an assessment of resources available for the congregation mission presented by l&p financial...
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An Assessment of Resources available for the Congregation Mission
Presented by L&P Financial Trustees
Canada
January 2011
CANADA / US PROVINCE
Sisters of Our Lady of Sion
3
METHODOLOGY
• Review of Province Information received• Establishment of Basis for projections• Meeting with Provincial Leadership Team: 1st Sep 2009• Projections completed• Compilation of Report and Appendices• Report presented – Chapter, July 2010
MEMBERSHIP
Sisters of Our Lady of Sion
5
CURRENT MEMBERSHIP – CANADA/USA (2009)*
31
2
2
114
9
114
CANADA
Edmonton 2
Montreal 4
Saskatoon 9
Toronto 11
Winnipeg 4
USA
Boston 1
Brooklyn / New Jersey 3
Chicago 2
Maine 1
St Paul, Minnesota 1
*As per Membership Listing, 2009
Sisters of Our Lady of Sion
FUTURE MEMBERSHIP BY AGE GROUP – CAN/US
6
Sisters of Our Lady of SionFUTURE MEMBERSHIP PROJECTIONS – CAN/US
7
2009Actual
2014Estimate
2019Estimate
2024Estimate
Under 40 0 0 2 2
41-50 0 0 0 1
51-60 3 1 0 0
61-70 17 9 3 1
71-80 10 13 16 8
81-90 4 7 6 10
Over 90 4 2 1 2
Total Membership 38 31 29 25
Average Age 72.6 75.4 75.3 76.6
Sisters of Our Lady of Sion
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FUTURE MEMBERSHIP IMPLICATIONS – CAN/US
• Primary resource, Sisters – diminishing• Projected 13 fewer Sisters in 15 yrs
– A 35% reduction
– Average age increasing
• Diverse geographical location of Sisters• Vocation Projections Critical
– 13% (3 Sisters) in 2024 not yet in Congregation
• Influence of Sisters returning to the Province• Candidates for Leadership Roles
– Only 1 Sister aged between 50 & 70 in 15 years
• Care for Sisters – independent or government facilities
FINANCE
Sisters of Our Lady of Sion
10
• Earned Income– Pensions (Government and Occupational)
– Salaries and Stipends
– Superannuation
• Donations• Indirect Income – Federal Provision of Care
INCOME SOURCES
Sisters of Our Lady of Sion
11
• Sisters Living Costs• Long Term Care / Medical Care• Transport & Travel• Personnel• Administration / Leadership Support• Maintenance & Utilities• Apostolic Activities / Ministries• Contribution to General Administration• Formation / Education• Donations
EXPENDITURE CATEGORIES
Sisters of Our Lady of Sion
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CurrentCAN $
2014CAN $
2019CAN $
Income 1,054,000 1,054,126 1,017,351
Expenditure (1,618,000) (1,913,071) (2,506,559)
Deficit (564,000) (858,945) (1,489,208)
Number of Sisters 38 31 29
Per Capita Income 27,737 33,560 35,174
Per Capita Expenditure (42,579) (60,906) (86,662)
Investments* 14,040,000 15,363,423 14,406,093
Deficit as a % of Investments -4.0% -5.6% -10.3%
PROVINCE INCOME & EXPENDITURE
Sisters of Our Lady of Sion
13
Current€
2014€
2019€
Income 5,980,070 6,337,083 6,811,117
Expenditure (8,120,303) (9,798,069) (11,793,587)
Deficit (2,140,233) (3,460,986) (4,982,470)
Number of Sisters 412 318 249
Per Capita Income 14,515 19,912 27,299
Per Capita Expenditure (19,709) (30,787) (47,269)
Investments* 73,736,872 96,542,236 122,621,158
Deficit as a % of Investments -2.9% -3.6% -4.1%
CONGREGATION INCOME & EXPENDITURE
*Includes assets of Ministries in Jerusalem & Property Associations, France
Sisters of Our Lady of Sion
INCOME AND EXPENDITURE – CURRENT €
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Income Expenditure DeficitDeficit as % Investments
Australia / Philippines 274,863 (478,893) (204,031) -5.3%
Canada / USA 663,851 (1,019,081) (355,230) -4.0%
Brazil 994,837 (1,142,261) (147,424) -1.7%
Central America 163,904 (269,261) (105,357) -10.3%
Mediterranean 290,771 (331,796) (41,025) -3.2%
Europe 635,000 (962,500) (327,500) -4.1%
UK & Ireland 449,284 (1,135,004) (685,720) -8.9%
Romania 71,250 (87,000) (15,750) -4.2%
Italy 120,000 (176,600) (56,600) -2.9%
Contemplatives 327,500 (499,500) (172,000) -4.4%
Sisters of Our Lady of Sion
PER CAPITA INCOME & EXPENDITURE – CURRENT €
15
Income Expenditure DeficitDeficit as % Investments
Australia / Philippines 10,180 (17,737) (7,557) -5.3%
Canada / USA 17,470 (26,818) (9,348) -4.0%
Brazil 14,212 (16,318) (2,106) -1.7%
Central America 4,683 (7,693) (3,010) -10.3%
Mediterranean 5,934 (6,771) (837) -3.2%
Europe 8,819 (13,368) (4,549) -4.1%
UK & Ireland 11,823 (29,869) (18,045) -8.9%
Romania 2,850 (4,800) (630) -4.2%
Italy 8,571 (18,906) (4,043) -2.9%
Contemplatives 7,443 (17,085) (3,909) -4.4%
CONGREGATION
AVERAGE14,515 (19,709) (5,195) -2.9%
Sisters of Our Lady of Sion
VARIATIONS IN COST OF LIVING – BIG MAC INDEX
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Local Currency US Dollar ($)
No. of working minutes required to
purchase a Big Mac
Australia AUS$ 4.34 3.37 14
Philippines Peso 99.39 2.05 88
Canada CAN$ 3.89 3.35 12
USA US$ 3.57 3.57 13
Costa Rica ¢ 2000 3.43 60
Mediterranean (Israel) Shekel 15 3.77 24
Europe (Eurozone) €3.31 4.62 21
Brazil R$ 8.03 4.02 40
Romania Lei 10.45 3.50 42
UK & Ireland £2.29 3.69 13
Sisters of Our Lady of Sion
TOP 10 EXPENDITURE ITEMS
EXPENDITURE ITEMCurrent (2009) % Total
Expenditure
Expenditure Per Capita
CAN $ CAN $
Sisters Living Costs 500,000 31% 13,158
Administration 325,000 20% 8,553
Care - Over 75 200,000 12% 5,263
Medical - All Sisters 100,000 6% 2,632
Transportation 100,000 6% 2,632
Contributions to Generalate 65,000 4% 1,711
Formation, Education & Vocation 63,000 4% 1,658
Maintenance & Running Costs 60,000 4% 1,579
Personnel Costs 55,000 3% 1,447
Communication 35,000 2% 921
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Sisters of Our Lady of Sion
EXPENDITURE
EXPENDITURE ITEMCurrent (2009)
% Total Expenditure
Expenditure Per Capita
CAN $ CAN $
Administration 325,000 20% 8,553
Property Costs 510,000 32% 13,421
Sisters Living Costs (excluding Rent) 130,000 8% 3,421
Medical - All Sisters 100,000 6% 2,632
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Sisters of Our Lady of SionHEALTHCARE & CARE EXPENDITURE (2008)
Medical Expenditure per
Sister €
Aged Care Expenditure per
Sister €
Total Government Per
Capita Health Care Support €
Average Age Sisters (2009)
Australia / Philippines 1,539 639 2,589 69
Canada / USA 1,313 2,089 3,807 73
Brazil 795 3,883 369 72
Central America 975 - 351 74
Mediterranean 891 - 464 81
Europe 972 - 3,035 81
Italy - 7,107 2,281 86
Contemplatives 1,364 341 1,584 71
Romania 280 560 227 73
Sisters of Our Lady of Sion
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VALUE OF EURO Vs INTERNATIONAL CURRENCIES 2006 –2010
Movement US$ CAN$ STG£ R$ AUS $ ¢ Lei (Romania)
Dec 06 - Dec 09 9% -2% 34% -12% -4% 21% 25%
Dec 07 - Dec 09 -3% 4% 22% -5% -4% 11% 17%
Dec 08 - Dec 09 2% -13% -8% -25% -21% 5% 6%
Dec 09 - Jun 10 -14% -15% -9% -11% -12% -20% 1%
An Assessment of Resources available for the Congregation Mission
To be continued
Canada
January 2011
INVESTMENTS
Sisters of Our Lady of Sion
SUMMARY CONCLUSIONS – FINANCIAL (€)
23
CAN $M%
Change
Current Financial Assets* 14.04 -
Initial Projection - 2014 15.36 9%
Initial Projection - 2019 14.40 -6%
Membership Reduction to 2014 -17%
Membership Reduction to 2019 -8%
Sisters of Our Lady of Sion
PROVINCE INVESTMENTS – CAN $
Year
Fund Value at Beginning of
Year
Capital Inflows / Outflows
Annual Surplus / (Deficit)
Annual Investment
GainFund Value at End of Year
CAN $ CAN $ CAN $ CAN $ CAN $Current (2009) 14,040,000
2010 14,040,000 (642,145) 960,325 14,358,180
2011 14,358,180 (682,229) 981,195 14,657,145
2012 14,657,145 (724,342) 1,000,648 14,933,452
2013 14,933,452 (762,904) 1,018,640 15,189,188
2014 15,189,188 (858,945) 1,033,180 15,363,423
2015 15,363,423 (966,219) 1,041,622 15,438,826
2016 15,438,826 (1,082,106) 1,042,844 15,399,564
2017 15,399,564 (1,207,347) 1,035,712 15,227,929
2018 15,227,929 (1,342,754) 1,018,959 14,904,134
2019 14,904,134 (1,489,208) 991,167 14,406,093 24
Sisters of Our Lady of Sion
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• Funds from which the Province can benefit• Overall total = CAN$14.04m• Projected Annual Yield = 7%• Current Annual Deficit = -4.0%• Investment income used to fund annual deficits
– Based on current projections, use capital of investments by 2016
– Reduces value of investments back to current levels by 2019 after a period of growth
PROVINCE INVESTMENTS
Sisters of Our Lady of Sion
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• Particular & appropriate investment policy– Based on financial needs– Short-term (next 12 months)– Long-term (3 years and beyond)
• Use of money & investments– Mission of stewardship– Duty of leadership to manage money actively and positively
• Ethical and socially responsible investment– Congregation Investment Policy– Each area should agree policy in writing with Managers
• Ensure investments reflect ethos of Congregation / Province
INVESTMENT POLICIES - RECOMMENDATIONS
PROPERTY
Sisters of Our Lady of Sion
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PROPERTY – A RESOURCE
• Property Types• Province / Region Property Valuations• Specific Investment Properties
• Property Categorisation• Assessment of Future Factors• Strategic Property Planning
Sisters of Our Lady of Sion
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PROPERTY BY TYPE & CATEGORY
Category Property
Type PropertyNumber of Properties
Medium Term
Residence 3
Mixed use 1
Ministry 0
Other 0
TOTAL 4
Sisters of Our Lady of Sion
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• Membership Reduction will be 39% in next 10 years – 35% in next 15 years
• Limited capacity to sell property– Limited need for Property Strategy– Possible need for Vocations?
Would property purchase for new communities be logical?
ASSESSMENT OF FUTURE FACTORS
GOVERNANCE
Sisters of Our Lady of Sion
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• Responsibilities have Altered– Education Centres / Care Facilities / Biblical Formation Centres
• International Change in Practice and Reality– External Financial Support Reduced Influence
– Dependence on Support Compliance with State
– Advent of Lay Persons Civil Structures
• Separation of “Trustee” Roles– Trustee of Ministry Enterprise
– Trustee of Property
32
GOVERNANCE IN MINISTRIES
Need for Clarification of Congregation / Sisters’ Responsibilities
32
Sisters of Our Lady of Sion
33
QUESTIONS?
OVERVIEW & CONCLUSIONS
Sisters of Our Lady of Sion
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1. Reducing Membership– Primary resource but Sisters will diminish in numbers– Smaller reduction than other areas of the Congregation
2. Diverse Geographical Location of Sisters– Challenge re provision of accommodation for Sisters– Small size communities– Accommodation – rental properties results in increased costs
3. High expenditure per Sister– Per capita expenditure 36% higher than Congregation Average
PROVINCIAL CHALLENGES
Sisters of Our Lady of Sion
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4. Care Provision– No large central communities or Provincial Care Home– Care provided on an individual basis– Difficult to maintain a sense of community
5. Financial Profile– Currently stable / healthy– Investment income covers deficit– By 2016 may need to use capital to cover increasing deficit
6. Small number of properties owned– Less potential to increase investments from property sales
7. Strategic Plan recommended– Incorporate future financial planning– Indicate likely future need and appropriate funding of Mission
PROVINCIAL CHALLENGES
Sisters of Our Lady of Sion
37
• Report reflects elements that can be measured– People– Finance – Property
• Energy and enthusiasm of Members cannot be measured• Motivation, Commitment, Dedication
– Maximised when challenges identified – Accepted by Congregation not just a collection of individuals
• Unity of purpose and commitment to support Congregation– Essential to serve unique Mission
CONGREGATIONAL CHALLENGE – SUMMARY
Sisters of Our Lady of Sion
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THANKS
We have been very pleased and honoured to have the opportunity to report to the General Administration of the Sisters of Our Lady
of Sion. We hope that our study and recommendations are of value in meeting the challenges which the General
Administration faces. We wish to thank the Provincial Leadership Team, Sisters Mary, Jackie, Bernadette and also Paul for all their
assistance and encouragement throughout our assignment
Sisters of Our Lady of Sion
39
REFLECTION
END OF PRESENTATION
An Assessment of Resources available for the Congregation Mission
Presented by L&P Financial Trustees
Canada
January 2011
L&P Financial Trustees is authorised by the Financial Regulator to carry out Investment Advisory Services. All other services provided to clients do not
require licensing, authorisation or registration with the Financial Regulator, and are not covered by the Financial Regulator's requirements designed to protect
consumers or by a statutory compensation fund.
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