R8glstered Charlty No, 260607 Institute of the Blessed Virgin Mary Commonly called The Sisters of Loreto Trustees, Report and Flnanclal Statements For The Year Ended 31 August 2024 INTERNATIONAL
INSTITUTE OF THE BLESSED VIRGIN iWARY COMMONLY CALLED THE SISTERS OF LORETO CONTENTS Page Charity 18ference and adrninislralive delai18 Trustees. annual report Independent auditor's report to the Trustees 17 statement of financlal activities 20 Balan sheet 21 Slalernent ol cash flows 22 Notes to the accounts 23
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO CHARITY REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2024 R8glstered charlty narn8 Inslilule of the Blessed Wirgin Mary Comrnonly Called The Sisters of Lorèlo Charity registratlon llumber 250607 Registered offEce Lorelo Educatlon Centre Dunham Road Altiind)am Cheshire WA14 4GZ The Trustees Mlss Kathryn KEigher Miss Uno Coogan Miss Jen Bromhatn Miss Kathleen Hewill Miss Ewa Irena Bem Province Leader Miss Jen Brornhatn Province Consultors Miss Kathryn Kelgher Mi8$ Ewa Irena Provinco Treasurer Miss Bernadelle Turtle Flnance Manager Mlss Anne McEvoy Audltor MHA Chartered Awountants & Statutory Auclilor 14 Mannin Way Lancasler Lancashire LAI 3SW Investment Managers Inveslec Wealth and Investment Limited 2nd Floor. 3 Hardman Street Spinningfields Manchester M3 3HF Hedley & Co 13b Winckley Square Preston PRI 3JJ
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The trustees present their report and financial stalemenls foi Ihe year ended 31 Augugl 2024. Th& financial stalements have been prepared in accoidanee wilh the accounling policies set out in notes lo the accounts and comply with the charily 5 governinq doGUtnent, the Charities Ael 2011 and Accounting and Reporting by Charities.. Slateinent ol ReC0mended Piactice ISORPI applicable to chaiitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK atsd Republic of Ireland published in Octob&i 2019. Reference and admlnistrative detaSls Reference and adminisliative details are shown on page 2 of Ih85e financial slalements. The trLSStee5 The trustees who served th8 charity during the period were as follows.. Miss Josette Zammil-mangion Ireli18d 191h Decemb8r 20231 Miss Kathryn Keigher Miss Bernadette Boland Irellred 1W D£[nber 2023) Miss Uno Coogan Miss Kathleen My8rs (lIred 191h Dember 20231 Mi55 Jen Brornham lappoinl&d 19th December 20231 Miss Kathleen Hewill lappoinled 191h December 20231 Miss Ewa Irena Bem lappoinled 19th December 20231 Charitable Status The English Province ol the Institute of the Blessed Virgin Maiy commonly known as Ihe Sisters ol Loreto Is pam of an International Roman Calholio Religious Congregalion of women present in Iwenty-the Countries. The accounls a(OmpanY1nU this Repurt are the accounts of a Charitabl& TIu5t, registered wilh the Charily Comtnis5ion under a Trusl Deed dated 2nd March 1965 in which the assets of the English Province of th8 Inslilute In the United Klngdom are held. The r8gistered Charity NumbeT is 250607. Mission The Inslilule's Charitable Trust alms to advance the religious and olherworks carried out by Sisters ofthe Instilule In collaboration wilh lay co-workers and to care lor those Sisters Ihroughoul their lives within the Institute. These works tneet the public benefit cri181ia necessary under the Charities Act 2011 and the Institute opeiales a5 a public benefit ents-ly.
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Mlsslon Icontinuadl At our last General Congr8gatlon culminating In October 2022. 8fter a proce88 of dlscernmenl wlth our whol8 In5tllute. our new focus for misslon was express8d the plctorial representation below. Allowin8 Je5U5 to iiaThsforrn our live5, nd dF@penlnE our commiiment io the talls 0¢ GC'14, we relolce ID our on8oln8 journey ol BECOWNG ONE which 15 expre551on of IhE 014ENESS of all, dec15itsh to rybecomeone, A5we encDunterone aWlheTon theltsurneyand claim the rullnes5of 2. Weacknowledgo our ownvulnèrib115tY blukenn5 and dosfre i•encountÈr pe(pl¢on the peilplierfe5wllh mutu4iityand eqvlly. 3. Wecontlnue tonu¥tUrethe beaiity of planet earth, IIS restoration and carln8for thDSÈfflu5t alfocted. 4. Wo<lAlffl our Idenllty&5 Maryw4rd women htth heaitol thechurch whl¢h leads us to efj8a¥ew5th new The referenceto'Becorning One, is an expression of ourworking towards Canonlcal Fusbn wlth the Congregation of Je8us (the original foundatlon by Mary Ward, of which we are currently 8 Branch). The work8 we tjndertake are revlewed on a Continuous ba818 to assess their effeellveness in thè achlevemenl of our alms and th8 benefits we have provided lo those sectors of th8 community we s6t out to help. In conducting Ihls review, we have glven due regard to the guidance conlalned In the Charity Commlssionerfs Gen8r81 Guidance on Public Benefit. The ministries carrled out by th8 SSsters of the InsUtute. both In the Unlted Klngdom and overseas. In furtheTanc8 of our alms and the provlslon of publi¢ benefit fall into the followlng maln areas= 1. Edu¢alSon 2. P8StorallOulrèach Work 3. Nurturing Religlous Faith and Provlslon of R6tr6ats 4. Overs@8s ActivSly 5. Governance, Structure and Managemenl We are consaous of thè ageSng profilg of Ihe Provinc9 8nd the effect on our capac41y for actlve ministry and the financlal Implic81ions whlch have affecled our min15tries during this past year and will affect ourconllngency plans for the future.
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Mission l¢ontinuedl 1. Education The main aieas of responsibillty extend lo three schools and a 5iXth form College in England. One Academy for girls- Compiehenswe One Aided co-educational Comprehenswe school One Academy for girls- Grammai One Sixth Form Co15ege supported by the Education Funding Aulhorily {th th8 exceplion of the GO-edu¢ational ¢ompreh8nsive school, which Is under the jurisdiction ol the local dioc8se. the pr8mises for the88 schoolslcollege belong to the Inslilule and are msde available al no costl. The Preparatory school c505ed in July 2023 bul some Closlng expenses are Includ in thèse accounts. The work of the Institute in forma1 education is conducted through the Lorelo Education Tiust ILETI, a charitable Gompariy limited by guarantee established in 2012. The Tiust has embraced the need lo Involve lay Iruslees and lay officers in sustaining into the future the characlerislic spirit of the Institule's College and schools. Nine of th& 13 tIU5tees 2re now lay and the Board has appointed a lay person as Education Offlcer lo lead the LOt0 English Education Network ILEEN Gioupl which is accountable to the Loreto Education Trust. One ol the IBVM Iru51ees a¢ls as delegate foi education. Additionally, at least one Sister continues lo serve on both the s¢hools'lcollege's governing bodies and their various commillees. LET has established slrong monitorlng and svpport procedures that assure Ihe Institute Trustee5 that the education offered to our young people is ir) accordance with our objects. Because of the extensive training and developrnentwork that LET and LEEN have done with staff and governors over the last decade, the Loreto vision of education and the values that shape that vision are now lully embedded in each of our schools and Ihe college. Our vision is thal they will be educational cotnmunilies wh2ie each person has the experience of being loved and valued, cornmunilies where Students enjoy an enriching and liberaling eduGation that helps them lo grow In Ihe fullness ol life and etnpowers Ihern to be people of courage who ale alive to the needs of humanily anc5 the environment and commilled lo rnaking a beller world. In the current year LET has Iocus8d on responding to the Olsled and Di0San Inspections of our schools and college. All bul one were Outstanding. The Trust used ils Quality and Accounlabilily Piocess (agreed some years ago with the Heads and Goveming Bodies of all establishments) to sel up a StrategiG Monitoring Group lor one of its schools. This has led to deeper reflection on essenligl information iequired from schools to assist the Board. As well 85 this, last y&arfs focus 18garding a Commilment to funding ol three development progiatnmes over two years and the funding of the Lorelo Education OffIr for three years initially, wlh a ieview after two is The schools and college engage in all relevant global ¢oncerns, events and fund-raising activities and have forged links with Loreto Schools across the world. 018pecilic importance al this liine is our ¢ons¢iousness ol the global climate. and the In51ilule, schoolslcollege are contlnuing lo put al the foieffonl the Maiy V4krd family 7yr Action Plan 12021-20281 in relation to our Ca for our cotntnon home and the living out of an "inlegial ecology. in iesponse to the Pope's Laudalo Si, encyclKal. Al a limewhen we are yet again suiiounded by the horrors ofwar. cruelty and despicable inhumanity our sludent5 are aware rnoie than ever ol the need foi a just and p8aful world. They conlinue to put Laudalo Si, and Sustainability al the centre ol their JPIC work. We contlnue to focus on the directives DI our JPIC OlfiGe in Rome and our UN Office in New York. In our Loielo communities in the UK, the Slsters who are no longer ab1810 work actively lo promote p8ace and juslico continue lo do so through Iheir Intere51 and prayer.
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Mlssion Icontlnuedl 2. Pastoralloutreach Work The Trustees continue lo make it a ylorily to reach out lo the poor and rnaiginalised in our sociely. Some Slslers underiake this work in their relliemenl while Iwo Sisleis receive soffle finanrAal remuneration. On8 Sisler works as Vicai for Religious in a Catholic Diocese. along with work in Canon Law an(1 Safeguarding in Ihe Provin and is the lead Religious for safeguaiding. Actlvg retired Sisters conllnue lo work 85 advocates In support of the voiceless lo enable them to secure the help they ale enlilled lo. in justice, from the slate and other agencies. Several retired Sisters are involved in community-based piogramtnes and support public inslitution5 in Ihe UK, Including childre and family support, community hesllh¢ar8, general and mental health. and p5y¢hotheiapy. One Sister operates as part of an in18tfaith chaplainey team in hospital. Addilionally. som& Sisters work closely iii supporting refugees, ssylurn seekers, rnigranls and victims of internaliondl Irafficking. This work involves Ineeting with, listening to, supportlng and signposting clients lo the appropriate staff or agencie5 best suited lo address Iheii needs. Thg work also involves som8 English leaching and helping with basic needs and pioviding translation services wh8re npeded. One Sister is In ministry in Albania through Mary Ward Lorelo ITegi8teied in Albayial which aims to tiansform the lives of victims, potential violims and survivors of hurnan Irafficking. The core mi5slon ol Maiy Ward Lorelo is the eradicalion of human trafficking from Albania, with a specific emphasis on Ihwarting Cases bound lor lh& UK. MWL operates as a non-profit organizalion, dediGated to comballing this giave issue through a comprehensive the- fold approach encompassing advocacy, preventlon, and support for PVIVOTS (Polenlial ViclimsNiclims of Tiaffickingl. One Sister has recentty returned from minislry In the Philippines Ilnstitute of Formation Fondacio Aslal where a holistic Program in additlon 10 academic lormalion, introduced students lo the areas of both human and spiritual development. Catholic Social Teaching became a Iwing iealily when the students experienGed living wilh f8mili8s, as they engaged in projects amongst the PDof and indigenous ¢omtnunilies in collaboration with Youth Commissions. Olher opportunilles exposed them to organizations supporting the horneless and families living In poverty. As a fflember of the Formation Team. this Si51er was r8sponsible foi introducing the young people lo the Old and New Teslamenl,. off81ing them experien$ using different methods ol prayer., enablir)g Ihetn to lead prayer and prepare for the weekly Community Mass. As coordinator of the Pasloial Track, she drew on the insights of 'Th8 Joy of Ihe Gosp@I' by Pope Fiancis lor ev8ngelizalion, lailh and calechesis. One Sister continues working with Revive, a group supporting refugees and asylum seekers, teaching En91ish eaoh week lo both new arrivals and those who have been in UK several years without ac¢ess to English. Links i Ihe neighbourhood have been strengthened Ihrough involvement of local church parishioneis and friends. Several families have invited refugee children lo play with their own children or make monthly contributions to special needs families. A few retired Sisters contribute lo parish life as Exlraordinary Minislers of the Eucharisl, Re8ders. Calechists, and through Iheii support of parishioners and parish initiatives. At an international level Sislers engage with inleiesl groups esppcially in the fipld ol music. ari and writing. They have a particulai foGus on highllghting cuii8nt Issues and exploring Ihe spiritual embodied in art. Work is on-going to raise awareness of Mary Waid and the work ol the Insliluta. Many Sisleis have eslabllshed links with the Mary Ward family across Ihe woAd, and information and visils lo significant sites ar& facllitaled.
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Mission lcontinuedl One Sister continues to work wilhln the Lorelo Drawn Together ILDTI initiative. LDT offers a speeialisl Psyehoanalytic parenl-infant psycholh8iapy IPPIPI inteivenlion lo paients and their babies who are struggling in their new relationship. Thi5 service provides in-peison sessions in a Well-BeiMg cent and an online seivice for parents and their infants. During the year the 5eNice has furtherdeveloped bereavem&nt inlervenlions for parents and their toddlers who have expeiienced baby loss. Art therapy interventions have been developed for etnolionally upsel under-fives. In addition lo their individual work, both the PPIP theiapisls 2nd the Art Therapists olf8r parenl support sessions foi dislressed parenls. All the therapists engage with the wider network in the a18a and they ar8 strongly linked with the health visiting leatn and local GP'S. The therapi51s avai5 of appropriate CPD training and are full rnetnbers ol their iespe¢live piole5sional bodi8S. Our Sisters. work is noljusl restricted lo IheirGhosen minlstries. Throughout the year. the Membe15 of the Institute give their time lo assist the poor and marginalised wherever th31 need arises. Many of the Sisters receive no financial reward for the work they undertak& and which contributes to the overall achievemenl of the charity's objectives, 3. Nurturing of Religlous beliets and provision of Retreats Loreto Splrituality Centre continues to adapt, as we strive to meel the need5 of loday's world. A Manager is mployed lo see to the day lo day running of the Centre and to line tnana9e the staff. Two Sis1815 work lull lime in the Cenlre, and provide a progratnme ol retrea15 and courses to rneel the spirttual needs DI our lirnes. One other Si51er, who lives elsewhere. is also involved and cornes to the Centre on a regular basi8 to work on our 18treals. The events on th8 programm8 include silent individually guided relreats, varying in length from a weekend lo 30 days, preached retreats and Ihemed retreats. Our Holyweek galh81ing is specifically aimed at young people and families. The Theology Summei School is also a popular event on the Centre Calendar, as is 'sPa to Grieve, whith ollers support to those retlY bereaved. The Sisters on the spirituality team 8150 tneel regularly with Ihose who ask lor on-going spiritual direclioii. elther in person or on zoorn, making it Possible lo reach oul beyond geographical boundaii85. The Centre also offeis hospilalily lo groups who wish lo run their own events some olwhotn are spirituality based and others of a tnore general nature. Foi exatnple several ieligious congregation8 hald meelings during the year, as well as individuals and groups ol people in caring minislries who are looking for a period ol respite. Sotne groups contlnue lo corne annually. One such group is SPANNED Isuppotting People with Addilional Needs) a group Irom the Di0Se of Nollingham. who come for a break with their carers. In addition, there are a Ilmiled nurnber of rooms available forthose wishing to avail of self-catering f8cllltles. A large equipped conference room is a150 available for daily events. To ansure that nobody is excluded for financial reasons, a bursary has been sel up to enable the untsmployed atKS low-waged to come for relreals and Gourses. In common with many r81igious congregations the Centre laces the dllemma of tneetlng ever rlslng ¢osls with a declining income. This shorllall has had to be wet from existing funds, bul action is being taken lo ensure that this ulilisalion of y8sourS is conducted in 8 manner which protecis the lulure financlal security of the works and membership.
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDEO 31 AUGUST 2024 Mission Icontinuedl 4. Oversea5 Activity The Institule globally has the aitn to advance the religious snd other oharitab18 woik in the Developing World. The work of Ihe English Provin in the Developing World Is carried oul Inainly through the Teresa Ball International Solidarily Fund, iegi5tered charity no. 1080521 and Company no. 3914049. a charily under comtnon control. The mission in Albania is parl of the English Province mission. S. Govornanee, Structure and Management terms ol Canon Law, the Institute is governed at an Intemational level by the Instltute Leader and h8r Council in Rome They are eleGled every eight years at a meeling ol repi8sentatlvès of all the Provinces and Reglons of Ihe Inslllule. This last General Congregation was held in 2022 and elected a new Institute Leadership Team. At every Gèneral Congregation the locus lor the nexl eight years is mandated lo Institute Leadership. The mandate we are cuirently working with has been shown earlier in this report. In terms of ¢lvil law, the charily is governed by 8 Trust Deed dated 2 Maich 1965 and is registere(J with the Charity Commission. The Charity Commission nutnber is 250607. The18 is also a new Scheme approved by the Charity Cornmission dated 28 July 2003, which amends the governlng dUment to 'lhe work ol the English Province, which in som8 ca88s extends Dutside the United Kingdom. A new CIO, eharlty number 1202949, has been set up and thin the fi'nancial year to 31 August 2025 all the assets and liabilities of th8 charity no. 250607 are expected to be Iransferied to the new CIO. A deed of transfer has been drawn up lor this to happen. The governing document ol both charities provide for ultimate deci%ion making, including the appointment and retirement ol (ius188s, at the sole discreliori of the Province Leader. The lay finance manager relired during the year and the position is now occupied by one of the Slsters. A finance and PToperties Commillee offers assistance to the Trusle8s and Leadership Team. The pay and remuneration ol the Inslitulg's etnployees. including key tnanagemenl peisonnel, is remewed annually by the Finance and Pioperties Committee which then makes ils recornmendalions lo the Trustees, The narn8s of the Trustees on 31 August 2024 are sel out on the attached schedule of gaI and administrative The Trustees, Treasurer and Financ8 Manager gUlarlY allend seminars arrang&d by COREW (conferen of Religious in England and Wales), The Association ol Provincial Bursars and various piolessional bodies. in¢luding the Annual Catholic Conferen. to keep abr8a51 of currenl legislation and seGtor developrrents. AS th9 Instltute's main ministry has traditionally been educallonal all five Iru51ees are GUentlY lully qualified teachers. Some have later tralned in other discipline5 including paslorallpsychotherapylspiritual ministries.
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT IGONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Responslbllities of the trustees The Trustee5 are responsible for preparing the Trusl@es' Annual Report and the linatTrcial statements in aocordance with applicable law and United Kingdorn Accounting Standards IUni18d Kingdom Generally A¢p1ad Accounting Praclic*l. The law applicable lo oharitie8 in England & Wales requires the TTU5tees to prepare financial slaletnènts for e8ch financial yparwhich give a tiue and fairview ofthe slate of affairs ollhe Qh81ity, and ollhe IncoThe and oxpendilure of Ihe Charity, lor Ihal p8rlod. In preparing these lin2ncial slalements, the Trustees are required to.. select suitabl8 accounting poliae5 and then apply them consistently. observe the methods and piinciples in the ChariliES SORP IFRS1021'. make judgements and eslimales that are reasonable and prudent. slate whether applicable accounting standards have been followed, subjecl to any material departure5 disclosed and explained in the financial statements. prepare the financlal statern8nts Dn Ihe going concern basis ullless it is inappropriate to presume that the Charity wlll conlinue in operation. The Trustees are ie5ponsible for keeping prop8r accounling recoids Ihal disclose with reasonable aeouracy at any lime the linan¢ial posltion of the Charity and enable them lo ensuie that the lingncial statemenls comply wilh Ihe Chaiily's governing documenl, the Chaiilies Act 2011. the Statem8nl of Recommended Practice.. Accounting and Reporting by Charilies preparing the aocounts in accordance with the Financial Reporting Standard appli¢abl8 in th8 UK and Republic of Ireland IFRS 1021. the Financial Reporting Standard applicable in the United Klngdom and Republic of Ireland IFRS1021 and UK Generally Awepted Accounting Praelice. Structure and Management Reporting The Tiustees are ultimately sponSible for the policies, activities, and assets of Ihe ¢h8rily. During this year there were live Trustees. The Province structure is composed ol 8 Piovince Leader and two CoMsult015. There is Malron who takes respon51bility for Ihe cale of the sick elderly sisters and the Province Leader and her Consultors keep in contact with the Sisters working around the counlry. The Leadership Team meets monlhly for the care ol the Province lo r8view minist11&5 and to discuss forward planning. The finance manager reports Monthly lo this meeting on the ourrenl financial state of the Province and at otherad hoc intervals al the r8quest of the Leadership Team lo provide financial input lo decision making. The Trust8es, ol whom Ihre8 make up Ihe Leadership Team, meets with the Flnance and Properties Comrnittee. The purpose DI Ihis comtnillee is lo advise Ihe Leadpiship Tearn on all mallers relating lo finance. land and buildlngs. When necessary. the Trustees seek advi¢0 and suppori from the charity's professional advi88rs including property consultanls,1nvestmenl managers, 12wyer5 and a¢¢ounlanls. The day-to-day management of th6 chaiily's a¢livilies. and the imp18mentation ol policies. is delegated to the appiopiiate members of the Institute and to senioi stall. Th8 day-to-day responsibility for the schwls lies with the Headleachers and governors, and mernbers of the Instilule ale on all the governing bodi8s. The day-to-day management ol both our Loreto Spirilualily Centre and Lorelo House is caiiied out by our two lay managers.
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 Working wlth 0th8r organisations Through its member5 the charity woiks closely wilh other charities and oig8nisations which include the following.. Roman Catholic Dioceses Jesuit Spirituality Centres In Britain Local education authorities Educational establishtnents other Religious Congregations Caritgs Albania Mary Ward Loreto Albania UK Caritas En9land and Wale5 Salvation Army CSSA (Catholic Safeguarding Standard5 Agency) RLSS (Religious Life Safeguarding Servi¢p.I Northwe81 Religious Orders Safeguarding Netwod( Support Group National Health Seivice FondaciD Asia- Philippines Anawim Arts- Canada Rlsk Assèssment statement The Trustees manage ii5k by reference to both long established. do¢umenled piocedures and systems of control and Wfrent Charity Commission guidanc8 on best piaclice. The Trustees believe that 811 major iisks have been identified and reviewed 8nd that syslem5 and predureS 3re in place lo manage Ih8se risks. In carrying out their ass8sstnen( th8 Trustees h8ve identified five main areas where risks may oc¢ur'. Governance and Management 2.. Operational 3.. Financial 4.. Repulalion 5.. Laws, regulations, external and environmenl Governance and management look at the structure ol the Instltute, and hence the charily, and the skills and training ol its members and staff. and the good use ol its r8sources. 2.. Operatlonal looks al the Sk$ inherent in the charily's aclivitles including the operation of ils 5choolslcollege, and Loreto Spirilualily Cenlre.. Sisterslstaff engaging in various activities, the unsuitability of buildings. pool maintenance, shoticomings in the services provided, difficulties wilh staff, poor health and safety. lack of a disaster recovery policy elc. When acting in their capacily 85 school governor8, the Trusl8es and Sisleis are reqUId lo iegulaily attend training courses and seminars, particularly ¢on¢eming safeguarding, but also risk assessment ggnerally. 3.. Financial risks include those ar15ing as a ie5uIt of poor budgetary control. poor accounting. in8ppropriale investment policies etc. Financial risk also extends to the secLJrity of the Inslitule's future income streams, in particularlhe receipt of pensions and salaries which currently a¢count for 83Q/o ol Province Fund income. This aspe¢l of risk 15 an Important factor in the production ol the Institule's strategi¢ plan. The Institute manages it5 finan¢ial affairs by reference to an annual budgel, p&rformanc8 against which is monitored by the tiuslees. -10-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES. ANNUAL REPORT ICONTINUFDI FOR THE YEAR ENDED 31 AUGLIST 2024 Rlsk Assessment statement Icontinu8dl 4., Reputational looks 81 possible datnage lo the Instilule's andlor charills repulatlon. We lake the issue ol safeguarding exlieTnely seriously. In line with slalulory requirernent5, the Trustees recognise the absolu18 nece5Slty of ensurlng the proleclion and safely of all those the charily serves. All Si81e18 who are in any klnd ol ministry in the United Kingdorn obtain Di5cID5ure and Barring Service clearance as do the staff al Loreto House. Our Safeguarding Lead keeps abreast ol Instilule and statutory policy and controls Ihe DBS checks on Slsters and employees. The Safeguarding Lead also ieporis annually lo th8 Leadership Team. Safeguarding is a topic on all Piovinc& and Leadership MeBlings agendas. After much delay, the CSSA (Catholic Safeguarding Standards Agency) issued their contract for members which we 51gned in March 2023. At the Provin gathering in September the Safeguarding Trustee gave a poweipoinl pr&senl8tion with input on CSSA, RLSS (Religious Life Safeguarding servi). the eight 5tandaids including how lo r85pond lo an allegalion and on the safeguarding audit. Members attended Ihe RLSS AGM and the CSSA held a zoom meeling be¢ause ol Iheii concern Ihal their conlracl was not'filting Ihe purpose,. This was allended by our Safeguarding Lead. Since then she has been preparing the self-as5es5menl form and required evidence lor when we are gwen an audit dale. Sh8 has also ensured that all DBS are renewed as required and ale up lo dale. There have be8n no allpgalions or concems. 5.. Law5, regulations, external and environment look at the effects of gov8mm8nt policles, the consequences ol non-compliance with laws and regulations and pool risk assessment in the charity's e8lablishm8nts. Thework ollhe Tiustees In assessing and minimising expo8ure to iisk is suppoiled by the Province Treasur8r and Finance Managei. They are members olthe Association of Provincial Bursars, an associalion sel up over thlrty years ago lor Bursars ol Religious Congregations both Catholic and Anglican. and through this Association they keep up lo dale with current legislation and developments. Furthermoie. they and many ol the sisters attend courses In support of their tninistry or Institute management. These courses are either rijn by the professlonal bodies of which they ar8 members or other appropiiale oiganisalions. The Institute is GDPR compliant and annually reviews ils Cyber Security Policy. In conducting their assessmonl, the Trustees necessarily gave due iegard to the deGlining numbers of Inslilule members and the iising avèrage age ol those who remain. The main sources ol income lo the Instilute are tho pensions and salaries of the sis18is and as they grow older Ihis in¢om8 15 inevitably deollning. Additionally, the payroll costs currently being incuir8d will increase as more people are emp5oy8d lo undertake work now being carried out on a voluntary basis by the Sisters. The Trustees have ensuied that procedurès and controls are in place lo pro18Ct the pioperty and investment assets ol the Instltute so that linanaal resource8 are available into the futur8 lo mee( additional funding requiiernen15 re5uI(ing from this ageing process. -11-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Care for Members of the Institute Those members of the Inslilule who earn salaries or receive penslons covenant them lo the ¢haiity and therefo have na independent means ol support. Many also give their service8 flee in their various ministries and continue lo do so well beyond ietlremenl age. Hence the work ol the charity Includes lh8 upkeep of the rnembers so thal they will be gbl8 to continue in their servic8 to the public. Additionally. Ihe chatily must also caie lor the elderly tnembers of the Institute who are now thetnse1ves in need of care. These Sisters have no resources of their own and have devot8d their whale lives to Ihe educational, pastoMI, soclal and olhei tninislries of the Inslitule, which now has a rnoral and legal obligation lo piovide for their Care. In common with many religious congregalions in the United Kingdom, the age prolilp of the members of the Institute 15 increaslng as exi81ing mernbeis grow older and there are no new vocations. As the age profile increases $0 too does the need to piovide increasingly expensive care for the Sisle15, a cost which is boine almost elUSIve1Y by the charity since. as members of a religious ¢ommunity, W8 ale not entitled to olaim certain benefits from the stale e.g. pension credit. In the past twelve rnonlhs four Sisleis have died. There are 31 Slsters in th8 English Province, and they live and work in several localions 8cross England. Scotland and Wales. One Sisler works overseas while another ha5 rentlY r8lurned from the Philippines. The Irislitule has established Powers of Allorney for 811 It5 Sisters lo ensure that their wishes continue to be followed should they become incapacitated through ill health and unable to make deGisions lor themselves. Overthe next decade the Tiuslees expeol the number requiilng care to increase. Consequently, the Trustees ale carefully considering the impact of this on Ihe work ol Individual Sisters of the Inslitute, the properly qUirementS and the financial irnplicalions. Thè aims of the Trustees are as follows: To ensure th81 all Sislers r8ceive the care Ihat they require to provide them wilh a good quality of life. To review the ¢harily's properties used as community house5 and assess Iheir suitability as hornes for the flail elderly. Those identified as being un5uilable will need to be adapted or. if thls is not posslble, sold and replad with tnore appropriate properties. To enaL)le all rnembers of the Institute to continue with their tnlnistries and live independently for as long as possible 2tt8r their offi(y81 ietiremenl age. We continue to provide ¢are foi our elderly and frail sisters in Loieto House under the direction ol our experientsd M8lron and her dedicated learn. Sisters receive around the clock care, tailored lo their needs, aimed at enabling independence ltsras long as possible. Situated as il is. close lo our Lorelo Spirituality Centre, il enables our eldedy sisters to connect with ministry which is central lo Ihe mission of the Instilute, Employees. Volunteers and Members of the Institute The Trus16es wish lo record their recognltion of Ihe piofessionalism and committnenl of all their staff, volunteers and Ihose Sisters of the Institute who are involved with ils adtnini51ration wilhoul Iheii conlribulion the charity would nol be able lo function as effectively or lully as it does. Their dedication, enthusiasm and active participation in our ministry is very rnuch appreciated. Grants, Donations and Support of Mi55ionary Work and Ministry Grants, donations and other payments in support of ministry are deGlded on by the Trusl888 in consullalion with the rnetnbers of the Inslilule as 8pproprial8. While the Trustee5 give occasional gUPPOrt to United Kingdom based organisalions and lo individuals within the obje¢ls ol the charily. the Gharily doas not regard ilsell as a 9ranl making entity and applications foi grants and donations are not invited. -12-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGLIST 2024 Fundraising Policy The charily has undertaken some stnall-scale fundraising activities during the year. All fundraising aGlivilies have been undert8ken in accordall with the applicable regulations. The charity does not work wilh comTher¢ial pariners and has received no ¢omplaints In relation to Ils lundrai5ing actiwilies. Investment Policy The charlty has a portfolio of investments wlh a market valLJe of £1,914,57512023.. £1.757,4251 managed by Iwo long established stockbroker firms with much experience In investing funds loi charitable organisations- Investe¢ Wealth and Investment Limited and Hedley & Co. Both firms operate within specific guidelines, which are sel out and regularly reviewed by the Tiustee appointed Inv8strnent Committee. The Investment Cotnmltlee in turn reports twi annually lo the trustees. There are no restrlclions on the oharity's power to invest. As well as Ihese investments a further £998,02712023.. £149,806) is held on special deposits to be recalled when n88ded lo meet our contingent liabilities and planned works. The POTffolios repres8nt a long term investment with Ihe obj8ctDie of geneiating a re81 ieturn from capital together with a certain level ol income. Because the Piovince needs to draw down funds monthly lo meet expenditure and in order to ensure that Ihg investmenls are given every chance 10 9row one investment portfolio was cashed in and the proceeds put into a high interest bearing liquidily fund so th9t the monthly needs of the Provin can be taken out of this rather than the inveslrnenl portfolios thus giving il 8 greater chance to grow and meet the luture needs ol the charity. One properly was also sold during the year and the proedS divided between the Liquidity Fund and the inveslm8nt porllolio. The Charity requires Ihe investment manager8 to have r9g8rd to ils elhlcal s¢r8ening policy when rnaking invesltnent decision5. In addition lo specifically exdLEding some areas of inveslmenl (for example in any companles having slgnilicanl pmfils from aimaments, gambling or life delerminationl the policy also requires the managers to avoid investment in ¢ompanies with continuing issues of @xploitation of its Workfor or deprivatio of human lights. being activities contiary lo Christian objectives. The scieening piocess adopted by the Charity is an independent service provided by Ethical S¢ieeniny Seivicès Ltd bul operated by Inveslec Wealth and Inveslrnent Litnited. The adoption of this screening process is applied lo bDth inveslrnent portfolios. The investment commillee rneets several times duiing Ihe year lo review the PErformance of Ihe portfolio and the continued approprialene5s of the ¢harlty's investment strategy. The investment manage15 attend Ih85e meetings lo pr8sent a forrnal repori on an ad ho¢ basis bul at least annually. The investment strategy is to achieve a balanced return from incotne and ¢8pllal growth by referenc8 to recognised charity sector benchmarks subjed lo a medium risk portfolio structure. AGhievements and Performance Financlal Review Re$ult5 for the year Ouring 2023124 incomlng resources amounted lo £1,317.09812023'. £2,350,855). Of this total, £275.79012023.' £1,216,773) related lo fee's ceiVble at the retreat centre land in 2023 the preparatory school as welt) and leg8ci8s received atnounted to £nil 12023., £103,075). Salaries and pensions of the sisters covenanled lo the charity amounted to £933,44212023.. £815,761), the incr&ase being mostly due lo a retirnent lump sum of £171,240. Inveslment Income and inlèresl received lolalled £60.78312023.. £77,309). This is 8 21.4'h deciine in investtnenl in¢orne12023.. 4.8UAI. -13-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Results for the year l¢ontinuedl Resources expended lolall&d £1,847,60312023.. £3,387.6551 a decrease 0145%. Slgff costs at the retreat cenlre still represent a significant PFoporiion112Dhl ol total expendiluie, amounting lo £215,15712023.' £911.7621. Expenditure on mainl8ining the members of the Inslilule and supporling Ihern in Iheir pastoral work and ministry lotalled £1.599,541 12023.. £1,676,529) repiesenling a decrease of SOA. 01 this, th8 running cosls and maintenance ol buildings w81e £503,46812023.' £606.5541 and carers, payroll and nursing costs were £637,415 12023,. £545.2791. Expenditure on govemanee and the fees paid to the charity's investment managers amounted to £11Jf,81712023.. £85,606). Investment values picked up in 2023124 resulling in a galn of £143,14912023'. £6,554 g8inl. Fk¥ed assets were revalued in 2023124 resulting In a loss of £4.097,47012023.' £nill. As noted in Note 12. this impairrnent rellecls Ihe charily's agreement to se11 part ol ils land to a third party, with the land and associated property being Ernpald lo the 8xpected sale proceeds. The remaining pioperty. which the chaiily plans lo retain for ils own use, ha5 been impair8d based on ils ievised insurance valuation. The Trustees believe this provldes a fair represenlalion of the value ol the 18malning site, in the absence of a formal valuation. N8t tnovement of funds for the year was an outflow of £4,484,82612023.. £1.030,2461. Funds to carry out the works of the charity come from various sources.. SFA and YPLA in the Sixth Form College LEA and DfE in Ihe Iwo aided schools Donations from those who come to the retreat centre Donations rec9ived speeilically foi the tnission in Albanla The salaiies and pensions of the membeTS of the Inslilule Incorne from Investmenis We are not a fundraising Charity, although our mission in Albania seeks funds from indiwdual donors based on generaling awareness bul does not undertake general advertising campaigr)s. The Institute has a corntnitmenl to make contributions to the 5¢hools and college. particularly regarding the malntenance of their ehapels where other sources ol funding are not available. and some of the lunds on deposit are reserved foi thi5 purpose. Functional property belongin9 to the Inslilule h85 been included on the Balance She8t at Trustees, valuation in 1996, which was achieved with help from professional advisers. The s¢hool's element of this valuation has since been revalued, 8nd each year we wnsider whelher any irnpairment provision is required. Reserves Pollcy The reader will see from the information given that the chaiily carries out 2 dwetse range of activities and is re8ponslble for the care and support of sisters whose average age is increasing and whose needs are changing. The Iruslees have examined the n&ed forfree reserves l.e., Ihose uniestricled funds not invested in tangible fixed assets, deslgnaled for specific purposes 01 olhenvise ¢ommitlèd. For several years the charity has looked lo Ils assets lo make good shortlalls of income from expenditure by pioviding the necessary funding to maintain liquidity. The tiuslees consider that. given the nature of the charily's work. ils winmilments and the age piolile ol ils mernbers, this funding requ1Ment will Gontinve into Ihe foreseeable fulure and therefo it15 unlikely that uncommilled resetVES will become available. Financial P051tlon The balance she81 Shows total reserves of £13,384,682 12023.. £17.869,5081. Of this £10.204,985 12023.. £15,643,592) is represented by properties and other langiblg fixed assets essential for the support and WDrk ol th8 sisters. -14-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Flnancial Position Icontinuedl The Institute has divided it5 unrestiicled assets into two designated lunds.. 1. Province Fund to support the Sisters in their work as they give their services voluntarily and to c8re lor Ihern when they are sick and ag@d. The value ol thi5 fund is £10,547,92312023.. £10.960.9411 ol which £7,445,30412023.. £8.786,4411 represents tangible liyed assets. The nel ¢uirent assets of the fund ale £971,95212023.. £1.038,3921. Shorllalls of income to TMe@I short term operating requirernenls Continue to be m81 from inveslment realisalions. 2. Ministry Development Fund- to support ourschools. eslablishmenls and olher charitable donations made for the public benefil wilhin the terms of our governing document. The value of this fund is £1,931,284 12023.. £6,112,881) of which £2,759,681 12023.. £6,857,151) represents tangible fixed assets. The net current assets ol th8 fund are £828,753 in delicit12023.' £744,626 in delicill, the increase being due to further costs in respect of Ihe closure of the preparalory school. Future Plan5 The tFUStees have Tesolved lo modemise their sttuclure by changing the forrn of their operating document trom Irust deed lo one of Charitable Incorporated Organisalion. Thè new Charity has been iegistered and plans to eonvert advanced pending the completion of registered land Iranslers. The tiuslees have further iesolved lo an operational merger under a CanDni¢al Fusion with Ihe Congregation of Jesus but plans foT this mer9er rernain al an early stage. The chaiily is cuiielltly Continuing to operate as an Independent charity, Iiul there is an agre8ment to work closer logelher with the Conggation ol Jesus and potentially merge in the future. Vthilst the Trustees do not anlicipate any significant change to the charity or its activities over the nexl two to five years they aTe eonstanlly r8viewing works of the Institute in the light of a changing world and its own ageing membeiship. To that end the membership continues lo review ils rninislry works for thE nexl ten years and how Ih2y will be a¢hieved and provide public benefit. Thè Trustees opinion is Ihal the Charity will conlinue to piovide public benefit by continuing lo meet the lollowlnu objectives.. To coHllnue to be Ttustees lor two Loreto schools and a Lor8to Slxlh FOTM College., To continue the development of Loreto elhosat Loreto Chodton and lo contlnue the promsion of Lorelo Slsters as foundation goveinors.. To continue to provide training lor its School gov8Tnors', To continu8 10 5UPPOrt olher schools., To continue to control Loreto Education Trust. a cornpany limited by guarantee and established to manage the operalions of the schools and college whilst at the same lime continuing the ettrK)s ol Mary Ward into tho future., To continu8 to develop new proje¢ls which deliver public benefit such as the Lor810 Drawn Together Project., To contiriue with ils pastoralloulreach work at several localions across the country., To continue the development of the Lorelo Spiiilualily Centre in Llandudiio., To maintain and increase awareness of the religious 18nets of ils founder, The Venerable Mary Waid., To continue lo care for the Sisleis and enable them to caiiy out Iheir vaiiou5 ministries where they will continue lo r&ach out to the poor and maiginalised and the victims of tiaffioking., To meet the iequiremenls ol the various stalutory bodies., To continue lo employ high quality staff and to ensure they are given appropriate and relevant training., To support the work of the English Province in Albania., To rnonitor the n8ed5 of Ihe sisleis as they 9row older and, if necessary, adapt the charily'5 plans in resp{ ol property needs and the proirision of c8re to elderly members.. To Continue lo work with church and slatulory bodies lo ensuie Ihal profosslonal standards in relation lo safeguarding are maintained. To conlinu8 lo enGourage new membershlp. -15-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Futiire Plans Icontinuedl To continue the conversion ol the Charity to a Charitable Incorporated Org8nisalion, having established the new body in the prior year. Howeverlo ensure that SLffti¢ienl funds continue lo be available lo carry out the works ol the Charity the Truslees wlll carry out a review ol incotne and expenditure and tnake decisions accordingly. Audltor Following the merger ol MHA fvloore & Smalley wilh MHA, the charfty's independent audilor has now be¢oN8 MHA. A resolution lo reappoint MHA as independ8nt auditorwill be proposed al the next Annual General Meeting. Approval The Trustee's report was approved on . and was sloned on Iheir behalf by.. Miss J Bromham Trustse -16-
INSTITUTE OF THE BLESSED VIRGIN MARY COiVIMONLY CALLED THE SISTERS OF LORETO INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 Opinion W6 have audit8d the financial statement5 01 The Institute of the Blessed Virgin Mary Cotnmonly called The Sisters of Lorelo Ilhe 'Charily'l for the year ended 31 Augu512024 which comprise the statement of financial aclivitles, the balance sheet, the 5talement of cash flows, and the noles to the financial statements, including slgnilicant accounting policies. The finanoial reporting framewotk that has been applied in their preparation 18 applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 fhg Finan8 R8porting Slandard applicabl8 in the UKandRgpublic alltsland Iunlled Kingdotn Generally Accepted Aceounling PraGII¢81. In our opinion the financ1al stalernents.. gSve a true and lair view of the stale of the Chaiily'5 affairs as al 31 August 2024 and of its incamlng resources and appllcalion of resources. induding 118 income and expendilurg, for the yearthell ended.. have been properfy prepared in accordan with United Kingdom Generally Apted Accounting Praelioe., and have been prepared in acGordanc8 with the requlremenls of the Charili&s Act 2011. Basls for oplnio We conducted our audit in accordanee wilh Int8rnalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those slandards are further described in the auditors responsibilities for the audit of th8 financial statements section ol our reporl. We are independent of the Charily in accordance with the ethical requirernent5 that are relevant lo our audil ol the financial slalemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olhei ethical responsibilities in a¢coid2nce wilh these requir8tnenls. We believe that th8 audit eviden we have oblained is sufficienl and appropriate lo provide a basis for our opinion. ¢on¢lusions relating to going concern As explained In note 20, the trustees intend lo transfer the whole of the eharitable Irust into a'charitable Incorporated Organisation ICIOI,. In undertaking our going concein assessment, we have considered the application of the requirements ol th8 8ccounting standard to the circumstances ol the Chaiily. As an unincorpoiated Charity, this is not a separate legal entity and, as Ihe intenliDn is foi the ¢h3rilable aclivilies to continue through the CIO, we have concluded that the Iruslees, use ol the going ooncein basis in th8 preparation of th& financi31 stalemenls remains appropriate. Basod on the work we have performed, we have not identified any material uneertainlies relating to events or conditions that individually or collectively, may ¢ast significant doubl on the Charity's abllity to continue as a going concern for a p81iod olal least twelve tnonlhs from when the financial slatetnents ale authorised lor Issue. Our responsibilities and the responsibiliti&s of the tru$l6es with respeGt to going GOnM are described In the relevant sections of this report. other Informatlon The other information cornprises the information included in the Iruslee's annual report. other Ihall the linanaal slalements and our auditor's report Ihereon. The Iru51ees are responsible foi the oth8r information contained within the annual repori. Our opinion on the financial slatem8nt5 does not cover the other informalion and w8 do ttot express any form of assurance conclusion thereon. Our responsiblllly is lo read Ihe other information, and, in doing so, consider wh81her the other informalion is malerially Inconsistent with the financial statemenls, or our knowledge oblained in the course ol the audit or olherwlse appears to be rnaterially wis51aled. -17-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 Other informatlon l¢ontlnuedl If we identify such tnalerizl Inconsistencies or apparent rnaterial misslatemenls, we ale required to determine whelhei this gives rise to a material misslaternenl in the linan¢ial slalements themselves. If, based on the work we have performed, we conclude that there is a material misstaletnenl ol this other information, we ale required to port that fact. We have nothing to report in this regard. Matters on which we are required lo report by exceptlon We have nothing to report in respect of the following rnallers in relation lo which th8 Charlties (Accounts and Reports) Regulations 2008 requi us to report to you il. in our opinion.. the information given in the trustees, annual report is in(x)nsistent in any material respecl with the financial slatements., or sufficient accounting records have not been kept,. or the financial slalemenls are not in agreement with the awounling iecords., or we have not ceiVed all the inloimation 8nd explanatiDns we requi18 for our audlt. Responsibilities of trustees As explained more fully in the Iru51ees' iesponsibililies slalemenl sel out on page 9. the twslee8 ale iesponslble for the preparation of financial statements which giv& a Irue and fair view, and foi such internal control as the Iruslees determine is necessary lo enable the preparation ol financial stalernenls that aE free from m8terfal misstatement, whether due lo fiaud or error. In pparIng th8 fiTranclal stalemenls, the Iruslees ale responsible for assessing the Charily's alilily lo continue as a going COnrn, disclosing. as applicable, tnatlers related lo going COnrn and using the going concem basis of ac¢ounting unless the trustees either intend lo liquidate the Charity or lo ceas8 opeiatlons, or have no realistic allernaliv8 bul lo do so. Audltors responsibilitlès for the audit of the financial Statements Wè havE been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance wilh the Act and re18vant gUlationS made 01 having effect thereunder. Our objectives are to obtain reasonable assuranoe aboul whether the financial slalernents as a whole are free frorn material misst81emenl. whether due to fraud 01 error, and to issue 2n audilorfs report that includes our opinion. Reasonable assurance is a high leve10l asSumn, bul 15 not a guarantee that an 8udil conducted In accordance with ISAS IUKI will always delect a material rnisslatemenl when il exists. Misslatetnents can arise from fraud or error and are considered material il, Individually or in the aggregate, they could reasonably be 8XP8Cted to influence the economic decisions of users taken on the basis of these financial slalements. Irregulaiilies, induding fraud, are instances of non-complianoe with laws and regulations. We design procedure5 in line wilh our responsibi1ilies. outlined abov8, to detect material misstatements in respect of irregularities, induding fraud. The extent to which our procedures are Capab of detecting irregularities, including fraud is detailed below.. Enquiries with tnanagement, about any known or suspected instances ol non-eomp1iance with laws and regulalions and fr8ud'. Challenging assumptions and judgernents made by managernenl in their significant accounting estimates, in particular in relalion to lulure performanee of the Charity,. -18-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO INDEPENDENT AUDITOR'S REPORTTOTHE TRUSTEES ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Auditing the iisk ol management override ol controls and subsequenltgsllng, Includin9 Ihiough testing journa1 enlrles and other adlustmenls lor approprlateness., Auditing the risk offraud in incorne byway oltran5action testlng. testing incom8 recognition IT) accordance with SORP, and testing foi completeness of income around th8 year end. Reviewing board mlnutes. B6cause ot the inherent limitations of an audit. there Is a risk that we will not detect all irregularllies, includlng Ihose18adlng to a maleTial mlsstatemenl ID the financial slatemenls or non-compliance With regulation. This risk increases the more that compliance with a law orregulation Is removed from the evgnts and transadions refiected in the financial Statements, as we wlll be less likely lo become aware of instances of non-cornpllance. The risk Is also gr88ter regarding iri8gulaiSlies occurring due to fraud ralh9r than error. as fraud involves intenllonal concealment, forgery. collusion, omisslon, or misTepTes8ntsllon. furth8r description our resPOll51bllllles av8i18ble on the FRC'S al.. hll s'.IlwvM.Irc.or .vkl udltorslaudit-a surancelaudilor-s-res nsibilities-fof-1he-8udit-of-the-filde th -auclilor/oE2°h 0%99s-res onsibililles-lor.This desciiptlon forms parl of our 8udilor's report. webslte ion-of- Use of our report Thls report is made solely to the Chaiity's trustees, as a body, in accordance wlth Part 4 of th8 Charilles (Accounts and Report81 Regulations 2008. Our audit work has bèèn undertaken so thal we might stats lo the Charity's tiustees Ihose rn811grs we are requirèd lo slate to Ihern in an 8udilorfs report and for no other purpos6. To the fullest exlenl pemilted by law, we do not accept or assume responsiblllty to anyone olh@r than the Charity and the Charity's Iru5tees as a body, for our audit work, for Ihls report, or forthe opinions we have fomied. tUF MHA Statutory Audllor 14 Mannin Way Lancaster Buslness PaTk Lancaster Lancashire LA13SW MHA is Ihg Iradingname ofM8clntyts HudsonLLP, è Ilmll&dliabililyp8rtnetshlp in England8nd Wales (rwstergd niNnb8rOC312313) -19-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024 Rastricted Unre5trl¢ted funds fund5 Mlnistry Province Total 2024 Total 2023 Note Income from-. Donations and legacies InveslNEnts Charitable actiinties Omer 15,8Y2 19,261 6,097 9,073 275,790 943.5S2 32,449 965,521 1.Q56.773 60,783 77,309 275,790 1,216,773 15,004 2,320 12,684 Total Income 37,453 290,960 9B8,685 1,317,098 2,350,855 Expendlture on: Raising funds Charitabk actiltieS 3,917 18.799 889 8,288 13,094 25,919 368.364 1,447.346 1.834.509 3.361,736 Total expendlture 22,716 369.253 1,455,634 1,847,603 3,387.655 Nèl gain51llosse81 on investments 10 Net gain$lllosses1 on revaluation ol fixed assets 95,052 15,8341 14,097.4701 53,931 143,149 14,097,470) 6,554 Net IncomellexpendKturel before transfers 109,789 14,181,5971 1413.018114,484,8261 11,030,2461 Transfer beell funds N8t movement in funds 109,789 14,181,597) 1413,0181 14,484,826) 11,030,246) Reconcillatlon of funds.. Total funds brought forwHrd 79S,686 6,112,881 10,960,941 17,869.508 18,899,754 Total funds Carried forward 905.475 1,931.284 10,547,923 13,384,682 17,869,508 All income and expenditure derive from ¢ontinuing aclivitles. All gains and losses recognised in each perlod are included abave. The notes on pages 2310 43 form part of these linatTrdal slatem&nts. -20-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2024 RÈstrlcted funds Unrèstrlcted funils Milli5try Provlnce Total 2024 Total 2023 NtstÈ Flxed assèts Tangible assets Inltstments 12 13 2,759,681 356 7,445,304 10,204,985 2,130,667 2,912,602 15,643,592 1,907,231 781,579 781,579 2,760,037 9,57S.971 13,117.587 17,550,823 Current assets Debtors Cash at bank and in hand 14 15 2.410 19,491 34,151 39.524 38,651 214,753 75,212 273,768 53,198 529.428 21.901 73,675 253,404 348,980 682,626 Credltors arnounts falling due Vvithin year 16 14,50SI 129.1961 148,1841 181,8851 1263.9411 Inter-fvnd debtors I IcredStorsl 106,500 873 232 766,732 Nel current assets 123,896 1828.7531 971,9S2 267,095 318,£85 Net assets 905,475 1.931,284 10,S47,923 13.384,6B2 17,869,508 Funds.. Restricted ndS Uniestri¢ted funds.. D8signated- Ministry fund Designated - Pro¥ince fvnd 18 906.476 906,475 795,686 1,931,284 1,931,284 10.547,923 10.547,923 6,112,881 10,960.941 Total funds 905,475 1,931,284 10,547.923 13,384.682 17.869,50B These accounts we18 approved by the Twstees and authoris8d for issue on the signed on their behalf by.. £7h21202& anda J Bromham . Truslee K Hewitt. Trustee The notes on pag8s 23 to 43 form part of these financial statements -21-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO STATEMENT OF CASH FLOWS FOR THE YEAR END 31 AUGUST 2024 Total 2024 Total 2023 Cash gÈneratedlluseill In operating aGtlvltles 11,067,OS61 11,191,368) Cashflows trorn Investing actlvltles PayrrEnts lo acquire tangible fixed assets Receipts from sale of tangible fixed a85ets Payments to a¢quir8 inSIMents Rec8ipts frotn sale of investments Invèslm8nt Income 119,7061 1,655.570 1709,395 695,394 37,754 1235.5941 14,464 1162.2611 1,375,448 71,991 Ca5b provld8d byllused Inl Inve5tlng actlvltles 1,669,617 1,CN.048 IncrèasellDecreasel In cash and cash 8qulvalent5 In the year 692,561 1127,3201 CEsh and cash equivalents brought forvrdrd 679,234 806.554 Cash and cash equlvalents carrled forward 1,271,795 679,234 Con51Stlnu of.. Monies held for instrInt Cash at L>ank and in hand 998.027 273.768 149.806 529,428 1.271,795 679,234 Rectsn¢llSatlon of net wnovement In funds to net cashllow from operatlng actlvltles N81 lexpenditurel for the year InstMent incom8 rec8ived Lossllgainl on dispo8al of tangible lixed assets Lossllgainl on revaluation of tanglble fixed a55ets Lossllgainl on Investrrtsnts Depreciation t)e¢reas811increa5el in debtors IDe¢rea$ellincrea5e In ¢rgditors 14,4B4.8261 137,7541 1306,8301 4,097,470 {143,1491 12,103 122,0141 1182,056 11,030,248) 171,9911 2,763 16,5541 717 62,583 1148,6401 Net cash generated In op&ratlrbg actlvStle5 11,067,056) 11,191,368) The notes on pages 2310 43 fortn part of th85e financia5 slal8tnents -22-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies Basis of preparation The Instilule ol the Blessed Virgin Mary Commonly Called The Sisters of Loreto is a charity register&d in the United Kingdom. The 2ddres8 of the charity, the natu ol ils operations and ils principal activities are all detailed in the Tiustees, annual report of these financial statements. The ¢h8rity conslilules a pub11c benefit enlily as defined by FRS102. The financial statements have been prepared in accoidance with Ihe Statement ol Recorntnended Praclice.. Accounting and Reporting by Charities PTeparing their accounts In accordance Wth the Financial Reporting Slandard applicable in the UK and Republlc ol Ireland IFRS 1021 and the Financial Reporting Standard applicable In Ihe United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 2011 and UK Generally A¢PIed Practi. The financial statements have bpen prepared on a golng concein basis under the historical cost convention as modified lo include certain ilerns at lair value. The financial statements are prepared In sterling which is the functional currency of the charlly and rounded lo the nearest £. The financial slgtements have been prepared to 9ive a 'lrue and fair, vi8w and have departed from the Charities IAccoullts and Reports) Regulations 2008 only lo the extent required lo provide a 'true and laif view. This depariure has involved following Accounting and Reportlng by Charilies preparing Ih&ir accounts in accordance wilh the Financial Reporting Standards applicable in the UK and Republi¢ of Iieland IFRS1021 issued on 16 July 2014 rather than the Accounting and Reporting by Chaiities.. Stalemenl of Recommended Practice &ffeclive from 1 April 2005 which has since been wilhdrawn. The sigr)ificant accoLinliw polici9s applied in the preparation of these flnancial slatetnents are sel out b810w. These policles have been conslstentty applied to all years presented unless olherwlse slated. Going Goncern As explained in note 20'Ch3dtable Incorpoiated Organisalion conversion, to thè fIrtanal stat&menls the charliy intend to Isubjecl lo finalising impacl assessrnentl transfer the whole of the charltable trust into a 'Charitable Incorporated Organisation ICIOI- As an unincorporaled charity, thi5 is not a separale legal eniity and. as Ihe inlenlion is for the charitable activltles to ¢onlinue through Ihe CIO Ihe accounts continue lo be prepared on a going concern basis, The Trijstees do nol consider the to be a material uncertainly al Ihis titne. and there is a reasonable expectation Ihat the Charity has adequate resources to continue for the foreseeable future. Incomrng re50ur¢e$ All Incoming resources. including income fforn school fee5 and the retreat centre, ale included in the SOFA when the charily is legally entlllEd to the income 8nd the amount can be quantified wilh reasonable accuracy. For18gaaes, enlitlemenl is the earlier of the charity being notified of an itnpending dislributlon ol Ihe legacy being received. Legacles reiVed by members of the Inslltute are credited lothe Patrimony Fund unlessthe legalor indi¢al8d a specific bequest. Investment income is included in the SOFA in the period in which il is re1Vable. Covenanted 8alari85 and pension5 Covenanted salarps and pensK)ns are received under deeds ol covenant from membots of the Institute and ale staled inclusive ol incom8 lax but nel ol any deductions for natlonal insurance 8nd occupational penslon schemes. contributions. -23-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 ALIGUST 2024 Accoiinting pollcles Icontinuedl Resources expended Expenditure is included on an accruals basls and consists of all expenditure dlredly ieSaling lo the object5 01 the charity. Investment management and gov8inance Costs include expendilur@ incurred in the management ol the portfolio and for compliance with constitutional and slaluloiy requiretnents. Irrecoverable VAT Is included with the calegory of expense to which it relates. All expenditure is wiitlen off in the year in which it is incurred. including major property renovations, unl@SS the expendilui& is deemed to increase the chaiily's fund v8lue. Governance costs Comprises audit fees. leg81 and professional f88s and a contribution to payroll. Foreign curienciès Transactions in foi8ign currencies are recorded at the rate ruling at the date ol the Iranssclion. Monetary ass8ts and liabilities are retranslated at Ihe exchange rate iullng al the balance sheet date, All differences ale taken lo the SOFA. Tangible fixed assets Land, buildlngs and fixtures.. To dale the Gharity has opted to adopt a poliGy ol not revaluing its tangible fixed assets as pemilted under the traftsilional provisions of FRS 15. On transition to SORP 2015 IFRS 1021, Similar transitional provisioris were adopted lo caiiy these amounts as deemed cost. The book value ol Ihe12nd and buildings was based on a Trustees. valuation made in 1996, based on insurance valuation at a discounted rate. plus cosl ol acqui8ltions since 1996. Whilst this policy Still holds Iiue for the ohaiity's community housing ass8ts and property asse15 still actively managed in direct ministry by the sisters. il is no longeras valid in relation to the college and schools buildings now managed by the respective governors under lh& terms of supplemental agreements. The school buildings included in the 1996 valu31ions will now have been extensively renovated and rnodernised or demolished lo create space for mor8 up to dale facilities. Any value altribuled lo buildings in 1996 is now ol doubtlul provenance. The most important factor lor the Gharily is continued recognition that ownership olthe land remain5 with the trust. 11 is expected that Ihe Schools wlll Continue to occupy the land lor some considerable time into the future and therefore any valuation would be little more than a guess. The trustees are therefore ol the opiniDn that these prop&rties should remain on the tIU8t's Balance Sheet al a nominal value lo avoid the need lo speculate over valu8 and lo continue to demonstrate the trust's ownership. No depreciatlon has been ch8rged on the remaining land and bullcsings as the Iruslees consideT that the amount involved woukj be itnmaterial after laking into account bolh th8 remaining useful life of the prop8rties and thelr residual value. Th8 tiustees havE considered the currenl market value of the properties and are of the opinion that an impairment write down was needed to bling these to their estimated fair value, For the ¢urrenl year, an mpairtnenl loss of £4,097,470 has been recognised in the Stalement of Finandal Activities ISOFAI. This irnpairm&nt iellecls the oharily's agreement to sell part of its land to a third party. with the land and asso¢ia18d property being impaired lo the expected sale proceeds. The remaining properly, which the charity plans to retain lor its own use, has been impaired based on its revised insurance valuation. Tha Trustees believe this provide5 a fair representation of the value of the remaining site, in the absence of a formal valuation. -24-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 A¢countlng policies lcontinuedl Motor veh5cles.' Depr8clation is calculated al 20°% on redu9 balance. Computer equlpment.. Compuler equiptnent is not capilalised, as ihe tiustees believe that value5 are not aterial when taking into account estimaled useful e¢onomlc lives. Investments Quoted investments are valued at their closing middle market price on the balance sheet date. Realised and unreallsed 9ains lor108sesI a reflected in the Slalement of Flnancial Activilies in the year in whlch they occur. Cash and cash equlvalents Cash balances repreSBnt cash in hand and deposits held at banks and building societies. Debtors and credStors Debtors and creditors with no slated InteSt ral8 and receivable within one year are recorded at transaction price. BalancES include funds due to and from Iwo unrestricted designated funds from wilhln the Chaiily which are 5eparal&ly identified in noles 14 and 1610 the financial statements. Fund accountlng Uijrestricled fvnds Unrestricted funds are funds whleh are avallable lor use al the discietSon of the Irustees furthera ol the general objects ol the ¢h8rily and which have not been designated for other reserves. Design8teé funds Where unrestricted funds have be8n earmarked lor a p8rtlcular pioleot, they have been designated a5 a separate fund, bul Ihe designation has an adminisliative purpose onty and does not legally re511icl the Iruslees, discretion to apply the fund. The aim and use ol each designated fund is set oul in the notes lo Ihe accounts R8Strictedfunds Reslri¢led funds arg funds which a lo be used in accordance with specific reslrictions imposed by donors, which have b8en raised by the charily for particular purposes. The cost of Mising and adTninislering such ILJnds are Gharged against th& specific fund. The aim and use of each Feslricted fund is Set out in the notes to the accounts. The account5 comprise.. Re5tfl¢ted funds.. Patrimony fund Lorelo College Sl Albans Appeal Fund Loreto Sisters Albania Fund Loieto Sisters Drawn Tog8ther Fund -25-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST ?D24 Accounting polFcies Icontinuedl Mlnlstry (unrestricted fun(Isl'. Minislry Development Fund Loielo Retieat Centre Province lunrestricted funds).. Provinc8 Fund Houses Pensions Retirement benefits to employees of thè Preparatory School were provided by the Teachers. Pension Scherne I'TPS"). This wa5 a defined benefit scheme, contracted out of the Slate Earnings-Related Pension Scheme. and the assets are he separately from those of the School, The TPS is an unlunded scheme and conlrfbutions are calculated so as to spread the eosl of pensions over employees. working Ilves with the School in such a way that the pension cost was a sub51anlially level percentage ol current and future pensionable payroll. The contributions were determined by the Gov8mment Actuary on the basis of quinquennial valuations uslng a prospeclive benefit method. The TPS was a mulli- ernployer scheme and the School was unable to identify its share ol the undertying assets and liabilili8s of the schetne on a ¢onsislent and reason8ble basis. The TPS was therefore treated as a defined contribution scheme and the ¢onliibulions recniSed as they were paid each period. Contributions for olhei staff a made to their personal pension schemes. Taxatlon HM Revenue & Qusloms eonsideT$ The Inslilu18 01 the Blessed Vlrgin Mary Cornmonly called The Sisters ol Loreto lo be 2 chaiity and therefore they are entitled lo exetnption from lax afforded by Sections 478-489 of the Corporation Taxes Acl 2010 to the extent Ihal incotne is applied exclusively lor charitab18 purposes. Financlal instyuments The Charily has elected to apply th8 provisions ol Section 11 'Basic Financial Inslrumenls, and Seclion 12 'other Fin8ncial Instruments Issues, of FRS 102 to all its financial inslrumenls. Financial inslrumonls are rewnised in the Charily's balan sheet wh8ll the Charity becomes party to contraclual piovisions of the instfumenl. Financial assets and liabililies are offsel. wilh the n8t amounts presented in the financial slaletnenls, when there is a18gally enforceable right to offset the renised amounts and there is an intention to settle on a net basis or to realise the assel and settle the liability simullaneousSy. -26-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEIWENTS ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 Accounting poll¢les Icontinuedl Basic financial asset5 Basic finan¢ial assels. whlch includ6 deblors and cash and bank balanGes, are initially measured al transaction price including transaction wsts and are subsequently carried at amortised cosl using the effeGlive interest tnethod unless the airangement con5tilules a financing transaction, where the transaclSon is measured at the pi8sent value of the luluie receipts di5counled al a market Fate of interest. Financral assets classified as receivable within one year are not atnortised. Tiade debtois and othei receivables that have fixed or determinable payments that are not quoted In an active Inaiket are ¢lass1fied as 'loans and receivables,. Loans and receivables are measured at amortised cost Using the effectSve intei8St method. less any irnpairment. Impairmgntof financNal assgts Finanoial ass81s are assessed lor indicators ol Itnpairmenl at ead) reporting end date. Finan¢iaS assels are Impaired Whe Iheie Is objective evidence that, as a 18suIt of one or more events that occurred afterthe initial iecognilion of the financial asset. the eslimaled lulure cash flows have been affeGted. If an asset is impaired, the impairment Ios5 IS the difference belween the ¢ariying amount and the present value of the estimated cash flow5 disoounted at th8 asset's original effeclwe Inlerest late. The Itnpairment lass is rewgnised in the slatemenl of comprehenslve income. If there is a decrease in th8 itnpairment 105$ arising from an event occuiiing after the impaiiment was recognised, the impairment is reveised. The reversal is such that the Currenl cariying arnounl does not exceed what the caiiying amountwould have been, had the impaiiment not pieviously b8&n recognised. The impairtnent reversal is recognised in the statemenl ol comprehonsive incotne. D8-recognilion of fin8ncial assets Fin8nclal assets are derecognised only when the conlraclual rights lo the cash flows from the asset expire or are sellled, or when the cornpany Iransf8rs the financial asset and substantially all the risks and rewards ol ownership to another enlity, or il some significant iisks and rewards of ownership ale retained but Control of the asset has transferr8d to another party that Is able 10 Sell the asset In its entirely to an unrelated thlrd party. ClossifiGalion of finan¢i81 IlabFlilies Financial liabilitie5 are classified according to the substance of the contractual arrangements entered into. Basic finarJci81 liabilib-85 Basic financial liabilities. including creditors, are initially recognised al transaction price unless the arrangement constitutes a financing transaction, where the debt Instrument is measured al the presEnt value of the future receipts discounted at a markel iale ol interest. Financlal liabililles classified as payable with1n one year are not amortised. Debt in51rumenls are subsequently carried al arnortk4ed cosl, using the effective Interest late method. Trade creditors a obligations lo pay lor goods or services that have been acquired in the ordinary course of business from 8uppliers. Arnounts payable a classified as current liabilities il paymenl is due within one year 01 less. 11 nol. they are presented as non-currenl liabilities. Trade creditors are re¢ognised initially at transa¢tion price and subsequ&ntty tneasuied at amortised cost Ltsing the effective int8ie51 method. -27-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies (Gontlnuedl De-recognilion of finanGialli8bilib"es Financial li4bililies are derecognis8d when the company's contractual obligations expire or are discharged or ¢aneelled. Judgements and key 5tsur¢es of estlmation uncertainty In the application of the Charity's accounling policies, thè trustees are required lo make judgements, eslimales and assumptlOll5 about the carrying grnounts ol as88ts and ligbililies that are not readily apparent from other sources. The estimate5 and associated assumptions are bssed on historical experience and other factor5 that 8r8 considered to be relevant. Actual results may diller Irorn these estimales. The estimates and underlying assumptions a reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the pstimale is revised where the revision affecls only that period, or in the period of ihe revision and futur8 periods where Ihe revision affeS both current and future peiiod5. Key assumplion8. judgement8, and estimates Valtialion of lÈnd and buildings Th8 Trustees make sn annu81 assessment of the valuation of properties held within the Charity against their current book value and determine whether Iheie are any signs ol impaiiment which may indicate that the valuation is overstated. Th8 Truslees have confirmed that Iher8 15 no furth81 Impalrmenl to Ihe valuation ol properties held at the balance sheet date. There have been no olh81 key assumplions cOnrning future and olher key Sou$ ol eslimatlon unc8rl8inly at the reporting dale that have 8 significant li5k of causing a material adjustment lo the cariying amounts of assets and liabilities wilhin the next financia1 year. staff costs and tIU5tees' remuneratlon Staff costs during the yÈar were a5 follows- 2024 2023 Wages and salaries Sorial security Gosts Pension costs 779,352 63,927 17.17 1.591,456 121.238 1fj8,116 860,454 1,830.810 -28-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINLIEDI FOR THE YEAR ENDED 31 AUGUST 2024 Staff costs and trustee5' remuneration l¢ontinuedl Tlie average nutpber of employ&es durin9 the year was 3712023., 611. The number of employees earning over £60,000 per annurn, excluding pension contributions but Including redundancy setllemenl8, was as fdlows.. £100,000- £11 O.000- O etnployee12023'. 1 employee) £90,000- £100,000- O employee12023.. 2 employees) £80,000- £90,000- O empSoyee12023.. 1 employee) £70,000- £80,000- 0 8mployee12023". 2 employees) £60.000 - £70,000- O employee12023'. 2 etnployeesl As members of the Instltule, the Tiustees, Iwing expenses during the year were borne by the Tiust. bul the Trusle&s reIved no remuneralion or other benefits in connection with their dulles as Trustees during the year. The Finan M2nager, Malron and cent Manager are cons1dered lo be key management personnel. Their aggregate iemuneration for the year was as follows.. 2024 2023 Aggregate reTtLun8ration of key manageffent personnel 01,815 232,865 Following a Trustees, resolution in March 2023, the Charity ck)s8d Ils preparatory school in Allrincham after Ihe summer term in July 2023. Teachers and staff received redundancy and settlement payments based on Iheii length ol service and Current remuneration. The full cost of these payments was included wilhin staft C05t5 lasl year and all grnounls due have been met and tolalled £336,512. The institute also leached agreement with ils Finance Manager to remain in ofliGe beyond his inlended retirement dale131sl July 20231 until his 5uc¢essor was appointed. EXpIlOal expen58s also included an agreed settlement payment of £29,080 last year. Pension contributlons The Charily rnakes conlribkilions to employees defined contribution pension schetlles. including Ihe Aviva Pension Trust for Independent Schools. to which a total of £17,17512023.. £118.1161 was contributed in the year. Audltor's remuneration 2024 2023 AnY)unts payab18 to Ihe auditor IillGluding VAT) was as follows.. Audit seTrqGes Cxher serwc8S 22,500 6,906 21,960 19,409 29,406 41,3S9
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCSALSTATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 Income from donations and legacie5 Currerhl year Unrestrlctèd Unrestrlcted funds funds Nlinistry Provlnce Restricted funds Total 2024 Don8tion5 and gifts Lega¢ies Covenanted saL4ries and pensions18ee bobwl 15.872 6.097 10,110 32.079 933.442 933,442 5,872 6.097 943,552 965,52 Prlor year Unrestricted Unrestrl¢ted funds funds istry Province Restricted funfls Total 2023 Donations and glfts Legacies Covenanted salaries and pension5 (see below) 55.951 103,075 81,986 137,937 103,075 815,761 815,761 159.028 897,747 1.056,773 Covenanted sa18rles and pensions Topiesent sal8rfes and p8n5ions of rnernbers, inclucling those paid lo the Trustees, ol the chaiity payable to the charity under d&eds of covenant or grft aid declaiallons. -30-
NSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINiIEDI FOR THE YEAR ENDED 31 AUGUST 2024 Income from investmEnts 2024 2023 UK fixed incorne 8ritish Go*rnment 8onds InStMent Companiés other fixed Inler8St Europ8 fixed Inl8rest Equit18S'. UK European Glot)al Emerging maikets Cornmercial property Specialisl Alteinati other 4,220 2,852 509 379 18,613 11,732 486 2,711 3,496 1,142 96 1.870 8,641 32,005 8,226 12,768 other.. 37,754 71.991 Monles held for nstment in the UK NatSon81 sangs Monies held by stockbroker Treasury Deposits B9 9,242 13,232 5,065 251 60,317 77,309 Bank interest 466 60,783 77,309 Represented by.. 2024 2023 Rtrstrict8d Unrestricted- Ministry Unrestricted - Promnce 19,281 9,073 32.449 16,562 60,747 60,783 TT,309 -31-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Income from charltable aclivitles 2024 2023 Unrestrlcted Mlnlstry School fees and retreat centre 275,790 1,216,773 275,790 1,216,773 INMe from charitable activities wa8 entirety unre5triGted in the current and prior year. oth8r Income Current year Unrestricted Unrestricted funds funds Mintstry Province Restricted funds Total 2024 other 2,320 12,684 15,004 2,320 12,684 15,004 Prior year Unrestrlcted Unrestrtcted funds fund5 Ministry ProvinGe Restrltted funds Total 2023 Cxher Expendlture on ralslng funds 2024 2023 Re5trfct8d Unrestricted- Ministry UnrÉstricted- ProInCe 3,917 889 8,288 2,590 23,329 13,094 25,919 -32-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Expenditure on charitable actlvities Current year Unrestrlcted Unrestrlcted funds funds Mlnlstry Provlnce Restrlded funds Total 2024 Salaries (Dr Ihg school and retr8at centre Running costs and maintenance of builditKJS Depreciation of fixed assets (Gains) I losses on sale of fixed as$8ts Community expenses NursSng fees and medical Care ForThatlon and ministry Le pald to the Generalate Grants and expenditute on supported schools G0Mance Costs Golemance Costs - audlt Support costs 215,157 105,820 215,157 503,468 12,103 1306,830 319,842 637,415 138.816 3,189 6,354 397,648 12,103 1306.8301 319.842 637,416 98,772 12,4145 27,599 3,189 6,354 3,900 76,323 22,500 189,573 80.223 22,500 202,272 12,699 18.799 368,364 1,d47,346 1,834,509 Prior year Unrestrl¢ted Unrestrlcted funds ftjnds nistry Province Restrlct8d funds Total 2023 Salaries for Ihe school and retreat centre Running costs and maintenance ol buildiNgS Deprecialion c>f fixed assots Comrnunity ewenses Nursing fee5 and medical care Formation and ministry Lew paid to the Generalate Grants and expenditure on supported 5Ghools
¥ernan¢e c05ts- payroll GDvemance ¢osis- audit Supporl ¢osts 911,782 312.445 911,762 606,554 717 363,437 545.279 161,259 23,116 294,109 717 363.437 545,279 23,196 60.014 78,049 23,116 7,291 456,536 463.827 38,743 22,944 226,098 36,743 22,g44 226,098 67,305 1,781,908 1,512,523 3,361.736 -33-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 10 Net gainlllossl on investments 2024 2023 Restricted Unre5trictsd- Mnislry Unreslri¢t8d- P[r8 95,052 15,8341 53,931 16,151 19,5971 143,149 6,554 11 Analysis of movement In restricted fund5 Total restricted lunds Drawn together Albania Appeal Patrimony funds fund IncoTning resources her income Donations and legacies Loreto College St AanS appeal Instrrnl inco 6,787 5,500 13,287 4,905 19.261 4,905 19,261 Total incomlng re50ur¢es 6.787 6,500 4,905 19,261 37,453 Resource5 ÈXP8nded Raising furids Chaiitable objects". Ministry Expenditure on schoo 3,917 3,917 12,445 12,445 6,354 6,354 Total resource5 expended 12,445 6,354 3.917 22,716 Net Incominglloutgoingl resource5 befor8 transfers 15,6581 11,4491 15,344 14.737 Gain on inveslments 95,052 95,052 Net movement In furkd5 for th8 year 16.6581 6.500 11,4491 110,396 409,789 Total funds at 1 SeplerrJ)er 2023 17,142 7,328 771,215 795.686 Total funds al 31 August 2024 11,485 6,500 5.879 881,611 905,47S
INSTITUTE OF THE BLESSED VIRGIN WIARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIALSTATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 12 Flxed 855ets Land and buildfings inc fixtures Motor vehiclos Total Cost or deerned cost Balance al 1 September 2023 Additions Dlsposa15 Complelionstrranslers Balan¢e al 31 August 2024 D8preciation and impairment Balance al 1 sePter 2023 Charge for the year IrrpairnEnt loss for the year Elimlnated on disposals Balan¢8 at 31 August 2024 15,605,894 146,703 19,7 130,1841 15,752,597 19.7( 11.377,2171 11,347,033) 14,258,861 136,225 14,395,OB8 109,005 12,103 109,005 12,103 4.097,470 28,477 4,097,470 28.477 4,097,470 92.631 4,190,101 Net book value At 31 August 2024 10.161,391 43,594 10.204,985 At 1 Soptember 2023 15,605,894 37,698 15,643,592 As outlined in the accounting policies, the charity has ¢ho8en not to revalue ils langlble fixed assets, in11ne with the transits"Dnal provisions of FRS 15. However, each year, th8 charity assessès wh8lher an impairment provision is ne¢8ssary. For the current year, an impairment loss of £4,097,470 has been recognised in the Slatemenl ol Financial Activhies ISOFAI. This itnpairment reflecls the charity's agreement to sell part of Ils land lo a Ihiid party. with the land and associated propetiy being impaired to the exp@cted sale proceeds, The iemalning piopetiy, which the chaiily plans lo ielain for its own use, has been irnpaired based on ils rewised insurance valu21ion. The Tiustees believe this provides a fair representation of the value ol the retnaining sile, in the absence of a formal valuation. -35-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 13 Investments 2024 Cost 2023 Cost Market value Market value LK fixed incorlle British Gthernment Bonds Inve8tmpnt Companies (Xher fixed interest Europe fixed interest Equilies.. UK European (lobal EFrErging rnarkets Cotrmercial property speciast Alternati8 171,568 68,298 44,079 39,285 424,654 257,604 378,659 135,830 67.273 40,679 118,627 169.277 65,185 41,647 40.116 456,688 294,091 486,326 141,585 57,085 35,148 127.427 26,348 25.955 291.218 16,752 868,044 299,722 459,440 242,247 16,698 661,048 307,054 504,423 other. 1,746,556 1,914.575 1,961.524 1,757,425 Monies held for investment in UK.. National Samngs Monies held by stockbroker Treasury deposils 492 288,906 706,629 2,492 288,906 706,629 2,476 37,556 109.774 2,476 37,556 109,774 2,744,583 2,912,602 2,111,330 1,907,231 Market value 1 September 2023 Inve5tmerbt Market value gains and 31 August losses 2024 Addltlons Disposa15 oted investments 1.757,425 709,395 1695,3941 143,149 1,914,575 -36-
INSTITUTE OF THE BLESSED VIRGIN MARY COMnnoNLY CALLED THE SISTERS OF LORETO NOTESTO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 14 Current assets 2024 2023 Deblors Prepayments and a¢¢rued incomg Income tax re¢o%Erable Oth8T debtors 66,382 2,320 879.741 34,085 972 784,353 Gross (Jebtors 948,443 819.410 Less Inter-tund debtor 1873,2311 (766,212} Totsl debtors (net of Inter-fund debtor) 75,212 53,198 15 Cash at bank and hand 2024 2023 Cash at bank and in hand Interesl bearing accounts Cash balances 268,693 5,075 522,789 6,639 273.768 529,428 -37-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 16 Liabilitles 2024 2023 Amounts falllng due wilhln one year CredStors DefErred income Payroll Accruals 145,498 24,353 18,611 766.654 145,926 24.132 87,1Q6 772,89Y Gross liablll1I8s 955.116 1.030, 153 Less int8r-tund creditor 1873,2311 1766,2121 Total credltors (net of Inter-fund ¢rÈdltorl 81.885 263,941 Deferr8d Income Balan¢e at 1 Septemb8T 2023 Amounts In th8 year Amounts r818ased to incorning resources in the year 24,132 24,353 124,1321 53.610 24.132 153,8101 Bolance at 31 August 2024 24.363 24,132 17 Borrowing8 and Gonting8nGle$ During th8 yP8r ended 31 August 2003, the Iiustees donated funds to Lot0 College, Manchester in order for th& College ta invp5t in capital expenditure. These funds were generated by the disposal of a portion of land al the College which was subject lo covenants by Manchester City Council. The Coun¢il allowed the dlsposal ofthe land lo take place in exchange fora covenant on the retnaining land. such that the City Counci1 WOLJld bB enlilled to a payment of £1.050,000 Should the Colleg8 land and buildings be dlsposed of during a peiiod of 40 ye8rs from the date ol sale of the surplus land,
INSTITUTE OF THE BLESSED VIRGIN MARY corvlMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 18 Movement in funds Current year Balance Change in Chang8 in 1 Septembey investm8nt fixed asset 2023 valuation valuation Balance Fund Atttlvlty in 31 August transfers year 2024 R&sfiricted fvnds Patrimny Ministry Appeal funds Minlstry - Dra TOgetr Iknistry Albania 771,215 7,328 17,143 95,052 15,312 {1,41n 15,6581 6,500 881,579 5.911 11,485 6,500 795,686 95,052 14,737 905,475 D851gnated funds nistry Functional property Olher Ministry funds.. Investments Genera1 6,857,151 14.097.470) 2,759,681 356 1744.6261 356 178,293) 1828,753) 15.8341 6.112.881 15,834114,097,4701 178,2931 1.931,284 Provincè Funcliond propety Transport her PrInCe funds.. Investfflents GenBr 8,748,743 37,698 8,748,743 37,698 1,136,108 1.038,392 53,931 1,190,039 571,443 1466,949} 10,960,941 53.931 1466,949110,547.923 Total funds 17,869,508 143,149 14,097,470) 1530,505113.384.682 -39-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 18 Movern8nt In funds l¢ontinuedl Balance Chaiig8 in Change in 1 September investinent fixed asset 2023 valuation valuation Balance Fund Activity in 31 August transfers year 2024 Restricted Ministry Proifince 795.686 6,112.881 10,960,941 95,052 15,8341 14.097.470) 53,931 14.737 905,475 178,2931 1,931,284 1466,949110,547,923 Total funds 17,869,508 143,149 14097.4701 1530,505113,384,682 Restrtcted funds Patrimony This fund comprises the dowers made by Individual sisters and any 18gacie5 received by sisters during their lifetime. When a sister dies, Ihe dowerllegacy is released lo the Province Fund. Loreto College St Albans Appeal Fund In¢ome consists ol donations received to gssist In funding th8 on-going development of the school site. The fund is used to fund the Irustees, contribulion la small building works. Loreto Sl$tsrs Dyawn Together Fund Thls fund supports thè work of the English Province at Harpenden Children's Cenlre. Loreto Slster8 Albania Fund This fund supporis the work ol the English Province In Albania. Designated unrestrlcted funds ivlinistry To support the works of the members in their ministries. Provlnce To support the sisters and to care for Ihem when they are s1ck and aged. -40-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 AUGUST 2024 18 Movement in funds Icontinuedl Prior ypar Balance Change in 1 September investment 2022 valuation Balance 31 August 2023 Fund Activlty in transf8r5 year Restrlcted fvnd5 PalrirrK>ny nislry- Appeal funds Ministry - Drawn Together Minlstry bania 638,017 8,847 15,108 11,870 16.151 117,047 11.5191 2,035 111,8701 771,215 7.328 17,143 673,842 16,151 105,693 795,686 Designated funds Mlnistry Funclional property Olhei Ministry funds.. Investrnents General 6,837,614 19.537 6,857,151 357 1159,9551 356 1584,6711 I744,6} 6,678,016 1565,1351 6,112,881 Provithce Funclion31 property Tran5POrt OMer Promnce funds.. Inwestments C£neral 8,506,658 28,783 242,085 8,915 8.748,743 37,698 2,441,781 584,433 19.5971 11.296.076) 1,136,108 453,959 1,038,392 11,561,655 19,5971 1591,1171 10,960.941 Total funds 18,913.513 6,554 11,050,559) 17,869,508 -41-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 18 Mov8m8nt In funds Ictsntlnuedl alance Change in 1 September Investment 2022 valuation Balance 31 August 2023 Fund Actlvity In transfers year Restricted Ministry Probince 673.842 6.678.016 11,561,655 16,151 105,693 795.686 1565,1351 6,112,881 1591,1171 10.960,941 19,5971 Total funds 18,913,513 6,5S4 11,050,559) 17,869,508 19 Analy515 of net assets between fund5 Gurrfrnt year Unrèstrlctèd Unrestricted unds funds Ministry Province Restricted funds Total 2024 FixEd assets Current 28sets Creditors.. amunts falling due wlhin one year 781,579 21,901 2,760,037 73,675 9,575,971 13,117,587 253,404 346,980 14,S051 129,1961 148,1841 181,8851 798,975 2,804,516 9,781,191 13.384,682 Inter-fund debtor l (¢redllorl 106,500 1873,2321 766,732 905,4YS 1,931,284 10,547,923 13,384,682 -42-
INSTITUTE OF THE BLESSED VIRGIN MARY COMMONLY CALLED THE SISTERS OF LORETO NOTES TO THE FINANCIALSTATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 19 Analysls of net assets bfrtween funds Icontinuedl Prlor year Unrestricted Unrestricted funds funds MSnlstry Provlnce Restricted funds Total 2023 xed assets Current assets Creditors.. arrK)unts falling due wlhin or year 770,767 29,425 6,857,507 227,916 9,922,549 17,550,823 325,285 582,626 14,5061 1206,3301 153,4051 1263,941 795,666 6.879,093 10,194,729 17,869,508 1766,2121 766,212 Inter-fund debtor I Icredilorl 1.591,372 6,112,881 10.960,941 17,869,508 2D Charitable In¢orporated OrganFSatlon ¢onversion The Tru51ees intend lo transfer the whole of the charitable trust Ilhe airn5 and objectives in the trust document, Ihe ¢h81ilable Iru513ssets and op8rationsl into a 'Ch8ritable Incoiporaled Organisalion ICIOI,. The TIu5tee5 a expecting the planned transfer lo be within the next financial period, but this is subject to change. 21 Rtrlated partie8 As noted in the trustses, report, Loreto Educ8tion Trusl is an assoclated charity. Lor&to Education Trust providos services to Loreto Preparatory School (Allrinchaml. During the year paytnents ol £nil12023.. £nill were wnade to Ihe Trust, The charity provided the land and buildings foi the use ol Loieto College 1st Albarisl and Loreto Grammar School (Altiinchaml under supplementary agreements, rent flee, throughout the year and previous y881. 22 Capital commitments Capital cotnmilmenls amounted to £nil12023'. £riill. 23 Post balan¢e sheet events There are no post balan sheet events. -43-