## **THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN**
**(Registered Charity Number in England and Wales: 288158) (Registered Charity Number in Scotland: SCO39153)**
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TRUSTEES’ REPORT
AND FINANCIAL
STATEMENTS
31 MARCH 2023
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Name:
The Union of the Sisters of Mercy of Great Britain _(We are also known as Sisters of Mercy of the Union)_
Governing Instruments:
Address:
Trust Deed dated 29 September 1991
Mercy Union Generalate 11 Harewood Avenue London NW1 6LD
Charity Commission No: England and Wales 288158 Scotland SCO39153 The Trustees who served during Sister Geraldine Lawlor (Superior) the year are: Sister Margaret Jones Sister Mary McGrath Sister Annette McCartan Sister Johanna Moloney The Finance Director to the Trustees is: Mr Alan Wraight The Property Surveyor to the Trustees is: Mr Brian Kervick The Solicitors are: IBB Solicitors Capital Court 30 Windsor Street UB8 1AB The Independent Auditors are: Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG The Investment Advisers: BlackRock Rathbone Brothers PLC 12 Throgmorton Avenue 8 Finsbury Circus London EC2N 2DL London EC2M 7AZ The Bankers are: Bank of Ireland PO Box 2124 Belfast BT1 9RS Investment Powers: There are no restrictions on the powers of investment.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
The Trustees present their report together with the financial statements of the Charity for the year ended 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s trust deed, the Charities Act 2011 and the Statement of Recommended Practice For Charities (SORP 2015) (Second Edition), effective 1 January 2019.
## **INTRODUCTION**
The Congregation of the Sisters of Mercy was founded by Catherine McAuley in 1831 in Dublin, Ireland. The Union of the Sisters of Mercy, who number eighty Sisters, have Convents throughout England, Scotland and Wales and Residential Care Homes in England and Wales. Historically, Convents of Mercy have considerable autonomy in the conduct of their day-to-day affairs. The Leadership Team, who are the Trustees, supervise and control the activities of the Charity. Each Convent and Care Home send accounts to the General Bursar who, with the Finance Director, supports the Trustees in their management of the assets of the Charity.
## **GOVERNANCE, STRUCTURE AND MANAGEMENT**
Every five years, representatives of the Congregation meet in General Chapter with a twofold purpose:
- to set the direction for the next five years;
- to elect a Congregational Leader and Team to implement decisions made.
The Leader and Team are responsible for the pastoral care of the members and make regular visits to each community. The purpose of these visits is to provide support for the Sisters in their personal lives and in their ministry.
The Charity is governed by a Trust Deed dated 29 September 1991 and is a registered charity – Charity Registration Number 288158. The Trustees were incorporated as a body under a Certificate of Incorporation issued by the Charity Commission on 25 June 1984. The Trustees of the Charity are the elected members of the Congregation and, therefore, have a good knowledge of the work of the Charity and its structure.
## **GDPR**
There are GDPR and Privacy policies in place both overarching, and those specific to the care homes. All information and data collected and stored is essential for the mission and operational functioning of the Charity.
Further work is to be undertaken in 2023 to review and update these policies and working arrangements to ensure they meet the current requirements of GDPR and best practice.
The names of the Trustees who served during the year are set out as part of the reference and administrative details on page 1 of this report. The Trustees bring to their role a wide variety of leadership and management experience gained in their professional lives and through membership of Boards. They usually attend lectures, conferences and workshops that equip them for their current role. During the financial year covered by the report, we have attended the following courses via Zoom and in person.
## **Trustee responsibility conferences:**
- Safeguarding Leads Zoom meeting (Religious Life Safeguarding Service (RLSS)).
- Safe Spaces / Hurt by abuse (RLSS/CSSA).
- Supporting survivors of abuse (RLSS).
- Investment Managers meetings with Trustees – Blackrock / CCLA / Rathbones.
- IBB Solicitors Annual Charity Update.
- Archives Zoom.
- Supporting the Alzheimer's Society.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
- MIA (Mercy International Association).
- Strategic Planning for the future.
- Leadership and Cultural Change (Catholic Safeguarding Standards Agency (CSSA)
## **Working with Other Organisations / Engaging with Other Professionals**
- Institute, Federation and Union (IFU) meetings, Zoom.
- Conference of Religious (CoR) General Meeting, Zoom.
## **Caring for the Environment**
- Environment Tree planting.
- Neighbourhood and Environmental Meeting.
## **General topics:**
- Synodal Process.
- Refugees and Migrants (Ukraine).
- Role of Women in the Church.
- Bereavement and Loss.
- Citizens UK/Birmingham.
## **Individual Trustee Attendance:**
- Union of International Superiors General (UISG) Zoom.
- Mercy International Association.
- Bursars Conference.
The Trustees are ultimately responsible for the policies, activities and assets of the Charity. They meet at least monthly to review developments with regard to the Charity and its activities and make appropriate decisions following their review of property, finance, personnel and future needs. The Trustees seek professional advice when making decisions concerning the assets of the Charity. They engage the following professionals:
- Solicitors
- Surveyors (valuation and building)
- Investment Managers
- Accountants
- Health Care Specialists
- HR consultant
- Insurance Brokers.
The day-to-day management of the Charity’s activities and implementation of policies is handled by the Trustees, General Bursar, Finance Director and Surveyor.
## **WORKING WITH OTHER ORGANISATIONS**
In order to carry out its mission, the Charity works closely with other charities and public bodies. Working collaboratively with other agencies and charities is of significance to the Trustees. By doing so, the members of the Congregation are able to minister across a wider spectrum of society. Some of the organisations with which members have been engaged are:
- 9 Dioceses of the Roman Catholic Church.
- The Lodging House Mission, Church of Scotland/The Marie Trust, Glasgow.
- Care Inspectorate Wales (CIW).
- Care Quality Commission (CQC), England.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
- Education Authorities.
- Other Mercy Congregations in the UK and overseas.
- Other Religious Congregations both male and female.
- Committed to a safer Catholic Church.
- Scottish Safeguarding Agency.
## **FUNDRAISING**
The charity receives donations from the general public but does not actively solicit funds for its activities either directly with the public or through the use of any third party fundraisers. No complaints were received during the year.
## **RISK MANAGEMENT**
The Trustees have instituted a risk review programme to identify major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity. The Trustees will continue to review major risks on an annual basis. In particular:
## **Operational risk**
As well as providing care and support for its own members within its own communities, the Charity also owns and operates two care homes which are available to members of the public. These care facilities are subject to regulation by the Care Quality Commission (CQC) and the Care Inspectorate Wales (CIW). To ensure compliance with the requirements of these bodies, the Trustees and senior management are required to attend seminars to alert them to any changes in requirements. If necessary, the Trustees engage a consultant in care home management to support themselves and local management and engage an experienced HR Consultant to assist with all employment matters.
Additionally, the Trustees have engaged the services of the Risk Management Department of their Insurance Brokers to undertake the Risk Assessment requirements of all their larger establishments.
## **Financial risk**
The age profile of the members is increasing and there is an obligation to financially provide for them in retirement, especially those requiring care in old age. A designated fund has been formed to hold a professionally administered fund of investments sufficient to provide an income to achieve this.
## **Missionary risk**
The Mission Statement commits the Congregation to work to alleviate poverty. In furtherance of this, with the number of members able to directly participate in this mission declining, the Trustees have designated a donations fund comprising of a professionally administered fund of investments. Income arising is designated for charitable grants and the Trustees receive regular reports to monitor expenditure and ensure it is consistent with its intended purpose.
## **OBJECTS**
The Objects of the Charity are the advancement of religious and other charitable work, for the time being, carried on by or under the direction of The Union of the Sisters of Mercy of Great Britain (“charity”) as the Trustees, with the approval of the Superior of the Congregation, shall from time to time think fit. If at any time the Society shall cease to exist or shall cease to carry on or direct any charitable work, then the Object shall become such lawful charitable purposes connected with the advancement of the Roman Catholic Religion as the Trustees shall decide.
## **MISSION STATEMENT**
_**“We, The Union of the Sisters of Mercy, in the spirit of Catherine McAuley, commit ourselves to be mercy to all, with a preferential option for the poor.**_
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## _**We embrace the challenge of new ministries and will explore creative ways of sharing our life with others, for the sake of the Kingdom.”**_
We carry out our Mission of Mercy inspired by Gospel values and guided by the charism of the Congregation which is to benefit the public, particularly women and children and those who are poor. This commitment is manifested in the activities of the Charity.
## **PUBLIC BENEFIT**
The Trustees confirm that they have paid due regard to public benefit guidance published by the Charity Commission in determining the objectives for the year and the activities undertaken by the Charity.
The Charity Commission in its “Charities and Public Benefit” Guidance states that there are two key principles to be met in order to show that an organisation’s aims are for the public benefit; firstly, there must be an identifiable benefit and, secondly, that the benefit must be to the public or a section of the public. The Trustees are satisfied that the aims and objectives of the charity and the activities reported on to achieve those aims, meet these two principles.
## **ACTIVITIES**
The activities of the Charity can be divided into four principal areas:
- Caring for the members of the Congregation.
- The social and pastoral work of the Sisters.
- The ownership and operation of Care Homes.
- The support of our overseas missions.
Each of these is considered in turn.
## **Caring for Members of the Congregation**
In common with many Religious Congregations, the age profile of the members of the Congregation has changed considerably in recent years. Members grow older and new membership has ceased. On 31 March
2023 the age profile of the Congregation is shown in the following table:
The Trustees are the elected Leadership Team of the Congregation and, as such, have a particular pastoral role within the Congregation. With one local community leader and four pastoral care team
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
members, they are engaged full time in the pastoral care of the membership.
## **KEY ISSUES**
At our General Chapter, held in September 2021, we were given the following Key Issues to consider:
- Leadership.
- Care of our Members.
- Diminishment and Completion.
- Handing On.
The Congregation has an obligation, both moral and legal, to provide care for its members, none of whom have resources of their own and all of whom have devoted all (or a significant part) of their working lives to the ministries and outreach of the Charity. In order to enable the mission of the Charity to be fulfilled, some Sisters enjoyed a full working life of remunerated employment. Now, as the age profile of the Congregation increases, so too does the need to provide care for the members.
On 31 March 2023, 18 members of the Congregation were in residential care in the Charity’s own homes and other homes.
Over the next decade, the Trustees expect the number requiring care may increase and are giving careful consideration to the impact of this on its active ministry, on the financial implications and on the property requirements.
To facilitate this, the Trustees aim:
- to enable all members to continue in Mercy ministry
- to ensure that members who can no longer live independently are provided for
- to review the Charity’s property in the light of the age profile and the members’ future needs.
## **SPIRITUAL LIFE OF THE MEMBERSHIP**
Members of the Congregation are given the opportunity for private prayer and reflection. Through study of the Scriptures, the documents of the Church and other resources they seek to continue their own spiritual development.
While their special commitments are to other members of the Roman Catholic Church, members of the Congregation regularly pray and celebrate with the wider community, including people of all faiths and none. They do this in a variety of ways and always by being available for those who approach them for help and support.
## **SOCIAL AND PASTORAL WORK**
## _**“Catherine’s acute awareness of contemporary needs made her a catalyst in an uncaring society.”**_
_Sr Angela Bolster rsm_
While our fourth vow commits us to care for the materially poor, we are conscious there are many forms of poverty. We respond as best we can.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Members of the Congregation were in ministry in many pastoral and social settings:
- Working in parishes, visiting the housebound and elderly, helping in catechetical programmes.
- Retreat work, spiritual development programmes and prayer groups.
- Community social work with the homeless.
- Pastoral care in hospitals and hospices.
- Chaplaincy in schools.
- Bereavement support.
- Various justice and peace initiatives.
- Citizens UK (Birmingham).
- Interfaith Groups.
- Food Banks.
The Trustees have encouraged the members of the Congregation to stay connected with their place of ministry and to reach out to their local community, with a special concern for those who are poor and in need.
Most members minister as volunteers. Where Sisters are remunerated by way of stipend, the income is passed to the Charity and thereby ensures that the mission of the Charity may continue into the future.
## **MINISTRY ACCOUNTS**
There follows accounts of the ministries undertaken by members in North West London, Weymouth, and East London.
## **A SISTER IN EAST LONDON GIVES HER ACCOUNT:**
The Community of Latin American families that I work with is affiliated to and forms part of a church in North-East London. The majority of these people come from the South American countries of Colombia, Ecuador, Bolivia, Chile, Peru and more recently some from Mexico, Venezuela and Honduras as the political situations there are so volatile. Most of these people would be considered economic migrants, some asylum seekers and others, refugees.
## **ASPECTS OF MY MINISTRY ARE:**
- Preparation of Parents and children for the reception of the Sacraments of Baptism, Confirmation and the Eucharist.
- Training of Catechists and Altar Servers.
- Preparation of Sunday Liturgies and other Celebrations within the Liturgical year such as Holy Week etc.
- Helping with a Programme for teaching basic English.
- Advocacy and Translation – an important part of my ministry – helping the people to fill in official papers when applying for Residency etc.
- Accompanying them when they have to appeal a second or third time – not all will succeed but we are there too when they are deported – hopes, joys and sorrows.
- Finally, as a people who love to celebrate special moments, the parish provides the spaces and opportunities for all to share their culture, music, dance and typical foods.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **A SISTER IN NORTH WEST LONDON GIVES HER ACCOUNT:**
I am involved in the following ministries locally and nationally:
## **Community Work:**
- Visiting the housebound and taking Holy Communion as a Eucharistic Minister.
- Cooking meals for the housebound.
- Working with a Toddlers Group three mornings each week.
- Working with an Over 50s Group weekly.
- Attending Catholic Mother’s Group weekly.
- Organisation of Parish Social events.
- Member of the West London Citizens.
## **Catechetics**
- Preparation for First Holy Communion weekly.
## **Chaplaincy Work**
- Chaplain to a local school – visiting weekly.
## **Working with Women’s Groups**
- Member of the National Board of Catholic Women.
- Diocesan secretary to the Union of Catholic Mothers.
- National Co-ordinator for the European Ecumenical Forum of Christian Women.
- Member of Religions for Peace UK Women of Faith Network.
At the Union of Catholic Mothers’ Mass, The Toddlers Group receiving long-term certificates
## **MINISTRY IN WEYMOUTH:**
The Weymouth Community host two weekly groups for Christian Meditation which is led by one Sister. It is a very popular form of contemplative prayer as, in today’s society, there is a great spiritual hunger. This is an interfaith group. Throughout Covid we managed to meditate together at the same time from our own homes using resources provided.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
A meditation group is also established at the Vern Prison in Portland. This gives the men support and
comfort on their life’s journey.
We visit the sick and housebound who are often very lonely as their families may live far away. We are also able to help with practical tasks such as shopping and laundry.
As a community we offer weekly hospitality to the local parish community which includes Polish mothers who meet for prayer.
During the winter months we take our turn making soup for The Warm Welcome project which is organised by the _Churches Together_ . Another aspect of our ministry is our outreach to Ukrainian families.
We are also involved in supporting our local parish church through Eucharistic ministry, reading at Mass, leading weekly choir practice, playing the organ and giving music lessons to the elderly.
## **A COMMUNITY IN NORTH WEST LONDON GIVE THEIR ACCOUNT:**
There are four in the Community aged between 76 and 90.
The main ministries that we are involved in are the following:
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Volunteering at a Hospice Day Centre helping to feed the patients.
o Supporting with group and individual activities providing for the clients’ physical and
mental wellbeing.
o Fundraising for the hospice.
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Chicks for the hospice shop
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Sisters at the Hospice Day Care Centre and local Drop-in
- Involved as a Reader and Eucharistic Minister in the local parish.
- Visiting the local Drop-in Centre and chatting to the frail and elderly.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
- Engaging in activities with them.
- Sacramental Co-ordinator for training and supporting Parish Catechists. `o` Working with families and children.
- Accompanying those involved in the Rite of Christian Initiation of Adults.
- Liturgy preparation and training of Readers and organising Rotas.
- One Sister is General Bursar to the Trustees of the Congregation.
- Sacristan at local Hospital Chapel. `o` Providing support to the Chaplain.
- Attendance at Church Committee Meetings with members of the Trustee Board and Senior Staff.
- Member of the local Saint Vincent de Paul Conference which involves keeping in touch with the frail and elderly in their own homes.
- Supporting Albanian and Afghan families who attend the local primary school by distributing food vouchers.
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Left: A Sister at a
parish event
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The local Hospital Chapel
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **MERCY ASSOCIATES**
Many communities have established Mercy Associate groups. The Mercy Associates are inspired by the vision of the Foundress Venerable Catherine McAuley. The movement provides an opportunity for lay people (youth and adults, female and male, across denominations and cultures) to deepen their own prayer
life and spirituality and encourages them to share in and contribute to the life and Mission of the Mercy Community in a way suited to their own lifestyle. In their own unique way Mercy Associates share the spirituality, prayer and ministry of the Sisters of Mercy.
## **THE OWNERSHIP AND OPERATION OF CARE HOMES**
The Charity owns and operates Care Homes for those who are infirm and/or aged. Each of these homes provides care for the members of the Congregation and for the members of the local area. Over the years the Charity has invested large sums of money in the upgrading of these homes to meet changing needs.
The Mission Statement expresses what we hope to provide at our Care Homes:
## _**Through our Charism of Mercy and in the spirit of Catherine McAuley we commit ourselves to serving the needs of the elderly in our Care.**_
## **St Michael’s Care Home, Clacton-on-Sea**
There are 44 beds at St Michael’s purpose-built building. The property faces the promenade and the sea, and many Residents enjoy the added bonus of a sea-view.
## **St Teresa’s Rest Home, Fishguard**
St Teresa’s is a 27 bed Rest Home. The property faces the sea and a small ferry port with regular services to Rosslare, Ireland. Both Welsh and English are spoken by most members of staff thus enabling Residents to communicate in the language of their choice.
The Trustees take very seriously the demands of the _Care Quality Commission_ (England) and _The Care Inspectorate Wales_ and have worked closely with the local Government Departments to fulfil their obligations. They visit regularly, are involved in interviews and appointments at management level, attend Advisory Board Meetings three times a year and are available to support the Managers, Staff and Residents.
At the three Advisory Board Meetings, attended by Trustees, Care Home Manager, Assistant Manager, Administrators and the Finance Director, the Trustees encourage good management and review the financial implications of care.
## **OVERSEAS MISSIONS**
The Charity has two of its members working overseas in South Africa. The Mission is financially supported by the Charity.
## **Mercy Mission – Addo, South Africa**
Our ministry here in Addo continues to develop and grow. Place of Mercy and Hope Centre has over 180 children now and Lwazi Crèche in Dunbrody is also growing in response to the needs of the area.
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
We were delighted to welcome young people from the five Marist Schools in South Africa to support our Summer School at the informal settlement in Langbos in December 2022. This was our first since Covid and over 500 children had a wonderful week of fun and celebration.
We look forward to renewing our association with Marist Germany in welcoming two young volunteers in September this year. Again this is only now resuming after Covid and the girls will be with us for 9 months.
Our Soup Kitchens are feeding many hungry vulnerable children and adults as the cost of living like elsewhere in our world has soared and people are struggling to survive as unemployment is a major factor here.
Adult Computer popular and young people are skills in the hope of employment.
training is very oversubscribed as anxious to acquire getting
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **WORK OF THE MEMBERSHIP**
**“Every place has its own need which must be responded to whenever possible.”** _Venerable Catherine McAuley_
These words have inspired our actions and explain the variety of ministries in which the members are engaged.
Throughout the year, they have given their time to assist and support all in need through:
- Ministry to women and children.
- Assisting people to get birth certificates and identity documents (in Addo, South Africa).
- Providing early childhood education (crèches) (in Addo, South Africa).
- Computer Training (in Addo, South Africa).
- Pastoral care for Sisters and staff in a Care Home.
- Writing / phone calls to those who have been bereaved, the elderly, those living alone and the vulnerable.
- Providing IT support for Sisters and others.
- Helping in soup kitchens and networking with other agencies to help the marginalised.
- Managing the Mercy Centre for the homeless and those in need.
- Being a member of The Diocesan Synodal Process; going to Deanery Meetings.
- Being a Chaplain to primary and secondary schools.
- Creating paintings for Mercy Groups and local schools for meditation groups.
- Providing spiritual accompaniment.
- Supporting the Irish Council for Prisoners Overseas and the Irish Chaplaincy Britain.
- Visiting and supporting projects at the Irish Centre in Hammersmith and Lebanese communities.
- Voluntary work at a Day Centre for Homeless and working with people who have addiction. Being members of the St. Vincent de Paul Society.
- Providing Houses of Hospitality and Heritage Tours.
- Supporting the Alzheimer's Society and Dementia Carers Group.
- Co-ordinating parish liturgical events.
- Volunteering at Mercy International Centre.
- Administration work for Parishes.
- Clerical work for a retired priest.
- Supporting Albanian and Afghan families.
- The Facilitation of General Chapters.
- Being the Safeguarding Leads for the Congregation (England and Scotland).
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
- Being a Trustee of a charity.
- Community support (accounts, archives)
- Eucharistic Ministry.
- Ministry to prisoners.
- Writing and publishing a book for parishes.
- Making mini videos for Sunday Night Live.
- Using social media to mobilise financial and material support for Ukraine.
Our Foundress, Venerable Catherine McAuley, advised us:
## **“You should make hospitality your special care.”**
and members are always ready to extend hospitality to those who visit or call.
We have **3 Sisters** who have full-time or part-time ministry and receive renumeration in the form of a fee or stipend for their services.
- Facilitation
- Parish/Pastoral Ministry.
- **5 Sisters** are in full-time ministry of Central Leadership and find some time to:
- Support the National Mercy Associates Commission.
- Volunteer in a Hospice Shop.
- Minister in their local Parish.
**1 Sister** is in full-time Community Leadership. Her primary role is the pastoral care of the Sisters in community, the co-ordination of activities within the Convent and the overall maintenance of the property. She also outreaches to the local area through:
- Shopping for the housebound.
- Supporting employees and co-workers.
- Parish support.
**3 Sisters** on a Pastoral Care Team share ministry to the Residents and Staff of a Care Home. They:
- Visit residents in the Home and in Hospital.
- Arrange hospital appointments for residents.
- Promote the charism of Mercy and share the Mercy story with staff and residents.
- Liaise with Management and Staff.
- Co-ordinate the spiritual activities and create opportunities for liturgical celebration in the chapel.
- Support bereaved families and are often asked to help arrange the funeral services of a deceased resident and/or lead the service at the crematorium.
**2 Sisters** have an additional role in supporting the work of the St Vincent de Paul Society.
**3 Sisters** are in ministry at the Mercy Spirituality, Heritage and Outreach Centre in Birmingham which is a collaborative community with 2 Sisters from The Institute of Our Lady of Mercy.
## **USE OF CHARITY PROPERTY**
The 80 members of the Congregation reside at 26 locations:
18 in England
4 in Scotland
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
- 3 in Wales 1 in South Africa
Every five years, at our General Chapter we take a fresh look at our key values of hospitality, spirituality, education and mission among the people with the greatest need locally and globally in contemporary society.
In order to facilitate new and traditional ministries and the pastoral care of the Sisters we evaluate our properties and recognise when they become too large and unfit for purpose to comply with Charity Law.
In the course of the year our properties were made available to the public for a variety of purposes, including:
- Retreats;
- Registered Care of Older People;
- Meetings of Mercy Associates;
- Interfaith Groups;
- Christian Prayer Groups;
- Hospitality and accommodation;
- Citizens UK, daily;
- Heritage Tours;
- Support for refugees and Asylum seekers;
- Providing meals for homeless people;
- Group meetings of AA and other therapeutic support organisations;
- Support for those experiencing personal trouble or anxiety;
- Social gatherings for local small communities of Sisters;
- Our chapels are used by members of the public daily.
## **SCOTLAND**
The members of the Congregation living in Scotland are fully engaged in the activities of the Charity. They are involved in ministry as follows:
- To older people and the housebound;
- To homeless people;
- In hospital and hospice visiting;
- In parish support.
The properties of the Charity are available to the public for:
- A variety of group meetings;
- Days of reflection and workshops for individuals and groups.
One property in a city centre is a major provider of support for homeless people and is open daily from 9.00 – 12.00 noon and 1.00 – 5.00pm. The house is also available to regular meetings of support groups – AA, Narcotics Anonymous, Alanon. There are also public vespers and regular meetings of volunteers, and spirituality and social outreach groups.
## **GRANTS AND DONATIONS**
Grants and donations are decided by the Trustees. These are in response to appeals from members of the Congregation, from individuals and organisations. The Trustees make decisions according to the Trust Deed, the Constitutions of the Congregation, its Mission Statement and decisions made over the years by the assembled members. The guidelines used in making donations have been expressed at various times as follows:
- We willingly share not only our material possessions but also our friendship, our influence and
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**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
ourselves _,_ doing so as stewards, not owners _(Constitution 10)_ .
- The Trustees shall apply the income for the advance of the religious, educational and other charitable work _(Trust Deed)_ .
- Care of older people, with special concern for those who are not financially secure, and projects for homeless people _(Chapter 1992)_ .
- Efforts that actively discourage structures that impoverish women, children and the earth _(Chapter 1996)_ .
These guidelines from the members of the Congregation assist the Trustees in deciding when to make a donation to an individual, other charity or an organisation.
Some specific donations during the current financial year were:
## **From Carers UK – Trust and Foundations Officer**
“It has been an absolute pleasure working with you and the Union of the Sisters of Mercy of Great Britain. Your support has been integral and invaluable to Carers UK. Together we have reached and made a real
difference to thousands of unpaid carers who, without our support, would have struggled alone and not known where to turn for help – a feeling no one should ever have to go through.”
## **Lady whose mother had died**
“I am so deeply grateful for the money for my Mum’s funeral. I was so worried and ashamed about the finances...I cannot put into words but from my heart I am so deeply grateful and deeply touched by the love, compassion and kindness. Thank you.”
## **Helen & Douglas House**
“Thank you to you and the other Trustees of the Union of the Sisters of Mercy of Great Britain for your fantastic donation to the children and families of Helen Douglas House. We cannot overstate the importance of your support. We couldn’t do what we do without help like yours. Your help has a profound impact on the children and families we care for. Your help means that we can provide medical treatment and care, as well as vital services for children with terminal and life-limiting conditions.”
## **St Joseph’s Hospice**
“On behalf of Zenab and everyone here at St. Joseph’s Hospice I wanted to thank you for the incredible gift recently received to help provide Day Hospice this year to hundreds of people in our community living with life-limiting illness.
_Your most generous gift will help more people attend Day Hospice this year, helping take us back to prepandemic attendance, and ensure we can meet the urgent need in our community.”_
## **SCIAF**
“From Teleza in southern Malawi whose village has been badly affected by the climate emergency: _“Our harvest is inadequate. We are facing hunger. We struggle to access water and our harvest is poor because it doesn’t rain enough. We are hopeless due to climate change.”_
Your generous gift is making a vital difference to people like Teleza and her family. Thanks to your generosity families are receiving drought resistant seeds and learning farming techniques to prevent hunger and adapt to climate change.
With your love and compassion, you are transforming the lives of people living on the front line of the climate emergency. Teleza now has hope for her family’s future.”
## **CAFOD**
“Thank you very much to the Sisters for your generous gift to CAFOD’s Turkey-Syria Earthquake Appeal. Your donation is making a very real difference to survivors and those impacted by the earthquake.
16
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Thanks to your kind donations and support, we have been able to respond through local experts by providing emergency shelter, food, water, heating materials, blankets and mattresses, hygiene kits, counselling, and support to our local expert staff who have been also directly impacted by the earthquake.”
## **Emily a student writes:**
“I just wanted to pass on my thanks to the Sisters for the very generous financial support that they provided to support me in my studies, and also for their kind and encouraging words. I was very touched by this and appreciate it greatly.”
## **ACHIEVEMENTS AND PERFORMANCE**
The following paragraphs outline the main achievements during the year in each of the Charity’s principal activities.
**1. Care for the Members of the Congregation**
Throughout the year the Charity continued to assist and encourage the members of the Congregation in their charitable and religious work. Some members who needed care moved to our Care Homes. The Trustees continually monitor the needs of the members and the suitability of property.
## **2. Social Pastoral Work**
Throughout the year Sisters continued to carry out various forms of social and pastoral ministry. This activity enabled the Charity to reach out to those in need within society generally and to benefit a significant number of people.
## **3. Care Homes**
The quality of care being provided in our Homes is an ongoing focus for the Trustees and management. Each home has a Manager and senior staff who are responsible for the day to day running of the Homes.
Each Home has had structural improvements carried out and there is a rolling programme of maintenance and decoration. The requirements of the Care Standards Act 2000 has had implications for us and we have responded as required by the Inspectorates.
We have been compliant with:
- the Regulation and Inspection of Social Care (Wales) Act 2016.
- the Health and Social Care Act 2008 and the Care Act 2014 in England.
The following table summarises some of the important statistics regarding the Homes:
||**St Teresa’s Rest Home**|**St Teresa’s Rest Home**|**St Teresa’s Rest Home**|**St Michael’s Care Home**|**St Michael’s Care Home**|**St Michael’s Care Home**|
|---|---|---|---|---|---|---|
||**2021**|**2022**|**2023**|**2021**|**2022**|**2023**|
|**Residents**|26|26|23|43|43|43|
|**Occupancy**|86%|87%|94%|97.1%|97.5%|98%|
|**Staff – Full time**
**(31 hours & over)**|16|16|20|30|29|27|
|**Staff – Part time**
**(30 hours &**|25|24|20|39|45|45|
17
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **below)**
The Managers seek for full occupancy but there are circumstances that make full occupancy difficult at times: the needs of the enquirer cannot be met; the time needed to decorate a room following a death; waiting for decisions regarding funding. The Trustees sometimes accept a less than full occupancy because they are aware that one of their members may need care soon. Such a situation is rare and full occupancy is desirable.
**----- Start of picture text -----**
CARE HOME ACTIVITIES
**----- End of picture text -----**
**----- Start of picture text -----**
Residents take part in autumnal (left) and Easter crafts (right)
**----- End of picture text -----**
Residents look through old papers, photos, and ration books, remembering the past
**----- Start of picture text -----**
Taking part in a game of Giant Snakes and Ladders
**----- End of picture text -----**
18
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
**----- Start of picture text -----**
Enjoying a meal out
Taking part in a singalong
FINANCIAL REVIEW
“There is very little good can be accomplished without the aid of money, we must look
after it in small as well as in great matters.”
Venerable Catherine McAuley
The Statement of Financial Activities and accompanying notes give an account of the finances of the
Charity and their management.
**----- End of picture text -----**
Income received during the year included:
- Members’ stipends and pensions. This source of income, the most significant source at present, will continue to decline over the next decade as Sisters retire from remunerated employment and membership numbers fall.
- Care Home fees comprise both local authority and private residents’ contributions. The Charity spends more on the care of the elderly than is derived from fees; the shortfall has been supported by income and capital gains on the investments of the Care Home Fund.
- Investment income comprised the remaining source of regular income.
Income from all sources totalled £5.9m (2022: £5.6m). The increase is due to increased investment income
referred to below Expenditure totalled £6.9m (2022: £6.1m). Before investment gains/(losses) net expenditure was £1.0m (net expenditure 2022: £0.5m).
Investment income was £1.6m (2022: £1.4m). The increase is due to balances committed to the Donations fund now giving higher returns and higher interest rates available for cash deposits. There were net investment losses in the year of £4.2m (2022: Gains £2.3m). The closure of the Convent in Shadwell and subsequent revaluation resulted in a surplus of £1.3m.The net movement in funds was therefore a deficit of £3.9m (2022 surplus £1.8m).
Substantial donations were made in the year to the missions and charitable causes reflecting our commitment particularly to ministries with the poor, the homeless, women and children, and education.
19
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
During the year £0.78m (2022: £0.73m) was incurred by the Trustees for the care of our Sisters in Residential Care. Much of this care was provided by the Care Homes of the Charity.
The Investment Portfolios of the Charity appear to be substantial in amount but are put into context by consideration of the number of Sisters of whom there are eighty and of the other long-term commitments of the Charity for which designation has been made in the accounts. All but a very few of the Sisters are now retired from remunerated employment and others, after a lifetime of service for the Charity, have need of residential care.
## **RESERVES POLICY**
Total funds at the year-end stood at £70.4m (2022: £74.3m) of which £63.0m (2022: £67.8m) is designated. The Trustees feel it is necessary to designate those funds required for particular purposes and this policy is explained in full in note 12 to the accounts.
## **RESERVES POLICY (CONTINUED)**
General funds are retained to provide resources to meet the long-term commitments of our mission, for future compliance and administration costs, for the maintenance of our properties and to provide adequate funds for working capital. In the past the cost of our mission was met from our members’ surplus salary income but now in retirement, the surplus has become an annual deficit and the cost of our mission must be supported by designated funds and reserves. One of our Care Homes occupies a relatively old building, and it is inevitable that there will be increasing costs of maintenance and upgrading of facilities to present-day required standards.
The Trustees’ target is to hold £7 million in reserve. The General Fund at the year-end stood at £7.4m (2022: £6.4m) and the trustees will aim to increase. The Trustees consider the current reserves, although not excessive, to be adequate for its requirements and anticipate that proceeds from a forthcoming surplus from asset sales will increase the General Fund to its approximate target.
## **INVESTMENT POLICY**
The Charity’s investments are managed as indicated on Page 1. There are no restrictions on the Charity’s power to invest. The Trustees, the General Bursar and Finance Director for the Congregation meet the Investment Managers twice a year. At these meetings the performance is reviewed, the income requirement discussed, and the likely market trends presented. The Trustees have in place an Ethical Policy that is reviewed annually. This is a broad policy that attempts to protect the objectives of the Charity as a Catholic Charity and yet give the Managers the freedom to maximise the investment money.
## **PAY POLICY FOR SENIOR STAFF**
The Trustees and the senior management team comprise the key management personnel of the charity, in charge of operating and controlling the Charity on a day-to-day basis. All Trustees give of their own time freely and received no remuneration in the year. Details of Trustees’ related party transactions are disclosed in note 2 to the accounts.
The Trustees benchmark the pay of senior staff against pay levels in other comparable organisations on appointment and are advised by specialist consultants where necessary. This is reviewed annually to take account of increases in average earnings and the cost of living.
## **REVIEW OF DEVELOPMENTS DURING YEAR**
The Trustees are confident that the finances will allow them to continue to develop the works of the Congregation. They continue to review all their assets. Communities are reducing in number, and this
20
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
has an effect on the individual communities with regard to the size of property.
## **FUTURE PLANS**
The Trustees plan:
- to continue to support the Sisters and enable them to carry out their pastoral ministry.
- to monitor the needs of the Sisters as they grow older and to take appropriate action when care needs arise.
- to continue supporting their missions abroad.
- to collaborate with the Institute of Our Lady of Mercy at St Mary’s Convent, Handsworth, Birmingham, which has been designated a heritage centre for all the Sisters of Mercy and Associates in the UK and serves the local community and environment;
- to financially support programmes and events to enable Associate members, co-workers and colleagues to fulfil their role in Church and Society.
- to provide the highest possible care for the Residents of the Care Homes and to meet the requirements laid down by the _Care Quality Commission, England_ and the _Care Inspectorate_
_Wales._
- to continue to share our resources with other communities in need and contribute generously to the needs of the Church and the world.
## **TRUSTEES’ RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England/Wales & Scotland requires the Trustees to prepare financial statements 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 financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently.
- observe the methods and principles in the Charities SORP.
- make judgments and estimates that are reasonable and prudent.
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 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.
## **MEMBERS OF THE CONGREGATION, EMPLOYEES AND VOLUNTEERS**
The Trustees acknowledge the dedication and commitment of the members of the Congregation, their employees and volunteers in enabling the mission of the Charity to be fulfilled and developed.
Approved by the Trustees on 11 October 2023 and signed on their behalf by:
21
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Sister Geraldine Lawlor Charity Trustee
Sister Margaret Jones Charity Trustee
22
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES**
## **OPINION**
We have audited the financial statements of the Sisters of Mercy of the Union of Great Britain for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of the charity’s net movement in funds for the year then ended.
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
## **BASIS FOR OPINION**
We have been appointed as auditor under section 144 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder. 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 charity 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 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 when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **OTHER INFORMATION**
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the 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
23
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES**
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charity; or
- sufficient and proper accounting records have not been kept; or
- the charity financial statements are not in agreement with the accounting records and returns.
- or we have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES FOR THE FINANCIAL STATEMENTS**
As explained more fully in the trustees’ responsibilities statement set out on page 23 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS**
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 a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 is detailed below:
Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with laws and regulations related to compliance with regulatory requirements of the Care Quality Commission, Charity Commission, employment law and health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, payroll taxes and VAT.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in certain accounting estimates. Audit procedures performed by the engagement team included:
- Inspecting minutes of trustees meetings.
- Inspecting correspondence with regulators and tax authorities.
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud.
- Evaluating management’s controls designed to prevent and detect irregularities.
24
## **THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES**
- Identifying and testing journals, in particular journal entries posted at the year-end or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **USE OF OUR REPORT**
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
……………………………. Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG Date:................................................... Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 .
10 Queen Street Place London EC4R 1AG
25
## **THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023**
|**Notes**
**Income and endowments from:**
**Donations and legacies**
Members' salaries and pensions
Other donations and legacies
**Charitable activities**
Care Home Fees receivable
**Investments**
Investment Income
3
**Other Income**
Rents
Gains on sale of fixed assets
Other income
**Total income**
**Expenditure on:**
**Raising funds**
Investment managers' fees
**Charitable activities**
4a
Support for members and their
mission
Care of the elderly
Relief of hardship
Other charitable activities
**Total expenditure**
Net income / (expenditure) before
other gains
Net (losses) / gains on
investments
9
Revaluation of property held for
resale
**Net income**
**Transfers between funds**
12
**Net movement in funds**
Total funds brought forward at
1 April 2022
**Total funds carried forward at**
**31 March 2023**|**General**
**Funds**
**Designated**
**Funds**
**Total 2023**
**Total 2022**
£
£
£
£
1,750,962
-
1,750,962
1,787,554
109,534
120,035
229,569
85,523
-
2,136,320
2,136,320
2,180,220
45,576
1,585,667
1,631,243
1,365,933
68,256
-
68,256
67,392
23,824
-
23,824
7,325
557
26,271
26,828
54,178
1,998,709
3,868,293
5,867,002
5,548,125
-
17,906
17,906
14,582
2,081,074
1,121,826
3,202,900
2,317,980
350,187
3,016,020
3,366,207
3,332,482
5,284
64,280
69,564
76,293
18,040
219,446
237,486
318,092
2,454,585
4,439,478
6,059,429
(455,876)
(571,185)
(1,027,061) (511,304)
-
(4,172,418)
(4,172,418)
2,300,072
1,343,000
-
1,343,000
-
887,124
(4,743,603)
(3,856,479)
1,788,768
74,366
(74,366)
-
-
961,490
(4,817,969)
(3,856,479)
1,788,768
6,423,843
67,841,306
74,265,149
72,476,381
£7,385,333
£63,023,337
£70,408,670
£74,265,149|
|---|---|
All amounts derive from continuing activities. All gains and losses are included in the Statement of Financial Activities.
The notes on pages 28 to 40 form part of these accounts.
26
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN BALANCE SHEET AS AT 31 MARCH 2023**
|**Note**
**s**
**FIXED ASSETS**
Tangible fixed assets
8
Investments
9
**CURRENT ASSETS**
Debtors
10
Fixed asset held for resale
Term deposits
Cash at bank and in hand
**CREDITORS: Amounts**
**falling due within one**
**year**
11
**NET CURRENT ASSETS**
**TOTAL NET ASSETS**
**UNRESTRICTED**
**FUNDS**
Designated Funds:
12
Convent Fund
Donations Fund
Property Fund
Retirement and Care Fund
Residential Care Homes
Fund
General Funds
12|**2023**
**2022**
£
£
£
£
10,990,163
11,734,405
50,231,759
53,445,605
141,275
91,342
1,750,000
-
5,055,493
2,040,820
2,547,035
7,262,830
9,493,803
9,394,992
(307,055)
(309,853)
9,186,748
9,085,139
£70,408,67
0
£74,265,149
208,835
207,838
16,082,446
17,443,135
10,950,078
11,692,177
35,149,313
38,002,470
632,665
495,686
63,023,337
67,841,306
7,385,333
6,423,843
£70,408,67
0
£74,265,149|
|---|---|
Approved by the Trustees on 11[th] October 2023 and signed on their behalf by
Sister Margaret Jones Charity Trustee
Sister Geraldine Lawlor Charity Trustee
26
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN BALANCE SHEET AS AT 31 MARCH 2023**
The notes on pages 28 to 40 form part of these accounts.
27
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023**
|**Note**
**s**
Cash Flows from operating activities
Net cash (used in) operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Proceeds from the sale of fixed assets
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting
period
Cash and cash equivalents at the end of the reporting period
Net income for the reporting period (as per the statement of
financial activities)
Adjustments for:
Depreciation charges
Profit on disposal of fixed assets
On reclassification of fixed asset
Losses/(Gains) on investments
Dividends, interest and rents from investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided (used in) operating activities
**Analysis of cash and cash equivalents**
Term deposits
Cash in hand
**Cash held by broker**
**Total cash and cash equivalents**|**2023**
**2022**
**£**
**£**
(2,371,213)
(684,811)
1,631,243
1,365,933
28,750
7,325
(31,030)
(76,566)
44,550
10,000
(1,000,828)
(5,293)
672,685
1,301,399
(1,698,828)616,588
9,308,804 8,692,216
£7,609,976
£9,308,804
**2023**
**2022**
**£**
**£**
(3,856,479)
1,788,768
363,346
369,972
(23,824)
(7,325)
(1,343,000)
-
4,172,718
(2,300,072)
(1,631,243)
(1,365,933)
(49,933)
789,290
(2,798)
40,489
£(2,371,213)
£(684,811)
**2023**
**2022**
**£**
**£**
5,055,493
2,040,820
2,547,035
7,262,830
7,448
5,154
£7,609,976
£9,308,804|
|---|---|
The notes on pages 28 to 40 form part of these accounts.
28
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES**
## **a) General information**
The Union of the Sisters of Mercy of Great Britain is an unincorporated registered charity in England and Wales (number 288158) and in Scotland (number SCO39153). Its registered address is Mercy Union Generalate, 11 Harewood Avenue, London, NW1 6LD.
## **b) Basis of preparation**
The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019).
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## **c) Preparation of accounts on a going concern basis**
The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The review of our financial position, reserve levels and future plans gives Trustees confidence the charity remains a going concern for the foreseeable future.
## **d) Funds Structure**
All the funds of the Charity are unrestricted funds. Unrestricted funds comprise those funds that the Trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose. Further details of each fund are disclosed in notes 12.
## **e) Tangible Fixed Assets**
Land and buildings are stated at their cost or deemed cost based on existing use value as at 31 March 1997. All motor vehicles are capitalised at cost.
Depreciation is calculated by the straight-line method to write off the cost/value, less anticipated residual value, over the expected useful lives of assets as follows:
Freehold land not depreciated Freehold buildings 50 years Leasehold buildings 50 years Plant and machinery 10 years Motor vehicles 4 years
## **f) Investments**
Investments are a form of basic financial instrument and are initially shown in the accounts at market value. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities.
Profits and losses on the realisation of investments are shown as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the end of the year and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
29
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **ACCOUNTING POLICIES (continued)**
- **f) Investments (continued)** In addition, the Charity has established a pension scheme for certain Sisters. The scheme is a Deferred Annuity Contract whereby a certain guaranteed sum is payable to the Charity at a fixed future date. No value can readily be attributed to the contract as future returns are dependent on bonuses which in turn depend on investment returns and inflation. Therefore the asset included in the balance sheet in respect of this scheme is valued on the basis of premiums paid to date in respect of Sisters still in the scheme. Receipts on maturity are recognised as investment gains net of the relevant premiums paid and the annual premiums are included as addition to the Deferred Annuity Contract.
**g) Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
- **h) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments.
## **i) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
- **j) Fees Receivable**
Fees receivable are accounted for in the period in which the relevant services are provided.
**k) Members' Salaries and Pensions** Members' salaries and pensions are received under Deeds of Covenant from members of The Union of the Sisters of Mercy and are stated inclusive of income tax but net of any deductions for social security payments and contributions to occupational pension schemes.
## **l) Legacies and Donations**
Legacies and donations are recognised when receivable or when the Charity becomes legally entitled to them. Receipts of property, investments or other gifts in kind are included at market value.
## **m) Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Charity.
## **n) Irrecoverable VAT**
Irrecoverable VAT is included with the category of expense to which it relates.
30
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **1. ACCOUNTING POLICIES (continued)**
## **o) Charitable activities**
- Direct charitable expenditure consists of all expenditure directly relating to the objects of the Charity. The cost of charitable activities includes grants made and an apportionment of overhead and support costs as shown in note 4.
## **p) Allocation of overhead and support costs**
Overhead and support costs exclusively incurred for a particular activity have been allocated to that activity. General overhead and support costs have been allocated between charitable activities in line with the proportion of total direct and grant funded costs incurred on each activity. The allocation of overhead and support costs is analysed in note 4.
## **q) Employee benefits**
## **Short term benefits**
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
## **Employee termination benefits**
Termination benefits are accounted for on an accrual basis and in line with FRS 102.
## **Pension Scheme**
The charity operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of the charity in an independently administered fund. The pensions costs charged in the accounts represent the contributions payable in the year.
## **r) Critical accounting judgements and key sources of estimation uncertainty**
In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.
Judgements made by the Trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and are discussed above.
In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
31
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **2. TRANSACTIONS WITH TRUSTEES AND RELATED PARTIES**
The Trustees of the Charity are also members of the Congregation and as such have taken vows of poverty under which they have renounced all personal rights to income and assets. They are therefore entirely dependent on the Charity for all their living expenses. The Trustees do not receive any payments or benefits for carrying out their duties other than their living expenses which are met by the Charity in their capacity as members of the Religious Order.
|3
**INVESTMENT**
**INCOME**
**Listed Investments**
Cash Deposits
4a
**ANALYSIS OF**
**CHARITABLE**
**EXPENDITURE**
Support for members and
their mission
Care of the elderly
Relief of Hardship
Other Charitable activities
Evangelisation
Children's charities
Education
Homeless
Medical
Missions
Women's Charities
**ANALYSIS OF**
**SUPPORT COSTS**
Staff
Administration
Professional
Governance (audit fees)
4
b
**ANALYSIS OF CHARITABLE**
**EXPENDITURE**|**Activities**
**undertaken**
**Directly**
£
2,959,594
3,040,030
-
-
-
-
-
-
-
-
£5,999,624
**Support**
**for**
**Members**
**£**
167,486
38,678
18,696
18,446
£243,306
**Activities**
**undertake**|**Grant**
**Funded**
**Activities**
£
-
70,466
64,280
63,125
8,000
4,600
25,500
45,515
71,706
1,000
£354,192
**Care of**
**the**
**Elderly**
**£**
176,026
40,650
19,649
19,386
£255,711
**Grant**
**Funded**
32|**Support**
**Costs**
£
243,306
255,711
5,284
5,189
658
378
2,096
3,742
5,895
82
£522,341
**Relief of**
**Hardship**
**£**
3,638
840
406
400
£5,284
**Support**
**Costs**|**2023**
**2022**
£
£
1,585,204
1,364,781
46,039
1,152
£1,631,243
£1,365,933
**Total**
**2023**
**Total**
**2022**
£
£
3,202,900
2,317,980
3,366,207
3,332,482
69,564
76,293
68,314
115,967
8,658
14,223
4,978
30,907
27,596
33,915
49,257
8,752
77,601
99,011
1,082
15,317
£6,876,157
£6,044,847
**Other**
**2023**
**Total**
**£**
**£**
12,418
359,568
2,868
83,036
1,386
40,137
1,368
39,600
£18,040
£522,341
**2022**
**Total**|
|---|---|---|---|---|
## **THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
|Support for members and their
mission
Care of the elderly
Relief of Hardship
Other Charitable activities
Evangelisation
Children's charities
Education
Homeless
Medical
Missions
Women's Charities
**ANALYSIS OF SUPPORT**
**COSTS**
Staff
Administration
**Professional**
Governance (audit fees)
5
**ANALYSIS OF GRANTS**
Grants made to institutions
Grants made to individuals
Institutions
Individuals|**n Directly**
£
2,118,736
2,974,415
-
-
-
-
-
-
-
-
£5,093,151
**Support**
**for**
**Members**
**£**
139,438
36,912
9,013
13,881
£199,244|**Activities**
£
-
71,620
69,735
106,000
13,000
28,250
31,000
8,000
90,500
14,000
£432,105
**Care of the**
**Elderly**
**£**
200,465
53,067
12,958
19,957
£286,447|£
199,244
286,447
6,558
9,967
1,223
2,657
2,915
752
8,511
1,317
£519,591
**Relief of**
**Hardship**
**£**
4,589
1,215
297
457
£6,558|£
2,317,980
3,332,482
76,293
115,967
14,223
30,907
33,915
8,752
99,011
15,317
£6,044,847
**Other**
**£**
19,135
5,065
1,237
1,905
£27,342
**2023**
**Total**
£
267.676
86.516
£354.192
**Number**
39
20|**2022**
**Total**
**£**
363,627
96,259
23,505
36,200|
|---|---|---|---|---|---|
||||||£519,591|
||||||**2022**
**Total**
£
310,600
121,505|
||||||£432,105|
||||||**Number**
56
11|
33
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
|6
**RECIPIENTS OF INSITUTIONAL GRANTS:**
**Large Institutional Donations**
Diocese of Westminster
Diocese of Aberdeen
Diocese of Birmingham
Diocese of Brentwood
Diocese of Clifton
Diocese of Edinburgh
Diocese of Glasgow
Diocese of Menevia
Diocese of Motherwell
Diocese of Plymouth
Diocese of Shrewsbury
Providence Row Charity
Daniel's Corporation, Romania
St Joseph's Hospice
St John's Hospice
Weldmar Hospicecare
Aid to the Church in Need
Addo, South Africa
Nigeria School
Corpus Christi, Stechford
Sagesse High School
CAFOD
SCIAF
Ashford Place
St Mary's Monastery
St Patrick's Parish
Irish Chaplaincy
The Living Room
Mary’s Meals
Water Aid
Sightsavers
Folan Trust
St Mary's University, Twickenham
St Mary’s and St Michael’s Parish
Portman House Trust
Other|**2023**
£
8,000
2,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
2,000
4,000
20,000
37,798
15,000
20,000
-
-
36,873
5,000
5,000
-
5,000
5,000
5,000
-
-
5,000
-
3,000
-
-
-
-
-
-
61,005
267,676|**2022**
£
12,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
10,000
50,900
-
-
10,000
5,000
14,600
-
-
25,000
10,000
10,000
10,000
7,000
5,000
5,800
5,000
5,000
5,000
5,000
5,000
10,000
5,000
5,000
30,300|
|---|---|---|
|||310,600|
34
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
|7
**STAFF COSTS**
Wages and Salaries
Social Security costs
Other Pension Costs|**2023**
£
2,290,922
142,652
139,743
£2,573,317|**2022**
£
2,197,785
143,170
129,476|
|---|---|---|
|||£2,470,431|
The key management personnel of the charity comprise the Trustees, the General Bursar, the Finance Director, the Buildings Surveyor and the Care Home Managers. The total employee benefits of the key management personnel of the charity was £217,625 (2022: £221,264).The average monthly head count was 126 staff (2022:128 staff) and the average number of fulltime equivalent employees (including part-time staff was:
|||||||**2023**|**2022**|
|---|---|---|---|---|---|---|---|
|||||||Number|Number|
||Residential Homes|||||81|80|
||Convents|||||3|3|
||Other|||||5|5|
|||||||89|88|
||One member of staff received between £60,001 and £65,000 per annum (2022 -1). The 80 Sisters of the Order who are under|||||||
||vows of Poverty, Chastity and Obedience conduct many of the activities if the Charity. No amounts are included in Staff|||||||
||Costs in respect of Sisters’ services.|||||||
|8|**TANGIBLE FIXED ASSETS**|||||||
|||**Freehold**|**Leasehold**|||||
|||**land and**|**land and**||**Plant and**|**Motor**||
|||**Buildings**|**Buildings**||**Machinery**|**Vehicles**|**Total**|
|||**£**||**£**|**£**|**£**|**£**|
||**Valuation**|||||||
||At 1 April 2022|16,739,528||329,896|
944,769|319,190|18,333,3|
||Additions|-||-|-|31,030|31,030|
||Disposals|-||-|-|(34,824)|(34,824)|
||Transfer to property held for|||||||
||resale|(550,000)||-|-|-|(550,000)|
||At 31 March 2023|16,189,528||329,896|
944,769|315,396|17,779,5|
||**Depreciation**|||||||
||At 1 April 2022|6,092,867||67,600|
161,549|276,962|6,598,9|
||Eliminated on disposal|-||-|-|(29,898)|(29,898)|
||Charge for the year|238,023||2,600|94,476|28,247|363,346|
||Transfer to property held for|||||||
||resale|(143,000)||-|-|(143,000)|(143,000)|
||At 31 March 2023|6,187,890||70,200|
256,025|275,311|6,789,4|
||**Net Book Value**|||||||
||At 31 March 2023|10,001,638||259,696|
668,744|40,085|10,990,1|
||At 31 March 2022|10,646,661||262,296|
783,220|42,228|11,734,4|
Apart from a small proportion of excess accommodation which is let and minimal use for management and administrative purposes, all fixed assets are held for direct charitable purposes.
35
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
|9
**INVESTMENTS**
Listed investments
Unlisted investments
Portfolio cash
At 31 March 2023|**2023**
**2022**
£
£
50,224,31153,417,262
-
23,189
50,224,31153,440,451
7,448
5,154
£50,231,759£53,445,605|
|---|---|
|**General**
**Fund**
**£**
Market Value at 1 April 2022
-
Additions
-
Disposals
-
Realised gains
-
Unrealised revaluation gains/(losses)
-
-
Portfolio Cash
-
Market Value at 31 March 2023
-
Cost at 31 March 2023
-
UK Managed funds
Deferred Annuity Contracts and Investment Bonds
10
**DEBTORS**
Trade and other debtors
Prepayment and accrued income
11
**CREDITORS: Amounts falling due within one year**
Trade and other creditors
Other taxes and social security
Other creditors
Accruals and deferred income|**Donations**
**Fund**
**£**
15,443,135
1,000,000
-
-
(1,360,689)
15,082,446
-
£15,082,446
£12,000,000
**Listed**
**Investments**
**£**
50,224,31
1
-
£50,224,311|**Retirement**
**Fund**
**Total**
**£**
**£**
37,997,316
53,440,451
828
1,000,828
(44,550)
(44,550)
20,533
20,533
(2,832,262)
(4,192,951)
35,141,865
50,224,311
7,448
7,448
£35,149,313
£50,231,759
£33,345,452
£45,345,572
**Unlisted**
**Investments**
**Total**
**£**
**£**
-
50,224,311
-
-
£-
£50,224,311
**2023**
**2022**
**£**
**£**
108,872
37,037
32,403
54,305
£141,275
£91,342
**2023**
**2022**
**£**
**£**
123,717
133,338
22,406
28,778
5,615
11,631
155,317
136,106
£307,055
£309,853|
|---|---|---|
36
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **12. CHARITABLE FUNDS**
- a) The Trustees have designated funds out of the unrestricted funds for specific purposes as follows:
## _**Convent Fund**_
80 Sisters form the membership of the Charity residing in 28 locations. The Trustees have designated funds to provide for the day to day running of these convents. Funds of £911,502, were transferred from the general fund during the year.
## _**Donations Fund**_
A fund has been designated backed by a portfolio of investments. The purpose of this fund is to support the charitable activities, other than support for its members, of the Charity.
## _**Property Fund**_
In order to fulfil its charitable objectives, the Charity needs a large number of properties. These properties, although they are unrestricted assets cannot be realised without undermining the Charity’s work. Trustees therefore feel that it is appropriate to reflect the book value of properties by means of a designated fund. The movement in the Property Fund represents the property transactions and depreciation in properties during the year. With effect from 31 March 2020, this now includes non-moveable plant and equipment.
## _**Retirement and Care Fund**_
A fund has been designated to enable the Charity’s commitment to provide for the retirement and care in old age and sickness of its members including the cost of nursing and residential care home fees. An initial designation of £30.3 million which has subsequently grown to £35.1 million has been made whilst the Trustees have estimated that a fund of some £41 million will be required to make provision for the ongoing needs of members after taking account of their occupational pension rights. The Trustees have designated an investment portfolio for this Fund and the deferred annuity contract pension scheme established for certain Sisters.
## _**Residential Care Homes Fund**_
The charity operates two residential care homes. The Trustees consider it appropriate to designate funds for the working capital requirements of these activities. During the year there was a transfer from the General Fund of £891,551.
## _**b) General Fund**_
General funds are retained to provide resources to meet the long-term commitments of our mission, for future administration and compliance costs, for the maintenance of our properties and to provide adequate funds for working capital. In the past the cost of our mission was met from our members’ surplus salary income but now in retirement the surplus has become an annual deficit and the cost of our mission must be supported by designated funds and reserves. The General Fund at the year-end stood at £7.4 million.
The Trustees’ have calculated that a reserve of £7 million is an appropriate amount for this purpose. Sales proceeds from surplus assets in the forthcoming year will bring the General Fund to its target level of reserves.
All unrestricted funds are available to be spent for any of the purposes of the charity. The Charity’s salary and pension income and significant items of property, care fees and grant expenditure has been centralised. For administrative simplicity most such income and expenditure is conducted through the General Fund bank accounts. Periodically, transfers of income and capital are made from other Funds into the General Fund in order to maintain the General Fund near to target levels.
37
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **ANALYSIS OF CHARITABLE FUNDS**
|**12c**
**2023**
**Balance at**
**1 April**
**2022**
**Income**
£
£
Convent Fund
207,838
124,595
Donations Fund
17,443,135
432,861
Property Fund
11,692,177
-
Retirements and
Care Fund
38,002,470
1,152,343
Residential
Care
Homes Fund
495,686
2,158,494
Designated
Funds
67,841,306
3,868,293
General Fund
6,423,843
3,341,709
£74,265,149
£7,210,002
**d)**
**ANALYSIS OF CHARITABLE FUNDS**
**2022**
**Balance at**
**1 April**
**2021**
**Income**
£
£
Convent Fund
248,424
13,675
Donations Fund
16,494,875
406,529
Property Fund
11,976,744
-
Retirements and
Care Fund
36,644,814
958,039
Residential
Care
Homes Fund
338,052
2,247,990
Designated
Funds
65,702,909
3,626,233
General Fund
6,773,472
1,921,892
£72,476,381
£5,548,125|**Expenditure**
£
(1,035,100)
(304,783)
(240,623)
(17,906)
(2,841,066)
(4,439,478)
(2,454,585)
£(6,894,063)
**Expenditure**
£
(927,393)
(405,359)
(246,123)
(14,582)
(2,775,514)
(4,368,971)
(1,690,458)
£(6,059,429)|**Transfers**
**Gains on**
**Investments**
£
£
911,502
-
(128,078)
(1,360,689)
(501,476)
-
(1,175,865)(2,811,729)
819,551
-
(74,366) (4,172,418)
74,366
-
£-
£(4,172,418)
**Transfers**
**Gains on**
**Investments**
£
£
873,132
-
(1,170)
948,260
(38,444)
-
(937,613)
1,351,812
685,158
-
581,063
2,300,072
(581,063)
-
£-
£2,300,072|**Balance at**
**31 March**
**2023**
£
208,835
16,082,446
10,950,078
35,149,313
632,665|
|---|---|---|---|
||||63,023,337
7,385,333|
||||£70,408,670|
||||**Balance at**
**31 March**
**2022**
£
207,838
17,443,135
11,692,177
38,002,470
495,686|
||||67,841,306
6,423,843|
||||£74,265,149|
38
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
|**13**
**STATEMENT OF FINANCIAL ACTIVITIES – PRIOR YEAR**
**General**
**Funds**
**Designated**
**Funds**
£
£
**Income and endowments**
**from:**
**Donations and legacies**
Members' salaries and
pensions
1,787,554
-
Other donations and legacies
58,469
27,054
**Charitable activities**
Care Home Fees receivable
-
2,180,220
**Investments**
Investment Income
1,152
1,364,781
**Other Income**
Rents
67,392
-
Gains on sale of fixed assets
7,325
-
Other income
-
54,178
**Total income**
1,921,892
3,626,233
**Expenditure on:**
**Raising funds**
Investment managers' fees
-
14,582
**Charitable activities**
Support for members and their
mission
1,275,637
1,042,343
Care of the elderly
380,921
2,951,561
Relief of hardship
6,558
69,735
Other charitable activities
27,342
290,750
**Total expenditure**
1,690,458
4,368,971
Net Income / (expenditure)
before other gains
231,434
(742,738)
Net (losses) / gains on
investments
-
2,300,072
**Net income**
231,434
1,557,334
**Transfers between funds**
(581,063)
581,063
**Net movement in funds**
(349,629)
2,138,397
Total funds brought forward at
1 April 2021
6,773,472
65,702,909
**Total funds carried forward**
**at 31 March 2022**
£6,423,843
£67,841,306|**Total**
**2022**
£
1,787,554
85,523
2,180,220
1,365,933
67,392
7,325
54,178
5,548,125
14,582
2,317,980
3,332,482
76,293
318,092
6,059,429
(511,304)
2,300,072
1,788,768
-
1,788,768
72,476,381
£74,265,149|
|---|---|
39
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **14a**
**. ANALYSIS OF NET ASSETS BY FUND 2023**
|Fund balances at 31
March 2023
are represented by
Tangible fixed assets
Investments
Current Assets
Current liabilities
Unrealised gains
included above on
listed investments|||Designate
dFunds||**Residential**
**Care**
**Homes**
**Fund**
**£**
3,224
-
819,102
(189,661
£632,665|**General**
**Fund**
**Total**
**Funds**
**£**
**£**
36,861
10,990,163
-
50,231,759
7,465,866
9,493,803
)
(117,394)
(307,055)|
|---|---|---|---|---|---|---|
|||**Convent**
**Fund**|**Donations**
**Fund**
**Property**
**Fund**|**Retirement**
**and Care**
**Fund**|**Residential**
**Care**
**Homes**
**Fund**||
|||**£**
-
-
208,835
-
£208,83
5|**£**
**£**
-
10,950,078
15,082,446
-
1,000,000
-
-
-
£16,082,44
6
£10,950,078|**£**
-
35,149,313
-
-
£35,149,31
3|||
|||||||£7,385,33
3
£70,408,67
0|
||||||||
|||£-|£3,082,446
£-|£1,948,506|£-|£-
£5,030,952|
||||||||
40
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2023**
|**14b**
**.**
**15**|**ANALYSIS OF NET ASSETS BY**
**FUND 2022**
Fund balances at 31 March
2022
are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Unrealised gains / (losses)
included above on
listed investments
**Related party transactions**|||**Designated Funds**
DesignatedFunds
**Donations**
**Fund**
**Property**
**Fund**
**Retirement**
**and Care**
**Fund**
**Residentia**
**l Care**
**Homes**
**Fund**
**General**
**Fund**
**Total**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
-
11,692,177
-
6,448
35,780
11,734,405
15,443,135
-
38,002,470
-
-
53,445,605
2,000,000
-
-
655,612
6,531,542
9,394,992
-
-
-
(166,374)
(143,479)
(309,853)
£17,443,13
5
£11,692,17
7
£38,002,470
£495,686
£6,423,84
3
£74,265,149
£4,443,435
£-
£4,801,553
£-
£-
£9,244,988|
|---|---|---|---|---|
||||**Convent**
**Fund**|**Donations**
**Fund**
**Property**
**Fund**
**Retirement**
**and Care**
**Fund**
**Residentia**
**l Care**
**Homes**
**Fund**|
||||**£**
-
-
207,838
-
£207,83
8||
||||£-||
||||||
There were no related party transactions in either the current or prior year other than those referred to in note 2.
41
THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN
NOTES TO THE FINANCIAL STATEMENTS {CDntillued)
FOR THE YEAR ENDED 31 MARCH 2023
42