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2024-03-31-accounts

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 2024
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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024

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: Trust Deed dated 29 September 1991 Mercy Union Generalate Address: 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: Rathbone Brothers PLC BlackRock 8 Finsbury Circus 12 Throgmorton Avenue London EC2M 7AZ London EC2N 2DL 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 2024

The Trustees present their report together with the financial statements of the Charity for the year ended 31 March 2024. 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 seventy-six 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:

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 and SCO39153 in Scotland. 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 Leadership Team members of the Congregation and, therefore, have a good knowledge of the work of the Charity and its structure.

GDPR - Update 2024

Detailed work commenced during the latter half of 2023 to review the content of the existing overarching and specific GDPR and Privacy policies that were currently in place.

The two residential homes owned and run by the Union of the Sisters of Mercy had their own separate GDPR and Privacy policies with minimal cross referencing within the overarching policy for the Charity. It is recognised that these separate policies now need to form part of a single policy for the Charity while still fulfilling the specific regulatory and legal requirements of a Registered care home.

This work will continue during this year and the detailed work on these policies and working arrangements will be finalised in 2024 in order to ensure they meet the current requirements of GDPR and reflect best practice.

The information and data collected and stored in all locations and services operated by the Sisters is essential for the mission and operational functioning of the Charity.

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:

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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

Trustee responsibility conferences:

Working with Other Organisations / Engaging with Other Professionals

Caring for the Environment

General topics:

Individual Trustee Attendance:

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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:

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:

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

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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

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 portfolio 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 portfolio 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 charity 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. 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.

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ACTIVITIES

The activities of the Charity can be divided into four principal areas:

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 2024 the age profile of the Congregation is shown in the following table:

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40
30
36
31
Members in
20
Groups
10
0 9
71-80
81-90
91-100
Age Groups
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The Trustees are the elected Leadership Team of the Congregation and, as such, have a particular pastoral role within the Congregation. Along with one local community leader and four pastoral care team members, who are engaged in the care of the Sisters in St Michael’s Care Home, Clacton-on-Sea, they are responsible for the full-time pastoral care of the membership.

KEY ISSUES

At our General Chapter, held in September 2021, we were given the following Key Issues to consider:

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.

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On 31 March 2024, 17 members of the Congregation were in residential care in the Charity’s own homes and other homes.

Over the next decade, the Trustees are aware the number of members requiring care will increase and are giving careful consideration to the impact of this on its active ministry, on the financial implications for the charity and on the property requirements.

With this in mind, the Trustees aim:

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

“The poor need help today, not next week” Venerable Catherine McAuley

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 and are acutely aware of the problems caused by mental illness and the increasing need for dementia care.

Members of the Congregation were in ministry in many pastoral and social settings:

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.

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MINISTRY ACCOUNTS

There follows accounts of the ministries undertaken by members in North West London, West London and West Scotland:

A Community in North West London writes:

As a member of the Community I am involved with the following ministries:

Parish ministries of other community member:

Taking Communion to the housebound

First Communion Preparation

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A Community in West London writes:

The Mercy Community in Feltham was founded in 1994. From the outset the 3 founding Sisters were fully involved in all parish activities, especially in catechetics, prayer groups, extraordinary ministers of the Eucharist, readers and regular visitation of the sick and elderly in their homes or in hospitals.

Feltham Parish is numerically one of the largest in the Diocese of Westminster and it is still increasing. It is home to people from many ethnic communities from Africa, Goa, the Philippines, Poland, Ukraine, India and others.

At the present time we are two Sisters, both in our seventies. Our main ministries are:

Specific ministries:

A Sister in Baillieston, West Scotland writes:

I am a volunteer helper at SVDP Furniture Project based in North Lanarkshire. The building we use is a large warehouse unit.

People/families donate items of pre-loved furniture, kitchen and bedroom items etc. which we are then able to give to families/individuals who are in need.

The project relies on volunteer drivers who collect and deliver the items, and other volunteers who sort and select items for distribution. When the good are received into the unit, they are checked to ensure that they are in good condition and electrical items are PAT tested. We then match up these items with the requests received. Requests come from various sources – some directly from the SVDP Conferences in the locality on behalf of families/individuals who find themselves in urgent need of help – these may be refugees or asylum seekers, families fleeing violent relationships, people who have just been released from prison and sometimes from people struggling to replace electrical items which have been broken down and they cannot afford to replace/repair them. In addition, we also get referrals from Social Services and some NHS providers.

This worthwhile project relies entirely on the work of volunteers – our only reward is to see the furniture, beds, beddings etc. going on to people who have nothing. It is very humbling.

SPRED (Special Religious Education Development) is an experiential program for people with

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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

learning difficulties. There is no learning of facts but focuses on learning about faith through experience in a community setting. The group consists of “friends” (the person with learning disability) and “friend catechists” who are volunteers – together, we learn/experience together. There is not them and us; we work and learn together in a community of equals. I am a volunteer catechist.

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. The Mercy Associates are supported by a team of Sisters who provide assistance and resource materials to enable them to develop and deepen their Mercy spirituality. In addition, talks on the life and spirituality of Catherine McAuley have been recorded and are available on YouTube. 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 two 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.

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Mercy Mission – Addo, South Africa

Our ministries in Addo continue throughout the Sunday’s River Valley through our involvement in Parishes, Schools, Pre-Schools, Computer Training and Health Care. We also provide assistance with ID documents and social grants by transporting people to government offices.

Sadly, the Eastern Cape where we are based has the highest rate of child malnutrition in South Africa. Our Soup Kitchens are very full and people are suffering due to rising food costs and the lack of jobs. We are increasing our efforts in supplying essential food to children and needy adults on a daily basis. We administer these essentials through our Pre-Schools and from our home.

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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:

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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

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 1 Sister who has full-time or part-time ministry and receives renumeration in the form of a fee or stipend for their services.

5 Sisters are in full-time ministry of Central Leadership and find some time to:

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:

3 Sisters on a Pastoral Care Team share ministry to the Residents and Staff of a Care Home. They:

2 Sisters have an additional role in supporting the work of the St Vincent de Paul Society.

4 Sisters are in ministry at the Mercy Spirituality, Heritage and Outreach Centre in Birmingham which is a collaborative community with 1 Sister from The Institute of Our Lady of Mercy.

USE OF CHARITY PROPERTY

The 76 members of the Congregation reside at 25 locations:

17 in England

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.

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In the course of the year our properties were made available to the public for a variety of purposes, including:

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:

The properties of the Charity are available to the public for:

One property in a city centre is a major provider of support for homeless people and is open daily from 9.00am – 12.00 noon and 1.00pm – 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:

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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

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 “Thank you” letters for specific donations during the current financial year were:

Kids Club Kamapala

We are extremely grateful for your kind support; it really does mean such a lot to us and is a huge blessing to our work. Your generous grant will be put towards our Encouraging Education Project, helping to provide out of school children in the slums of Kampala the opportunity to access education.

Cardinal Hume Centre

How wonderful to receive such a generous donation from the Union of the Sisters of Mercy of Great Britain. Our thanks to all the trustees and community… The Cardinal Hume Centre specifically helps the poor and vulnerable in Westminster, so it is a blessing that we have your support in this mission. … During Advent, we distributed Christmas gift vouchers totalling almost £10,000 to around 600 clients living in poverty, and additionally supported families via food and essentials donations. Many of these were migrant families and refugees, some of the poorest people in society.

From a prisoner

I just wanted to reach out and say how grateful and – in all honesty – completely overwhelmed I am with the unbelievable act of generosity you have bestowed upon me.

I am truly humbled and appreciate the gesture so much, thank you from the bottom of my heart…

This money will go a long way to helping me achieve my educational goals and, ideally, gaining full-time work in the health and fitness sector when I am released…

It is not only the money; it is the fact that somebody has opened their heart to me and allowed me an opportunity to make a fresh start towards a brand-new ending.

Temwa

On behalf of the Temwa team both here in Bristol and overseas in Malawi, I want to thank you and the other Sisters of Mercy of the Union for the donation received in May to support Temwa’s work to support remote communities in northern Malawi.

Your generous contribution will help us to continue providing an infrastructure to support children and families in this region facing financial and humanitarian hardship. These communities are at the forefront of the climate crisis, and are feeling some of the worst effects of global inflation, so Temwa’s work is more vital than ever.

We are incredibly grateful for your donation and we look forward to being able to keep you updated on our project work in the coming months.

Camphill School Aberdeen

Thank you for choosing to support Camphill School Aberdeen. The young people, staff and volunteers of Camphill School Aberdeen were thrilled to receive your grant towards the final stages of building our

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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

new 11-bedroom residential house with independent living wing.

Support like this is essential for our charity, especially in the current crisis in care. The new residential home will meet the urgent need to support young people aged 16-25 with learning disabilities and very complex additional support needs. Your generous funds will help us open our doors to an additional 7 young people who are currently living in crisis providing them with a home away from home.

International Nepal Fellowship

We are most grateful to the Trustees for their recent support of our Wheels for Nepal Project in Nepal. The generous grant has been used to help people with disabilities to attend the Wheels for Nepal camp at INF’s Green Pastures Hospital and receive a life-changing wheelchair.

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 a regular 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 following table summarises some of the important statistics regarding the Homes:

St Teresa’s Rest St Teresa’s Rest Home St Michael’s Care St Michael’s Care Home
2022 2023 2024 2022 2023 2024
Residents 26 23 22 43 43 43
Occupancy 87% 94% 88% 97.5% 98% 97.2%
Staff – Full time
(31 hours & over)		 16 20 21 29 27 29
Staff – Part time
(30 hours &
below)		 24 20 21 45 45 45

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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.

CARE HOME ACTIVITIES

Dancing to Christmas Songs

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Making Autumn Wreaths
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A visit from the Easter Bunny

A resident helps with a magic trick

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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN

TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

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Residents play Bingo
Summer Crafts
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An afternoon of fruit and chocolate
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Gardening
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THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

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.

Income received during the year included:

Income from all sources totalled £6.0m (2023: £5.9m). Expenditure totalled £6.8m (2023: £6.91m). Before investment gains/(losses) net expenditure was £0.8m (net expenditure 2023: £1.0m).

Investment income was £1.8m (2023: £1.6m). 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 gains in the year of £2.7m (2023: Losses £4.2m). The decision to dispose of other property and subsequent revaluation resulted in a surplus of £0.5m.The net movement in funds was therefore a surplus of £2.4m (2023 deficit £3.9m).

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. During the year £0.95m (2023: £0.78m) 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 seventy-six 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 £72.8m (2023: £70.4m) of which £64.9m (2023: £63.0m) 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.

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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.

The Trustees’ target is to hold £7 million in reserve. The General Fund at the year-end stood at £7.9m (2023: £7.4m) 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 has an effect on the individual communities with regard to the size of property.

FUTURE PLANS

The Trustees plan:

20

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024

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:

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 1[st] October 2024 and signed on their behalf by:

Sister Geraldine Lawlor Charity Trustee

Sister Margaret Jones Charity Trustee

21

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 2024 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:

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 misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

22

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES

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:

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:

23

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES

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 .

24

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2024

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 2023
Total funds carried forward at
31 March 2024		 General
Funds
£
1,822,637
109,358
-
167,946
68,940
20,195
36,590
2,225,666
-
1,863,374
346,714
3,724
15,465
2,229,277
(3,611)
-
457,516
453,905
54,088
507,993
7,385,333
£7,893,326		 Designated
Funds
£
-
45,021
2,020,724
1,655,461
-
-
31,914
3,753,120
17,797
1,147,091
3,146,457
43,648
181,276
4,536,269

(783,149)
2,689,402
-
1,906,253
(54,088)
1,852,165
63,023,337
£64,875,502		 Total 2024
£
1,822,637
154,379
2,020,724
1,823,407
68,940
20,195
68,504
5,978,786
17,797
3,010,465
3,493,171
47,372
196,741
6,765,546
(786,760)
2,689,402
457,516
2,360,158
-
2,360,158
70,408,670
£ 72,768,828		 Total 2023
£
1,750,962
229,569
2,136,320
1,631,243
68,256
23,824
26,828
5,867,002
17,906
3,202,900
3,366,207
69,564
237,486
6,894,063
(1,027,061)
(4,172,418)
1,343,000
(3,856,479)
-
(3,856,479)
74,265,149
£70,408,670

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.

25

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN BALANCE SHEET AS AT 31 MARCH 2024

Notes
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		 2024
£
£
10,455,654
53,923,564
250,457
671,614
4,000,000
3,836,686
8,758,757
(369,147)
8,389,610
£72,768,828
202,375
16,548,558
10,391,709
37,375,006
357,854
64,875,502
7,893,326
£72,768,828		 2023
£
£
10,990,163
50,231,759
141,275
1,750,000
5,055,493
2,547,035
9,493,803
(307,055)
9,186,748
£70,408,670
208,835
16,082,446
10,950,078
35,149,313
632,665
63,023,337
7,385,333
£70,408,670		 2023
£
£
10,990,163
50,231,759
141,275
1,750,000
5,055,493
2,547,035
9,493,803
(307,055)
9,186,748
£70,408,670
208,835
16,082,446
10,950,078
35,149,313
632,665
63,023,337
7,385,333
£70,408,670
£70,408,670
63,023,337
7,385,333
£70,408,670

Approved by the Trustees on 1[st] October 2024 and signed on their behalf by

Sister Geraldine Lawlor Charity Trustee

Sister Margaret Jones Charity Trustee

The notes on pages 28 to 40 form part of these accounts.

26

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

Notes
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 motor vehicles
Proceeds from the sale of property and equipment
Purchase of fixed assets
Purchase of asset held for resale
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 as current 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		 2024
£
(2,332,206)
1,823,407
20,195
1,909,220
(57,736)
(126,319)
-
(1,000,000)
2,568,767
236,561
7,609,976		 2023
£
(2,371,513)
1,631,243
28,750
-
(31,030)
-
44,550
(1,000,828)
672,685
(1,698,828)
9.308.804
£7,846,537 £7,609,976
2024
£
2,360,158
346,625
(20,195)
(458,895)
(2,689,402)
(1,823,407)
(109,182)
62,092
£(2,332,206)
2024
£
4,000,000
3,836,686
9,851		 2023
£
(3,856,479)
363,346
(23,824)
(1,343,000)
4,172,418
(1,631,243)
(49,933)
(2,798)
£(2,371,513)
2023
£
5,055,493
2,547,035
7,448
£7,846,537 £7,609,976

The notes on pages 28 to 40 form part of these accounts.

27

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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.

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.

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.

28

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

ACCOUNTING POLICIES (continued)

f) Investments (continued)

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.

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.

29

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

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.

30

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

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)		 Activities
undertaken
Directly
£
2,773,821
3,208,457
-
-
-
-
-
-
-
-
£5,982,278
Support
for
Members
£
171,809
37,500
8,597
18,738
£236,644		 Grant
Funded
Activities
£
-
10,126
43,648
73,011
3,500
11,000
13,500
8,000
67,765
4,500
£235,050
Care of
the
Elderly
£
199,358
43,512
9,975
21,743
£274,588		 Support
Costs
£
236,644
274,588
3,724
6,229
299
938
1,151
683
5,781
384
£530,421
Relief of
Hardship
£
2,704
590
135
295
£3,724		 2024
£
1,653,910
169,497
£1,823,407
Total
2024
£
3,010,465
3,493,171
47,372
79,240
3,799
11,938
14,651
8,683
73,546
4,884
£6,747,749
Other
£
11,228
2,451
562
1,224
£15,465		 2023
£
1,585,204
46,039
£1,631,243
Total
2023
£
3,202,900
3,366,207
69,564
68,314
8,658
4,978
27,596
49,257
77,601
1,082
£6,876,157
2024
Total
£
385,099
84,053
19,269
42,000
£530,421

31

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

4b
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)
5
ANALYSIS OF GRANTS
Grants made to institutions
Grants made to individuals
Institutions
Individuals		 Activities
undertake
n Directly
£
2,959,594
3,040,030
-
-
-
-
-
-
-
-
£5,999,624
Support
for
Members
£
167,486
38,678
18,696
18,446
£243,306		 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		 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		 2023
Total
£
3,202,900
3,366,207
69,564
68,314
8,658
4,978
27,596
49,257
77,601
1,082
£6,876,157
Other
£
12,418
2,868
1,386
1,368
£18,040
2024
Total
£
176,265
58,785
£235,050
Number
41
13		 2023
Total
£
359,568
83,036
40,137
39,600
£522,341
2023
Total
£
267,676
86,516
£354,192
Number
39
20

32

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

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
Parish of the Immaculate Heart of Mary
SACRO
Addo, South Africa
Nigeria School
Corpus Christi, Stechford
Church of the Holy Redeemer
CAFOD
SCIAF
Ashford Place
Irish Chaplaincy
Other		 2024
£
8,000
-
4,000
4,000
4,000
4,000
4,000
2,000
4,000
4,000
4,000
10,000
37,843
-
-
5,000
5,000
31,422
5,000
-
5,000
5,000
-
5,000
5,000
20,000
176,265		 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
64,005
267,676

33

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

7
STAFF COSTS
Wages and Salaries
Social Security costs
Other Pension Costs		 2024
£
2,454,225
162,667
169,923
£2,786,815		 2023
£
2,290,922
142,652
139,743
£2,573,317

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 £252,057 (2023: £217,625).The average monthly head count was 128 staff (2023:126 staff) and the average number of fulltime equivalent employees (including part-time staff) was:

Residential Homes
Convents
Other		 2024
Number
83
3
5
91		 2023
Number
81
3
5
89

One member of staff received between £60,001 and £65,000 per annum (2023 -1). The 76 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.

Valuation
At 1 April 2023
Additions
Disposals
Transfer to property held for
resale
At 31 March 2024
Depreciation
At 1 April 2023
Eliminated on disposal
Charge for the year
Transfer to property held for
resale
At 31 March 2024
Net Book Value
At 31 March 2024
At 31 March 2023		 Freehold
land and
Buildings
£
16,189,528
-
-
-
16,189,528
6,187,890
-
238,023
-
6,425,913
9,763,615
10,001,638		 Leasehold
land and
Buildings
£
329,896
-
-
(120,000)
209,896
70,200
-
2,600
(33,600)
39,200
170,696
259,696		 Plant and
Machinery
£
944,769
-
(223,501)
-
721,268
256,025
(64,281)
72,126
-
263,870
457,398
688,744		 Motor
Vehicles
£
315,396
57,736
(51,794)
-
321,338
275,311
(51,794)
33,876
-
257,393
63,945
40,085		 Total
£
17,779,589
57,736
(275,295)
(120,000)
17,442,030
6,789,426
(116,075)
346,625
(33,600)
6,986,376
10,455,654
10,990,163

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.

34

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

9
INVESTMENTS
Listed investments
Portfolio cash
At 31 March 2024
Market Value at 1 April 2023
Additions
Disposals
Realised gains
Unrealised revaluation gains/(losses)
Portfolio Cash
Market Value at 31 March 2024
Cost at 31 March 2024
UK Managed funds
10
DEBTORS
Trade and other debtors
Prepayment and accrued income
11
CREDITORS: Amounts falling due within one year
Trade creditors
Other taxes and social security
Other creditors
Accruals and deferred income		 Donations
Fund
£
15,082,446
1,000,000
-
-
466,112
16,548,558
-
£16,548,558
£13,000,000		 2024
£
53,913,713
9,851
£53,923,564
Retirement
Fund
£
35,141,865
-
-
-
2,223,290
37,365,155
9,851
£37,375,006
£33,230,676
Listed
Investments
£
£53,913,713
2024
£
104,965
145,492
£250,457
2024
£
158,477
27,098
-
183,572
£369,147		 2023
£
50,224,311
7,448
£50,231,759
Total
£
50,224,311
1,000,000
-
-
2,689,402
53,913,713
9,851
£53,923,564
£46,230,676
Total
£
£53,913,713
2023
£
108,872
32,403
£141,275
2023
£
123,717
22,406
5,615
155,317
£307,055

35

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

12. CHARITABLE FUNDS

Convent Fund

75 Sisters form the membership of the Charity residing in 26 locations. The Trustees have designated funds to provide for the day to day running of these convents. Funds of £1,044,508, 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 £37.3 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 £704,672.

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 £72.8 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.

36

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

d)

ANALYSIS OF CHARITABLE FUNDS

12c 2024

Balance at
1 April
2023
Income
£
£
Convent Fund
208,835
47,113
Donations Fund
16,082,446
480,477
Property Fund
10,950,078
-
Retirements and
Care Fund
35,149,313
1,173,433
Residential
Care
Homes Fund
632,665
2,052,097
Designated
Funds
63,023,337
3,753,120
General Fund
7,385,333
2,683,182
£70,408,670
£6,436,302
ANALYSIS OF CHARITABLE FUNDS
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		 Expenditure
£
(1,044,508)
(201,761)
(240,623)
(17,797)
(3,031,580)
(4,536,269)
(2,229,277)
£(6,765,546)
Expenditure
£
(1,035,100)
(304,783)
(240,623)
(17,906)
(2,841,066)
(4,439,478)
(2,454,585)
£(6,894,063)		 Transfers
£
990,935
(278,716)
(317,746)
(1,153,233)
704,672
(54,088)
54,088
£-
Transfers
£
911,502
(128,078)
(501,476)
(1,175,865)
819,551
(74,366)
74,366
£-		 Gains on
Investments
£
-
466,112
-
2,223,290
-
2,689,402
-
£2,689,402
Gains on
Investments
£
-
(1,360,689)
-
(2,811,729)
-
(4,172,418)
-
£(4,172,418)		 Balance at
31 March
2024
£
202,375
16,548,558
10,391,709
37,375,006
357,854
64,875,502
7,893,326
£72,768,828
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

37

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

13 STATEMENT OF FINANCIAL ACTIVITIES – PRIOR YEAR

Income and endowments
from:
Donations and legacies
Members' salaries and
pensions
Other donations and legacies
Charitable activities
Care Home Fees receivable
Investments
Investment Income
Other Income
Rents
Gains on sale of fixed assets
Other income
Total income
Expenditure on:
Raising funds
Investment managers' fees
Charitable activities
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
Revaluation of property for
resale
Net income
Transfers between funds
Net movement in funds
Total funds brought forward at
1 April 2022
Total funds carried forward
at 31 March 2023		 General
Funds
£
1,750,962
109,534
-
45,576
68,256
23,824
557
1,998,709
-
2,081,074
350,187
5,284
18,040
2,454,585
(455,876)
-
1,343,000
887,124
74,366
961,490
6,423,843
£7,385,333		 Designated
Funds
£
-
120,035
2,136,320
1,585,667
-
-
26,271
3,868,293
17,906
1,121,826
3,016,020
64,280
219,446
4,439,478
(571,185)
(4,172,418)
-
(4,743,603)
(74,366)
(4,817,969)
67,841,306
£63,023,337		 Total
2023
£
1,750,962
229,569
2,136,320
1,631,243
68,256
23,824
26,828
5,867,002
17,906
3,202,900
3,366,207
69,564
237,486
6,894,063
(1,027,061)
(4,172,418)
1,343,000
(3,856,479)
-
(3,856,479)
74,265,149
£70,408,670

38

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

14a. ANALYSIS OF NET ASSETS BY FUND 2024

Fund balances at 31
March 2024
are represented by
Tangible fixed assets
Investments
Current Assets
Current liabilities
Unrealised gains
included above on
listed investments		 Designated
Funds		 Residential
Care
Homes
Fund
£
-
-
556,964
(199,110)
£357,854		 General
Fund
Total
Funds
£
£
63,945
10,455,654
-
53,923,564
7,999,418
8,758,757
(170,037)
(369,147)
Convent
Fund
£
-
-
202,375
-
£202,375		 Donations
Fund
Property
Fund
£
£
-
10,391,709
16,548,558
-
-
-
-
-
£16,548,558
£10,391,709		 Retirement
and Care
Fund
£
-
37,375,006
-
-
£37,375,006
£7,893,326
£72,768,828
£- £3,548,552
£-		 £4,144,365 £- £-
£7,692,917

39

THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2024

Designated Funds

14b.
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 / (losses)
included above on
listed investments		 Designated Funds
Donations
Fund
Property
Fund
Retirement
and Care
Fund
Residential
Care
Homes
Fund
General
Fund
Total Funds
£
£
£
£
£
£
-
10,950,078
-
3,224
36,861
10,990,163
15,082,446
-
35,149,313
-
-
50,231,759
1,000,000
-
-
819,102
7,465,866
9,493,803
-
-
-
(189,661)
(117,394)
(307,055)
Convent
Fund		 Donations
Fund
Property
Fund
Retirement
and Care
Fund
Residential
Care
Homes
Fund
£
-
-
208,835
-
£208,835
£16,082,446
£10,950,078
£35,149,313
£632,665
£7,385,333
£70,408,670
£- £3,082,446
£-
£1,948,506
£-
£-
£5,030,952

15 Related party transactions

There were no related party transactions in either the current or prior year other than those referred to in note 2.

40