## **THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN**
**(Registered Charity Number in England and Wales: 288158) (Registered Charity Number in Scotland: SCO39153)**
**----- Start of picture text -----**
TRUSTEES’ REPORT
AND FINANCIAL
STATEMENTS
31 MARCH 2025
**----- End of picture text -----**
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025**
## **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 General Bursar to the Congregation Sister Maureen McNamara is: The Property Surveyor to the Trustees is: Mr Brian Kervick The Solicitors are: Knights Professional Services Ltd Level 13, The Blade Reading RG1 3BE The Independent Auditors are: HaysMac LLP 10 Queen Street Place London EC4R 1AG The Investment Advisers: Rathbone Group plc BlackRock 30 Gresham Street 12 Throgmorton Avenue London EC2V 7QN 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.
1
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
The Trustees present their report together with the financial statements of the Charity for the year ended 31 March 2025. 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-three 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 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 2025_
After considerable work and consultation, an updated Privacy Notice will shortly be signed off by the Trustees and will be made available on the website.
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)).
- Safeguarding Trustee Training (RLSS).
- Investment Managers Meetings with Trustees – Blackrock / CCLA Investment Management / Rathbones.
- IBB Solicitors (now Knights) Annual Charity Update.
- Archives meeting: Institute, Federation, Union and Ireland (Sisters of Mercy (IFUI)), Dublin/Bermondsey
- Meeting with HR Support.
- HaysMac “Catholic Charity Conference.”
- Bursars Conference.
- Conference of Religious (CoR) and Catholic Safeguarding Standards Agency (CSSA) Zoom re Safeguarding Audits.
2
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **Working with Other Organisations / Engaging with Other Professionals**
- Institute, Federation and Union (other Mercy Congregations in the UK) meeting, Zoom.
- CoR Meetings, Euston.
- CoR AGM.
- Mercy International Association (MIA) Zoom Meeting and, in person, in Dublin.
- ACRM of Conference of Religious Scotland (CRS) and Annual Safeguarding CRS/National Scotland.
- Regular Board meetings with St Michael’s Care Home/St Teresa’s Rest Home.
- Meeting with Staff/Residents/Families at St Teresa’s Rest Home.
- Care Inspectorate Wales (CIW) Meeting re St Teresa’s Rest Home.
- Zoom with HR: Governance/planning ahead.
- Mercy Global Action Emerging Leaders Fellowship (MELF) on Zoom.
- International Union of Superiors General (UISG) Meeting.
## **Caring for the Environment**
- Zoom on Care and Custody of Creation, CRS.
- Haysmacintyre “The climate crisis- sustainable development.”
## **General topics:**
- Synodal Process (UISG).
- Zoom for Superiors General: Conflict Resolution (UISG).
- Conference of Religious: Elder Care.
- Zoom meeting “Looking afresh at the vows” (UISG).
- Anti-Slavery Conference for Religious at the Medaille Trust.
## **Individual Trustee Attendance:**
- Zoom courses for Congregational Leaders, Rome (UISG).
- North London Support Meeting for Congregational Leaders.
- Union of International Superiors General (UISG) on Zoom and in person, in London.
- MIA Conference for Major Superiors.
- CoR Charity Governance – Civil Law and Canon Law.
- CoR Delivery of Care for our Sisters
- National Safeguarding Conference, Strathclyde University.
- RLSS AGM.
- Scottish Catholic Safeguarding Training.
- Catholic Safeguarding Standards Agency (CSSA) Zoom meeting – New Contracts.
- Meeting support North London Province Daughters of Charity.
- Pilgrims of Hope on Zoom.
- CRS Safeguarding Forum, Carfin.
- CRS AGM.
- CoR Charity and Governance, Birmingham.
- Change management for Religious Life – living into Change (UISG).
- Update on Safeguarding Standards (CSSA).
- RLSS new structure.
The Trustees are ultimately responsible for the policies, activities and assets of the Charity. They meet once a month in person and, when necessary, on Zoom 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:
3
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
- Solicitors
- Surveyors (valuation and building)
- Investment Managers
- Accountants
- Health Care Specialists
- HR Consultant
- Insurance Brokers
- Safeguarding Lead
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:
- 11 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.
- Education Authorities.
- Other Mercy Congregations in the UK and overseas.
- Other Religious Congregations both male and female.
- RLSS and CSSA: Committed to a safer Catholic Church.
- Scottish Catholic Safeguarding Standards Agency (SCSSA).
- Irish Chaplaincy.
- Verne Prison.
- Saint Vincent de Paul Society.
## **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 care homes which are available to members of the public. (N.B. St Teresa’s Rest Home closed in July 2024 and is now no longer in operation). 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
4
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
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.
## **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 our Care Home.
- The support of our overseas missions.
Each of these is considered in turn.
5
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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 are growing older and no new members have joined. On 31 March 2025 the age profile of the Congregation is shown in the following table:
**----- Start of picture text -----**
40
30
35
Members in
20 28
Group
10
10
0
71-80
81-90
91-100
Age Groups
**----- End of picture text -----**
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 Sisters resident 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:
- 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 2025, 15 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:
- to enable as many members as possible to continue in Mercy ministry;
6
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
- 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.
Our special commitment is to the poor and marginalised of our society, irrespective of religious beliefs. The members work closely with members of the Roman Catholic Church. They 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 of homelessness, those affecting refugees, human trafficking, and those caused by mental illness, and the increasing need for dementia care.
Members of the Congregation were in ministry in many pastoral and social settings:
- Working in parishes, visiting the housebound, elderly, travellers and prisoners, and helping in catechetical programmes.
- Retreat work, spiritual development programmes and prayer groups.
- Work with the homeless.
- Pastoral care in hospitals and hospices.
- Supporting chaplaincy work in schools.
- Bereavement support.
- 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 Glasgow, Fishguard and North West London.
7
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **A community in Glasgow writes:**
We are two Sisters based in North East Glasgow, each committed to different aspects of ministry. One Sister is actively involved in two homeless projects—one managed by the Church of Scotland and another named in her honour, recognizing her 25 years of service and 18 years as its Director before retiring. In addition, she has a phone ministry, providing companionship and support to those unable to leave their homes. She also visits housebound individuals and offers encouragement to those recovering from various addictions.
The other Sister serves as a member of the Leadership Team, which requires her to travel to London for regular monthly meetings. Her ministry within the parish includes being involved in children's liturgy and preparing the children for the sacraments.
Both Sisters also visit a former community member who is in care of the Little Sisters of the Poor, continuing their commitment to supporting her and keeping her up to date on what is happening within the Congregation.
## **A community in Fishguard writes:**
The Sisters of Mercy have been a presence in Fishguard for 107 years. Now we are the only two remaining in the town, however, we continue our Mercy ministry in the local parish and community.
Our work involves:
- Visiting the elderly housebound and disabled.
- Visiting the sick in hospital.
- Driving those who have no transport to appointments e.g. health centre, hospital, etc.
- Taking an active part in two dementia groups.
- Contributing to and delivering food to the Food Bank.
- Hosting the Mercy Associates’ meetings.
- ….And many other situations which arise.
We have an open house where many people visit us in times of need, especially in bereavement and sickness, to pray with them.
8
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
**----- Start of picture text -----**
Remembering our deceased Mercy
Associate members
Delivering food to the food bank
**----- End of picture text -----**
**----- Start of picture text -----**
Delivering food to the Food Bank
**----- End of picture text -----**
Two very popular members of our dementia group
Enjoying each other’s company and having “a ball”
## **A community in Northwest London writes:**
There are five Sisters in our community in Northwest London, all involved in a variety of ministries:
- A Member of the Leadership Team and a Trustee of the Congregation.
- A volunteer at the Irish Chaplaincy, which involves working with prisoners, travellers and the elderly.
- Supporting and communication with the lonely and bereaved.
- Volunteering with a local Food Bank Warehouse Centre. The role involves sorting and date checking incoming stock donations, packing food parcels, and keeping the warehouse tidy. The warehouse supplies two local food banks in other areas of North West London.
- Volunteer at a Brent based Resource Centre, offering support and advice to people who are vulnerable and may have multiple needs. The role carried out by the Sister is monitoring and serving lunches to people who come to the Centre and are often living alone and lonely.
9
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
- Supporting a local parish church as full time Sacristan and Eucharistic Minister. Engaging and chatting with people in the Church who are in need of help.
## **MERCY ASSOCIATES**
Many communities have established Mercy Associate groups. They are inspired by the vision and charism of our 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 members to share in and contribute to the life and mission of Mercy in a way suited to their own lifestyle. The Mercy Groups are supported by a team of Sisters who provide resource materials to enable them to deepen their Mercy spirituality. Talks on the life and spirituality of Catherine have been recorded and are available on YouTube.
## **THE OWNERSHIP AND OPERATION OF CARE HOMES**
The Charity currently owns and operates one Care Home for those who are infirm or aged. This home provides care for members of the Congregation, and for members of the local community. Over the years the Charity has invested significant sums of money in maintaining the home to meet the changing needs.
The Mission Statement expresses what we hope to provide at our Care Home:
## _**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.**_
The Trustees take very seriously the demands of the Care Quality Commission (England) and work closely with the Local Government Department to fulfil their obligations. The Trustees visit regularly and are involved in interviews and appointments at management level, attend Advisory Board Meetings three times a year and are available to support the Manager, Staff and Residents.
10
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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.
## **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 Mercy Mission in Addo continues to serve the poor and vulnerable.
In December 2024 we held our annual summer School for over 400 children in an informal settlement. We were joined by over 40 volunteers in outreach to the children for this special week of fun and activities.
Hunger is a daily challenge for adults and children as the cost of living has soared and our soup kitchens and food parcels help those most in need.
Adult education continues through computer training; many have been able to access jobs as a result of acquiring important skills.
Our Early Childhood Education Centres serve over 250 children and local staff are trained in order to reach the required accredited standards to work with the children.
Sisters of Mercy Addo
11
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN**
**TRUSTEES’ ANNUAL REPORT (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2025**
## **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:
- Assisting people to get birth certificates and identity documents (in Addo, South Africa).
- Supporting parents with clothing and food (in Addo, South Africa).
- Providing early childhood education (crèches) (in Addo, South Africa).
- Computer Training (in Addo, South Africa).
- Prayer ministry to parishes, individuals, RCIA groups and parish administrator.
- Eucharistic and reading ministry in church.
- Visitation to the elderly, sick and housebound.
- The Congregational Website.
- Voluntary work in day centres for the homeless/ Soup Kitchens.
12
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
- Visits to individuals recovering from alcohol addiction and suffering from Alzheimer's disease.
- Being a Board Member for a voluntary organisation that offers counselling to homeless people.
- Running a Parent and Toddler Group/ Over 50s Club.
- Being school pastoral carers including a school governor.
- Being Secretary to the Diocesan Union of Catholic Mothers.
- Accompanying the Latin American Chaplaincy in Liturgies.
- Being a Sacristan at a local church and doing the church laundry.
- Volunteering with Irish Chaplaincy – supporting clients through listening.
- Spiritual accompaniment.
- Tours of the House (St Mary’s, Birmingham).
- Telephone ministry to the travelling community.
- Citizens UK Birmingham.
- Citizens Advice surgery.
- Manresa (Jesuit) link as prayer guide.
- Being members of the Saint Vincent de Paul Society.
- The Mercy Associates – leading prayer sessions and retreat days for the associates.
- Supporting recently arrived migrants in the local area, helping them to find accommodation work and furniture.
- Providing transportation to Mass and church services.
- Working at St Peter’s Hospice Shop.
- Spiritual accompaniment/facilitating meditative groups in convent and in prison.
- Ministry to vocation enquirers on behalf of the congregation.
- Bereavement support for families in preparation for a loved one’s funeral.
- Being Sacramental Coordinator, preparing children for the sacraments and supporting parents and training/supporting catechists.
- Volunteering in a wellbeing centre at a local hospice.
- Being a Trustee of a national and local charity.
- Administration of the Mercy Centre, Edinburgh and keeping in touch with other agencies working with the marginalised i.e. AA etc.
- Friend catechist with SPRED (Special Religious Education Development).
- Knitting hats and scarves for seafarers
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.
**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.
- Catechesis in their local Parish.
- Spiritual Director to the Legion of Mary.
**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.
13
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
**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.
**4 Sisters** are in ministry at the Mercy Spirituality, Heritage and Outreach Centre in Birmingham.
## **USE OF CHARITY PROPERTY**
The 73 members of the Congregation reside at 25 locations: 17 in England 5 in Scotland 2 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;
- 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;
- Union of Catholic Mothers Committee Meetings;
- Neighbourhood Care Monthly Meetings;
- Manresa Link training prayer guides;
- Archival research;
- Meetings with parishioners;
- Christian meditation groups;
- 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:
14
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
- 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 continues to be open daily from 9.00am – 12.00 noon and 1.00pm – 5.00pm. The house is also available to regular meetings of support groups – 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 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 “Thank you” letters for specific donations during the current financial year were:
## **Migrant Help**
I would like to express my deep gratitude to the Union of the Sisters of Mercy of Great Britain for your recent generous gift. Within your covering note you mentioned this donation was to enable us to support our children and young people. This is so kind of you.
Your gift will be distributed within our dedicated Children’s Fund. The children and young people that we meet have been through unimaginable hardship. Your support will go directly towards the essentials they need, this could be warm winter clothing as the weather gets colder, much needed school uniform, essential resources for enhancing their learning, bedding, items for their new bedrooms, and perhaps a care package of nice items…
Your kindness, offered on behalf of the Sisters, truly embodies the spirit of compassion that gives hope to those we serve. We are honoured to have your trust and continued support in this important, life-changing work.
On behalf of my colleagues at Migrant Help and the communities we support, thank you.
15
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **Withybush Hospital Cancer Day Unit Appeal**
Please accept my heartfelt thanks for the wonderful donation given to out charity recently. It really is hugely appreciated by us and all the wonderful staff who care for their patients on the unit.
Our charity is committed to raising funds to ensure that the nursing staff and their patients will continue to have access to all they need as they pursue their own battle with this awful illness. We have contributed greatly to the overall cost of the new Unit at Withybush Hospital and we continue to be responsive to any requests for items of equipment, staff development and patient comfort items, identified by the nursing team.
We will ensure that this money is spent wisely and would like to wish you well for the future.
## **Make Them Smile Children’s Charity**
I would like to acknowledge the safe receipt of, and to also express our heartfelt gratitude for the generous grant.
We are sincerely honoured to be a recipient of your continued support.
The financial assistance provided by your grant will go a long way in helping us to achieve our goals, thank you.
Your generosity has not only eased the financial burden but also motivates and encourages us to work even harder toward our objectives.
Thank you for being a significant part of our journey and making such a meaningful impact.
**Mary’s Meals** Thank you so much for your precious gift to Mary’s Meals.
Your kindness is bringing food, joy and hope to the children who eat Mary’s Meals, allowing them to make the most of their education and giving them the chance of a better future.
We’ve recently witnessed the life changing impact donations like yours can have, in Ethiopia, where we have rapidly expanded our feeding programme to reach more than 110,000 children in the war-torn, drought-stricken Tigray region.
Across the world, more than 2.4 million children in 17 countries - including Ethiopia, Haiti and South Sudan – are sitting in classrooms with full stomachs and learning how to read and write. This is thanks to supporters like you.
Thank you from the bottom of our hearts for your support, which is providing children with hope and the promise of a better tomorrow. With your beautiful gift, we will strive to reach the next child waiting for Mary’s Meals.
## **The Sanctuary – The Marylebone Project**
Many thanks for your incredibly generous donation from Mercy Union Generalate…
It is wonderful to have the continued support of yourselves and we are very grateful indeed for this. Your gift will be well utilised during the coming year, enabling us to operate The Sanctuary – the only women’s-only centre in London, which as you know, will be open 24 hours a day, seven days a week, 365 days of the year, for women in crisis and needing urgent help and support. Your donation will also
16
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
help us to provide 40,000 bed nights for homeless women within our accommodation facilities.
Please accept my thanks on behalf of everyone at the Marylebone Project, and all the women who will benefit as a result of your most generous contribution and continued support.
## **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 Home**
The quality of care being provided in our Home is an ongoing focus for the Trustees and management. St Michael’s Care Home has a Manager and senior staff who are responsible for the day to day running of the Home.
St Michael’s 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 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**|**St Teresa’s Rest**|**Home**|**St Michael’s Care**|**St Michael’s Care**|**Home**|
|---|---|---|---|---|---|---|
||**2023**|**2024**|**2025**|**2023**|**2024**|**2025**|
|**Residents**|23|22|--|43|43|43|
|**Occupancy**|94%|88%|--|98%|97.2%|99.4%|
|**Staff – Full time**
**(31 hours & over)**|20|21|--|27|29|27|
|**Staff – Part time**
**(30 hours &**
**below)**|20|21|--|45|45|51|
The Manager seeks 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.
17
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN**
**TRUSTEES’ ANNUAL REPORT (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2025**
## **CARE HOME ACTIVITIES**
**----- Start of picture text -----**
Puzzle Morning
**----- End of picture text -----**
Valentine’s Day Activities (left) and, above, a visit from Remus the dog, whom residents loved
A Christmas trip to Parker’s Nurseries
18
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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:
- 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 £5.5m (2024: £6.0m). Expenditure totalled £6.7m (2024 £6.8m). Before investment gains/(losses) net expenditure was £1.2m (net expenditure 2024: £0.8m).
Investment income was £1.9m (2024: £1.8m). There were net investment gains in the year of £0.3m (2024: £2.7m). The decision to dispose of other property and subsequent revaluation resulted in a surplus of £0.2m (2024: £0.5m). The net movement in funds was therefore a deficit of £0.7m (2024 surplus £2.4m).
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 £1.05m (2024: £0.95m) 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-three 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 £72.0m (2024: £72.8m) of which £65.4m (2024: £64.9m) 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.
19
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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 £6.6m (2024: £7.9m). The Trustees consider the current level of 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:
- 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 our Care Home and to meet the requirements laid down by the _Care Quality Commission, England_ .
- to continue to share our resources with other communities in need and contribute generously to the needs of the Church and the world.
20
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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 21[st] October 2025 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 2025 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 2025 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 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:
- 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 21 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.
- 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
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.
……………………………. HaysMac LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG
## Date: 21 October 2025
HaysMac 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 2025**
|**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 2024
**Total funds carried forward at**
**31 March 2025**|**General**
**Funds**
£
1,824,299
67,567
-
203,617
75,600
12,810
-
2,183,893
-
1,971,923
441,155
4,261
18,677
2,436,016
(252,123)
-
198,226
(53,897)
(1,235,485)
(1,289,382)
7,893,326
£6,603,944|**Designated**
**Funds**
£
-
47,933
1,529,484
1,685,579
-
-
26,070
3,289,066
19,167
1,044,246
2,971,593
38,197
167,397
4,240,600
(951,534)
268,126
-
(683,408)
1,235,485
552,077
64,875,502
£65,427,579|**Total 2025**
£
1,824,299
115,500
1,529,484
1,889,196
75,600
12,810
26,070
5,472,959
19,167
3,016,169
3,412,748
42,458
186,074
6,676,616
(1,203,657)
268,126
198,226
(737,305)
-
(737,305)
72,768,828
£ 72,031,523|**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|
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 2025**
|**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|**2025**
£
£
9,765,967
55,192,724
149,902
651,906
4,130,168
2,578,866
7,510,842
(438,010)
7,072,832
£72,031,523
184,316
16,552,169
9,710,339
38,640,555
340,200
65,427,579
6,603,944
£72,031,523|**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|**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|
|---|---|---|---|
||||£72,768,828|
||||64,875,502
7,893,326|
||||£72,768,828|
|||||
Approved by the Trustees on 21 October 2025 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 2025**
|**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**|**2025**
**£**
(2,673,475)
1,889,196
12,810
671,614
(26,764)
-
-
(993,502)
1,553,354
(1,120,121)
7,846,537|**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|
||£6,726,416|£7,846,537|
||**2025**
**£**
(737,305)
262,770
(12,810)
(198,226)
(268,126)
(1,889,196)
100,555
68,863
£(2,673,475)
**2025**
**£**
4,130,168
2,578,866
17,382|**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|
||£6,726,416|£7,846,537|
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 2025**
## **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.
28
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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.
29
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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 2025**
## **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**
£
2,713,430
3,049,097
-
-
-
-
-
-
-
-
£5,762,527
**Support**
**for**
**Members**
**£**
211,238
46,011
25,375
20,115
£302,739|**Grant**
**Funded**
**Activities**
£
-
21,106
38,197
68,325
9,000
18,500
3,300
2,000
56,272
10,000
£226,700
**Care of**
**the**
**Elderly**
**£**
239,012
52,060
28,712
22,761
£342,545|**Support**
**Costs**
£
302,739
342,545
4,262
7,623
1,004
2,064
368
223
6,278
1,116
£668,222
**Relief of**
**Hardship**
**£**
2,974
648
357
283
£4,262|**2025**
£
1,684,554
204,642
£1,889,196
**Total**
**2025**
£
3,016,169
3,412,748
42,459
75,948
10,004
20,564
3,668
2,223
62,550
11,116
£6,657,449
**Other**
**£**
13,032
2,838
1,565
1,241
£18,676|**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|
||||||**2024**
**Total**
**£**
466,256
101,557
56,009
44,400|
||||||£668,222|
31
## **THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
|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
Professiona**l**
Governance (audit fees)
5
**ANALYSIS OF GRANTS**
Grants made to institutions
Grants made to individuals
Institutions
Individuals|**Activities**
**undertake**
**n 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**
**Hardshi**
**p**
**£**
2,704
590
135
295
£3,724|**2024**
**Total**
£
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
**2025**
**Total**
£
196,627
30,073
£226,700
**Number**
49
15|**2024**
**Total**
**£**
385,099
84,053
19,269
42,000|
|---|---|---|---|---|---|
||||||£530,421|
||||||**2024**
**Total**
£
176,265
58,785|
||||||£235,050|
||||||**Number**
41
13|
32
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
|6
**RECIPIENTS OF INSITUTIONAL GRANTS:**
**Large Institutional Donations**
Diocese of Westminster
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
Parish of the Immaculate Heart of Mary
SACRO
Addo, South Africa
Nigeria School
Bakhita House
CAFOD
SCIAF
Church of the Holy Redeemer
Ashford Place
Irish Chaplaincy
Other|**2025**
£
8,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
-
37,843
-
-
18,929
-
5,000
5,000
5,000
-
-
-
80,855
196,627|**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|
||||
33
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
## 7 **STAFF COSTS**
|**STAFF COSTS**
Wages and Salaries
Social Security costs
Other Pension Costs
Agency staff
Redundancy costs|**2025**
£
2,206,591
159,981
154,210
52,236
214,970
£2,787,988|**2024**
£
2,399,441
162,667
169,923
54,784
-|
|---|---|---|
|||£2,786,815|
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 £265,220 (2024: £252,057).The average monthly head count was 104 staff (2024:128 staff) and the average number of fulltime equivalent employees (including part-time staff) was:
|Residential Homes
Convents
Other|**2025**
Number
63
4
6
73|**2024**
Number
83
3
5|
|---|---|---|
|||91|
One member of staff received between £80,001 and £85,000 per annum (2024 -0) and one member of staff received between £60,001 and £65,000 (2024 -1). The 73 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**
|**Valuation**
At 1 April 2024
Additions
Disposals
Transfer to property held for
resale
At 31 March 2025
**Depreciation**
At 1 April 2024
Eliminated on disposal
Charge for the year
Transfer to property held for
resale
At 31 March 2025
**Net Book Value**
At 31 March 2025
At 31 March 2024|**Freehold**
**land and**
**Buildings**
**£**
16,189,528
-
-
(570,000)
15,619,528
6,425,913
-
162,760
(159,600)
6,429,073
9,190,455
9,763,615|**Leasehold**
**land and**
**Buildings**
**£**
209,896
-
-
-
209,896
39,200
-
1,400
-
40,600
169,296
170,696|**Plant and**
**Machinery**
**£**
721,268
-
-
(86,564)
634,704
263,870
-
63,530
(43,284)
284,116
350,588
457,398|**Motor**
**Vehicles**
**£**
321,338
26,764
(27,649)
-
320,453
257,393
(27,648)
35,080
-
264,825
55,628
63,945|**Total**
**£**
17,442,030
26,764
(27,649)
(656,564)|
|---|---|---|---|---|---|
||||||16,784,581|
||||||6,986,376
(27,648)
262,770
(202,884)|
||||||7,018,614|
||||||9,765,967|
||||||10,455,654|
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 2025**
|9
**INVESTMENTS**
Listed investments
Portfolio cash
At 31 March 2025
Market Value at 1 April 2024
Additions
Disposals
Realised gains
Unrealised revaluation gains/(losses)
Portfolio Cash
Market Value at 31 March 2025
Cost at 31 March 2025
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**
**£**
16,548,558
-
-
-
3,611
16,552,169
-
£16,552,169
£13,000,000|**2025**
£
55,175,342
17,382
£55,192,724
**Retirement**
**Fund**
**£**
37,365,155
993,503
-
-
264,515
38,623,173
17,382
£38,640,555
£34,230,676
**Listed**
**Investments**
**£**
£55,175,342
**2025**
**£**
37,342
112,560
£149,902
**2025**
**£**
189,811
28,885
16,235
203,079
£438,010|**2024**
£
53,913,713
9,851|
|---|---|---|---|
||||£53,923,564|
||||**Total**
**£**
53,913,713
993,503
-
-
268,126|
||||55,175,342
17,382|
||||£55,192,724|
||||£47,230,676|
||||**Total**
**£**
£55,175,342|
||||**2024**
**£**
104,965
145,492|
||||£250,457|
||||**2024**
**£**
158,477
27,098
-
183,572|
||||£369,147|
35
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **12. CHARITABLE FUNDS**
- a) The Trustees have designated funds out of the unrestricted funds for specific purposes as follows:
## _**Convent Fund**_
73 Sisters form the membership of the Charity residing in 25 locations. The Trustees have designated funds to provide for the day to day running of these convents. Funds of £1,003,675, 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 with a subsequent addition of £1 million in the year has grown to £38.6 million at the year-end 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.
## _**Residential Care Homes Fund**_
The charity operated two residential care homes at the start of the period, which was reduced to one at the year end with the closure of St Teresa’s Rest Home in July 2024. The costs of closure, together with the costs of caring for residential members of the Congregation resident required a transfer from the General Fund of £1,278,384.
## _**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 £72.0 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 2025**
## **ANALYSIS OF CHARITABLE FUNDS**
## **12c 2025**
## **d)**
|**Balance at**
**1 April**
**2024**
**Income**
£
£
Convent Fund
202,375
49,436
Donations Fund
16,548,558
534,095
Property Fund
10,391,709
-
Retirements and
Care Fund
37,375,006
1,150,459
Residential
Care
Homes Fund
357,854
1,555,076
Designated
Funds
64,875,502
3,289,066
General Fund
7,893,326
2,382,119
£72,768,828
£5,671,185
**ANALYSIS OF CHARITABLE FUNDS**
**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|**Expenditure**
£
(1,003,675)
(202,484)
(164,160)
(19,167)
(2,851,114)
(4,240,600)
(2,436,016)
£(6,676,616)
**Expenditure**
£
(1,044,508)
(201,761)
(240,623)
(17,797)
(3,031,580)
(4,536,269)
(2,229,277)
£(6,765,546)|**Transfers**
£
936,180
(331,610)
(517,210)
(130,259)
1,278,384
1,235,485
(1,235,485)
£-
**Transfers**
£
990,935
(278,716)
(317,746)
(1,153,233)
704,672
(54,088)
54,088
£-|**Gains on**
**Investments**
£
-
3,610
-
264,516
-
268,126
-
£268,126
**Gains on**
**Investments**
£
-
466,112
-
2,223,290
-
2,689,402
-
£2,689,402|**Balance at**
**31 March**
**2025**
£
184,316
16,552,169
9,710,339
38,640,555
340,200|
|---|---|---|---|---|
|||||65,427,579
6,603,944|
|||||£72,031,523|
|||||**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|
37
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **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 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|
38
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2025**
## **14a. ANALYSIS OF NET ASSETS BY FUND 2025**
|Fund balances at 31
March 2025
are represented by
Tangible fixed assets
Investments
Current Assets
Current liabilities
Unrealised gains
included above on
listed investments|||Designated
Funds||**Residential**
**Care**
**Homes**
**Fund**
**£**
-
-
586,587
(246,387)
£340,200|**General**
**Fund**
**Total**
**Funds**
**£**
**£**
55,628
9,765,967
-
55,192,724
6,739,939
7,510,842
(191,623)
(438,010)|
|---|---|---|---|---|---|---|
|||**Convent**
**Fund**
**£**
-
-
184,316
-
£184,316|**Donations**
**Fund**
**Property**
**Fund**
**£**
**£**
-
9,710,339
16,552,169
-
-
-
-
-
£16,552,169
£9,710,339|**Retirement**
**and Care**
**Fund**
**£**
-
38,640,555
-
-
£38,640,555|||
|||||||£6,603,944
£72,031,523|
||||||||
|||£-|£3,552,169
£-|£4,408,865|£-|£-
£7,961,034|
||||||||
39
**THE UNION OF THE SISTERS OF MERCY OF GREAT BRITAIN NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 31 MARCH 2025**
## **Designated Funds**
|**14b.**
**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 / (losses)
included above on
listed investments|||Designated Funds
**Donations**
**Fund**
**Property**
**Fund**
**Retirement**
**and Care**
**Fund**
**Residential**
**Care**
**Homes**
**Fund**
**General**
**Fund**
**Total Funds**
**£**
**£**
**£**
**£**
**£**
**£**
-
10,391,709
-
-
63,945
10,455,654
16,548,558
-
37,375,006
-
-
53,923,564
-
-
-
556,964
7,999,418
8,758,757
-
-
-
(199,110)
(170,037)
(369,147)|
|---|---|---|---|
|||**Convent**
**Fund**|**Donations**
**Fund**
**Property**
**Fund**
**Retirement**
**and Care**
**Fund**
**Residential**
**Care**
**Homes**
**Fund**|
|||**£**
-
-
202,375
-
£202,375||
||||£16,548,558
£10,391,709
£37,375,006
£357,854
£7,893,326
£72,768,828|
|||||
|||£-|£3,548,552
£-
£4,144,365
£-
£-
£7,692,917|
## **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