an assessment of resources available for the congregation mission presented by l&p financial...

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

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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


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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


FUTURE MEMBERSHIP BY AGE GROUP – CAN/US

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Sisters of Our Lady of SionFUTURE MEMBERSHIP PROJECTIONS – CAN/US

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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


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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


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• Earned Income– Pensions (Government and Occupational)

– Salaries and Stipends

– Superannuation

• Donations• Indirect Income – Federal Provision of Care

INCOME SOURCES


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• 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


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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


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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


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%


PER CAPITA INCOME & EXPENDITURE – CURRENT €

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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%


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


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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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


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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%


To be continued

Canada

January 2011

INVESTMENTS


SUMMARY CONCLUSIONS – FINANCIAL (€)

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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%


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


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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


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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


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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


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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


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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


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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

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GOVERNANCE IN MINISTRIES

Need for Clarification of Congregation / Sisters’ Responsibilities

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QUESTIONS?

OVERVIEW & CONCLUSIONS


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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


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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


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• 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


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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


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REFLECTION

END OF PRESENTATION


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.

an assessment of resources available for the congregation mission presented by l&p financial...

Documents

number of sisters

sisters diminishingprojected

fewer sisters

sisters independent

lady of sionincome

membership listing

expenditure current

current membership canadausa