Page 85 - Demo

is based on the need to provide £15,000 per annum for sisters over 65 years of age and, because of the greater health needs, £35,000 per annum for sisters over 75 years of age and £55,000 for those over the age of 85 years.
Following the disposal of a substantial freehold property in the north west of England, the trustees have set aside a total of £5,000,000 in a “Financing and Institutional Fund” at 31 December 2016. While much work has to be done
on deciding exactly how these funds are to be applied, the broad intention of the trustees is to use them to nance the work of the sisters for the mission of serving refugees, asylum seekers and homeless people, in the United Kingdom. Ministering to the homeless has long been a focus for the institute. While a large proportion of the money has been invested with a view to generating income to apply as grants to be made to organisations working in this arena each year, it is anticipated also that some of the money may be applied directly to the provision of assistance to the homeless by the sisters in individual projects managed at community level.
The tangible xed assets fund totals £6,978,211 and is represented by tangible xed assets used to support the work of the sisters including the properties in which they live and from which their work is coordinated.
Restricted funds of £236,823 are held for speci c purposes as detailed in note 17 to the attached accounts with the majority to be applied towards the institute’s missions in the developing world.
Funds which are available to support the work of the sisters in the future i.e. free reserves are those shown on the balance sheet as general funds and total £2,880,808. These free reserves fall within the parameters of the charity’s reserves policy set out above.
The free reserves are considered adequate when viewed in the light of the commitment to fund the running costs of a care home for older and frail sisters, the charity’s annual expenditure and the increasing age pro le of the members of the institute. There is also a lack of new vocations and therefore no prospect of increased income in the future. There are only modest resources remaining to look after the ever-growing number of sisters needing increasing, and increasingly expensive, residential and nursing care.
The nancial position of the charity, and the reserves policy itself, are subject to review by the trustees on an annual basis at least.
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