing esttinated useful economic lives., Inspecting correspond¢n¢e with regulator5 2nd tax authorilies., Discussions W￿th management including consideralion of known or suspected instan¢es of non-compliance with laws and regulation and fraud., Ev21uating manageiiient's controls designed to prevent and detect irregularitie5' Id¢ntifying and testing journals. Reviewing valuations of inv¢stments', and Challenging assumptions and judgements made by management in their critical accounting estimates. Because of rhe inh¢i'ent limitations of an audit, there is a risk that we will not detect all irrcgularities, including th05¢ leading to a Inatei'ial misstatenient in the financial statements or noii-compliance ivith rcgulation. This risk increases tho more that compliance with a law or regulation is removed from the ¢vents and transaction% reflected in the financial 5tatemcnts, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding ilTegularities OCCUlTing due to fi7ud rather than error, as fiaud involves intentional concealment, forgery, collusion, omission or InislEpresenialion. A fuither descrtp¢ion of our responsibilities for the audit of the financial statements is located on the financial Reporting Council'5 website at.. www.frc.or .uklauditorsi'es ongibilities. This description forms part of our auditor's report. 14 INDEPENDE4f4T AUDITOR'S REPORT TO THE TRUSTEES OF THE CONGREGATION OF THE DAUGHTERS OF WISDOM (continued) Use of our report This report is made 501ely (o the charity's trustees, as a body. in accordan¢¢ with section 144 of the Charities Act 201 l and regulations made under section 154 of that Act, and Section 44(1 l(c) of thc Charitie5 and Trustee Investment (Scotlandl Act 2005 and regulation 10 of the Charitie5 Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that w¢ might stat¢ tv the charily's trust¢¢s those n)alteis we are r£quiTed to slate io thcm in an Auditor's report and for no oEh¢r purpose. To the fullest extent perinitted by law, we do not accept or assume responsibility to anyone other ihan the charity's trustees as a body for our audit worK for this report, or for the opinions we have formed. HaysMa¢ LLP Statutory Au Date.. 10 Qu¢en Street Place London .C4R IAG Haysmac LLP is eligible io act as an audiror in tern)5 of s¢¢tion 1212 of the Companies Act 2006 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024 Unr¢$tricted Reslricled FuJ]ds Funds Total 21124 TotAI 2023 Nol¢$ Income from.. Donation5, legacies and grants Cl)aritdble activities Invesht)ent5 Otlier 1.038 504,083 500,128 83,587 1,038 504,083 500,128 83,587 161,149 496.406 450,912 100,964 Total income 1,088,836 1,088,836 1,209,431 Expenditure ON: Raising funds Charitable aclivilies Communities Education Missions and grants Developm¢nt costs 50,586 50,586 48,526 1,758,492 6,725 52.054 120.409 1,758,492 6,725 52.054 120,409 1,692,947 2,457 84,902 130,356 Total expendlture 1,988,266 1,988,266 1,959,188 Net expeiiditure before net gains on investments (899,430) (899,430) (749,757) Net gains on inv¢stm¢Dts 717,448 717,448 535,345 r4et movements in funds (181,982} {151,982) {2I4,412) Total funds brought forward ai l January 2024 18,663,690 7,538 18,671,228 18,885,640 Totlll fund5 carried forward al 31 December 2024 18,481,708 7,538 18,489,246 18,671,228 The statement of fmaneial 8¢tivities includes all gains and 105ses recognised in the year. All income and expenditure derive from ¢ot)tinuing activities. Details of comparative figures by fund are disclos¢d in note 13. 16 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCF, OF CREAT BRITAIN AND IRF.LAND BALANCE SHEET AS AT 31 DF.CEMBER 2024 2024 2023 Notes FIXED ASSETS Tangible assets Inve51menis Social investments 7,762,127 10.348,528 82,850 8,012,897 10,221,063 88,430 18,193,505 18,322,390 CURRENT ASSETS Debiors Cash at bank and in hand 71,208 935,680 74,580 435,078 1,006,888 509,658 CRFDITORS: amounts falling due within one year (711,147) {160,820) NET CURRENT ASSETS 295,7d I 348,838 TOTAL NET ASSETS 18,489,246 18,671,228 FUNDS Restricted Funds 10 7,538 7,538 Unrestricted Funds General Funds Designated Funds 10.135,825 8,345,883 10,151,902 8,511,788 10 18,489,246 8,671.228 Approved by the Trustee5 on 15 May 2025 and signed as authorised on their behalf by: Sist¢i' Maureen 8eddon D.W Delegation Leader Trustee The accornpanying notes forni part of th¢se accoun15. 17 THE CONGREGAT1014 OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Cash flow5 from operating actlvltles: el ctssli (iised lii)/provided by operrtiliiK uclivliles {587,581) {1,238,245) Cash flows from investing aelivllRe5: Dividend%, interest and ret)ts from inv¢stments Proceed% from the sale of property, plant and equipment Purchase ofpruperty, plant and equipment Proceeds from sale of iiiveslments Purchase of inve5tmcnts Movcment in cash held by investment managers 500,128 450,912 1,470 (11,484) 2,399,634 {2,577,247) 226,167 {1,928} 2,991,967 (2,520,186) 118,202 Nel crtsli providedby/{iiserflii) liivuiliig rtcilwiles 1,088,183 489,452 Change in cash and eash equivalents in the rcportlng period 500,602 (748,793) Cash anif eush equivalents at the beginnlng of the reporting period 435,078 1,183,871 Cash and eash equivalents #t the end of the reporting period 935,680 435,078 2024 2023 Reconciliation of nel expenditure to net cash Ilow from operating activities Net expenditure for the reporting P¢Tiod Deprecialion charge Gain5 on sale of fixed assets {Gains}/losses on investments For¢ign exchang¢ loss on social investments Dividends, int¢Te5t and rents froin investments Decreasel(in¢Tease} in debtoi's Increasol(decrease) in creditors {181,982) 252,698 {214,412) 253,588 (1,350) {535,345) (717,448) 5,580 (5(10,128) 3,372 550,327 {450,912) {27,559) (262,255) Net eash {used in)Iprovided by Investiiig aelivities (587,581) {1,238,245) Analysi5 of cash and c8sh equlvalentS 21124 2023 Cash itt hand 935,680 435,078 Total ea5h cash equivalenls 935.680 435.078 18 THE CONGRECATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IIiELAND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2024 Basis of preparation The financial statements have been prepai'ed in accordance with Accounting and Reporting by Charities.. Stateinent of Recoinniended Praciice applicable to chArities preparing their actounts in accordanc¢ with the Statement of R¢commeiided Praclice for Chai'ities (SORP 2019 Second Edition) and the Fitjancial Reporting Standard applicable in ihe UK and Republi ofireland (FRS 102). The charity constitutes a public benefit entity as defined by FRS 102. Assets and liabilitics are initially recognised at historical cost or transaction value unless otherwise slated in the relevant ac¢ounling poliLy notes. Preparation of accounts on a going eoncerN basls The trustees consider th¢re are no material uncertainties about the charity's ability to continue as a going concern. The trustees believe it is appropriate for the going concern basis to apply to the charity. The review of the ¢hariry's financial perfonnance and reserves posiiion gives the trustee5 every confid¢nce that the charity remains a go￿rtg conceiw for Ihe foreseeable future. Covenanted salaries and pension5 Members, salaries, pensions and superannuation are re¢¢iv¢d undei. deeds of ¢ovenant and are stated in¢lusive of in¢ome tax but net of any deduetions for Irish taxation, social security payments and contributions to occupational pengion schemeg. Donation$ and legacles Donaiion5 and leg8cies are r¢cognised when receivable or when the Charity becomes legally entitled to them. Receipls of property, investments or other gifts in kind are included at maykei value. Oth¢r ineorne All other income is accounted for when the charity becomes entitled to the income and the amourtt can be quantified wilh reasonable accuracy. Expendlture Expenditure on raising fund5 consists of investm¢nt management costs. Charitable expenditure consists o( all exp¢nditure relating to the objects of the ChaTity. All costs are directly attriL)utable to the a¢tivities under whi¢h they have been analysed. 5rr¢coverable VAT is in¢luded witli the category of expense to which it relates. Tangible fixed assets Land and buildings ar¢ stated ai a Truste¢s' 1991 valuation plus subsequent additions at cost, allowance being made where buildings have been demolished. All other assets ar¢ included at cosi. Depreciation is calculated by the siraight line method to wi'iie off the eostlvalue, less antscipated residual value, over th¢ expected usefvl lives of assets as follows. Depi'eeiation is not provided on buildings under CODStruction until they aTe ¢ompleted and bought into use. Firehold and long leasehold buildings Fumiture and equipment Computer equipment Motor vehicles SO years 3to 15years 3 years 415 years 19 THE CONGREIGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND ACCOUNTING POLICIES (Continued) FOR THE YEAR ENDED 31 DECEMBER2024 Investments Quoted investments are valued at their closing middle market price on the balance sheet date and the gatn or loss tak¢n to the Statement of Financial Activities. Iii addition, the Charity hd5 established a pension schemc for certaiji Sisters. The scheme is a defe)Ted annuity contract whereby a cei18in guaranteed sum is payable to the chai'ity at a fixed future dale. No value can r¢pdily be attributed to the ontract as future returns are dependent on bonuses which in lui'n depend on investrnent relums and inflation. Therefore ihe asset included in the balance sheei in respect of this scheme is valued on the basis of premium5 paid to dat¢ in respect of Sisters still in the schem¢. Receipts on maturity are credited to the Statement of Financial Activities n¢t of the relevant premiums. All Inovem¢nts in value are shown in ihe Statement of Financial Activities. Soelal investmcnts Prograinme relaied investments are included at cost. Designated fuNd5 Th¢ trustees have designated funds out of the unTestri¢ted funds to provide for the Charity's commitment to provide for the retirement and care in old age and sickn¢ss of the Chai'ity's memb¢r5. Lump Sums received from member5, occupational pension schemes upon their retirement and transf¢i's from gen¢ral funds arc credited to this fund tog¢ther with income gen￿'#led by designated investmeMt5. Restricted funds Restricted funds are held subject to specific conditions declared by the donor as explained in the financial statements. General funds General fund$ comprise fi2nds which are available to b¢ used for the general PlltV05es of the charity. Foreign eurr¢Ncies T17nsactions in foreign eurr¢ncies are translated at rates prevailing at the date of the transa¢tion. Balanc¢s denominated in foreign curr¢n¢ies are translated at the rate ofexchange prevailing at the year end. Any ex¢hange differen¢cs arising from the translation are dealt with in the Statement of Financial ActiYi(i¢s. Pension scheme Contributions are made to a defjned contribution pension scheme for staff. The contributions are charged to the Statement of FinancTal Activitie5 when they becoine payable. Crltical accollntillg judgements and key sources ofeslimation uncertainty In the application of the accounting polic￿¢S, Iruslees are required to make judgement, estimates, and assumptions about the cariying value of assets and liabilities that are not readily apparent from other sources. The e5titnates and underlying a$5umptions ale based on historical experience and other factors that are ¢on5idered to b¢ relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision5 to ac¢ounting estimates are r¢¢ognised in the period in which the cstimaie is revised if th¢ revision arr￿tS only that pcriod. oi. in th¢ period of Ilie revision and future periods if the revision affe¢ted current and future periods. Judgeinent5 made by th¢ truslees, in the application of these accounting policies that have significant effect on the financial statements and estiinates wilh a significant I'ilk of material adjustn)ent in the next year are deEmed tg be in relation to the depreciation ratcs of tangihle fixed assets and ar¢ discussed above. In the view of the tnjstees, no assurnptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjusiment to their caTrying amounts in the next financial year. 20 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELAND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 DONATIOf4S AND LEGACIES 2024 2023 Unrestricted donations Legacies 138 900 842 160,307 1,038 161,149 OTHER If4COME 2024 2023 Other income Gains on disposal of fjxed assets 83,587 99,614 1.350 83,587 100.964 EXPEP4DITURE S#larie5 Depreelatio Other 2024 2023 Rftisiiigfuiids.. Investmeni manAtser's f¢e Clirtrilable ficilvllles.. Communities Education Missions and gi'ants Development costs 50,586 50,586 48,526 386,091 252,698 1,119,703 6,725 52,054 57,051 1,758,492 6,725 52,054 120,409 1,692,947 2,457 84,902 130,356 63.358 449.449 252,698 1,286,119 1,988,266 1,959.188 2024 2023 Missions and charitable grants compri$e'. Generalate of the Congirgation Alms and other charitable donations 60,000 24,902 52,054 52,054 84,902 Expenditure includes.. Auditor's remuneration audit fee 18,8(X) 17,800 21 THE CONGREGATION OF THE DAUGHTERS OF WISDOM PROVINCE OF GREAT BRITAIN AND IRELANI) NOTES TO THE FINANCIAL STATEMENTS {¢ontinued> FOR THE YEAR ENDED31 DECEMBER 2024 EXPENDJTURE (eontinued) Comparative an#ly5i$ 2023 Salaries Depreciation Other 202J Rulsliigfiinds.. Investtneni manag¢r's fee Cliftrliahle rteilvilies.. Communities Education Mi%sions and grants Devclopment costs 48,526 48,526 378,279 253,588 1,061,080 2,457 84,902 70,080 1,692,947 2,457 84,902 130,350 60,276 438,555 253.588 1,267,045 1,959,188 STAFF COSTS 2024 2023 Wages and salai'ies Social secui'ity Other pension costs 405,666 28,419 15.364 396,630 27,340 14,585 449.449 438,555 2024 Number 2023 Number The average nwnber of employee% in the year was.. 24 23 No employ¢e ieceiv¢d in exces$ of £60,000 in either year. Total remuneration for key management personnel for the year was £180,589 (2023.. £150,182). TRANSACTIONS WITH THE TRUSTEES The Trustees of the Chariry are all meinbers of a Religious Order. They havo taken vows of poverty under which they renounce all rights to a personal income and assets. They are Iheiefore entirely dependent on th¢ charity foi. all their iving expens¢s. The Trustees do not receive any payinenls OT benefits for carrying out IheiT duties other than iheir living expenses which are met by the Charity, which they receive in their capacity as member5 of the Religious Order. The charity owns a property which is let io the sibling of one trustee at a fair market rent. No rent was owing at the year end. 22 THE CONGREGATION OF THE DAUGHTF,RS OF WISDOM PROV1Tr4CE OF GREAT BRITAIN ATr4D IRELAND NOTES TO THE FINANCIAL STATEMENTS (conlinlled) FOR THE YEAR ENDED 31 DECEMBER 2024 TANGIBLE FIXED ASSETS Freehold Lnnd &rtd BuildinES Nursing Ilome nd Wisdom House Furniture and Fittlngs Motor Vehlcles General Abbey House Tot*1 COST OR VALUATION Ai l January 2024 Additions 1,510,751 3,700,967 6,792.242 634,170 1,928 66,936 12,705,066 1,928 At 31 December 2024 1,510,751 3,700,967 6,792,242 636,098 66,936 12,706,994 DEPREI CIATION At l January 2024 Charge for year 735,654 30,217 788,483 74,019 2,496,747 135,847 606,446 10,518 64,839 2,097 4,692,169 252,698 At 31 D¢eember 2024 765,871 862.502 2,632.594 616,964 66,936 4,944,867 NET BOOK VALUE At 31 December 2024 744,880 2,838,465 4,5 59,648 19,134 7,762,127 At 31 December 2023 775,097 2,912,484 4.295,495 27,724 2,097 8,012.897 Included in GeneTal ffreehold Land and Buildings above are leasehold buildings with a c051 of £474,541 and net book value of £246,947. The depre¢iation charge during ihe year was £9,492. There weTe no additions or disposals duTing the y¢ar. INVESTMENTS Soei81 Investment The Tru5t¢e5 provided financial support in the form of an unse¢ured Social Impact Investment for £82,850 to assist Sophia Houssng Association, Ireland in their plans to expand their services. Th¢ investm¢nt is repayJble in full Under ISA 240 there is a presumed risk that revenue may
be misstated due to improper revenue recognition. We
are required to consider and respond to the risks of
improper revenue recognition.
The risk of incorrect treatment of income under UK GAAP,
specifically that income is recognised in the incorrect
period. We have rebutted the presumed risk in respect of
the following areas:
•
Sisters’ salaries and pensions due to their
predictable nature.
•
Rental income due to amounts due being known
in advance.
•
Investment income because it can be agreed
from third party sources.
•
Legacy income measurement, due to the high
profile of these streams of income due to the
level of documentation generated by the legal
process involved in proving entitlement.|We planned and performed specific tests to ensure income
has been recorded in the correct period by testing a sample
of transactions from source documentation to the ledger.
We also performed testing focussing around the financial
year-end, ensuring that transactions were accounted for in
the correct period.
We reviewed of the appropriateness of the recognition of
accrued income and deferred income.
We have assessed the appropriateness of the recognition
policies to confirm they are in line with the requirements
of the Charity SORP and FRS 102.|Our audit work on revenue did not identify any
material issues.| |||| 2 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 |||| |---|---|---| |**SIGNIFICANT AUDIT RISK AREA**|**HOW WE ADDRESSED THIS**|**COMMENTARY**| |||| |||| |**Presumed risk of management override**
We are required to consider and respond to the risks
arising from management override of controls.
The risk of misappropriation of assets and the risks of
misrepresentation of financial information.|We considered and reviewed all areas requiring judgement
or estimates in order to assess the appropriateness of the
judgements and estimates made by management.
We reviewed and tested journal entries made in the year,
and in particular those made as part of the year-end
financial reporting process. Where necessary we made
further enquiries regarding any seemingly inappropriate or
unusual journal or other adjustments. We incorporated
unpredictability in our testing procedures.|The results of our planned audit work are
considered to be satisfactory in this area.| |||| 3 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 ## 3. Accounting and Audit Matters ## **i. Key accounting estimates** **Significant accounting estimate & detail Commentary** ## **Depreciation** The rate of depreciation and the useful economic lives attributed to these assets is a significant and material accounting estimate to the accounts. The depreciation charge for the year is £253k in the 2024 accounts. We have reperformed the calculation for depreciation and ensured that the useful economic lives of each category of asset is in line with the accounting policies in the financial statements. We have also reviewed the economic lives for sense, to ensure that these are still considered to be appropriate. ## **ii. Letter of Representation** International Standards on Auditing require us to obtain written representations from the Trustees when you approve the financial statements. The letter contains only standard matters specific to the Charity, other than the following representation: - We confirm, to the best of our knowledge, that we consider the social investment in Sophia House Association recognised on the balance sheet (£83k) is still recoverable - We confirm that the charity has beneficial ownership of the long leasehold property at Balmoral Road. ## **iii. Misstatements** There were no unadjusted misstatements in the accounts other than clearly trivial items. 4 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 ## 4. Financial Review The purpose of this section of the report is to set out the key financial trends and to provide our perspective on the overall financial position. ## **Statement of Financial Activities** |**Income**
Donations and legacies
Pension income
Salaries and stipends
Investments and interest
Rental income
Other income
Exchange rate gains
Surplus on sale of FAs
Total income
**Expenditure**
Raising funds
Charitable activities:
•
Communities
•
Education
•
Missions and grants
•
Development costs
Total expenditure
**Net expenditure before**
**investment gains**|**2022**
**£**
11,518
466,575
41,477
277,919
158,508
83,961
-
114,208
1,154,166
49,057
1,556,420
6,093
147,450
110,895
1,869,915
**(715,749)**|**2023**
**£**
161,149
442,230
54,176
292,404
158,508
99,614
-
1,350
1,209,431
48,526
1,692,947
2,457
84,902
130,356
1,959,188
**(749,757)**|**Income**
Income from donations and legacies was higher in 2023 due to a legacy of £155k received
from the estate of Sr Shirley Martin.
Pension income increased due to inflationary increases in pension rates.
Income from investments and interest received increased by £49k (16%) partially due to
higher interest rates on deposits.
Surplus on sale of fixed assets in 2022 related to St Clare Avenue, Preston.
**Expenditure**
Cost of raising funds relates to investment manager fees which have remained consistent
year on year.
Community expenditure has shown a steady rise each year.
Missions and grants expenditure was higher in 2022 due to the £100k donation to the
congregational mission, relating to Haiti. The main grant in 2023 was £60k to the
Generalate and 2024 £10k to the Asha Deep Project in India.
Development costs have remained relatively consistent over the past 3 years.
**2024**
**£**
1,038
453,679
50,404
341,620
158,508
83,587
-
-
1,088,836
50,586
1,758,492
6,725
52,054
120,409
1,988,266
**(899,430)**| |---|---|---|---| 5 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 ## **Balance Sheet** |Tangible fixed assets
Investments
Social Investment
Current assets
Current liabilities
**Net assets**
Represented by
Restricted funds
Unrestricted funds
Designated funds
**Total funds**|**2022**
**£**
8,255,121
9,734,272
88,430
1,230,892
(423,075)
**18,885,640**
**10,000**
**10,213,399**
**8,662,241**
**18,885,640**|**2023**
**£**
8,012,897
10,221,063
88,430
509,658
(160,820)
**18,671,228**
**7,538**
**10,151,902**
**8,511,788**
**18,671,228**|**2024**
**£**
7,762,127
10,348,528
82,850
1,006,888
(711,147)| |---|---|---|---| ||||**18,489,246**| ||||**7,538**
**10,135,825**
**8,345,883**| ||||**18,489,246**| ## **Balance Sheet** Tangible fixed assets decreased in the year by £250k due to the depreciation charge in the year. Investments have increased by £127k. This reflects the overall stock market movement in 2024. The social investment relates to a 10 year unsecured loan to assist Sophia Housing, Ireland in their plans to expand their services. This was adjusted for foreign exchange movements at 31 December 2024. Current assets increased by £497k. This is largely due to the increase in cash and bank by £501k due to the increase in amounts held on behalf of Sisters. Debtors decreased by £3k. Current liabilities increased by £550k mainly due to the increase in amounts held on behalf of Sisters. ## **Funds Analysis** Total reserves have decreased by £182k to £18.49m. Designated funds, which represent the commitment to provide for the retirement and care of the Congregation’s members, amounted to £8.35m. General funds comprise £7.76m of tangible fixed assets and £2.09m of investments. Free reserves are £2.37m which represents approximately 14 months’ expenditure. The level of free reserves held at the year-end is consistent with the target level of reserves of 12 months’ expenditure. Restricted funds relate to a donation received to be spent on the welfare of the Sisters. . 6 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 ## 5. Detailed control points During the course of our audit we may identify detailed control points that we feel need to be brought to the attention of the Trustees and certain recommendations for improvements and/or corrective action. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation. The matters and detailed control points that we have identified are graded within the following framework to assist the Trustees in assessing their impact. |**RATING**|**RATING TYPE**|**CHARACTERISTICS OF RATING TYPE**| |---|---|---| |Significant
These findings are considered to be significant
to the management of risk in the business. The
finding represents a serious weakness in
systems and controls currently in place or a
potentially fundamental control that has been
omitted from the risk management systems as
currently in operation.
•
Key control omitted
•
Key control not designed or operating effectively, for example as indicated by
multiple exceptions found during our review work
•
Evidence of override of controls in place with significant or potentially fraudulent
outcomes
•
Non-compliance with laws and regulations||| |Important
Important findings that should be reviewed by
management, pending corrective action and or
updates to systems and controls.
•
Errors and exceptions noted during our testing that had corrected retrospectively
during the year by management.
•
Potential improvement to existing control noted
•
Possibility for override of controls exists
•
Our review noted numerous exceptions but not in key controls||| |Limited
Findings that identify non-compliance with
established systems and controls.
•
Minor control weakness, for example limited exceptions noted during our review
work||| |Advisory
Items requiring no immediate action but which
may be of interest to management or best
practice advice.
•
Information for department management
•
Control operating but scope for efficiency and/or effectiveness improvements exist
•
Control operating but not necessarily in accordance with best practice
•
Recent or anticipated developments may necessitate new controls.||| 7 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 We are pleased to confirm that no new matters arose from the current year audit to bring to your attention. We provide the latest status of outstanding issues arising from previous year audits below. ## Prior year |ISSUE:
IT PENETRATION TESTING||CONTROL POINT RATING:|ADVISORY| |---|---|---|---| |**Risk**|**Our comments & proposals**|**Update/Management response**|| |There is currently no regular penetration testing to
determine vulnerabilities in the IT infrastructure.
Unknown weaknesses may go undetected.
Test file restorations are also not performed.|We recommend that penetration testing and test
file restorations are performed on a regular basis to
ensure they work and help identify any issues.|Update comments needed|| 8 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 ## 6. Emerging issues ## Charity reporting and governance matters Charity commission guidance for charities facing decisions about donations On 4 March 2024 the Charity Commission published guidance to help charities when deciding to accept, refuse or return a donation. Whilst the default position should be accepting donations to further a charities objectives, the Commission appreciates that there are times when this will be difficult for a charity and has set out an approach to support trustees when making difficult decisions. The guidance is set out in a way to ensure that the law, trustee duties and charity’s powers are all considered. The guidance sets out examples of when donations must be refused or returned, donations that are likely to be refused/returned, additional considerations and how to document the decision made by trustees. The guidance can be found here. Updated guidance on decision-making for charity trustees (CC27) In September 2024 the Charity Commission published updates to its guidance on making trustee decisions. The aim of these updates is to make the guidance more accessible and easier to use, however the backbone of the guidance remains the seven principles developed by the courts when they reviewed decisions made by trustees, which we have set out below. When making decisions, trustees must: - act within their powers - act in good faith - be sufficiently informed - take into account all relevant factors - identify and disregard any irrelevant factors - manage conflicts of interest - ensure their decision is within the range of decisions that a reasonable trustee body could make The revised guidance can be found here. 9 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 Charity Commission guidance for charity meetings The charity commission guidance on charity meetings was also updated in July 2024 to make it more accessible and easier to use. The guidance covers how meetings should be planned, run and recorded, and sets out the ways in which meetings can be held (face to face, virtual or hybrid). The guidance emphasises that you must check your governing document to ensure that you are acting in accordance with its rules about meetings, to ensure that decisions are not invalidated. The guidance can be found here. Fundraising levy review In April 2024 the Fundraising Regulator announced plans to increase their yearly fundraising levy for the first time since its introduction in 2016. Each year there are around 2,000 charities covered by the levy, which is charged to charities who are registered with the Fundraising Regulator. The levy will increase for everyone, but the more you as a charity spend on fundraising, the higher that percentage increase will be. Conversely, the less you spend on fundraising, the lower it will be. The revised rates take effect from September 2024, with further increases from September 2025. Details of the rate changes can be found here. ## Financial Reporting UK GAAP Developments – FRS 102 Following the recent Periodic Review and other amendments to UK and Ireland accounting standards, the Financial Reporting Council (FRC) has issued now revised versions of FRSs 100, 101, 102, 103, 104 and 105. The FRC has also revised the “Overview of the financial reporting framework”. The changes to FRS 102 include the significant revisions made to leasing and revenue recognition which arose from the Periodic Review 2024. Most of these amendments are effective for accounting periods beginning on or after 1 January 2026, although those changes that relate to “supplier finance arrangements” have an earlier effective date of accounting periods beginning on or after 1 January 2025. These amendments seek to provide greater consistency and more (but not total) alignment to international accounting standards including: - A new 5 step model for revenue recognition, which is aligned to IFRS 15: Revenue from Contracts with Customers, (with some simplifications); - On balance sheet lease accounting for lessees, aligned to IFRS 16: Leases, (with certain practical exemptions); and - Other modifications to fair value measurement, uncertain tax positions, business combinations, and a revised Section 2 aligned with IASB’s Conceptual Framework.. The transition to the new requirements will take careful planning for many organisations currently following FRS 102. For instance, many organisations will see leases (and debt) hit their balance sheets for the first time. For some this will seem strange and for most will require careful planning to ensure, amongst other things, that all leases are captured, the financial effects are known, effects on reporting requirements e.g covenants are understood. The new accounting standards are available on the FRC website here. Note that despite the effective dates in the future, the new versions are described as the “current edition” with versions that are still in use described as “superseded editions”. 10 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 With the changes to FRS 102, there will also be changes to the Charities SORP, which had its last major revision in 2015 along with amendments in 2019. We are expecting its release in 2025, with an effective date from 1 January 2026 in line with the changes in FRS 102. An exposure draft of the SORP was issued in late March 2024. Along with the changes noted above, the exposure draft introduces a third tier of charity – those with income over £15m – from whom enhanced reporting in the trustees’ report is expected. ## Employment Tax ## Increase in employer’s National Insurance contributions (NIC) The Government, as part of the Autumn Budget, announced an increase in employer’s Class 1 National Insurance contributions (NIC) , rising by 1.2% to 15% and the reduction to the threshold at which employers will start to pay NIC to £5,000. It is intended that threshold limit will be fixed until 5 April 2028 and will increase in line with CPI. The increase will also apply to Class 1A NIC (benefits in kind) and Class 1B (PAYE settlement agreements) will applied from 6 April 2025. The Employment Allowance increased from 6 April 2025 from £5,000 to £10,500. The increased allowance will be available to all employers, not just those with a Class 1 NIC liability of less than £100,000. ## Increase in National Living Wage Ahead of the Autumn Statement the Government announced increases in the National Minimum Wage and National Living Wage rate increases which came into effect from 1 April 2025. |Details|NMW rate
£|Increase
£|Percentage increase
**%**| |---|---|---|---| |National Living Wage (21 and over)|£12.21|£0.77|6.7| |18-20 year old rate|£10.00|£1.40|16.3| |16-17 year old rate|£7.55|£1.15|18.0| |Apprentice rate|£7.55|£1.15|18.0| |Accommodation offset|£10.66|£0.67|6.7| 11 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 As part of the announcement the minimum hourly rates of pay for those aged between 16-years of age and the apprentice rate have been aligned. Employers will need to ensure that their payroll data is fully updated to reflect the increases. Pension salary exchange After much speculation, the Government has not made any changes in tax relief on employees’ pension contributions. Furthermore, NIC will not be levied on employer pension contributions, so pension salary exchange can be used to mitigate the increase in employers NIC. If you do not provide your employer pension in conjunction with a pension salary exchange arrangement, then this will be an ideal time to consider implementing such an arrangement, the benefits of which include: - Providing pensions in a National Insurance efficient manner. - Encourage employees to think about their saving for their retirement. - Increase employee engagement. - Help employers to maximize their salary budget. If you already have a pension salary exchange in place, given the Government’s recent announcements, now will be an ideal time to see whether it is achieving all your objectives. The use of a tax and NIC efficient salary can also be used to provide employees with an electric car. The chargeable percentage for electric vehicles will increase by 2% in 2028/29 and 2029/30, rising to 9% in 2029/30. The use of providing an electric vehicle in conjunction with a salary sacrifice will continue to be a viable option for employers who are looking at providing cars to their employees/directors. ## Mandating the reporting of benefits in kind via payroll software The government confirms that the use of payroll software to report and pay tax on benefits in kind will become mandatory, in phases, from April 2026. This will apply to income tax and Class 1A NICs. 12 The Congregation of the Daughters of Wisdom – Audit Findings Report | Year Ended 31 December 2024 Haysmac, 10 Queen Street Place London EC4R IAG T 020 7969 5500 haysmac.com Copyright 2024 Haysmae LLP. All rights r•Jèrvtd. H8ysM8C IS the trpKJin8 n8me ol H8ysM8c LLP. 8 limited liabilily p8rtnÈrship. Registered number.. OC423459. Registered in gn818nd end Wales. Re8lStered 10 carry on 8udit work in the UK and re8ul8red lor 8 ran8e ol investrnent business actlvilies by the Insiirure of Chartered Accountants in England 8nd Wales A list ol tnetnbÈrs' n8mÈs is 8voil8ble for inspection at10 Queen Street Place. London EC4R IAG. A mÈmber of th& ICAEW Pr8Ctiee Assur8rte Sck*me. Disclaimer. This publication h8s been produced by the p9rtners of H4ysMac LLP end is lor private circulation only Whilst every C8re has been taken In prep8ration of this doeument, it may contain errors lor which WÈ Cannot b& held rÈsponsibl&. In the ease of 8 specih-c problem, il is recomrnended that professional 8dvice be sou8ht. The materiel cont£ir*d in ihis publication rn8Y Th)1 be reproduced in whole (K in part by gny rneans, without tKior perrni5sion from H8ysM8o LLP