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2023-12-31-accounts

Congregation of Servants of Mary (London)

Annual Report and Accounts

31 December 2023

Charity Registration Number 241434

Contents

Reports
Reference and administrative information 1
Trustees’ report 3
Independent auditor’s report 18
Accounts
Statement of financial activities 23
Balance sheet 24
Statement of cash flows 25
Principal accounting policies 26
Notes to the accounts 32

The Congregation of Servants of Mary (London)

Reference and administrative information 31 December 2023

Trustees Sister Michelle Reilly
Sister Catherine Francis Farrell
Sister Joyce Mary Fryer
Sister Ellen Rachel O’Riordan
Sister Lydia Dominic Savio Edwards (appointed
15 May 2023)
(The trustees are incorporated under the
Charities Act 2011)
Congregational Councillor Sister Michelle Reilly
UK Treasurer Sister Lydia Dominic Savio Edwards
Administrative address Servite Sisters UK
St Mary’s Convent
90 Suffolk Road
London
N15 5RH
Telephone 0208 809 5674
Website www.servitesistersinternational.org
E-mail servitesrs@gmail.com
Charity registration number 241434
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Principal bankers HSBC Bank plc
69 Pall Mall
London
SW1Y 5EY

Congregation of Servants of Mary (London) 1

Reference and administrative information 31 December 2023

Investment managers BlackRock Investment Management (UK)
Limited
12 Throgmorton Avenue
London
EC2N 2DL
HSBC Global Asset Management (UK) Limited
78 St James’s Street
London
SW1A 1EJ
Solicitors Stone King LLP
Upper Borough Court
Upper Borough Walls
Bath
BA1 1RG

Congregation of Servants of Mary (London) 2

Trustees’ report 31 December 2023

The trustees present their report together with the accounts of the Congregation of Servants of Mary (London) (the “charity”) for the year ended 31 December 2023.

The accounts have been prepared in accordance with the accounting policies set out on pages 26 to 31 of the attached accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Introduction

The Congregation of Servants of Mary (the “Congregation”), commonly known as Servites, is an international Roman Catholic religious congregation supporting 165 sisters worldwide. It was founded in 1864 in France. Its Generalate is located in Paris. The UK Servite Sisters are directly governed by the Congregational Prioress, who has delegated the legal responsibilities to her Congregational Councillor, who is the Head Trustee.

The accounts accompanying this report are the accounts of the charitable trust on which the assets of the Congregation in England and Scotland are held.

Charitable objectives: Mission

The object of the Congregation of Servants of Mary (London), as set out in its governing document, is the furtherance of the Roman Catholic faith supporting education in all its forms.

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

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

Activities, objectives and achievements of the UK community

The spiritual principles which underpin the apostolic activity of our Religious Congregation are designed to benefit the public and also to demonstrate our key ministry which is the provision of quality care for our frail elderly sisters. The privilege of charitable status and the benefits which accrue act as an incentive for us to fashion our Mission and Ministries so as to meet the legal definition of charity and to comply with the requirements laid down by the Charity Commission. If we, as a charity, benefit from certain financial exemptions, then we are obliged to demonstrate by clear reporting that the exemptions convey a benefit to society that outweighs the lost revenue.

Caring for members of the Congregation

In common with many religious congregations in the UK, the age profile of the members of the Congregation is increasing and currently there are no new vocations emerging in the West but the numbers of sisters are growing in the Democratic Republic of Congo (DRC). The Congregation has an obligation, both moral and legal, to provide care for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to the care of the elderly, poor and marginalised in our society.

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Trustees’ report 31 December 2023

Activities, objectives and achievements of the UK community (continued)

Caring for members of the Congregation (continued)

The age profile of the Congregation in the UK at 31 December 2023 is shown graphically below:

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Age Profile 2023
15
14
10
5
7
2
1
0
90+ 80-89 70-79 60-69
Age
Number of Sisters
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As the age profile of the Congregation increases so too does the need to provide increasing and increasingly expensive care to the sisters. At 31 December 2023, six of the members of the Congregation were receiving care in the charity’s care home and in February 2024 moved to a new external facility. Over the next decade, the trustees expect this number requiring care to increase. As a consequence, the trustees are giving careful consideration to the impact of this on the work of individual members of the Congregation, the property requirements of the Congregation and the financial implications. In this regard, the objectives of the trustees over the current year are summarised below. All these objectives will continue to be applicable for the next few years also.

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Trustees’ report 31 December 2023

Activities, objectives and achievements of the UK community (continued)

The religious and charitable works of individual members of the Congregation can be divided into these principal areas: worship and prayer, the social and pastoral work of the sisters, trusteeships and support of schools, ministry and the support of overseas missionary work and supporting younger members of the Congregation to live and study in the West to promote our charism.

Worship and prayer

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

Social and pastoral work

The charity continues to realise its objectives by:

Many members of the Congregation are involved in various forms of social or pastoral work throughout the country, including support of the elderly, family support and chaplaincy in hospitals, educational establishments and in other charitable organisations. The sisters aim to help the poor and marginalised in society regardless of their personal background, faith, gender or individual circumstances.

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Trustees’ report 31 December 2023

Activities, objectives and achievements of the UK community (continued)

A Servite Sister is Assistant Chaplain at Our Lady’s High School. Links with the Servite Sisters are still very strong, and Servite values continue to inform many of the school’s processes and priorities. There are also international links with schools and students in countries such as Democratic Republic of Congo, Australia, United States of America, South Africa, France and Italy. The sister also volunteers in a South London Secondary School as a Chaplain one day a week. Another sister works with Religious Congregations as a Facilitator in various countries.

Part of Our Lady’s High School’s Mission Statement reads:

‘Our Lady’s Convent High School aims to meet the needs of all its pupils in the 11-19 age range. We provide high quality Catholic comprehensive education within a secure and caring environment, in accordance with Gospel values. Religious education is developed through the whole curriculum and life of the school which is fortunate enough to have its own chapel. The school seeks to enable its pupils: to reach their maximum potential in all areas of the curriculum, using their talents to the greater glory of God to gain a broad cultural enrichment and awareness and leave the school as informed, adaptable young people, well prepared for the next stage of their lives, whether in higher or further education, or in the world of work.’

Our Lady's has high expectations of its pupils in every aspect of their school life. Pupils are expected to be attentive during lessons, to be courteous to their teachers, considerate of their fellow pupils and to work to their best of their ability. The school endeavours to enable every pupil to do full justice to their God-given talents, to see the wonders of God's creation in the subjects they study and to learn to be a useful and generous member of the school community. Every member of the teaching staff is involved in the system of pastoral care and discipline. The work is co-ordinated each year by the Year Leader, who is a member of the senior staff and who works together with form and subject teachers, heads of department, deputies and the head teacher.

The sisters are no longer trustees of St Mary's Priory Voluntary Aided Infant School and St Mary's Priory Junior School in the London Borough of Haringey. However, the School, like Our Lady’s, retains a Servite link and retains the Servite values. St Mary’s School wants to develop a happy, caring and secure community which celebrates the multicultural diversity of the pupils.

Part of the mission statement reads:

‘Everyone at our school aspires to create an inclusive environment where we all feel valued and respected so that we can achieve our full potential for lifelong learning’

Congregation of Servants of Mary (London) 6

Trustees’ report 31 December 2023

Activities, objectives and achievements of the UK community (continued)

Education in all its forms (continued)

The children are encouraged to take some responsibility for protecting the resources of the earth. The Walking Bus helps to save energy and creates a sense of community. The school’s mission is to provide a positive, inclusive, Catholic environment for learning and growth which promotes excellence and inspires each individual to discover, develop and fulfil their spiritual, intellectual and personal potential and to become lifetime learners. It is felt that the school should provide a nurturing caring social environment, based on Christian values, in which the views of all members are heard, valued and respected and in which students are supported in their complete development as young adults.

The following are examples of the other education work undertaken by the sisters:

Overseas missionary work

The charity also helps support sisters working in healthcare and social and pastoral fields in the Democratic Republic of Congo, thereby helping some of the world’s poorest and most disadvantaged people. Medical support for the Vutahira Hospital Centre run by the Servite sisters in the DRC is also given funds.

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Trustees’ report 31 December 2023

Future plans

Relevant policies

Safeguarding policy

The charity has a robust policy for protecting adults at risk of abuse or neglect and has a designated safeguarding lead. In the event of any safeguarding incidents being reported they will be passed on to the relevant authorities as appropriate. The incident will be investigated in accordance with guidelines provided by the Catholic Safeguarding Standards Agency (CSSA) and appropriate action taken as required.

Fundraising policy

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of Professional Fundraisers.

The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2023, the charity received no complaints about its fundraising activities.

Investment policy

The charity’s investments are managed by BlackRock Investment Management (UK) Limited and HSBC Global Asset Management (UK) Limited. There are no restrictions on the charity’s power to invest apart from following the charity’s Ethical Investment Policy.

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Trustees’ report 31 December 2023

Relevant policies (continued)

Investment policy (continued)

The trustees’ investment powers are set out in the charity’s trust deed. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment managers’ views of the market prospects in the medium term.

The policy is to maximise total return through a diversified portfolio whilst providing a level of income advised by the trustees from time to time. There is also an ethical policy precluding investment in any company which, after reasonable enquiry, clearly has significant profits from an activity which is contrary to the objectives of the Roman Catholic Church, mainly armaments, pornography and oppressive regimes.

The performance of the portfolio and the charity’s investment strategy are reviewed by the trustees and their representative who meet with the investment managers at least twice a year.

The trustees receive quarterly reports and summaries detailing the performance of the portfolios.

Grants, donations and support of missionary work and ministry

Grants, donations and other payments in support of missionary work and ministry are decided on by the trustees in consultation with other members of the Congregation as appropriate. In the main, the charity supports the ministries of the Congregation of Servants of Mary in overseas countries. During the year the charity made two donations to the Congregation. Details can be found in note 3 to the accounts.

The trustees continue to give financial support also to United Kingdom through donations to organisations whose work is within the objects of the charity. Applications for grants and donations are not invited and the charity does not regard itself as a grant making entity.

Data protection

Members of the Congregation are contacted by email and can request access to all personal information that is retained. Details of staff and Sisters held at St. Juliana’s are held in compliance with data protection regulations.

Volunteers

Volunteers are friends of the Community and they share their spiritual gifts with the sisters and general public. Our Associates are in constant communication, their contribution both active and passive i.e. in supportive prayer is invaluable to our works.

Congregation of Servants of Mary (London) 9

Trustees’ report 31 December 2023

Financial review

Results for the year

A summary of the year’s results can be found on page 23 of this report and accounts.

During 2023 total income amounted to £1,298,906 (2022 - £1,128,222). Of the income, a total of £484,442 (2022 - £408,545) related to donations and legacies. This figure includes salaries and pensions of the sisters amounting to £415,714 (2022 - £405,412) covenanted to the charity. Investment income and interest receivable totalled £802,073 (2022 - £709,419).

Expenditure totalled £1,049,782 compared to £1,026,156 in 2022. Expenditure incurred on maintaining the members of the Congregation and supporting them in their pastoral work and ministry amounted to £955,119 (2022 - £923,796). This included staff costs of £426,954 (2022 - £406,013) with £413,818 (2022 - £391,652) being spent on staff employed to care for the sisters in the home in Bognor Regis. Charitable grants and donations made amounted to £35,498 (2022 - £40,723). Further details about grants and donations are provided in note 3 to the accounts. Fees paid to the charity’s investment managers during the year amounted to £59,165 (2022 - £61,637).

Net income for the year before investment gains/losses, therefore, was £249,123 (2022 - £102,064). Investment gains of £1,023,224 (2022 – net losses of £3,353,839) resulted in an increase in funds for the year of £1,272,347 (2022 – decrease of £3,251,775).

Investment performance

The investment managers continued to invest in accordance with the trustees’ investment policy set out earlier in this report and complied with the ethical guidelines given to them.

During the year the charity’s listed investments achieved an income yield of 2.9% (2022 - 1.89%) and a capital yield of 3.3% (2022 - minus 9.23%).

The trustees will continue to review performance by meeting with the investment managers twice a year and monitoring investments on a quarterly basis. The trustees view their investments as being for the long term, they remain confident that the policy adopted is appropriate for the charity.

The charity has one programme related investment property held to generate rental income and supports its objectives in Catholic education by leasing at below market value.

Reserves policy and financial position

Reserves policy

The reader will discern from the foregoing that the charity carries out a diverse range of activities and is responsible for care and support of sisters whose average age is increasing and whose needs are changing. The trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work and its commitments, the level of free reserves should be equal to three to five years’ expenditure.

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Trustees’ report 31 December 2023

Financial review (continued)

Reserves policy and financial position (continued)

Financial position

The balance sheet shows total reserves of £31.8 million (2022 - £30.6 million). Of this, £2.5 million is represented by properties and other tangible fixed assets essential for the support and work of the sisters. A programme related investment fund of £150,000 has been established following the decision and agreement to lease one of the charity’s properties on favourable terms to Our Lady and All Saints Catholic multi academy trust, an organisation with educational charitable objectives consistent with the Servite Sisters.

In addition, the trustees have set aside £13.2 million as designated funds to meet the cost of the care and welfare of the sisters in their retirement. The funds set aside to provide for the sisters in their retirement, none of whom have resources of their own, have been re-assessed during the year. The calculations are based on actuarial methods to provide £75,000 per annum for sisters over 85 years of age, £120,000 per annum for sisters being looked after at a new facility at Nordon House, £55,000 per annum for sisters over 70 years of age and £50,000 per annum for sisters over 66 years of age. Following the reassessment of the retirement reserve the trustees have set aside £1,000,000 as an administrative fund towards the costs associated with the running of the charity as the age profile of the sisters increases and more lay personnel are needed. The charity will employ professional bursars, administrative staff and agencies to assist with personal care, household support, travel arrangements, other assistance when needed.

A further fund of £7 million has been set aside by the trustees to refurbish its properties in the next five years as properties held by the charity are in need of extensive repairs/renovations. The fund is also for acquiring properties as the sisters’ needs dictate.

Funds available to support the work of the sisters in the future, in particular the support of the Congregation’s ministry and its missionary and charitable work overseas, are shown as general funds on the balance sheet and amount to £8 million. This figure needs to be considered in the light of the increasing age profile of the sisters and the need for the charity to continue to support the work of the Congregation, both in this country and overseas. Investment assets are important to the charity because of the income generated therefrom. Given the continuing volatility in world stock markets and the higher levels of inflation, there is a real need to retain monies to enable the long term financial stability of the charity. In particular, the level of reserves is deemed sufficient when considered in the light of the current macroeconomic and geopolitical climate.

Discussions continue at an international level about the structure and work of the Congregation going forward. These discussions may have an impact on the focus of the charity’s work and hence its need for financial reserves. Consequently, the trustees will continue to review the charity’s financial position and its reserves policy over time with a view to ensuring both are consistent with the charity’s future plans and commitments. The trustees will assess the need for further designations of funds during the coming financial year. In the meantime, the trustees are content that the free reserves are adequate but not excessive.

Congregation of Servants of Mary (London) 11

Trustees’ report 31 December 2023

Financial review (continued)

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

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

The charity brings very substantial benefits to the local communities and society in general through the sisters’ ministries, the social and pastoral work provided by sisters (often on a voluntary basis), and to the pupils/staff in the schools in which the sisters work or have an association.

The charity endeavours to behave in terms of sustainability whilst retaining a social conscience and aims to cause minimal harm to the environment. Members, staff and volunteers are encouraged to consider their environmental impact in the use of utilities and recycle whenever possible. Ensuring that water is used appropriately, electricity is renewable where possible. Replacement boilers and equipment meet environmental standards and consider the environment. The members of the charity are supported to use sustainable policies by acting responsibly and ethically. Ethical investment policies are followed and they deliver a benefit to the wider world, environmentally and socially.

In line with Pope Francis document ‘Laudate O Si’ we endeavour to care for the earth, our common home.

Congregation of Servants of Mary (London) 12

Trustees’ report 31 December 2023

Governance, structure and management

In terms of Canon law, the Congregation is governed at an international level by the Superior General and her General Council. They are elected every five years at a General Chapter or meeting of representatives of all communities of the Congregation. The Congregational Prioress appoints her legal representative in the United Kingdom. At present the Head of Trustees, an elected Congregational Councillor is the legal representative. The English Servite Sisters are an entity with shared responsibilities: Administrative Co-ordinator, Pastoral Coordinator, Animation Coordinator and Accompaniment Coordinator. As the number of sisters decrease the responsibilities are shared and lay volunteers/employees support the functioning of the charity. Members of the leadership are chosen for their personal qualities, their understanding and experience of the ministries of the sisters throughout England and to secure a good skills mix among them. To ensure that there is a system of accountability operational throughout the community. The Congregational Councillor, Head Trustee and Trustees receive regular updates about the progress and development of the ministries carried out by the sisters. At least once in her term of office the Congregational Prioress will formally visit all the communities and those sisters who live singly. A visit by the Superior General is made to the English sisters at least once every five years.

In terms of Civil law, the charity is governed by a trust deed dated 12 October 1966 and is a registered charity – Charity Registration No. 241434. The trustees of the charity are the members of the UK Servite Sisters or those appointed by the Trustees. The trustees are incorporated under the Charities Act 2011. The Head Trustee appoints the trustees after discussion with the other trustees. As all trustees are members of the Congregation they have a detailed knowledge of the work of the charity and of its structure. On being appointed new trustees are required to spend time with those trustees leaving office. They also meet with the Congregation’s legal, accounting, investment and property advisers to obtain a full briefing of their responsibilities and the charity’s position. The Trustees regularly consult and seek assistance from professional advisors.

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

The names of the trustees who served during the year are set out on page 1.

The names of the current trustees are:

Sister Michelle Reilly OSM – Congregational Councillor, Head Trustee

Sister (Catherine) Francis Farrell OSM – Trustee – Parish apostolate and working with the sick and elderly.

Sister Joyce Mary Fryer OSM – Trustee

Sister (Ellen) Rachel O’Riordan OSM – Trustee

Sister (Lydia) Dominic Savio Lydia Edwards – Treasurer, appointed as trustee on 15 May 2023.

Congregation of Servants of Mary (London) 13

Trustees’ report 31 December 2023

Governance, structure and management (continued)

Statement of trustees’ responsibilities

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

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that year. In preparing accounts giving a true and fair view, the trustees are required to:

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

Structure and management reporting

The trustees are ultimately responsible for the policies, activities, and assets of the charity. They meet quarterly or more if needed to review developments with regard to the charity or its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including property consultants, investments managers, solicitors, accountants and HR Facilitators. The dayto-day management of the charity’s activities, and the implementation of policies, is delegated to the appropriate members of the Congregation or senior staff.

There were 24 sisters in the UK at 31 December 2023. The sisters live in fourteen houses under the jurisdiction of the Congregation Councillor and her Council. The charity owns twelve of these Convents. Of the remaining two, one property is rented and the other belongs to the Parish of High Green, in Sheffield. A house in the grounds of the old Olton Convent known as Bethany is also owned by the charity and is let to a multi-academy trust at a reduced rent in compliance with the charities objectives to support catholic education.

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Trustees’ report 31 December 2023

Governance, structure and management (continued)

Key management

The trustees consider that they together with the Treasurer, comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

All trustees and the Treasurer are members of the Congregation and whilst their living and personal expenses are borne by the charity they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or Treasurer.

Risk management

The trustees undertake an annual review of the principal risks and uncertainties that the charity faces categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review and ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity should those risks materialise.

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

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Trustees’ report 31 December 2023

Governance, structure and management (continued)

The key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

The Congregation ensures compliance with all current safeguarding procedures and has adopted the policies of the CSSA and RLSS. The Congregation has supported the work of the Independent Inquiry into Child Sexual Abuse in the Catholic Church. Within the Congregation, Mrs Florence Collins is our named Lay Adult responsible for DBS checks and attending forums/courses. There are policies and procedures in place to ensure immediate action should the need arise.

Congregation of Servants of Mary (London) 16

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Independent auditor’s report 31 December 2023

Independent auditor’s report to the trustees of Congregation of Servants of Mary (London)

Opinion

We have audited the accounts of Congregation of Servants of Mary (London) (the ‘charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Congregation of Servants of Mary (London) 18

Independent auditor’s report 31 December 2023

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Independent auditor’s report 31 December 2023

Auditor’s responsibilities for the audit of the accounts

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

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

How the audit was considered capable of detecting irregularities including fraud

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

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

Congregation of Servants of Mary (London) 20

Independent auditor’s report 31 December 2023

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

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

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

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

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

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

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

Congregation of Servants of Mary (London) 21

Independent auditor’s report 31 December 2023

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

24 October 2024

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

Congregation of Servants of Mary (London) 22

Statement of financial activities Year to 31 December 2023

Notes Unrestricted funds Unrestricted funds
2023
£		 2022
£
Income from:
Donations and legacies
1
Investments and bank interest
2
Other sources:
. Miscellaneous income
. Foreign exchange gains
Total income
Expenditure on:
Raising funds
. Investment management
Charitable activities
. Charitable grants and donations
3
. Support of members of the Congregation
and enabling their ministry
4
Total expenditure
Net income before gains on investments
6
Net gains (losses) on investments
11
Net income (expenditure) and net movement in funds
Reconciliation of funds:
Total funds brought forward at 1 January 2023
Total funds carried forward at 31 December 2023		 484,442
802,073
11,375
1,016		 408,545
709,419
10,258
—
1,298,906 1,128,222
59,166
35,498
955,119		 61,637
40,723
923,796
1,049,783 1,026,156
249,123
973,195		 102,066
(3,353,839)
1,222,318
30,570,414		 (3,251,775)
33,822,189
31,792,732 30,570,414

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

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

Congregation of Servants of Mary (London) 23

10 2A•13J7 2N￿.9)3 11 27.600 26,678217 12 150.(XI 19),( 30327M7 29,318.720 13 15.830 16.748 IM16.601 1.29a.456 1.832A31 1.318.204 14 ￿ 164.5101 1J84.745 1.251,694 31.791732 XI.570,414 15 1461387 2,49),503 16 1S0.(th) 150,r 17 21kn1.om 21.((Q,(KKJ 7.980.345 6,929,911 Tat•l 31,791732 30.570,414 aThJ Sig￿ on theriwhaf ty. Tnth Sister Michelle Reilly ,J,,Ji

Statement of cash flows Year to 31 December 2023

Notes
2023
£		 2022
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income and interest received
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2023
B
Cash and cash equivalents at 31 December 2023
B
(524,321)		 (582,460)
802,677
(17,023)
4,851,781
(4,768,390)		 711,289
(15,765)
6,386,757
(6,557,029)
869,045 525,252
344,724

1,340,713		 (57,208)
1,397,921
1,685,4367 1,340,713

Notes to the statement of cash flows for the year to 31 December 2023

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

2023
£		 2022
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation
(Gains) losses on investments
Investment income and interest receivable
Decrease (increase) in debtors
Increase in creditors
Net cash used in operating activities		 1,222,318
25,139
(973,195)
(802,073)
314
3,176		 (3,251,775)
24,139
3,353,839
(709,419)
(1,634)
2,389
(524,321) (582,460)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2023
£		 2022
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 1,616,601
68,836		 1,299,456
41,257
1,685,437 1,340,713

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.

Congregation of Servants of Mary (London) 25

Principal accounting policies Year to 31 December 2023

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

Basis of preparation

These accounts have been prepared for the year to 31 December 2023 with comparative figures given for the year to 31 December 2022.

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

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

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

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates. As set out in these accounting policies under “going concern”, the trustees have concluded that it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

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

Assessment of going concern

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

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 December 2024, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets.

Congregation of Servants of Mary (London) 26

Principal accounting policies Year to 31 December 2023

Income recognition

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

Income comprises donations, legacies, investment income, bank interest, surplus on disposal of tangible fixed assets and miscellaneous income.

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

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

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

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

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

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

The surplus on the disposal of tangible fixed assets is calculated as the difference between the sale proceeds net of sale costs and the net book value of the asset immediately prior to disposal. It is accounted for once legal completion of the disposal has taken place.

Congregation of Servants of Mary (London) 27

Principal accounting policies Year to 31 December 2023

Income recognition (continued)

All other income is recognised to the extent that it is probable that the economic benefits will flow to the charity and the revenue can be measured reliably. It is measured at fair value and accounted for on an accruals basis.

Expenditure recognition

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

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

Charitable grants and donations are made where the trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end.

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

All expenditure is stated inclusive of irrecoverable VAT.

Support and governance costs

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

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

All expenditure in support and governance is attributable directly to the charitable activity of supporting members of the Congregation and enabling their ministry and hence there has been no apportionment between headings.

Congregation of Servants of Mary (London) 28

Principal accounting policies Year to 31 December 2023

Support and governance costs (continued)

Any support and/or governance costs in relation to the provision of donations and grants is considered to be negligible.

Tangible fixed assets

All assets costing more than £1,500 and with an expected useful life exceeding one year are capitalised.

Land and buildings purchased prior to 1998 are included in the accounts at a valuation determined by the trustees as at 1997 or 1998 valuations with professional assistance, based on replacement cost for existing use. As permitted by FRS 102, with effect from 1 January 2014 the value assigned to these properties is now deemed their cost. Land and buildings purchased on or after 1 January 1999 are shown on the balance sheet at cost.

Land and buildings comprise:

Expenditure on the purchase and replacement of furniture and equipment is capitalised and depreciated over a five year period, based on the estimated useful life of the asset, on a straight line basis.

Fixed asset investments

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

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

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

Congregation of Servants of Mary (London) 29

Principal accounting policies Year to 31 December 2023

Fixed asset investments (continued)

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Programme related investments

Programme related investments comprise land and buildings owned by the charity but used by another organisation for purposes consistent with the charity’s objectives. The assets are stated at deemed cost. The original cost of the land and buildings classified as programme related investment is not known. Before the reclassification as a programme related investment, the book value of the freehold land and building was based on a valuation made in 2019. Any gains (or losses) arising from disposal or any losses arising from impairment are credited (or charged) to the statement of financial activities.

Debtors

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

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

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

Fund structure

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

The tangible fixed assets fund comprises the net book value of charity’s tangible fixed assets, the existence of which is fundamental to the charity being able to perform its charitable work and thereby achieve its charitable objectives. The value represented by such assets should not be regarded, therefore, as realisable.

Congregation of Servants of Mary (London) 30

Principal accounting policies Year to 31 December 2023

Fund structure (continued)

The programme related investment fund represents the net book value of the charity’s programme related investments. The existence of the fund highlights the fact that the value representing the property cannot be realised in the short to medium term.

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects.

Pension contributions

Contributions in respect to the charity's defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. There were no outstanding contributions at the year end. The charity has no liability beyond making its contributions and paying across the deductions for the employees' contributions.

Services provided by members of the Congregation

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

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the term of the lease.

Congregation of Servants of Mary (London) 31

Notes to the accounts 31 December 2023

1 Donations and legacies

Donations and legacies
2023
£		 2022
£
Salaries and pensions of individual religious received under Gift Aid or
Deed of Covenant
General donations
Legacies		 415,714
22,897
45,831		 405,412
3,133
—
484,442 408,545

2 Investment income

Investment income
2023
£		 2022
£
Income from listed investments
. UK fixed interest
. UK equities
. UK unitised funds
. Overseas fixed interest
. Overseas equities
. UK alternatives and other
Rental income
Interest receivable
. Cash instruments
Total		 102,888
35,274
543,567
36,063
50,443
4,311		 86,774
16,150
516,964
19,533
56,708
—
772,546 696,129
11,959 11,856
17,568 1,434
802,073 709,419

3 Charitable grants and donations

The charity makes grants and donations, principally in support of the overseas work of Congregation of Servants of Mary (London) and other causes which further the Christian faith and alleviate poverty.

2023
£		 2022
£
Grants in support of the missionary work and ministry of Congregation
of Servants of Mary:
. Generalate of the Congregation
Grants paid to Institutions:
. Age UK
. UK Sisters in Democratic Republic of Congo
Grants paid to individuals		 24,000
120
—
11,378		 24,000
120
9,000
7,603
35,498 40,723

Congregation of Servants of Mary (London) 32

Notes to the accounts 31 December 2023

4 Support of members of the Congregation and their ministry

Support of members of the Congregation and their ministry
2023
£		 2022
£
Staff costs (note 7)
Premises
Sisters’ living and personal expenses
Education, training, spiritual renewal and holidays
Governance costs (note 5)
Other support costs		 426,954
218,585
224,293
35,519
36,480
13,288		 406,013
202,257
225,784
37,626
33,000
19,116
955,119 923,796

Other support costs include legal and professional fees of £9,204 (2022 - £7,728).

5 Governance costs

2023
£
36,480		 2022
£
33,000
Professional fees

6 Net income before gains (losses) on investments

This is stated after charging:

2023
£		 2022
£
Staff costs (note 7)
Auditor’s remuneration (including VAT)
. Statutory audit services
. Other services: accountancy
Depreciation		 426,954
25,247
11,233
25,139		 406,013
22,839
10,161
24,139

7 Staff costs and remuneration, key management personnel and Trustees’ remuneration and expenses

remuneration and expenses
2023
£		 2022
£
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs		 398,802
23,860
4,282		 370,579
30,966
4,468
426,954 406,013
Staff costsper function were as follows: 2023
£		 2022
£
Direct support of members of the Congregation and their ministry
Administration		 423,645
3,301		 400,977
5,036
426,946 406,013

Congregation of Servants of Mary (London) 33

Notes to the accounts 31 December 2023

The average number of employees during the year, analysed by function, was:

2023 2022
Direct support of members of the Congregation and their ministry
Administration		 22
1		 24
1

No employees earned £60,000 per annum or more (including taxable benefits but excluding employer's pension contributions) during the year (2022 - none).

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees and the Provincial Bursar.

The charity's trustees are all members of the Congregation and consequently their living and personal expenses, all of which are consistent with the amounts paid in respect to other members of the Congregation, are borne by the charity. No trustee received any remuneration or reimbursement of expenses in connection with their duties as a trustee (2022 - none).

8 Transactions with trustees and related parties

As members of the Congregation, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by the trustees to the charity was £33,876 (2022 - £20,232).

There we no other related party transactions in the year requiring disclosure (2022 - none).

9 Taxation

Congregation of Servants of Mary (London) is a registered charity and, therefore, is not liable to income tax or corporation tax on income on gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

Congregation of Servants of Mary (London) 34

Notes to the accounts 31 December 2023

10 Tangible fixed assets

Tangible fixed assets
Land and buildings Furniture
and
equipment
£		 Motor
vehicles
£		 Total
£
Specialised
£		 Non-
specialised
£
Cost or valuation
At 1 January 2023
Additions
Disposals
At 31 December 2023
At cost
Deemed cost – 1997 and
1998 valuations
Depreciation and
impairment
At 1 January 2023
Charge for the year
On Disposals
At 31 December 2023
Net book values
At 31 December 2023
At 31 December 2022		 1,025,000
—
—		 1,940,358
—
—		 81,375
17,023
—		 76,560
—
(5,314)		 3,123,293
17,023
(5,314)
1,025,000 1,940,358 98,398 71,246 3,135,002
—
1,025,000		 1,309,358
631,000		 98,398
—		 71,246
—		 1,479,002
1,656,000
1,025,000 1,940,358 98,398 71,246 3,135,002
472,416
20,500
—		 18,923
—
—		 64,891
4,639
—		 76,560
—
(5,314)		 632,790
25,139
(5,314)
492,916 18,923 69,530 71,246 652,615
532,084 1,921,435 28,868 — 2,482,387
552,584 1,921,435 16,484 — 2,490,503

As permitted under FRS 102, the charity has opted to adopt a policy of not revaluing its tangible fixed assets. The book value of the land and buildings owned at 31 December 1998 is based on trustees’ valuations made, with professional assistance, in 1997 and 1998 on the basis of replacement value for existing use. As permitted by FRS 102, with effect from 1 January 2014 the value assigned to these properties is now deemed to be cost. Additions subsequent to 31 December 1998 are stated at cost. Other tangible fixed assets are stated at cost.

It is likely that there are material differences between the open market values of the charity’s land and buildings and their book values. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of the trustees, is not justified in terms of the benefit to the users of the accounts.

Included as part of non-specialised land and buildings are five long leasehold properties with a total cost of £702,502. All other land and buildings are freehold.

Congregation of Servants of Mary (London) 35

Notes to the accounts 31 December 2023

11 Investments

Investments
2023
£
Listed investments
Fair (market) value at 1 January 2023
Additions at cost
Disposals at opening book value (proceeds: £4,851,781; losses: £51,572)
Net unrealised gains
Fair (market) value at 31 December 2023
Cash held by investment managers
Cost of investments at 31 December 2023		 26,636,960
4,768,390
(4,903,353)
1,024,767
27,526,764
68,836
27,595,600
26,333,514
2022
£
Listed investments
Fair (market) value at 1 January 2022
Additions at cost
Disposals at opening book value (proceeds: £6,386,757; losses: £263,797)
Net unrealised losses
Fair (market) value at 31 December 2022
Cash held by investment managers
Cost of investments at 31 December 2022		 29,820,527
6,557,029
(6,650,554)
(3,090,042)
26,636,960
41,257
26,678,217
26,664,560

Listed investments held at 31 December 2023 comprised the following:

2023
£
3,737,464
1,781,410
17,172,485
847,231
3,602,244
385,930
27,526,764		 2022
£
UK fixed interest
UK equities
UK unit trusts and common investment funds
Overseas fixed interest
Overseas equities
UK alternatives		 4,000,896
1,470,615
16,816,622
634,784
3,342,223
371,820
26,636,960

At 31 December 2023, the following individual holdings were deemed material:

Holding 2023 2023 2022 2022
Market
value of
holding
£		 Percentage
of total
portfolio
%		 Market
value of
holding
£		 Percentage
of total
portfolio
%
BlackRock Catholic Charities Growth and
Income Fund
HSBC Global Investment Funds – Global
Government Bonds		 16,708,371
1,952,136		 58.96%
7.07%		 16,269,705
—		 61.08
—

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

Congregation of Servants of Mary (London) 36

Notes to the accounts 31 December 2023

12 Programme related investments

The charity leases one of its properties, known as ‘Bethany’, on favourable terms to Our Lady and All Saints Catholic Multi Academy Trust, an organisation with educational charitable objectives consistent with the Servite Sisters. The property which was previously shown as an investment property was reclassified as a programme related investment in 2021. The value at which the programme related investment is included in the accounts is equivalent to its value immediately prior to reclassification.

2023
£		 2022
£
At 1 January and 31 December 2023 150,000 150,000

13 Debtors

Debtors
2023
£		 2022
£
Interest and investment income receivable
Prepayments		 2,485
13,344		 3,090
13,658
15,830 16,748

14 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023
£		 2022
£
Taxation and social security costs
Accruals		 4,615
63,071		 4,793
59,717
67,686 64,510

15 Tangible fixed assets fund

Tangible fixed assets fund
2023
£		 2022
£
At 1 January 2023
Net movement in year
At 31 December 2023		 2,490,503
(8,116)		 2,498,877
(8,374)
2,482,387 2,490,503

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

Congregation of Servants of Mary (London) 37

Notes to the accounts 31 December 2023

16 Programme related investment fund

Programme related investment fund
2023
£		 2022
£
At 1 January 2023
Net movement in year
At 31 December 2023		 150,000
—		 150,000
—
150,000 150,000

The programme related investment fund represents the net book value of the charity’s programme related investments. The existence of the fund highlights the fact that the value representing the property leased out on favourable terms to Our Lady and All Saints Catholic multi academy trust, an organisation that will use the property for purposes consistent with the charity’s charitable objectives.

17 Designated funds

The income funds of the charity include the following designated fund which has been set aside out of unrestricted funds by the trustees for specific purposes:

At
1 January
2023
£		 New
designations
£		 Utilised/
released
£		 At
31 December
2023
£
Sisters’ retirement fund
Property fund
Administrative fund
Total designated funds		 13,200,000
7,000,000
800,000		 —
—
200,000		 —
—
—		 13,200,000
7,000,000
1,000,000
21,000,000 200,000 — 21,200,000
At
1 January
2022
£		 New
designations
£		 Utilised/
released
£		 At
31 December
2022
£
Sisters’ retirement fund
Property fund
Administrative fund
Total designated funds		 14,000,000
7,000,000
—		 —
—
800,000		 (800,000)
—
—		 13,200,000
7,000,000
800,000
21,000,000 800,000 (800,000) 21,000,000

Sisters’ retirement fund

The sisters’ retirement fund comprises monies set aside to provide for the care and support of members of the Congregation as they grow older. The fund will be utilised over the expected lives of the sisters.

Property fund

The property fund comprises monies to be applied towards the maintenance and updating of the charity’s properties over the next five years and for the purchase of new properties as members needs change with age.

Administrative fund

The administrative fund comprises monies to be applied towards the administrative and other costs associated with the running of the charity as the age profile of the sisters increases and the use of lay personnel increases.

Congregation of Servants of Mary (London) 38

Notes to the accounts 31 December 2023

18 Analysis of net assets between funds

Tangible
fixed
assets
fund
£		 Programme
related
investment
fund
£		 Designated
funds
£		 General
funds
£		 Total
2023
£
Fund balances at
31 December 2023 are
represented by:
Tangible fixed assets
Programme related investments
Investments
Net current assets
Total net assets		 2,482,387
—
—
—		 —
150,000
—
—		 —
—
21,200,000
—		 —
—
6,395,600
1,564,745		 2,482,387
150,000
27,595,600
1,564,745
2,482,387 150,000 21,200,000 7,960,345 31,792,732
Tangible
fixed assets
fund
£		 Programme
related
investment
fund
£		 Designated
funds
£		 General
funds
£		 Total
2022
£
Fund balances at
31 December 2022 are
represented by:
Tangible fixed assets
Programme related investments
Investments
Net current assets
Total net assets		 2,490,503
—
—
—		 —
150,000
—
—		 —
—
21,000,000
—		 —
—
5,678,217
1,251,694		 2,490,503
150,000
26,678,217
1,251,694
2,490,503 150,000 21,000,000 6,929,911 30,570,414

The total unrealised gains as at 31 December 2023 constitute movements on revaluation and are as follows:

2023
£		 2022
£
Unrealised gains (losses) included above on listed investments:
Reconciliation of movements in unrealised gains (losses)
Unrealised (losses) gains at 1 January 2023
Investments
. In respect to disposals in the year
. Net gains (losses) on revaluation
Total unrealisedgains(losses) at 31 December 2023		 1,193,250 (27,600)
(27,600)
196,083
1,024,767		 2,978,516
83,926
(3,090,042)
1,193,250 (27,600)

19 Ultimate control

The charity, which is constituted as a trust, was controlled throughout the period by the Congregational Prioress and Council by virtue of the fact that the Congregational Prioress delegates full legal responsibilities to a suitably experienced U.K. Sister to act as Chair of Trustees. The Chair of Trustees together with the other U.K. Trustees plan for the succession and they appoint the new Trustees. The Congregational Council does not hold any assets, incur liabilities or enter into any transactions in its own right. Assets and liabilities of the English Council are vested in the trustees of the charity, who undertake all transactions entered into in the course of the Council’s charitable activities.

Congregation of Servants of Mary (London) 39