The Congregation of the Dominican Sisters of Malta
Charitable Trust
Charity No 250683
Annual Report and Accounts
31 December 2024
The Congregation of the Dominican Sisters of Malta Charitable Trust
Legal and administrative information
Trustees:
Sister Mary Anne Cardona (Superior) Sister Mary Attard Sister Filomema Grima Sister Maria Dolores Gauci Sister Theresa Sciortino Sister Maria Dolores Schembri
Administrative address:
Maryfield Convent London Road Hook RG27 9LA
Charity registration number:
250683
Auditor:
Michael George & Co Dawes Court House Dawes Court, High Street Esher KT10 9QD
Investment managers:
CCLA Senator House 85 Queen Victoria Street London EC4V 4ET
Bankers:
Barclays Bank plc 68 Knightsbridge London SW1X 7BW
Solicitors:
Wedlake Bell LLP 71 Queen Victoria Street London EC4V 4AY
1
The Congregation of the Dominican Sisters of Malta Charitable Trust
Trustees' report
Year ended 31 December 2024
The Trustees present the statutory report and accounts of the Congregation of the Dominican Sisters of Malta Charitable Trust (the "charity") for the year ended 31 December 2024.
The accounts have been prepared in accordance with the accounting policies set out on pages 14 to 16 and comply with applicable UK Accounting Standards (UK Generally Accepted Accounting Practice). The principles set out in the Statement of Recommended Practice on "Accounting and Reporting by Charities" known as the Charities SORP (FRS102) issued in October 2019 have been followed in the preparation of this report and accounts.
Introduction:
The Dominican Sisters of Malta (the "Congregation") is an international religious congregation founded in 1889 comprising 19 communities of Sisters working in Malta, Italy, England, Sri Lanka, Pakistan and Australia.
This report and accounts are in respect of the charitable trust on which the Congregation has placed the assets of its community at Hook, Hampshire, England and through which its finances are administered. The charity is governed by a Trust Deed dated 11 January 1967 and a Scheme dated 19 June 1997 and is registered under the Charities Act 2011, registration number 250683.
Principal aims and mission:
The aim of the charity is the support of such charitable purposes which advance the religious and other charitable work carried on in England and Wales and elsewhere by the Congregation. This work in particular included the maintenance of a residential home for the elderly in Hook until August 2021 when the home was closed following a fall in the number of Sisters and staff providing care and the additional time taken in carrying out the necessary measures required by Covid-19. Since that time accommodation has been provided for a retired priest in a catholic community and the nursing home has been rented to an independent nursing home provider.
The Congregation's whole life follows the apostolic model so as to respond with the Church to the needs of each age or culture and to take its part in the advent of a world of greater justice by adapting its manner of life and action to the demands of the apostolate.
When setting the objectives and planning the work of the charity for the year and when encouraging the work of individual Sisters, the Trustees have given consideration to the Charity Commission's general guidance on public benefit and in particular to the supplementary guidance on fee charging.
Public benefit
The Trustees confirm that they have had regard to the guidance on public benefit issued by the Charity Commission and consider that the charity fulfils that obligation, initially by reason of it offering care home facilities to all irrespective of gender, race or creed and subsequently by providing a retirement home and accommodation for a retired priest and by its continuing work in its local and, in particular, its worldwide community. This latter public benefit has been supported by a substantial grant this year and it is the intention that such grants will continue to be made in the foreseeable future.
Structure, governance and management:
Governance:
Under the terms of the Trust Deed the Trustees are appointed by the Mother General of the Congregation.
The Congregation itself is directed by the Mother General and her four councillors whose mandate is renewed every six years through a "Chapter of Elections".
Each community is under the direct jurisdiction of the Mother General and her council residing in the Generalate House in Malta. Each house is under the supervision of a local Superior. The community in Hook is one such house.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Trustees' report (continued)
Year ended 31 December 2024
Governance: (continued)
The names of the Trustees who have served from 1 January 2024 until the date of this report are listed on page 1. All Trustees are members of the Congregation with wide experience and knowledge of the work of the Congregation and its community in Hook.
Structure and management reporting:
The Trustees are ultimately responsible for the policies, activities and assets of the charity. They meet regularly to review developments with regard to the charity and its activities and make any important decisions. When necessary, the Trustees seek advice and support from the charity's professional advisers including investment managers, solicitors and accountants. The day-to-day management of the charity's activities and the implementation of policies is delegated to the approporiate members of the Congregation.
Risk management:
The Trustees have assessed the major risks to which the charity is exposed, in particular those relating to specific operational areas of the charity, its investments and its finances. The Trustees believe that by monitoring reserve levels, ensuring controls exist over key financial systems and examining the operational and business risks faced by the charity they have established effective systems to mitigate these risks.
Activities, specific objectives and relevant policies:
Care of a retired priest
The community offered secure accommodation to the aged and retired resident priest in a Christian environment until his death in the latter part of the year.
Social and pastoral care:
The community continues to offer local services for the needy including:
visits to the housebound and support for bereaved families;
visits to the sick and residents and friends in hospital;
organising transport where necessary for less mobile residents by dedicated drivers and organising various outings and trips;
assisting the homeless within the charity's means by providing food and material assistance in cases of distress;
assisting local parishioners in attending Church on Sundays.
assisting parishioners at different levels, for example social help, moral and spititual guidance and crisis relief for families;
and to its international community as required from time to time by the Mother General.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Trustees' report (continued)
Year ended 31 December 2024
Donations:
The Trustees have a strong commitment to support Sisters working abroad, especially in Pakistan and Sri Lanka in previous years. Support is normally chanelled through the Congregation's Mother House, the work of which is also supported generally, and particularly this year as donations totalling £522,122 (2023 - £306,103) have been made. Futher donations of the Sterling equivalent of 410,000 Euros have been made since the year end and It is the intention to make further substantial donations, probably again via the Mother House, to support the pastoral work of the charity for the benefit of the community at large. In addition, small alms can be given to individuals for the relief of hardship and distress.
Support of members of the Congregation:
The Trustees continue to support and assist members of the community at Hook, some of which continue to work beyond normal retirement age.
Investment policy:
The charity has a portfolio of investments with a value at the balance sheet date of £24,373,661 (2023 - £23,692,783). The investments are managed by CCLA and are invested exclusively in COIF Catholic Investment Fund Founder Accumulation Units - Class 2. The manager operates within specific guidelines that are set and regularly reviewed by the Trustees. The strategy is to maximise the total returns within acceptable ethical and risk parameters. There is no restriction on the charity's power to invest.
Reserves policy:
The Trustees have decided that adequate reserves must be maintained for specific purposes which are: (a) to provide sufficient income for the retirement of the Sisters as determined by the periodic actuarial-type review; (b) to provide sufficient funds to maintain the charity's aging buildings to the required standard, and (c) to provide sufficient funds to enable the charity to carry out its work in the community both at home and overseas.
Remuneration policy:
The resident Sisters who are all Trustees, do not receive salaries or wages but are provided with free accommodation plus living and other expenses. There is one other key staff whose salary is set by the Trustees having regard to responsibilities undertaken and market rates for similar part-time engagements.
Achievements and performance:
Care of the elderly:
Until August 2021 the Home provided permanent accommodation for its residents and had acquired an extremely good reputation in the area which was supported by very favourable reports from the Care Quality Commission. The community of qualified Sisters and carers provided 24 hour service to residents who had their own rooms and a chapel with an adjacent church where a full-time priest provided spiritual care.
Lease of care home premises:
Following the decision by the Trustees that the charity could no longer guarantee to provide the very high standard of care that had previously been provided, the Trustees agreed to let the care home premises to an unconnected care company for a period of 10 years at market rent after an initial rent-free period of six months. The necessary Report under Section 119 of the Charities Act 2011 was provided by Avison Young, Chartered Surveyors on 12 January 2022 and a formal lease providing a rent of £120,000 per annum was entered into. After the rent-free period rental income commenced from 10 November 2022. The charity will not provide any services to the new tenant in respect of care or other activities.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Trustees' report (continued)
Year ended 31 December 2024
Social and pastoral care:
The community continued to provide the social and pastoral care outlined under "Activities, specific objectives and relevant policies".
Donations:
The charity normally provides financial support to the Congregation Sisters in overseas missions mainly via the Congregation's Mother House and this year a total of £521,156 (2023 - £305,500) was donated.
Financial review:
Results for the year:
Incoming resources amounted to £250,338 (2023 - £549,907) and resources expended on furthering the charity's objectives amounted to £589,581 (2023 - £379,158) . Of the incoming resources £23,072 (2023 - £32,500) was received in the year from letting accommodation to a retired priest.
CCLA have been the investment managers for many years and on 11 January 2023 the entire funds of the charity were moved from COIF Catholic Investment Fund Founders Accumulation Units into COIF Catholic Investment Fund Accumulation Units Class 2
Distributions are not paid in respect of accumulation units but are incorporated into the fund and the resulting increase in value is reflected in the bid price of the units. For this and future years there will be no income to be shown as dividends and interest and this will continue whilst the investment remains in accumulation units. The distributions made during the year and fluctuations in the values of the underlying investments will be reflected in the bid price of the units at the year-end and such movements in valuations will be disclosed in the Statement of Financial Activities as increases or decreases in unrealised gains or losses.
| ctivities as increases or decreases in unrealised gains or losses. | |
|---|---|
| Bid value of units at 1 January 2024 Proceeds from units sold Bonus units allocated Realised gains on units sold Market price movement on units Bid value of units at 31 December 2024 ements in investments has been as follows: |
£ 23,692,783 (500,000) 35,460 66,757 1,078,661 |
| 24,373,661 |
Total movements in investments has been as follows:
Financial position
The charity's total funds at 31 December 2024 were £26,001,737 (2023 - £25,262,319) . Of this £1,500,000 represented tangible fixed assets used to support the charity's work. A sum of £9,996,150 (2023 - £9,177,630) has been calculated by the Trustees using actuarial principles to provide for all of the Order's Sisters in the United Kingdom and overseas in their retirement and has been designated as a retirement reserve.
The number of Sisters worldwide continues to decline and this trend also applies in England. In view of this and the increasing complexity and burden of the regulatory regime and the physical demands of providing care by an ageing community of Sisters the Congregation had continued to operate its Home at 50% of capacity until its closure in August 2021. There were 4 or sometimes 5 Sisters working in the care home but prior to that there were 7 or more Sisters.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Trustees' report (continued)
Year ended 31 December 2024
Financial position (continued):
Free reserves at 31 December 2024 stood at £14,505,587 (2023 - £14,584,689) . These reserves are represented by investments and cash awaiting investment. It is the Trustees' view that these investments and the reserves they represent must be kept intact to provide funds when necessary to support the charity's work, to provide for capital expenditure and to provide a contingency fund for emergencies. In particular, some of the original buildings are very old and will almost certainly require extensive repairs to the fabric of the buildings in the near future and this is likely to prove to be extremely costly.
Covid-19 Pandemic
The difficulties created by Covid-19 and the fall in the number of Sisters and outsourced staff increased the risk of non-performance of core duties and in these circumstances the Trustees felt they had no alternative to closing the care home. This was completed in August 2021 and all residents were successfully relocated in alternative care homes. Since that time the care home has been leased to an independent care home operator so that the buildings and facilities continue to be used for their original purpose.
Trustees' responsibilities statement:
The Trustees are responsible for preparing the Trustees' report and accounts in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these accounts the trustees are required to:
a) select suitable accounting policies and then apply them consistently;
b) observe the methods and principles in the Statement of Recommended Practice (Accounting and Reporting by Charities) (the Charities' SORP) issued in October 2019;
c) Make judgements and estimates that are reasonable and prudent;
d) state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts, and;
e) prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, and the Charities Act 2022 so far as applicable, the applicable Charities (Accounts and Reports) Regulations and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Trustees' report (continued)
Year ended 31 December 2024
Future plans:
The community will continue its caring and pastoral work and the support of its missionary work in the United Kingdom and, in particular, overseas,
It is the wish of the Trustees that the buildings that have been converted and equipped for use as a care home should continue to be used as such even though the charity is unable to provide that service itself. The Trustees therefore negotiated an agreement with Pinnacle Care Homes Limited whereby that company has taken a lease of the existing care home buildings and grounds for a 10 year period at an annual rental of £120,000 commencing after a 6 month initial rent-free period to allow the new business to be established. This business will be operated by the lessee and the charity will have no control over its operation and will not provide any services to the business.
Signed on behalf of the Trustees:
Sister Maria Dolores Schembri Trustee Dated: July 2025
7
The Congregation of the Dominican Sisters of Malta Charitable Trust
Independent auditor's report
Independent auditor's report to the Trustees of the Congregation of the Dominican Sisters of Malta Charitable Trust
Opinion
We have audited the financial statements of the Congregation of the Dominican Sisters of Malta Charitable Trust for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the cash flow statement and related notes. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards, (UK Generally Accepted Accounting Practice) and the Charities SORP (FRS102) issued in Octber 2019.
In our opinion the financial statements:
give a true and fair view of the state of the charitable trust's affairs as at 31 December 2024 and of its incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with UK Generally Accepted Accounting Practice, and
have been prepared in accordance with the requirements of The Charities Act 2011 and The Charities (Accounts and Reports) Regulations 2008 (as amended).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.
Our responsibilities and the responsibiities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial information and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appers to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
8
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which The Charities (Accounts and Reports) Regulations 2008 and The Charities Act 2011 require us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the Trustees' Report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
Responsibilites of Trustees
As explained more fully in the Statement of Trustees' Responsibilities the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements the Trustees are responsible for assessing the charitable trust's ability to continue as a going concern, disclosing as applicable, matters relating to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable trust or to cease operations or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of financial statements
We have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with regulations made under Section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not an guarantee that an audit conducted in accordance with ISAs (UK) will always detct a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, are detailed below.
The audit was carried out directly by or under direct control of the engagement principal who has extensive experience and knowledge of the charitable trust and of the legal and regulatory framework under which the charitable trust operates. The areas in which a material misstatement may occur have been identified by ourselves as investment reporting and operating income.
The charitable trust's funds not immediately required have been placed with CCLA for investment in appropriate COIF funds. The investments have been made in accumulation units and therefore produce no income, the income from the underlying investments being reflected in the accumulation unit price. Investments reports, including year-end balance certificates, are obtained directly from the investment manager. We have examined these reports and the Reporting Accountants' Assurance Report to CCLA Investment Management Limited regarding the investment manager's procedures prepared in accordance with Technical Release AAF 01/20 and conclude that there is unlikely to be any material misstatement regarding investments as reported by the investment manager. These reports also confirmed the amounts of rebates from CCLA which are shown as income in the Statement of Financial Activities.
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Auditor's responsibilities for the audit of financial statements (continued)
Rental income in repect of the accommodation and care provided to the retired priest has been verified with bank receipts and rental income from the nursing home tenant with bank receipts and the terms of the Lease to that company. Expenditure in excess of £2,000 has been verified by reference to approved paid invoices and the donation has been verified by examining the bank transfer and Minutes of the Trustees' Meeting authorising the donation.
Other procedures include:
Enquiry of management and those charged with governance around actual and potential litigation claims. Enquiry of the charity's staff to identify any instances of non-compliance with laws and regulations. Reviewing minutes of meetings and those charged with governance.
Reviewing financial statement disclosures with supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls including testing significant adjustments and transactions.
In our opinion our audit procedures were effective and were capable of detecting any material irregularity, including fraud, and this has enabled us to express our opinion as shown in the first section of this report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of the audit report
This report is made solely to the Trustees as a body in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the charity and the Trustees as a body for our audit work or for the opinions we have formed
M R George FCA Senior Statutory Auditor for and on behalf of Michael George & Co Chartered Accountants and Statutory Auditor Dawes Court House Dawes Court, High Street Esher, Surrey Dated: July 2025 KT10 9QD
Michael George & Co is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Balance sheet as at 31 December 2024
| Notes Fixed assets Tangible assets 9 Investments 10 Current assets Debtors and prepayments 11 Bank balances Creditors:amounts falling due within one year 12 Net current assets Total net assets Represented by: Funds and reserves Unrestricted funds: General funds 15 Designated funds 13 Permanent endowment fund 15 |
2024 £ 1,500,000 24,373,661 25,873,661 |
2024 £ 1,500,000 24,373,661 25,873,661 |
2023 £ 1,500,000 23,692,783 |
|---|---|---|---|
| 25,192,783 | |||
| 2,548 139,302 |
1,867 81,290 |
||
| 141,850 (13,774) |
83,157 (13,621) |
||
| 128,076 | 69,536 | ||
| 26,001,737 14,505,587 9,996,150 24,501,737 1,500,000 26,001,737 |
|||
| 25,262,319 | |||
| 14,584,689 9,177,630 |
|||
| 23,762,319 1,500,000 |
|||
| 25,262,319 |
Approved by the Trustees and signed on their behalf by:
Sister Maria Dolores Schembri Trustee Dated: July 2025
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Statement of Cash Flows
Year ended 31 December 2024
| Cash flows from operating activities: Net (outgoings)/income as reported in the Statement of Financial Activities Adjustments for: Depreciation Net income from investments (Increase) in debtors Increase/(decrease) in creditors Net cash used by operating activities Cash flows from investing activities: Net income from investments Sale proceeds of investments Purchase of investments Cost of alterations to buildings Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December (see below) Analysis of cash and cash equivalents at 31 December: Business premium deposit account (instant access) Current account and cash |
2024 £ (339,243) - (102,218) (681) 154 (441,988) 35,460 500,000 (35,460) - 500,000 58,012 81,290 139,302 139,064 238 139,302 |
2023 £ 170,749 - (390,727) (123) (9,501) |
|---|---|---|
| (229,602) | ||
| 32,860 21,950,096 (21,752,956) - |
||
| 230,000 | ||
| 398 80,892 |
||
| 81,290 | ||
| 72,635 8,655 |
||
| 81,290 |
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Principal accounting policies
Year ended 31 December 2024
Charity information
The charity was established by a Trust Deed dated 11 January 1967 and varied by a Scheme dated 19 June 1997. Its registered and administrative address is Maryfield Convent. London Road, Hook, Hampshire. RG27 9LA.
Basis of preparation and assessment of going concern
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these accounts. The accounts have been prepared in accordance with the Statement of Recommended Practice: "Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" issued in October 2019 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern and that the Trust meets the definition of a public benefit entity under FRS 102.
Income
Income is recognised in the period in which the charity is legally entitled to it, any performance conditions have been met, the amount can be reliably measured and it is probable that the income will be received. Legacies are recognised on receipt.
Expenditure
Expenditure is included in the Statement of Financial Activities when incurred and includes any attributable Value Added Tax as this cannot be recovered. Expenditure is detailed in the Statement of Financial Activities and further details are given in Notes 3 to 8 of these accounts.
Allocation of support and governance costs
Support costs have been allocated between support costs of retired priests and the members of the congregation on the basis of the the relative proportions of residents of retired priests to the resident members of the congregation. Governance costs are shown separately as "Other costs" and represent costs associated with public accountability of the charity and its compliance with regulation and good practice and include audit fees.
Tangible fixed assets
Fixtures, fittings and equipment costing more than £1,500 with an expected useful life in excess of one year are capitalised and the cost of each item is written off evenly over five years.
Freehold land and buildings were gifted to the charity in 1967 and therefore have no original cost. They are included in the balance sheet at a valuation of £2,500,000 made by the Trustees with professional assistance on 31 December 1996 on the basis of replacement cost for existing use of the buildings only and this valuation has been adopted by the Trustees on the transition to FRS 102 as the deemed cost of the entire asset. No value has been placed on the land which is included in the valuation of the entire asset adopted on the transition to FRS 102. No further valuations will be carried out. Depreciation had been provided at 2% per annum on a straight line basis to write off the deemed cost of the buildings over their estimated useful life of 50 years but additions to this provision ceased from 1 January 2019 as the Trustees have ascertained that the residual value of the freehold land and buildings exceeds their deemed cost.
The fabric of the building is being modernised and upgraded over the years and where these additions and improvements are incorporated into and therefore form part of the building and do not retain their individual identity they are written off as incurred.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Principal accounting policies (continued)
Year ended 31 December 2024
Fixed asset investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing unit bid price as provided by CCLA, the Investment Fund managers. The Statement of Financial Activities includes the net gains and losses arising on revaluation during the year.
The entire investment portfolio is comprised of accumulation units in COIF Catholic Investment Fund which the Trustees have selected as representing the objects of the Trust. The fund managers employ ethical investment policies and avoid investing in companies which engage in the production of armaments, tobacco or alcohol, in the testing of products on animals or which have fallen behind in the transition to a low carbon economy, or derive more than 10% of their revenue from oil and gas extraction and also a range of other restrictions.
The investment in one fund managed by one investment manager is an inherent risk. Other than ethical investment limitations, there are no limits on where the fund may invest and some of the assets may be invested in emerging markets, in overseas markets, in currencies other than Sterling and in other collective investment schemes. All of these carry certain risks but the manager employs a risk management process including appropriate stress-testing to enable it to identify such risks and take approriate remedial action.
The units in COIF Catholic Investment Fund are not quoted on any recognised stock exchange. Because of this and, as a substantial part of the underlying investments is in property, the fund should be regarded as illiquid. Selling units is achieved by giving notice to the manager prior to a dealing day at the latest bid price as valued by the manager. The Fund is regulated by the FCA and the Charity Commission for England and Wales and losses of up to £85,000 may be covered by the Financial Services Compensation Scheme in certain circumstances.
Realised and unrealised gains and losses
Realised gains and losses on investments are calculated as the difference between sales proceeds and their carrying value if held on the first day of the financial year or their purchase value if acquired subsequently. Disclosure by way of note is also made of the realised gain calculated as the difference between sales proceeds and the historical cost of the investments sold.
Unrealised gains or losses relating to the investments are calculated as the difference between the unit bid price at the beginning of the year plus the cost of units purchased during the year less units sold during the year and the closing unit bid price at the end of the year.
Unrealised investment gains and losses are and credited or debited in the Statement of Financial Activities.
Permanent endowment funds
The freehold property was gifted to the charity which has no power to convert the capital it represents into income and it is therefore not available for distribution. This fund has therefore been designated by the Trustees as a permanent endowment fund. It produces no income as such and the only expense in previous years was the annual depreciation charge provided on the buildings.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Principal accounting policies (continued)
Year ended 31 December 2024
Restricted funds
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor. At present, the Trust has no such funds.
Unrestricted Funds
These funds are available for the furtherance of the charity's objects. The Trustees have designated certain amounts for specific purposes and the details of this are given in Note 14 to the accounts.
Services provided by members of the Congregation
For the purposes of these accounts no monetary value has been placed on the care, administration and other services provided by members of the Congregation.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are the valuations attributed to freehold property and the commitment to provide pension income to retired Sisters of the Order.
Financial Instruments
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets which include debtors and cash and bank balances are initially measured at transaction price including transaction costs and subsequently carried at amortised cost using the effective interest method.
Basic financial liabilities
Basic financial liabilities including creditors and accruals are initially measured at transaction price and subsequently, if not current liabilities, at amortised cost using the effective interest method.
Reporting currency
The financial statements are prepared in Sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Notes to the Accounts
Year ended 31 December 2024
| 1 Rental income from retired priest Rental income from nursing home facility Realised profit on disposals of investments Bank deposit interest Rebates received from investment manager CCLA 2 3 4 5 Bank charges and sundry costs 6 Other donations Payroll and Contract staff (Note 7) Premises Supplies and services Sisters' living and personal expenses Legal and professional fees Premises Net income for the year before net investment gains or losses Rental income: The Congregation's Mother House in support of the Congregation's work overseas Auditor's remuneration (excluding VAT): Audit services Other services Depreciation This is stated after charging: Income Charitable donations Costs of care and accommodation provided Support of the members of the Congregation and their ministry Other costs |
2024 2023 £ £ 23,072 32,500 120,000 120,000 143,072 152,500 66,757 357,867 5,049 6,679 35,460 32,861 250,338 549,907 521,156 305,500 966 603 522,122 306,103 16,200 16,200 2,974 4,494 4,275 5,404 23,449 26,098 11,824 13,228 21,638 24,031 33,462 37,259 1,035 573 9,513 9,125 10,548 9,698 6,750 6,250 1,000 1,000 - - Unrestricted funds |
2024 2023 £ £ 23,072 32,500 120,000 120,000 143,072 152,500 66,757 357,867 5,049 6,679 35,460 32,861 250,338 549,907 521,156 305,500 966 603 522,122 306,103 16,200 16,200 2,974 4,494 4,275 5,404 23,449 26,098 11,824 13,228 21,638 24,031 33,462 37,259 1,035 573 9,513 9,125 10,548 9,698 6,750 6,250 1,000 1,000 - - Unrestricted funds |
|---|---|---|
| 152,500 357,867 6,679 32,861 |
||
| 549,907 | ||
| 305,500 603 |
||
| 306,103 | ||
| 16,200 4,494 5,404 |
||
| 26,098 | ||
| 13,228 24,031 |
||
| 37,259 | ||
| 573 9,125 |
||
| 9,698 | ||
| 6,250 1,000 - |
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Notes to the accounts
Year ended 31 December 2024
| ear ended 31 December 2024 | ||
|---|---|---|
| 7 Staff costs and Trustees' remuneration Contract staff |
2023 2023 £ £ 16,200 16,200 16,200 16,200 Unrestricted funds |
|
| 16,200 |
The average number of contract staff during the year was 1 (2023 - 1). The average number of employees in the year was Nil (2023 - Nil) and the average number Sisters working in the congregation was 4 (2023 - 4) .
As members of the Congregation, the Trustees living and personal expenses during the year were borne by the charity but they received no remuneration or reimbursement of expenses in connection with their duties as Trustees during the year (2023 - £Nil) .
8 Taxation
The Congregation of the Dominican Sisters of Malta Charitable Trust is a registered charity and is therefore not liable to UK taxation on income or gains derived from its charitable activities. VAT is not recoverable and is therefore included in the expenditure heading for which it was incurred.
9 Tangible fixed assets
| Additions At 31 December 2024 At 31 December 2024 At 31 December 2023 Cost or valuation At 1 January 2024 Depreciation At 31 December 2024 At 1 January 2024 Provided in year Net book values |
Freehold land and buildings 2,500,000 - 2,500,000 1,000,000 - 1,000,000 1,500,000 1,500,000 |
Fixtures fittings & equipment 5,590 - |
|---|---|---|
| 5,590 | ||
| 5,590 - |
||
| 5,590 | ||
| 0 | ||
| 0 |
The freehold land and buildings are included in the accounts at a valuation arrived at in 1996 which, under the provisions of FRS 102, has been adopted by the Trustees as the deemed cost of the asset. No value was place on the land at that time and no further valuations will be carried out. The cost of alterations and additions to the fabric of the building are written off as incurred.
The buildings had previously been depreciated at 2% per annum on a straight line basis but no further depreciation has been provided from 1 January 2019 as the Trustees have ascertained that the residual value of the freehold land and buildings exceeds their original deemed cost. The Trustees do not consider it necessary to reverse the depreciation previously provided.
Although the freehold land and buildings are being rented to an independent third party, they are still classed as property, plant and equipment as they continue to be used for their original purposes.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Notes to the accounts
Year ended 31 December 2024
| 10 Investment managed by CCLA: Market value at 1 January Purchases (other than from rebates) Units purchased from CCLA rebates Sale proceeds Net increase in realised and unrealised gains Market value at 31 December At 1 January Purchases Sales At 31 December Total unrealised gains: At 1 January Net increase in year At 31 December Net realised gains Net unrealised gains at year-end COIF Catholic Investment Fund Founder Accumulation units - Class 2 Investments Original cost of investments: Investments held at 31 Decembercomprised the following: Realised and unrealised gains in the year: |
2024 £ 23,692,783 - 35,460 (500,000) 1,145,418 24,373,661 21,527,426 35,460 (433,243) 21,129,643 2,165,357 1,078,661 3,244,018 66,757 1,078,661 1,145,418 24,373,661 |
2023 £ 21,366,699 21,720,096 32,860 (21,950,096) 2,523,224 |
|---|---|---|
| 23,692,783 | ||
| 20,833,137 21,752,956 (21,058,667) |
||
| 21,527,426 | ||
| - 2,165,357 |
||
| 2,165,357 | ||
| 357,867 2,165,357 |
||
| 2,523,224 | ||
| 23,692,783 |
The Catholic Investment Fund is a sub-fund of CCLA Charity Authorised Investment Fund, an umbrella-type unit trust, authorised by the Financial Conduct Authority (FCA) as a Charity Authorised Investment Fund and as a NonUCITS Retail Scheme. The Fund is regulated by the FCA and the Charity Commission for England and Wales. The Fund is classified as a UK Alternative Investment Fund for regulatory purposes.
Units in the COIF Catholic Investment Fund are not dealt on any recognised stock exchange but can be sold by depositing a sale form with CCLA on the business day before a dealing day at the latest bid price as valued by CCLA.
Distributions are not made to holders of accumulation units but distributions allocated to accumulation units are accumulated within the fund and are reflected in the bid price of the units.
The fund should be considered illiquid as it is not admitted to trading on a secondary market and no alternative liquidity facility is promoted by the fund manager (CCLA). All investments are held separately in trust by HSBC Bank Plc which has been appointed as trustee by the fund manager. If the fund manager becomes insolvent the investments are not affected but if the trustee becomes insolvent losses may occur. However, this is considered to be very unlikely and unavoidable. Losses of up to £85,000 may be covered by the Financial Services Compensation Scheme (FSCS) in certain circumstances.
The investment manager makes quarterly rebates to certain investors in accumulation units of COIF Catholic Investment Fund to compensate for the otherwise disproportionately high cost of its management charge. The trustees have given a standing instruction that such rebates be reinvested in additional accumulation units.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Notes to the accounts
Year ended 31 December 2024
| 11 Other debtors 12 Bank overdraft and credit cards Income received in advance Debtors and prepayments Prepayments Creditors:Amounts falling due within one year Sundry creditors Accruals |
2024 £ 2,358 190 2,548 2024 403 1,167 2,904 9,300 13,774 |
2023 £ 1,694 173 |
|---|---|---|
| 1,867 | ||
| 2023 717 1,300 2,904 8,700 |
||
| 13,621 |
13 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes:
| At 1 January 2024 Addition to reserve At 31 December 2024 At 31 December 2023 Total designated funds: At 31 December 2024 |
Retirement reserve 9,177,630 818,520 |
|---|---|
| 9,996,150 | |
| 9,996,150 | |
| 9,177,630 |
The retirement reserve consists of monies which the Trustees have set aside in order to provide for all the Sisters of the Order in their retirement in both the United Kingdom and all overseas teritories in which the Order has a presence. The fund has been calculated on actuarial principles to provide for the Congregation's Sisters and is reviewed annually.
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The Congregation of the Dominican Sisters of Malta Charitable Trust
Notes to the accounts
Year ended 31 December 2024
| 14 Summary of fund movements Balances at 1 January 2024 Income Expenditure Unrealised investments gains Balances at 31 December 2024 |
General Fund £ 23,762,319 250,338 (589,581) 1,078,661 24,501,737 |
Permanent Endowment Fund £ 1,500,000 - - - |
|---|---|---|
| 1,500,000 |
The Designated Fund was increased by £818,520 (2023 - £595,080) and stands at £ 9,996,150 at the year-end.
| 15 Fixed assets - freehold property Total net assets Net current assets Tangible fixed assets, investments and cash awaiting investment Analysis of net assets between funds at 31 December 2024 |
General funds £ 14,377,511 128,076 14,505,587 26,001,737 |
Designated funds £ 9,996,150 |
|---|---|---|
| 9,996,150 | ||
| Permanent endowment funds £ 1,500,000 |
||
16 Ultimate control
The charity, which constitutes a Trust, was controlled throughout this and the previous period by the Superior of the English community of the Congregation of the Dominican Sisters of Malta by virtue of the fact that, under the terms of the Trust Deed, the Superior of the community has power to appoint or remove any Trustee.
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