Sisters of Charity of St Vincent de Paul Charitable Trust
Annual Report and Accounts 31 December 2006
Charity Registration Number 236803
Contents
Reports Reference and administrative details of the charity, its trustees and advisers 1 Report of the trustees Independent auditors’ report
3 29
Accounts Statement of financial activities
31
Balance sheet
33
Cash flow statement
34
Principal accounting policies
36
Notes to the accounts
40
Sisters of Charity of St Vincent de Paul Charitable Trust
Reference and administrative details of the charity, its trustees and advisers
Trustees
Sister Provincial Provincial Bursar Principal office
Telephone Facsimile Charity registration number Auditors
Bankers
Sister Kay Harte Sister Julia Teresa O’Mahony (retired September 2006) Sister Eileen Glancy (appointed September 2006) Sister Teresa Mathews Sister Marie Raw Sister Sarah King-Turner Sister Sarah King-Turner Sister Eileen Glancy Provincial House The Ridgeway Mill Hill London NW7 1RE 020 8959 2257 020 8959 3896 236803 Buzzacott LLP 12 New Fetter Lane London EC4A 1AG The Royal Bank of Scotland plc Charing Cross Commercial Centre 3rd Floor Cavell House 2a Charing Cross Road London WC2H 0NN
Sisters of Charity of St Vincent de Paul Charitable Trust
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Reference and administrative details of the charity, its trustees and advisers
Investment managers
Seven Investment Management 46 Grosvenor Street London W1K 3HN Royal London Asset Management Limited 55 Gracechurch Street London EC3V 0UF Hermes Investment Management Limited Lloyds Chambers 1 Portsoken Street London E1 8HZ Aegon Asset Management UK plc Aegon House Edinburgh Park Edinburgh EH12 9SA Epworth Investment Management Limited 9 Bonhill Street London EC2A 4PE
Solicitors
Cumberland Ellis LLP Atrium Court 15 Jockey’s Fields London WC1R 4QR
Surveyors
Gerald Eve LLP 7 Vere Street London W1G 0JB
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Trustees’ report 31 December 2006
The trustees present their statutory report together with the accounts of the Sisters of Charity of St Vincent de Paul Charitable Trust for the year ended 31 December 2006. The accounts have been prepared in accordance with the accounting policies set out on pages 36 to 39 of the attached accounts and comply with the charity’s trust deed, applicable laws, applicable United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice) and the requirements of Statement of Recommended Practice on “Accounting and Reporting by Charities” issued in March 2005. Introduction
The Sisters of Charity of St Vincent de Paul (the Congregation) is an international Roman Catholic religious Community of Women who have dedicated their lives to the service of poor and marginalised people. It was founded in France where its Generalate has its headquarters and is divided into a number of distinct Provinces in 93 countries, one being the British Province. The accounts accompanying this report are the accounts of the charitable trust on which the assets of the Congregation in England, Wales and Scotland are held. The charity is governed by a trust deed dated 5 June 1964 and is registered under the Charities Act 1993 - Charity Registration No. 236803. Mission
The Sisters of Charity of St Vincent de Paul Charitable Trust aims to support the religious and other works carried on by the members of the British Province of the Congregation and to care for those members throughout their lives with the Congregation. These ministries of the sisters of the Congregation, all of which benefit numerous members of the general public, fall into the following areas: ¨ Social and pastoral work Many members of the Congregation are involved in various forms of social or pastoral work throughout the country, including care of the elderly and people with special needs, family support, chaplaincy in hospitals and education establishments, support and advocacy of asylum seekers and refugees, and support of the families of prisoners. ¨ Operation of residential and care establishments During the year the sisters provided care and assistance at the following establishments: Establishment
Activities
St Vincent’s Hostel, Carlisle Place, London
The provision of short or medium term accommodation for women who are homeless or in need of care and assistance.
The Marillac, Warley, Essex
A nursing home for physically disabled persons.
St Joseph’s Services, Rosewell
The provision of services for people with learning disabilities, in line with the Care in the Community Act.
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Trustees’ report 31 December 2006
Mission (continued)
¨ Caring for members of the Congregation During the year the Congregation provided care and assistance to the elderly sisters at St. Vincent’s Southport, The Priory Mill Hill (until June 2006,) Seton Unit Warley and St Catherine’s Lanark. All these establishments are owned and operated by the charity. The sisters being cared for in The Priory were transferred to a newly established nursing home called St. Vincent’s in Eastcote, Middlesex, which is owned and administered by a separate organisation. ¨ Overseas Missionary Work The charity also helps support sisters working in healthcare, educational, social and pastoral fields in Ethiopia, Kenya, Haiti and Fiji and continues to support projects in Sierra Leone and Romania. Governance, structure and management ¨
Governance
The British Province is governed by a Provincial and five members of her Council. The Council, appointed by the General Council in Paris, is responsible for the governance of the Province with reference to the Mission and the personnel (i.e. the spiritual formation and placing of sisters in ministries suited to their skills and talents) and is accountable to the Superioress General. The Council members are appointed for a period of six years, renewable for a further three-year period if required. The Provincial is always the chair of trustees by virtue of her Office and she in turn appoints the other trustees, of which there are five, two of whom are also members of the Council. The trustees are responsible for the policies, activities and assets of the charity and for compliance with regulations and legislation including the Charities Act. The trustees meet monthly to review developments with regard to the charity, its activities and assets, and to make important decisions. The trustees are members of the community and are chosen for their personal qualities, their understanding and experience of the works and ministries of the Province and together they form a good skills mix. The trustees regularly report to, and are accountable to, the General Council in Paris and need that Council’s agreement for certain property transactions and the spending of large sums of money. The trustees are incorporated under the provisions of Section 50 of the Charities Act 1993 as “The Incorporated Trustees of the Sisters of Charity of St Vincent de Paul”. 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 annual report and accounts and brief biographical details on each of the trustees in office at the year end is given overleaf:
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Trustees’ report 31 December 2006
Governance, structure and management (continued) ¨
Governance (continued)
Sister Sarah King-Turner Sister Sarah has been a member of the Sisters of Charity of St Vincent de Paul for the past 25 years. Before joining the community in 1979, she worked as a secretary in London and Oxford in a wide variety of business and charitable organisations and has travelled widely. She has a qualification in social work (1986) and worked with families and children with Bexley Social Services, Kent from 1987-1989, and left to become the first director of the DePaul Trust for Homeless Young People. She was appointed Provincial Secretary of the Congregation in 1992 and moved to Paris to work in the General Secretariat of the Mother House of the community from 1996 – 2002. In May 2002 she was appointed Provincial of The Congregation in England, Wales and Scotland. She has had a wide experience in managerial posts over the past 25 years. Sister Eileen Glancy Sister Eileen Glancy entered the Sisters of Charity of St. Vincent de Paul in 1968. Having worked in childcare, she then qualified for teaching, receiving a B.Ed degree and subsequently a diploma in the education of deaf children. She spent seven years teaching in a residential school for children with hearing impairment and a further three years teaching in a unit attached to the school for children with additional disabilities. Sister Eileen was then involved for nine years in the leadership team of the province, after which she moved into parish administration, pastoral and catechetical work in parishes in Scotland. She was appointed Provincial Bursar in September 2006. Sister Kay Harte Sister Kay Harte entered the community in 1967 and is currently working in the offices as secretary to the Provincial. After training as a rehabilitation worker for the visually impaired and interpreter of deaf/blind people, she worked in managerial positions in Glasgow and Liverpool. Prior to moving to the Provincial House, she was manager of a community care home for elderly sisters. Sister Teresa Mathews Sister Teresa Matthews entered the community in 1952. She qualified as a teacher in 1957 and later took further training to qualify as a teacher for the deaf. She taught for 19 years in a residential school for children with hearing disabilities. She then took on responsibilities of headship in the same school where she remained for 10 years. Sister Teresa then spent 10 years in pastoral parish work on a poor housing estate in Hull. Presently she is assistant Provincial in the Province. Sister Teresa also gained experience of the developing world, working in Sierra Leone for six months.
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Governance, structure and management (continued) ¨
Governance (continued)
Sister Marie Raw Sister Marie joined the community in 1966. She already had her teacher training certificate and diploma to teach deaf children. She has spent 30 years in education including six years as head teacher. She spent six years as financial administrator at the Marillac Nursing home and in 2004 achieved an Honours Degree in Business Studies. At present she is involved in the leadership team of the community, using her planning and organisational skills for the benefit of the community in its design and vision for the future. ¨
Trustees’ responsibilities
Charity law requires the trustees to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the charity at the year end and of its incoming resources and application of resources during that year. In preparing accounts giving a true and fair view, the trustees are required to: -
select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice, subject to any material departures disclosed and explained in the accounts;
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure the accounts comply with the Charities Act 1993. 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. ¨
Structure and management reporting
Four professional advisors ably support the trustees and they meet together twice a year. The advisors, solicitors, accountants and surveyors are available for advice and guidance and this is always requested before the trustees make major decisions. The British Province comprises 205 sisters, in 31 houses, of which ten are situated in Scotland, one in Wales and twenty in England. These local communities are mostly situated in areas of towns and cities where it is believed that the sisters can provide the greatest help to deprived and marginalised people. The Mission Statement states; “We choose to stand with the vulnerable and marginalised at the cutting edge and to open our eyes to the global issues of our world today”
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Governance, structure and management (continued) ¨
Structure and management reporting (continued)
Each of the 31 houses has a local superior, appointed by the Provincial. She is responsible, with her sisters in the community, for the service offered in the local area, for the financial management of the house, the upkeep of the property and the wellbeing of the sisters. She is accountable to, and supported by, the Provincial and her Council with whom there is regular communication and meetings. She submits her accounts and budget annually to the Provincial Bursar, who in turn draws up a three year financial forecast for the Province thus establishing a sure base for current and future planning. The management structure for the two care establishments is detailed below: The day to day responsibilities of St Joseph’s, Rosewell is in the hands of the Director of Services, Sister Mai O’Connor. She joined the community in 1964 and after training in childcare, she worked with children for six years. She then went onto nursing where she qualified as a SEN and RGN. After qualifying as a nurse she worked with the elderly for 14 years as manager of a Residential Care Home before being transferred to a country in the developing world where she used her skills for the next eight years. Sister Mai has been Director of Services for the last six years.
Sister Eleanor with a few residents
Sister Mai visiting one of the houses
The day-to-day responsibility for the Marillac Nursing Home in Warley, Brentwood lies with Sister Eleanor Rogers. Sister Eleanor Rogers is the Registered Care Manager. She joined the community in 1963 and qualified as a RGN and RNMH. She also achieved a Diploma in nursing and qualified as a nurse tutor. Over the 43 years she has spent in community she has worked with elderly people, those with learning disabilities and also as a councillor. Her vast experience and skills in management have prepared her for her present post as Director.
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Trustees’ report 31 December 2006
Governance, structure and management (continued) ¨
Structure and management reporting (continued)
In our care homes, the managers work closely with local authorities, the Care Standards Commission for Inspection (CSCI), general practitioners etc. to provide better quality care. Hospital chaplains form part of chaplaincy teams. Working with other organisations It is our policy to liaise and cooperate with other organisations in similar works for example:
¨
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The ‘Passage’ - a day centre for homeless people in central London.
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SPRED – a service providing religious education and spiritual support for children as well as adults with learning disability.
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Vincentian Care Plus, an ancillary care agency for people over the age of 65 in central London.
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Vincentian Volunteers offering young people a ‘gap’ year during which they live and work among people in need, while deepening their own spirituality.
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Day Centre for people suffering from Alzheimer’s.
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The ‘Louise’ Project, providing support to vulnerable young women in Glasgow city centre.
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The Catholic Blind Institute in Liverpool, offering residential care for people with visual impairment.
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In our pastoral/parish-based ministries sisters work with other caring services i.e. Meals on Wheels, Help the Aged, St. Vincent de Paul Society etc. to maximise the service provided.
Risk management
In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks the Congregation currently faces in Britain and have reviewed the measures already in place, or needing to be put in place, to deal with them. The trustees have identified five main areas where risks may occur: - Governance and management - Operational - Financial - Reputation - Laws, regulation, external and environment Governance and management looks at the risk of the Congregation, and hence the charity, suffering from a lack of direction, at the skills and training of its members and staff, and the good use of its resources.
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Trustees’ report 31 December 2006
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Risk management (continued)
Operational looks at the risks inherent in the charity’s activities including the operation of its two care establishments and one hostel – the members engaging in inappropriate activities, the unsuitability of buildings, poor maintenance, shortcomings in the service provided, difficulties with staff, poor health and safety, lack of a disaster recovery policy, etc. Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc. Reputation looks at possible damage to the Congregation and/or the charity’s reputation. Laws’ regulations, external and environment look at the effect of government policies, the consequences of non-compliance with laws and regulations and poor risk assessment in the charity’s care establishments. Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. Activities, specific objectives and relevant policies ¨
Activities and specific objectives
As stated above under “Mission”, the activities of the charity can be divided into four principal areas: caring for members of the Congregation, the social and pastoral work of the sisters, the ownership and operation of two care homes and one hostel and the support of overseas missionary work. Each of these is considered in turn below. 1
Caring for members of the Congregation The personal statistics for the community reflects those of society in general with a large proportion of the sisters being elderly, retired, living longer and enjoying a better quality of life, the average age being 74 years. About 50% of the sisters are in the 60-80 age bracket, retired but active in caring and pastoral ministry, in voluntary organisations and institutions and within their local parishes. Several of the sisters in this age bracket, using the wisdom and experience of their years, hold administrative and responsible posts within the central administration.
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Trustees’ report 31 December 2006
Activities, specific objectives and relevant policies (continued) Activities and specific objectives (continued)
Caring for members of the Congregation (continued)
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The age profile of the Congregation in Great Britain is shown graphically below: Age profile at 31 December 2006 70
60
50
Number of Sisters
¨
40
30
20
10
0 40 to 50
51 to 60
61 to 70
71 to 80
81 to 90
Over 90
Our care homes at St. Vincent’s Southport, The Priory, Seton Unit Warley and St. Catherine’s Lanark, provide residential care for our own older sisters. These sisters have borne the burden of the day for many years and deserve to be well cared for during their last years. While these homes are run within the National Care Standards Commission requirements of care, great effort is taken to preserve and promote the sisters’ spiritual well being, as befitting members who have dedicated their lives to God. They also preserve the characteristics of religious life and much emphasis is given to the spiritual needs of the sisters making them feel “at home” rather than “in care”.
Sister Clare in conversation with Sister Louise
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Activities, specific objectives and relevant policies (continued) ¨
Activities and specific objectives (continued) 1
Caring for members of the Congregation (continued) In June of this year, the elderly sisters resident in The Priory were transferred to St. Vincent’s Nursing Home, Eastcote, Middlesex – a newly built nursing home established and managed by a separate organisation. In order to provide these sisters with the same level of community and spiritual support as they had been used to in The Priory, the ‘active’ sisters belonging to the Priory community moved to a small house nearby, from where they continue their ministry of care, on a voluntary basis, in the new nursing home. Many furnishings, including church furnishings, from the Priory were donated to St. Vincent’s and a Vincentian priest is the resident chaplain. During the year our health and safety consultants monitored the policies of the charity to ensure compliance with the law in all our establishments and to enhance the safety of its beneficiaries. They also provide a 24 hour help line, which we use when advice is needed. The aims of the trustees over the forthcoming years include:
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The adequate provision of care for the increasing number of our elderly sisters.
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A quality of holistic care as befitting the physical, cultural and spiritual needs of our members.
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Enabling all members of the community to continue with their individual ministries for as long as possible.
Social & pastoral work The Congregation’s canonical constitution states “with constant concern for the
promotion of the whole person the company does not separate corporal service from spiritual service nor the work of humanisation from that of evangelisation. It joins services and presence” The following are examples of the social and pastoral work undertaken by individual sisters: ¨ Chaplaincy work in general and specialised hospitals, where sisters aim to provide comfort and a listening ear to those who are ill and support to their families and hospital staff. ¨ Visiting of vulnerable elderly people, the object of which is to befriend, support and practically care for elderly people, especially those living alone in inner city areas.
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Trustees’ report 31 December 2006
Activities, specific objectives and relevant policies (continued) ¨
Activities and specific objectives (continued) 2
Social & pastoral work (continued) ¨ Advocacy and assistance to asylum seekers and refugees, the object of which is to support and to give a voice to those trying to survive in an alien culture, far from their homeland and family.
¨ Working with homeless people, the aim of which is to uphold their dignity and offer practical help, advice and rehabilitation. ¨ Caring for people with disability - sisters provide pastoral care for people with a) visual impairment and b) learning disability. This care extends to the families and staff. ¨ Support of families in need, often single parent families, where sisters provide support, encouragement and advice, as well as one sister providing adoption counselling.
Local children visiting sister Anne in one of our parish houses.
The aims of the trustees in this area include: ¨ Enabling members of the Congregation to carry our meaningful social and pastoral work within the community, having assessed their skills and the needs of the local area. ¨ To provide the elderly with a good quality of life in their closing years so that they can die in comfort and with dignity.
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Activities, specific objectives and relevant policies (continued) ¨
Activities and specific objectives (continued) 3
Operation of residential and care establishments As stated previously, the charity owns and operated two care establishments and one hostel at 31 December 2006. The Marillac Nursing Home, Warley – The Marillac is a Nursing Home where up to 50 severely disabled young adults live. It predominately provides long-term care for people with varying degrees of physical and neurological disabilities, but also provides some respite care. The standard of care is excellent and highly commended by the Care Standards Commission. The residents are highly dependent, so the managers and staff are continually striving to provide a more holistic and multi disciplinary approach to meet the individual needs of the residents, by way of therapies, equipment and staff training. There is a Chaplain available to help people in their spiritual needs. The community, through its older members, is available in a supportive and pastoral role to offer spiritual help; friendship and a listening ear to the residents and their families. One trustee and one member of the Council sit on the Board of Management to safeguard controls and maintain our interest in the charitable works. St Joseph’s Services, Rosewell – This service offers residential care in the community to approximately one hundred people in 28 houses. These people were moved out of a large institution and are now comfortably cared for in small units, enjoying an enhanced quality of life. The aim of the service is to provide a holistic caring service for those people who have severe disabilities and multiple handicaps and to maintain the enhanced quality of life they now enjoy. Some of our senior sisters offer a backup supportive role to the staff and residents by way of pastoral ministry and also to ex-residents who are now in independent living accommodation. One trustee and two members of the Council sit on the Board of Management to safeguard controls and maintain our interest in the charitable works. St. Vincent’s, Carlisle Place – The hostel – This is a medium term hostel for homeless young women aged between 16 and 25 (unless they are pregnant then there is no age limit). It caters for medium term stays of up to five months, offering accommodation and advice to women of various ethnic origins and race, including refugees. The Referral Agency supports them in their search for permanent accommodation and they are funded through the Government “Supporting People Fund”. The occupancy rate at the hostel is high and there is always a demand for the service.
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Activities, specific objectives and relevant policies (continued) ¨
Activities and specific objectives (continued) 3
Operation of residential and care establishments (continued) In operating this establishment the trustees aim to provide for the basic human needs of young women who are strangers in our cities and to protect them from the physical and moral dangers of prostitution and starvation. The dignity of the human person is always our priority. In operating these two care establishments and one hostel the trustees aim to: ¨ Continue to provide excellent residential and nursing care ensuring that the residents’ needs are met fully and that they enjoy as high a quality of life as possible. ¨ Employ highly qualified staff to care for all residents, ensuring that all such staff obtain the necessary qualifications and training needed for their work. ¨ Ensure that the homes meet the requirements of the Commission for Social Care Inspection and that any recommendations arising from inspections are acted upon quickly and effectively. ¨ Maintain financial security of the establishments through careful budgeting and by setting fees at levels that ensure their viability is not threatened.
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Overseas missionary work As part of our charism is to support Third World Missions – sisters from the Province continue to work in Kenya, Ethiopia, Fiji and Haiti. We continue to financially support education and welfare programmes in Sierra Leone. Education in Sierra Leone was seriously disrupted by the years of civil war, but now with a democratically elected government the country is returning to peace and normality. Our aim is to help educate and train the younger generation so as to ensure a better future for themselves. A local resident monitors and supervises the programme and reports to one trustee who approves the funding. We also continue to financially support the Romanian project for children with AIDS. The Mission in Kenya, where two sisters work in partnership with the Congregation’s Irish Province has proved very successful. The sisters are involved in clinical work, education and development programmes for the very poor, including a house building project and an agricultural project to enable families gain independence.
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Activities, specific objectives and relevant policies (continued) ¨
Activities and specific objectives (continued) 4
Overseas missionary work (continued) One nursing sister continues to work with a Missionary group in Haiti providing health care, training and development programmes with the poorest and most deprived people. A second sister joined her this year to help with relief work as a result of floods. The sisters are missionary by nature and our aim is to enhance the quality of life for people who are too poor to rise out of their poverty and help themselves. Through access to education and training, the dignity of people in Third World countries can be restored and in turn they become independent and gain employment.
¨ Volunteers The Congregation’s canonical constitution states: “It (the company) strives to retain the flexibility and mobility needed to respond to the calls of the church in the face of every form of poverty. That is the spirit in which we live our lives” Details of the areas in which members gave their time are shown in the table below: Throughout the year the Area No. of Hours members of the Volunteers volunteered Congregation gave their time to assist people who are Hospital visiting 17 6,178 marginalised and in great need. The majority of Chaplaincy 4 1,959 members receive no financial reward for this work which General parish 37 32,125 contributes to the overall work achievement of the charity’s objectives. In addition, Administration 10 6,141 members are involved in administering the work of Chiropodist 1 792 the Congregation and charity. Without their Total 69 47,195 contribution the charity would not be able to function as effectively or fully as it does.
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Activities, specific objectives and relevant policies (continued)
¨ Grants, donations and support of missionary work and ministry Grants, donations and other payments in support of missionary work and ministry are decided on by the trustees in consultation with other members of the Congregation as appropriate. In the main, the charity supports the work of the Congregation in overseas countries where there is the most need. Whilst the trustees give occasional support to United Kingdom organisations whose work is within the objects of the charity, the charity does not regard itself as a grant making entity and applications for grants and donations are not invited.
¨ Investment policy The charity has a portfolio of investments with a market value of around £28.6 million. The investments are jointly managed by Seven Investment Management, Royal London Exempt Property Unit Trust, Hermes Property Unit Trust, Aegon Asset Management and Epworth Investment Management, who operate within specific guidelines which are set out and regularly reviewed by the trustees. There are no restrictions on the Charity’s power to invest. The trustees have set ethical restrictions on where their funds are invested. The funds shall not be invested in any of the following:1. Any company with “over 10% of turnover from military sales” (as identified through the use of the Ethical Investment Research Services (“EIRIS”) software from time to time); 2. Any company conflicting with the “Sanctity of Life” (as identified through the use of Ethical Investment Research Services (“EIRIS”) software from time to time); 3. Companies connected to the tobacco industry (as identified through the use of the Ethical Investment Research Services (“EIRIS”) software from time to time); 4. Companies whose policies are found to be racially discriminatory against people of varied ethic and racial backgrounds that have been historically disadvantaged; 5. Companies that own or operate nuclear power stations; 6. Companies whose policies are found to be discriminatory against women; 7. Companies that operate/own casinos or gambling arcades or derive more than 10% of their revenue from gambling activities. On a more positive note the trustees try to invest in environment friendly and positive philanthropic activities.
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Activities, specific objectives and relevant policies (continued)
¨ Investment policy (continued) The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment managers’ view of the market prospects in the medium term. The overall investment policy is to maximise total return through a diversified portfolio, aiming to provide the level of income advised by the trustees and, at the same time, with a view to ensuring that the real capital value of the fund does not fall over any five year period. The trustees, or representatives of the trustees, meet with the investment managers four times a year to review the performance of the portfolio and the investment strategy. The performance of the charity’s investments during the year significantly improved owing to increased confidence and the recovery of the world stock markets following poor performance in recent years. The trustees consider that the performance demanded by their investment policy will be achieved in the medium to long term. Achievements and performance
¨ Review of activities The following paragraphs outline the main achievements during the year in each of the charity’s principal activities. 1. Care of members of the Congregation 48 members presently need care in four homes run by the Community with the assistance of paid staff. Three of these homes are situated in Southport, Lanark and Warley. In June 2006, 16 sisters resident in The Priory, Mill Hill, moved to the newly built St. Vincent’s Nursing Home run by another organisation, but with a back up support of pastoral and spiritual support by our members.
Sisters Joseph and Louise involved in therapeutic activities
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Achievements and performance (continued)
¨ Review of activities (continued) 2. Social and pastoral work Homelessness - Two sisters are actively engaged in providing services for homeless people in our big cities, responding to the government policies for Rough Sleepers, Supporting People and Social Exclusion. These units in London and Sheffield provide accommodation, a day centre and night shelter facilities, rehabilitation and retraining programmes for the marginalised and homeless as well as food, clothing, accommodation, furnishings and health care; acting as referral agencies to the Statutory Bodies and also networking with other organisations involved with the problem of Homelessness. Even a few minutes conversation can relieve the loneliness felt by many elderly people.
Care of the elderly – Several of our older sisters are engaged in ministry to the elderly, sick and housebound people, through home visiting and day centres. Loneliness is one of the illnesses of our time and time to listen and share is a rare treasure so we know that sisters’ visits to the elderly housebound are appreciated. One sister offers chiropody to people between the ages of 70 and 90 both in their own homes and at a house in central London. She looks on this work as holistic, as well as relieving pain and soreness in the feet, creating an atmosphere of peace and tranquillity in the middle of a busy world.
Grateful for a home visit.
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Achievements and performance (continued)
¨ Review of activities (continued) 2. Social and pastoral work (continued) A few sisters volunteer their time to another newly established charity, which provides a quality level of care and friendship to people over the age of 65 years in London Pastoral work in Parishes – Throughout the length and breadth of the Province, sisters work in parishes, visiting and bringing Holy Communion to sick and housebound people, supporting young families, running clubs for children and young people, leading prayer services, providing catechesis and sacramental preparation. Supporting people with learning disability, fostering spiritual support and religious education – two of our Sisters have trained for this work and they are actively involved coordinating the service in Scotland, establishing and training leaders and supporting new groups.
Sister Kathleen leading a session for young people with learning disabilities.
Supporting vulnerable young women – One of our sisters, along with many other volunteers offers a support and befriending service for a very vulnerable group of women involved in prostitution. This is based in Glasgow city centre. Care of visually impaired adults – In Merseyside the sisters are involved in a comprehensive service for people with visual impairment. Support and counselling is also offered to the residents’ relatives and families who struggle to cope with the disability and especially for those attending the rehabilitation centre, who have recently lost their sight. Several sisters in this establishment have formed a pastoral team, offering spiritual comfort and support to all residents, but most especially to those who are terminally ill and to their families.
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Trustees’ report 31 December 2006
Achievements and performance (continued)
¨ Review of activities (continued) 2. Social and pastoral work (continued) Support of asylum seekers & refugees – Two sisters (one in Cardiff and one in Bristol) have been appointed to work with asylum seekers and refugees. Already they have established links with other organisations and are working with asylum seekers and refugees, aiming to provide support and an advocacy service for them. Assisting practically with day-to-day problems, for example simple form filling, can make such a difference to their lives and help to make them feel accepted. A helping hand and a listening ear is vital for people arriving in our country.
Chaplaincy work - Several sisters work full and part-time on hospital chaplaincy teams offering a much appreciated, supportive ministry, befriending and listening to the sick, to their relatives and families especially in times of bereavement. This is a mandatory requirement now that the NHS provides a service offering support and counselling to meet the religious, cultural and social needs of the patients. One sister spoke of the affirmation she has received from doctors, staff and families alike who value and appreciate the supportive service she offers to patients and their families in the children’s hospital. Supporting terminally ill people - In London a sister works with the Archdiocese as a co-ordinator of services for people with AIDS and another works in a Hospice providing care for people with terminal illness. Support of families of prisoners - Two sisters work with a newly established separate charity, which offers support and advocacy to families of prisoners in the Greater Manchester area. Separate organisations established by the Sisters of Charity of St Vincent de Paul - Aware of the fact that the sisters in the Province are aging and that very few new members are joining, the sisters are actively pursuing the establishment of separate organisations, so that the work of relieving poverty can continue with the same spirit and ethos. Examples of this are as follows:
Sisters of Charity of St Vincent de Paul Charitable Trust 20
Trustees’ report 31 December 2006
Achievements and performance (continued)
¨ Review of activities (continued) 2. Social and pastoral work (continued) ¨ Depaul Trust – at present one of the leading agencies delivering services to homeless young people in England, whose mission is to offer homeless and disadvantaged people the opportunity to fulfil their potential and move towards an independent and positive future.
¨ The Passage – a day centre for homeless people in central London. ¨ Vincentian Volunteers – a ‘gap’ year programme for young people to develop their own spirituality while living among and serving people in need.
Vincentian Volunteers come from all over the world to give a year of their lives in the service of others.
¨ Vincentian Care Plus – an ancillary care agency which provides a quality level of care and friendship to people over the age of 65 in central London.
¨ ‘Out There’ – a new support and advocacy service for families of prisoners in the Greater Manchester area.
¨ St. Vincent’s Family Project – a London based centre providing crèche and playgroup facilities, family support and outreach programmes for families in need, especially those who have recently arrived in Britain, and who are finding it difficult to settle. Sisters are currently still working and providing support in the above organisations.
Sisters of Charity of St Vincent de Paul Charitable Trust 21
Trustees’ report 31 December 2006
Achievements and performance (continued)
¨ Review of activities (continued) 3. Operation of residential and care establishments The Marillac Nursing Home, Warley This has been a successful year for the Marillac in a number of ways with everyone at the Home working towards the achievement of the goals set in 2006 and significant progress having been made. The Marillac became a no-smoking zone during the year and was given a gold award (Clean Air Act). Staffing levels are continually monitored to ensure the standard of care is of the highest quality. The new website is now up and running – www.marillac.co.uk. The website has been very successful, both in giving information to potential residents and in recruiting staff. A number of new posts have been filled during the year including a part-time physiotherapist; a part-time occupational therapist; a part-time gardener and two unit clerks to provide administrative support to the unit managers. Occupancy fell during the year, and at 31 December 2006 there were 43 residents. The Marillac has been offering respite to fill empty beds, which has proven to be a very popular service to the local area. During the year the Marillac had two inspections by the CSCI, one in February and the other in December 2006, both resulting in very favourable reports. On 24 May 2006 Sister Eleanor Rogers was approved as the Registered Manager under sections 17, 18 and 19 of the Care Standards Act 2000. The building maintenance programme has continued this year, with all work planned being completed. The programme of planned education has also continued this year with both in house training courses and mandatory external courses being attended. 2007 will build on the past year, offering more opportunities for professional and personal development in line with the service needs of the residents of the Marillac. St Joseph’s Services, Rosewell St Joseph’s Service provides residential care and support for people with moderate to severe learning difficulties. The service cares for 99 residents twenty four hours a day, seven days a week, in twenty-four small units scattered around Edinburgh. The central administration office co-ordinates the service to ensure it is efficiently managed. The staff participate in an on-going training programme throughout the year as required by the CSCI and as relevant to their work. Over the past year seven managers have received the Registered Managers Award (RGA), one member of staff the Higher National certificate, nine the Higher Education Certificate in Care, three received SVQ level three, and three obtained SVQ level 2.
Sisters of Charity of St Vincent de Paul Charitable Trust 22
Trustees’ report 31 December 2006
Achievements and performance (continued)
¨ Review of activities (continued) 3. Operation of residential and care establishments (continued) St Joseph’s Services, Rosewell (continued) The residents receive a very high standard of holistic care and the service has been highly recommended by the CSCI inspection reports. St Joseph’s Services also fosters good relationships with the Social Services Department and have frequent meetings to plan, foster and improve the services rendered. The residents are valued and respected and encouraged to attend day centres, colleges, and participate in voluntary work, enabling them to live life to their full potential and to contribute to the local community. Eighteen residents are under Housing Support Service (three of whom live independently in apartments) and as such receive their own housing benefit. With the support and guidance of staff, they budget for themselves, pay bills and arrange holidays. This year residents have travelled to a variety of places, including Lourdes, the Italian Lakes and Blackpool. St. Joseph’s, which employs 260 members of staff, is the main provider of services for the Midlothian Social Work Department and others throughout Scotland. St Vincent’s Hostel, Carlisle Place, London This has been a year of mixed fortunes for the hostel. After much hard work we finally satisfied Supporting People (SP) of our worthiness to be in partnership with them and received the accreditation that was all-important to the future of the hostel. New contracts have been signed and funding provisionally agreed until 2009. Although this will remain largely unchanged at just over £32,000 per year – less deductions for recognised voids and administration costs, we have been led to expect a small “cost of living” increase in the next financial year. However, the new contracts have brought their own problems as SP can now dictate where we take referrals from. Ideally, they want us to accept referrals only from Westminster-based agencies for clients who have a Westminster connection. This means that the clients must have lived in the borough for at least six months previously if they have close family here, or for five years if they have no other connection to Westminster. As most of our clients are refugees, they obviously do not meet these criteria and, as a direct result of this, we have suffered an unexpected number of voids this year, leading to a great financial strain on the hostel and doubts about the security of future SP funding.
Sisters of Charity of St Vincent de Paul Charitable Trust 23
Trustees’ report 31 December 2006
Achievements and performance (continued)
¨ Review of activities (continued) 3. Operation of residential and care establishments (continued) St Vincent’s Hostel, Carlisle Place, London (continued) Discussions with our SP contracts manager to resolve the problem of inappropriate referrals, have led to us making contact with both the Housing Options Services (formally the Homeless Persons Units) and the Access Resources Team (a branch of Social Services). Although in principle we should be able to work well and accept their clients as residents, and indeed are keen to do so, no referrals have been forthcoming. Further negotiations with the contracts manager have been entered into in order to reduce the number of voids. Despite the problems we are experiencing we have again seen an increase in the number of residents passing through the hostel, for the fourth successive year. The difference is that their stays are shorter than they have previously been, and moveon is not solely dependent on outside agencies as several residents have chosen to return to the family home, or return to areas of the county they are more familiar with. Summary The Marillac Nursing Home
St Joseph’s Services
St Vincent’s Hostel
Occupancy
94%
95%
77%
Service users at 31 December 2006
43
99
13
Average number of employees
170
262
4
4. Overseas missionary work Our missionary work in Ethiopia is ongoing and will continue to be financially supported by the British Province, because the projects are to help the poor and none are income generating. However, the number of members is increasing and they have sufficient personnel to manage the projects. Training the members is a priority so that they can provide management and professional services to meet the need. One member of the community administers the fund and donations on behalf of the Ethiopian Province and offers hospitality to returning members.
Sisters of Charity of St Vincent de Paul Charitable Trust 24
Trustees’ report 31 December 2006
Achievements and performance (continued)
¨ Review of activities (continued) 4. Overseas missionary work (continued) The missionary work in Kenya is developing and the community there has received the first intake of three Kenyan members. Emphasis is on the formation of these members and training of staff. As the work develops more sisters have been sponsored by the partnership and they now have 10 sisters from a variety of Provinces including British, Irish, Ethiopian, Nigerian and American Provinces. The mobile clinic is now going out to the surrounding district, 40 houses have been built for families. The HIV/AIDS clinic is growing and plans have been drawn up to provide a centre for the patients to gather in and there is provisional space being provided for counselling rooms. The missionary work in Haiti continues to function despite the war. Survival rather than development is where the project stands and the need for care continues to grow. Two sisters from the British Province are working in Haiti. The missionary work in Fiji continues to develop, through the work of the sister seconded by our Province. She was awarded a community service award for her service in the rural villages, to the poor and forgotten families. ¨ Future developments To ensure good use of their assets and the achievement of objectives, the sisters continually monitor and assess their mission and properties. Provincial House and Grounds in Mill Hill Due to falling numbers, it was decided to put this property on the market and move the administration of the Province and the Provincial House community across the road to The Priory, which was vacated by our elderly sisters in June 2006. Refurbishment of The Priory will be completed by autumn 2007. The sale of Provincial House was agreed in December 2006 and completion contracts will be exchanged in autumn 2007. Care of our elderly sisters in Scotland 2007 will see the beginning of a feasibility study relating to the provision of care for our elderly sisters in Scotland. The property, which houses these sisters at present, is no longer suitable and thus different options will be assessed and a decision taken, to ensure the provision of a safe and comfortable environment for our sisters in their old age. ‘Out There’ This new ministry, providing support and advocacy for families of prisoners in the greater Manchester area, will strive to attain charitable status in 2007, to ensure its ongoing development and provision of quality service. Sisters of Charity of St Vincent de Paul Charitable Trust 25
Trustees’ report 31 December 2006
Achievements and performance (continued)
¨ Investment performance During the year the charity’s investments continued to perform well, achieving an income yield of 3.5% (2005 - 3%) and a capital yield of 6.32% (2005 - 10.2%). Financial report for the year
A summary of the results for the year can be found on page 31 of the attached accounts. Incoming resources for the year to 31 December 2006 totalled £11.4 million compared to £16.9 million in 2005. The major contributory factor to this decrease was the surplus arising on the disposal of tangible fixed assets in 2005. The surplus of £4.4 million in 2005 related mainly to the disposal of Blandford Street, London. Income from voluntary sources has decreased by approximately £406,000, due to the fall in income from gift aid or deed of covenant. Income from residential and care services has decreased by around £413,000 reflecting the lower occupancy in the year at the Marillac and St Joseph’s, the closure of St Mary’s, Dover in June 2005, and the closure of St Vincent’s Blandford Street, London in March 2005. Investment income and interest has also decreased compared to last year. In 2005 £805,128 interest was received on the late receipt of property disposal proceeds. No such income has been received in 2006. Income from investments has increased by approximately £327,000 reflecting the additional investments purchased at the end of 2005. Resources expended increased from £11.0 million in 2005 to £11.1 million in 2006. Grants and donation expenditure has increased in the year, highlighting the charity’s commitment to supporting projects which have been established by the sisters , but which are now separate charities in their own right. In June 2006 the sisters previously resident in The Priory were moved to a newly established nursing home called St Vincent’s in Eastcote, Middlesex. The cost of residential and nursing care for the period June to December amounted to £159,317. Savings have been made in the same period, in areas such as staff costs and the upkeep to the buildings. All expenditure has been tightly controlled in the year. In total, in excess of £6.8 million (2005 - £6.8 million) of both the charity’s incoming resources and resources expended relate to the provision of residential and care services, highlighting the extent of the Congregation’s and charity’s involvement in these areas. The overall “surplus” for the year before investment gains amounted to £300,846 (2005 £5.9 million). The net investment gains of £1.7 million (2005 – £2 million) gave rise to a final net increase in funds of £2 million (2005 - £7.9 million) for the year.
Sisters of Charity of St Vincent de Paul Charitable Trust 26
Trustees’ report 31 December 2006
Reserves policy and financial position
Reserves policy The trustees have examined the requirement for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work, the charity’s continuing commitment to residential and nursing care, the need to care for members of the Congregation and to respond to unforeseen emergencies, the level of free reserves should at least be equivalent to between six and twelve months’ expenditure. The trustees are of the opinion that this provides sufficient flexibility to cover shortfalls in incoming resources, adequate working capital to cover core costs, and will allow the charity to meet its commitments to its residential and care work and to members of the Congregation, and will enable the charity to cope and respond to unforeseen emergencies. Financial position The balance sheet shows total reserves of £50.5 million (2005 - £48.5 million). Of this £6.3 million (2005 - £6.1 million) represents the accumulated net income of the residential and care establishments (including tangible fixed assets of £4.6 million (2005 – £4.7 million)), which has been designated by the trustees for use by those establishments only. A further £11 million (2005 - £11.2 million) is represented by tangible fixed assets used for the support of the sisters and their ministry. A decision was made to separate this fund from the general fund in recognition of the fact that the tangible fixed assets are used in the day to day work of the charity and the fund value cannot, therefore, be realised easily if needed to meet future contingencies. In addition, the trustees have set aside £6.8 million (2005 - £6.2 million) to provide for the sisters in their retirement. The value of the fund has been calculated actuarially to provide for each of the Congregation’s 200 sisters. Given the increasing age profile of the sisters and the lack of new vocations, this sum will provide only modest resources to look after the sisters, many of whom will need increasing support and increasingly expensive residential and nursing care. The trustees have also set aside £10 million (2005 - £10 million) to provide for the expensive nursing care that a number of sisters will inevitably require. This has been calculated on nursing fee rates and projections for the length of time such care will be required. A further £1.5 million (2005 - £1.4 million) has been designated for use on specific projects by the trustees. It is intended that such projects should include the missionary work of the sisters overseas.
Sisters of Charity of St Vincent de Paul Charitable Trust 27
Trustees’ report 31 December 2006
Reserves policy and financial position (continued)
Financial position (continued) The endowment funds amounting to £448,991 (2005 - £448,991) comprise the Salisbury Fund, established in 1871 by a deed of trust when several properties located in Salisbury were gifted to the Congregation, and the Wigmore Street Trust Fund established in 1965. Administration of this latter fund was transferred to the charity during the year ended 31 December 2005 from the Westminster Roman Catholic Diocesan Trust. Restricted funds, comprising monies given specifically for overseas missionary work, totalled £765,934 (2005 - £719,973) at the end of the year. Other small restricted funds totalled £17,011 (2005 - £13,905). Funds available to support the work of the sisters in the future are shown as general funds on the balance sheet and amount to £13.7 million (2005 - £11.1 million). This figure needs to be considered in the light of annual expenditure of £11.1 million. The trustees are of the opinion that this is adequate but not excessive and that the level of free reserves is consistent with the policy set out above. Employees, volunteers and members of the Congregation
The trustees wish to record their recognition of the professionalism and commitment of all their staff, volunteers and the individual members of the Congregation. Their dedication and positive approach is very much appreciated. Auditors
On 30 September 2007, Buzzacott, the charity’s auditors, transferred their entire business to Buzzacott LLP, a limited liability partnership incorporated under the Limited Liability Partnerships Act 2000. The Trustees have consented to treating the appointment of Buzzacott as auditors as extending to Buzzacott LLP.
Signed on behalf of the trustees: SARAH M KING-TURNER Trustee Approved by the trustees on: 19 October 2007
Sisters of Charity of St Vincent de Paul Charitable Trust 28
Independent auditors’ report 31 December 2006
Report of the independent auditors to the trustees of Sisters of Charity of St Vincent de Paul Charitable Trust
We have audited the accounts on pages 31 to 52 which have been prepared under the historical cost convention, as modified by the inclusion of freehold land and buildings at valuation and the inclusion of investments at market value, and the accounting policies set out on pages 36 to 39. This report is made solely to the charity’s trustees, as a body, in accordance with Section 43 of the Charities Act 1993 and with regulations made under Section 44 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees, as a body, those matters we are required to state to them in an auditors’ 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. Respective responsibilities of trustees and auditors
As described on page 6 you are responsible as trustees for the preparation of the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). We have been appointed as auditors under Section 43 of the Charities Act 1993 and report in accordance with the regulations under Section 44 of that Act. Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the accounts give a true and fair view and are properly prepared in accordance with the Charities Act 1993. We also report to you if, in our opinion, the trustees’ report is not consistent with the accounts, if the charity has not kept proper accounting records or if we have not received all the information and explanations we require for our audit. We read other information in the trustees’ report and consider whether it is consistent with the audited accounts. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies within the accounts. Our responsibilities do not extend to any other information. Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the accounts, and of whether the accounting policies are appropriate to the charity’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the accounts are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the accounts.
Sisters of Charity of St Vincent de Paul Charitable Trust 29
Independent auditors’ report 31 December 2006
Opinion
In our opinion: ¨ the accounts give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the charity’s state of affairs as at 31 December 2006 and of its incoming resources and application of resources in the year then ended; and ¨ the accounts have been properly prepared in accordance with the Charities Act 1993.
BUZZACOTT LLP
19 October 2007
Buzzacott LLP Chartered Accountants and Registered Auditors 12 New Fetter Lane London EC4A 1AG
Sisters of Charity of St Vincent de Paul Charitable Trust 30
Statement of financial activities Year to 31 December 2006
Unrestricted Funds Notes £
Restricted Funds £
Endowment Funds £
Total Funds 2006 £
Total Funds 2005 £
Incoming resources Incoming resources from generating funds . Voluntary income
1
2,677,768
258,608
—
2,936,376
3,342,682
. Investment income and interest receivable
2
1,202,658
80,517
—
1,283,175
1,712,894
. Charges for residential and care services
3
6,849,222
—
—
6,849,222
7,262,385
. Grants receivable
4
—
8,463
—
8,463
11,809
Surplus on disposal of tangible fixed assets
5
188,171
—
—
188,171
4,413,022
177,756
100
—
177,856
186,781
11,095,575
347,688
—
11,443,263
16,929,573
23,434
—
—
23,434
79,988
Incoming resources from charitable activities
Other incoming resources Total incoming resources Resources expended Cost of generating funds . Investment managers’ fees Charitable activities . Provision of residential and care services
6
6,823,327
23,512
—
6,846,839
6,868,986
. Support of members of the Congregation and their ministry
7
3,667,712
—
—
3,667,712
3,609,415
. Charitable grants and donations payable
8
228,826
275,109
—
503,935
341,310
Governance costs
9
100,497
—
—
100,497
100,573
10,843,796
298,621
—
11,142,417
11,000,272
251,779
49,067
—
300,846
5,929,301
Net investment gains
1,682,439
—
—
1,682,439
2,016,564
Net movement in funds
1,934,218
49,067
—
1,983,285
7,945,865
47,371,173
733,878
448,991
48,554,042
40,608,177
49,305,391
782,945
448,991
50,537,327
48,554,042
Total resources expended Net incoming resources for the year
11
Balances brought forward at 1 January 2006 Balances carried forward at 31 December 2006
Sisters of Charity of St Vincent de Paul Charitable Trust 31
Statement of financial activities Year to 31 December 2006
Historical cost net movement in funds Net movement in funds (page 31) Unrealised gains on investments
2006 £
2005 £
1,983,285
7,945,865
(1,682,439)
(1,522,131)
Difference between historical cost realised gains and the actual realised gains calculated on the revalued amounts
—
761,950
Depreciation charge on tangible fixed assets included at a valuation (see below) *
171,910
171,910
Historical cost net movement in funds
472,756
7,357,594
* It is not possible to determine with any accuracy the historical cost of those tangible fixed assets included in the accounts at a valuation. However, it is believed that the historical cost would be such as to result in any depreciation thereon being negligible. The difference in the depreciation charge on freehold land and buildings based on cost and that based on the revalued amounts, therefore, is assumed to be equal to the depreciation charge on the revalued amounts.
Sisters of Charity of St Vincent de Paul Charitable Trust 32
Balance sheet 31 December 2006
Notes
2006 £
2006 £
2005 £
2005 £
Fixed assets Tangible assets
14
15,656,155
15,942,221
Investments
15
28,630,504
26,919,067
44,286,659
42,861,288
Current assets Debtors
16
849,315
526,858
Short term deposits
2,762,569
2,854,424
Cash at bank and in hand
3,520,398
3,229,418
7,132,282
6,610,700
Creditors: amounts falling due within one year
17
(881,614)
(917,946) 6,250,668
5,692,754
50,537,327
48,554,042
18
448,991
448,991
19
782,945
733,878
Total net assets Represented by: Funds and reserves Capital funds Permanent endowment funds Income funds Restricted funds Unrestricted funds . Designated funds . General fund
20 35,634,513
36,271,497
13,670,878
11,099,676 49,305,391
47,371,173
50,537,327
48,554,042
Approved by the trustees and signed on their behalf by:
SARAH M KING-TURNER Trustee Approved by the trustees on: 19 October 2007
Sisters of Charity of St Vincent de Paul Charitable Trust 33
Cash flow statement Year to 31 December 2006
Notes
2006 £
2005 £
Cash (outflow) inflow from operating activities
A
(1,023,659)
Returns on investments and servicing of finance
B
1,182,059
1,702,039
B
40,719
1,855,892
199,119
3,782,552
91,855
(1,504,424)
290,974
2,278,128
224,621
Capital expenditure and financial investment
Management of liquid resources Decrease (increase) in short term deposits Increase in cash
C
Notes to the cash flow statement for the year to 31 December 2006. A
Adjustment of net incoming resources for the year to net cash (outflow) inflow from operating activities 2006 £
2005 £
Net incoming resources for the year
300,846
5,929,301
Depreciation charge
404,514
395,223
Net gain on disposal of tangible fixed assets
(188,171)
(4,413,022)
Interest receivable
(357,292)
(1,114,287)
Investment income receivable
(925,883)
(598,607)
(Increase) decrease in debtors
(221,341)
173,296
(36,332)
(147,283)
(1,023,659)
224,621
Decrease in creditors Net cash (outflow) inflow from operating activities
Sisters of Charity of St Vincent de Paul Charitable Trust 34
Cash flow statement Year to 31 December 2006
B
Gross cash flows 2006 £
2005 £
Interest received
357,597
1,112,833
Investment income received
824,462
589,206
1,182,059
1,702,039
Returns on investments and servicing of finance
Capital expenditure and financial investment Payments to acquire tangible fixed assets
(248,469)
(2,319,214)
Receipts from the disposal of tangible fixed assets
318,192
12,435,325
Payments to acquire investments
(29,004) (19,869,930)
Receipts from the disposal of investments
—
11,609,711
40,719
1,855,892
91,855
(1,504,424)
Management of liquid resources Decrease (increase) in short term deposits
C
Analysis of changes in net debt At 1 January 2006 £
Cash flows £
At 31 December 2006 £
Cash at bank and in hand
3,229,418
290,980
3,520,398
Cash held by investment managers
2,000,006
(6)
2,000,000
5,229,424
290,974
5,520,398
Liquid resources
2,854,424
(91,855)
2,762,569
Balance at 31 December 2006
8,083,848
199,119
8,282,967
Sisters of Charity of St Vincent de Paul Charitable Trust 35
Principal accounting policies 31 December 2006
Basis of accounting
The accounts have been prepared under the historical cost convention, as modified by the inclusion of certain functional freehold properties at a valuation and by the inclusion of investments at market value, and in accordance with the requirements of the Charities Act 1993. Applicable United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2005) have been followed in these accounts. The adoption of SORP 2005 has resulted in a number of changes in the presentation of the statement of financial activities and the reclassification of certain comparative figures contained therein. Incoming resources
Incoming resources are recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Grants from Government and other agencies are included as income from activities in furtherance of the charity’s objectives where these amount to a contract for services or where they are specific to a particular activity. Other grants, where there is greater freedom of use, are included as donations. Legacies are included in the statement of financial activities when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified. Resources expended and the basis of apportioning costs
Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT which cannot be recovered. Resources expended comprise the following: a. The costs of generating funds include the fees paid to investment managers in connection with the management of the charity’s listed investments. b. The costs of charitable activities comprise expenditure on the charity’s primary purposes as described in the trustees report and include: ¨ Expenditure incurred in the provision of residential and care services includes the cost of providing accommodation and care at St Vincent’s, Carlisle Place; the costs of providing nursing care for physically disabled persons at The Marillac, Warley and the costs of providing services for people with learning disabilities, in line with the Care in the Community Act at St Joseph’s Services, Rosewell. ¨ Expenditure on the support of members of the Congregation and their ministry enables the members to carry out the work of the charity in the areas of the advancement of the Roman Catholic religion, the provision of nursing and residential care, the advancement of education and the relief of poverty. ¨ Charitable donations relate, in the main, to the support of the Congregation’s own work overseas and the support of other Roman Catholic charitable organisations.
Sisters of Charity of St Vincent de Paul Charitable Trust 36
Principal accounting policies 31 December 2006
Resources expended and the basis of apportioning costs (continued)
c. Governance costs are the costs associated with the governance arrangements of the charity including audit costs and the necessary legal procedures for compliance with statutory requirements. The majority of costs are directly attributable to specific activities. Certain shared support costs are apportioned as described in note 10. Tangible fixed assets
All assets costing more than £2,500 and with an expected useful life exceeding one year are capitalised. ¨ Voluntary-aided schools The freehold of the land and buildings legally owned by the charity and occupied rent free on behalf of the trustees of the governing bodies of Catholic voluntary-aided schools, which are separate charities and publicly funded, are valued at £nil. The trustees consider that no meaningful value can be attributed to these assets, since they are not used directly by the charity, do not generate income and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues. ¨ Other freehold land and buildings One property, located in England, is included in the accounts at a valuation determined by the trustees with professional assistance, as at 1 January 1997, based on open market value as at that date. Other freehold land and buildings located in England and Wales and purchased prior to 1 January 1993 are included in the accounts at a valuation determined by the trustees with professional assistance. The valuations, based on open market value as at 1 January 1993, were determined with professional assistance. All other freehold land and buildings located in England and Wales are included in the accounts at cost. Freehold land and buildings located in Scotland and purchased prior to 1 January 1996 are included at a valuation determined by the trustees, with professional assistance, based on open market value as at 1 January 1996. All freehold land and buildings located in Scotland and purchased subsequent to 1 January 1996 are included in the accounts at cost. Non-specialised buildings i.e. those designed as, and used wholly or mainly for, private residential accommodation are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value. Specialised buildings are defined as those comprising the Congregation’s care homes, health care establishments and large residential convents. Depreciation is provided at between 2% to 4% per annum on a straight-line basis to write the buildings off over their estimated useful economic life to the Congregation.
Sisters of Charity of St Vincent de Paul Charitable Trust 37
Principal accounting policies 31 December 2006
Tangible fixed assets (continued)
¨ Long leasehold property Long leasehold property comprising both specialised and non-specialised buildings is shown on the balance sheet at a valuation determined by the trustees, with professional assistance, as at 1 January 1993 on an open market basis. Long leasehold property is not depreciated until the period of the lease remaining is 50 years or less at which point it is depreciated on a straight line basis over the remaining period of the lease. All leasehold property is maintained to standards which ensure that its residual value is not less than its book value. Therefore, depreciation on such property with more than 50 years of the lease remaining is deemed immaterial. ¨ Furniture, fittings and computer equipment Expenditure on the purchase and replacement of furniture, fittings and computer equipment is capitalised and depreciated on a straight line basis over the estimated life of each asset, as follows: Furniture and fittings Computer equipment
-
5 years 4 years
¨ Motor vehicles Motor vehicles are capitalised and depreciated over a four year period on a straight line basis in order to write off each vehicle over its estimated useful life. Investments
Investments are included on the balance sheet at their market value at the end of the financial period. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise. Fund accounting
The general fund comprises those monies which may be used towards meeting the charitable objectives of the charity and which may be applied at the discretion of the trustees. The designated funds are monies set aside out of general funds and designated for specific purposes by the trustees. The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions. The endowment funds comprise monies which must be held indefinitely as capital. The income therefrom is credited directly to unrestricted or restricted funds in accordance with the terms of the relevant endowment. Foreign currencies
Income received, and costs incurred overseas, are translated into sterling at the rate of exchange in force at the year end. This policy does not comply with Statement of Standard Accounting Practice No. 20 but has been adopted to avoid over-complexity. The amounts involved are not material.
Sisters of Charity of St Vincent de Paul Charitable Trust 38
Principal accounting policies 31 December 2006
Pension costs
Employer’s contributions in respect of defined contribution pension schemes are charged to the statement of financial activities in the year in which they are payable to the scheme. Liquid resources
Liquid resources comprises monies held on short term deposit with United Kingdom banks. Services provided by members of the Congregation
For the purpose of these accounts, no monetary value has been placed on the care, administrative and other services provided by the members of the Congregation.
Sisters of Charity of St Vincent de Paul Charitable Trust 39
Notes to the accounts 31 December 2006
1
Voluntary income Unrestricted funds £
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
2,236,553
11,796
—
2,248,349
2,591,504
282,082
—
—
282,082
324,676
—
214,530
—
214,530
147,580
159,133
32,282
—
191,415
278,922
2,677,768
258,608
—
2,936,376
3,342,682
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
Salaries and pensions of individual religious received under Gift Aid or Deed of Covenant Legacies Donations for the Congregation’s overseas missions Other donations
2
Investment income and interest receivable Unrestricted funds £ Income from listed investments . UK fixed interest
391,441
22,022
—
413,463
210,130
. UK Property Unit Trust
160,577
5,071
—
165,648
40,739
. UK equities
324,407
22,365
—
346,772
343,213
—
—
—
—
4,525
876,425
49,458
—
925,883
598,607
—
—
—
—
805,128
. Overseas equities
Interest receivable . Interest arising due to late receipt of property disposal proceeds . Interest on cash held by investment managers . Bank interest
Total
—
—
—
—
27,636
326,233
31,059
—
357,292
281,523
326,233
31,059
—
357,292
1,114,287
1,202,658
80,517
—
1,283,175
1,712,894
Sisters of Charity of St Vincent de Paul Charitable Trust 40
Notes to the accounts 31 December 2006
3
Incoming resources from charitable activities Unrestricted funds £
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
and similar charges
3,925,533
—
—
3,925,533
3,960,564
Nursing home charges
2,814,715
—
—
2,814,715
2,900,719
Sheltered accommodation
Residential home charges Hostel charges Other
4
—
—
—
—
232,281
105,043
—
—
105,043
164,000
3,931
—
—
3,931
4,821
6,849,222
—
—
6,849,222
7,262,385
Unrestricted funds £
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
—
8,463
—
8,463
11,809
Grants receivable
General grants The Wigmore Trust
5
Surplus on disposal of tangible fixed assets
Following a detailed review of future needs, the charity has disposed of a number of freehold properties. The surplus on disposal of tangible fixed assets, therefore, comprises the following: 2006 £
2005 £
Surplus on disposal of freehold land and buildings . Blandford Street, London . Others Surplus on disposal of other tangible fixed assets
—
4,415,217
173,167
(8,417)
173,167
4,406,800
15,004
6,222
188,171
4,413,022
Sisters of Charity of St Vincent de Paul Charitable Trust 41
Notes to the accounts 31 December 2006
6
Provision of residential and care services Unrestricted funds £
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
Staff costs
5,171,100
—
—
5,171,100
5,164,421
Premises
1,049,527
19,472
—
1,068,999
1,059,805
Provisions
226,098
—
—
226,098
258,423
Welfare of residents
159,694
4,040
—
163,734
177,731
Other costs
159,695
—
—
159,695
172,796
57,213
—
—
57,213
35,810
6,823,327
23,512
—
6,846,839
6,868,986
Other support costs
7
Support of members of the Congregation and their ministry Unrestricted funds £
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
Sisters’ living and personal expenses
1,043,091
—
—
1,043,091
919,828
Premises
1,007,785
—
—
1,007,785
917,584
Staff costs
1,228,446
—
—
1,228,446
1,312,237
Spiritual renewal
144,079
—
—
144,079
183,331
Other costs
117,734
—
—
117,734
123,040
Other support costs
126,577
—
—
126,577
153,395
3,667,712
—
—
3,667,712
3,609,415
Sisters of Charity of St Vincent de Paul Charitable Trust 42
Notes to the accounts 31 December 2006
8
Grants and donations payable Unrestricted funds £
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
24,184
248,388
—
272,572
189,379
5,000
12,307
—
17,307
14,820
. Romania
1,000
—
—
1,000
4,099
. Indonesia
10,210
—
—
10,210
—
. Fiji
4,000
—
—
4,000
—
. Nigeria
1,000
—
—
1,000
—
. France
10,000
—
—
10,000
20,000
. Sudan
1,266
—
—
1,266
—
Donations to the Congregation’s overseas missions . Ethiopia . Sierra Leone
. Kenya The Vincentian Volunteers The De Paul Foundation St Gregory’s Youth and Community Initiative St Vincent’s Family Project CAFOD
—
—
—
—
13,641
6,505
—
—
6,505
6,300
100,000
—
—
100,000
—
—
—
—
—
23,500
6,835
—
—
6,835
7,500
—
—
—
—
3,800
7,000
—
—
7,000
—
Catholic Care of the Deaf
—
—
—
—
17,345
St Wilfred’s Day Centre
—
—
—
—
1,509
Vincentian Care Plus
5,000
—
—
5,000
6,000
Louise Women’s Centre, Glasgow
1,000
2,000
—
3,000
2,000
GOAL
Society of Pilar
—
—
—
—
2,200
St Luke’s Centre, Manchester
1,000
—
—
1,000
—
St Francis Hospice, Dublin
3,000
—
—
3,000
—
North London Hospice
5,000
—
—
5,000
—
“Out there”
5,000
—
—
5,000
—
31,826
12,414
—
44,240
29,217
228,826
275,109
—
503,935
341,310
Other donations
‘Other donations’ comprise amounts of £1,000 or less donated to other organisations with objects consistent with those of the charity.
Sisters of Charity of St Vincent de Paul Charitable Trust 43
Notes to the accounts 31 December 2006
9
Governance costs Unrestricted funds £
Restricted funds £
Endowment funds £
Total funds 2006 £
Total funds 2005 £
Auditors’ remuneration
54,873
—
—
54,873
58,939
Legal and professional
43,980
—
—
43,980
39,968
Central administration
1,644
—
—
1,644
1,666
100,497
—
—
100,497
100,573
Provision of residential and care services £
Support of members of the Congregation and their ministry £
Total £
46,691
84,640
131,331
7,466
31,245
38,711
10 Support costs
Legal and professional fees Central administration Bank charges
3,056
10,692
13,748
57,213
126,577
183,790
The above expenses have each been analysed in detail and individual invoices, or groups of invoices, allocated to the headings of “Provision of residential and care services” and “Support of members of the Congregation and their ministry” on a basis deemed most appropriate.
11 Net incoming resources for the year
This is stated after charging:
Staff costs (note 12)
Total 2006 £
Total 2005 £
6,399,546
6,476,658
28,200
27,025
Auditors’ remuneration . Statutory audit services . Non-statutory audit services . Other services Depreciation
7,050
7,050
19,623
23,690
404,514
395,223
Sisters of Charity of St Vincent de Paul Charitable Trust 44
Notes to the accounts 31 December 2006
12 Staff costs and trustees’ remuneration 2006 £
2005 £
Wages and salaries
5,881,624
5,884,648
Social security costs
429,229
436,035
Other pension costs
46,508
46,703
6,357,361
6,367,386
Self employed therapy staff
18,322
44,772
Agency staff
23,863
64,500
6,399,546
6,476,658
Staff costs during the year were as follows:
Payments to agency staff during the year reflect the national shortage of nursing staff seeking permanent employment. Staff costs per function were as follows: 2006 £
2005 £
Provision of residential and care services
5,171,100
5,164,421
Support of members of the Congregation and their ministry
1,228,446
1,312,237
6,399,546
6,476,658
No employees earned £60,000 per annum or more (including taxable benefits but excluding employer contributions) during the year (2005 – nil). The average number of employees during the year, analysed by function, was: 2006
2005
Provision of residential and care services
436
422
Support of members of the Congregation and their ministry
107
121
543
543
As members of the Congregation, the trustees’ living and personal expenses during the year were borne by the charity, but they received no remuneration or reimbursement of expenses in connection with their duties as trustees during the year (2005 - £nil). 13 Taxation
The Sisters of Charity of St Vincent de Paul Charitable Trust is a registered charity and therefore is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.
Sisters of Charity of St Vincent de Paul Charitable Trust 45
Notes to the accounts 31 December 2006
14 Tangible fixed assets Non-specialised
Specialised
Freehold land and buildings £
Long leasehold land and buildings £
Freehold land and buildings £
Furniture, fittings and computer equipment £
Motor vehicles £
Total £ 18,329,133
Cost or valuation At 1 January 2006
8,989,271
508,254
7,686,474
395,561
749,573
Additions
—
—
71,111
69,997
107,361
248,469
Disposals
(125,000)
—
—
(70,847)
(175,635)
(371,482)
At 31 December 2006
8,864,271
508,254
7,757,585
394,711
681,299
18,206,120
At valuation 1993
3,460,000
28,000
1,353,503
—
—
4,841,503
At valuation 1996
919,000
—
742,000
—
—
1,661,000
At valuation 1997
—
—
3,250,001
—
—
3,250,001
4,485,271
480,254
2,412,081
394,711
681,299
8,453,616
8,864,271
508,254
7,757,585
394,711
681,299
18,206,120
At 1 January 2006
—
—
1,515,232
282,355
589,325
2,386,912
Charge for the year
—
—
253,659
61,038
89,817
404,514
On disposals
—
—
—
(70,847)
(170,614)
(241,461)
At 31 December 2006
—
—
1,768,891
272,546
508,528
2,549,965
At 31 December 2006
8,864,271
508,254
5,988,694
122,165
172,771
15,656,155
At 31 December 2005
8,989,271
508,254
6,171,242
113,206
160,248
15,942,221
At cost
Depreciation
Net book values
The historical cost of both freehold and long leasehold land and buildings included above at a valuation cannot be ascertained with accuracy. As permitted under the transitional provisions of FRS 15, the charity has continued to adopt a policy of not revaluing its tangible fixed assets. The book value of the land and buildings (freehold and long leasehold) is based on cost, or where cost is not available, at trustees’ valuations made in 1993, 1996 and 1997 based on open market value at the date of valuation. Other tangible fixed assets are stated at cost. It is likely that there are material differences between the open market values of the charity’s land and buildings and their book values. These arise from the specialised nature of some properties and the effects of inflation. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of trustees, is not justified in terms of the benefit to the users of the accounts. Certain of the charity’s properties are subject to covenants which restrict their use and disposal. Two of the charity’s properties in Scotland are secured to the Secretary of State for Scotland securing repayable grants totalling £376,000. Capital commitments
At 31 December 2006 the charity had the following capital commitments in respect to the refurbishment/development of freehold land and buildings:
Authorised but not contracted for
2006 £
2005 £
3,200,000
2,300,000
Sisters of Charity of St Vincent de Paul Charitable Trust 46
Notes to the accounts 31 December 2006
15 Investments 2006 £
2005 £
24,919,061
14,642,278
Listed investments Market value at 1 January 2006 Additions at cost
29,004
Disposals at opening book value
—
Net gains on revaluation
19,869,930 (11,115,278)
1,682,439
1,522,131
26,630,504
24,919,061
2,000,000
2,000,006
Total
28,630,504
26,919,067
Cost of listed investments at 31 December 2006
24,192,974
24,163,970
Market value at 31 December 2006 Cash held for re-investment
Listed investments held at 31 December 2006 comprised the following: 2006 £
2005 £
8,192,087
8,497,079
14,398,110
12,745,675
4,040,307
3,676,307
26,630,504
24,919,061
UK fixed interest unit trusts UK equities (including equity based unit trusts) UK property unit trusts
At 31 December 2006 listed investments included the following individual holdings, all of which are deemed material holdings in the context of the entire portfolio valuation as at that date: Market value of holding £
Holding
Percentage of portfolio %
Royal London Exempt Property Unit Trust
1,651,335
6.20%
Hermes Property Unit Trust
1,900,427
7.14%
14,390,671
54.04%
8,170,523
30.68%
Ethical Corporate Bond Fund Class B (Income) The Affirmative Equity Fund for Charities
All listed investments were dealt in on a recognised stock exchange.
Sisters of Charity of St Vincent de Paul Charitable Trust 47
Notes to the accounts 31 December 2006
16 Debtors 2006 £
2005 £
Residential and care home fees
115,843
252,881
Prepayments and accrued income
231,375
126,471
12,010
12,210
Payments in respect of relocation of Provincial House and related costs (note 24)
322,196
—
Other debtors
105,391
62,796
786,815
454,358
62,500
72,500
849,315
526,858
Amounts falling due within one year:
Loans (see below)
Amounts falling due after more than one year: Loans (see below)
Loans comprise: a) The remaining balance (£72,500 (2005 - £82,500)) of an original loan of £200,000 to the Clifton Roman Catholic Diocese towards the purchase of a property in 1998. The loan is being repaid by quarterly instalments of £2,500. The loan, which is secured by a first legal charge over the property, is interest free, unless the Royal Bank of Scotland plc base rate exceeds 10%. b) A small number of immaterial loans for purposes in pursuit of the charity’s charitable objectives. All such loans are interest free and repayable over periods of between one and six years. 17 Creditors: amounts falling due within one year 2006 £ Residential and care home fees in advance
2005 £
31,820
20,970
Expense creditors
125,407
120,357
Social security and other taxes
115,676
125,024
Other creditors
236,404
263,885
83,425
74,425
205,134
226,015
83,748
87,270
881,614
917,946
Monies administered by the charity on behalf of individual members of the Sisters of Charity of St Vincent de Paul Money held on behalf of the Ethiopian Province of the Sisters of Charity of St Vincent de Paul Accruals
Sisters of Charity of St Vincent de Paul Charitable Trust 48
Notes to the accounts 31 December 2006
18 Permanent endowment funds
The capital of these funds must be preserved, although the income may be used in accordance with the terms of the relevant endowment at the discretion of the trustees. At 1 January 2006 £
Incoming resources £
At 31 December 2006 £
Salisbury fund
254,175
—
254,175
Wigmore Street Trust fund
194,816
—
194,816
448,991
—
448,991
The Salisbury fund was established in 1871 by deed of trust when several properties located in Salisbury were gifted to the Sisters of Charity of St Vincent de Paul to be held as an endowment in perpetuity. The properties were vested in the name of the charity by means of a Scheme of the Charity Commissioners dated 2 June 1965 and a Vesting Order dated 16 May 1997. The properties were sold during the year ended 31 December 1998, following approval from the Charity Commission. The proceeds are to be held as permanent endowment. The Wigmore Street Trust fund was established on 2 May 1965 by deed of trust. On 9 June 2005 the administration of the trust was transferred from the Westminster Roman Catholic Diocesan Trust to the Sisters of Charity of St Vincent de Paul to be held as an endowment in perpetuity.
19 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purposes:
Incoming resources £
Expenditure, gains, losses and transfers £
At 31 December 2006 £
699,270
296,018
(248,388)
746,900
15,025
9,214
(12,307)
11,932
At 1 January 2006 £ Mission funds . Ethiopian . Sierra Leone . Romanian Other restricted funds
5,678
1,424
—
7,102
13,905
41,032
(37,926)
17,011
733,878
347,688
(298,621)
782,945
The mission funds comprise monies donated or granted to the Charity towards the work of members of the Roman Catholic Congregation, the Sisters of Charity of St Vincent de Paul, in overseas missions.
Sisters of Charity of St Vincent de Paul Charitable Trust 49
Notes to the accounts 31 December 2006
20 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: At 1 January 2006 £ Tangible fixed assets fund
New designations £
Utilised/ released £
At 31 December 2006 £
11,154,713
—
Sisters’ retirement fund
6,233,146
592,998
(141,145) 11,013,568 —
6,826,144
Care of the elderly fund
10,000,000
—
—
10,000,000
Residential and care services fund
6,155,308
118,728
—
6,274,036
Project fund
1,418,884
101,881
—
1,520,765
1,309,446
—
(1,309,446)
—
36,271,497
813,607
St Joseph’s Services fund
(1,450,591) 35,634,513
The funds have been designated for the following purposes: ¨ Tangible fixed assets fund The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets used for the support of the sisters and their ministry. A decision was made to separate this fund from the general fund in recognition of the fact that the assets are used in the day to day work of the charity, and the fund value would not be realisable easily if needed to meet future contingencies. ¨ Sisters’ retirement fund This consists of monies the trustees have set aside in order to provide for the sisters in their retirement. The value of the fund is based on actuarial calculations which show that it will need to be preserved in order to provide for the Congregation’s 200 sisters within the British Province. ¨ Care of the elderly fund This fund represents monies set aside by the trustees to provide for the future costs of providing nursing care to elderly sisters who have dedicated their working lives to the charity. ¨ Residential and care services fund This fund represents the net assets (including freehold land and buildings) of the residential and care service establishments operated by the charity. ¨ Project fund This fund represents monies set aside for use by particular projects, including the missionary work of the sisters overseas.
Sisters of Charity of St Vincent de Paul Charitable Trust 50
Notes to the accounts 31 December 2006
20 Designated funds (continued)
¨ St Joseph’s Services fund This fund comprised amounts set aside specifically to meet the costs of possibly developing further the community based services and other work of the charity in caring for people with learning difficulties, particularly in the Midlothian region. During the year, the trustees decided that this money was not needed in the immediate or short term and that the fund should be released back to general funds.
21 Analysis of net assets between funds General fund £
Designated funds £
Restricted funds £
Endowment funds £
Total 2006 £
Fund balances at 31 December 2006 are represented by: Tangible fixed assets
—
15,656,155
—
—
15,656,155
10,293,598
18,336,906
—
—
28,630,504
Net current assets
3,377,280
1,641,452
782,945
448,991
6,250,668
Total net assets
13,670,878
35,634,513
782,945
448,991
50,537,327
Investments
22 Contingent liability
A contingent liability arises in respect of allegations concerning the standard of care provided to children at the Congregation’s homes and schools between approximately 1940 and 1984. The amount involved cannot be quantified, but the trustees strongly deny any liability based on the facts available to them. 23 Ultimate control
The charity, which is constituted as a trust, was controlled throughout the period by the Sisters of Charity of St Vincent de Paul, British Province by virtue of the fact that the Sister Provincial of the province appoints the trustees. The province does not hold any assets, incur liabilities or enter into any transactions in its own right. Assets and liabilities of the British Province are vested in the trustees of the charity, who undertake all transactions entered into the course of the Province’s charitable activities. 24 Post balance sheet events
Since the end of the financial year the charity has exchanged contracts on the sale of the property that served as the Congregation’s “Provincial House” (or head office) situated in Mill Hill, London. The sale price on completion has been agreed at £10.56 million with £1.056million being held by the charity as a non-refundable deposit since the exchange of contracts. Payment of the balance of the sale price by the purchaser will be made in two instalments - £6.504 million immediately on completion with £3 million being deferred and paid one year after completion. The deferred payment will be subject to interest at 1% above bank base rate and will be secured on the property.
Sisters of Charity of St Vincent de Paul Charitable Trust 51
Notes to the accounts 31 December 2006 24 Post balance sheet events (continued)
The charity will be relocating its Provincial House to existing properties also located in Mill Hill London. Since the year end these properties have undergone extensive alteration and refurbishment at a cost of approximately £3.2 million. This amount is disclosed as a capital commitment in note 14 to these accounts. In addition, since the year end, the charity has agreed terms for the sale of land at Lanark, Scotland. The land has been sold to developers for a guaranteed minimum sum of £11.1 million with the final sum being dependent on the amount of net developable land for which detailed planning permission can be obtained by the purchaser and subject to the deduction of abnormal costs.
Sisters of Charity of St Vincent de Paul Charitable Trust 52
