# **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MAY 2022**
_“Francis used the TAU in his writings, painted in on the walls and doors of the places where he stayed, and used it as his only signature on his writings."_
Registered charity with the Charity Commission, number 1064356
Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
TSSF **THIRD ORDER, SOCIETY OF ST FRANCIS TRUSTEES REPORT FOR THE YEAR ENDED 31ST MAY 2022**
## **CONTENTS**
Page 3 to 4 Legal and Administrative Information Pages 5 to 9 Trustees' Report Page 10 Independent Examiner's Report to the Trustees Page 11 Statement of Financial Activities Page 12 Balance Sheet Pages 13 to 21 Notes to the Financial Statements
2
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31ST MAY 2022**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
Contact Details
Provincial Secretary TSSF Mr Martin Allen 25 Broadmead Hitchin SG4 9LU Tel: 01462 432761 Email: provsec@tssf.org.uk Website: www.tssf.org.uk Primary Banker The Cooperative Bank PO Box 250 Delf House, Southway Skelmersdale WNB 6WT Independent Examiners Independent Examiners Ltd, Unit 2 The Broadbridge Business Centre, Delling Lane, Bosham, PO18 8NF Unincorporated Charity Legal Status
3
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31ST MAY 2022**
## Governing Instrument
Constitution dated 1989 as amended 1993 by the inter-Provincial Chapter as amended by scheme dated 12 October 1998 and contained within the Rule of the Third Order (Comprising The Principles, The Constitution and the Forms of Renewal and Profession) as amended and approved by the InterProvincial Chapter in 2005 and 2011
## Trustees
The trustees of the Society are those who are elected to serve on the Provincial Chapter[1] , which meets three times a year in February, June and October.
The Order is organised into forty-one Areas with their own Area Teams for administration. There are working groups to support Provincial Officers for Formation, Communications, Finance. In addition, there are other special interest groups under a designated trustee who can give more time and consideration to their areas of interest who make reports and recommendations to the Provincial Chapter as appropriate.
## Election and Appointment of New Trustees.
The trustees of the Society are Tertiaries[2 ] of the Order and as such have made a vow of Profession. They are elected by the Tertiaries of the Order for a maximum of six years with a discernment process after three years. ‘Link Tertiaries’ are trustees who represent a designated geographical area within the United Kingdom and are elected by Tertiaries within that area whilst Provincial Officers are elected by Tertiaries of the whole Order.
_1 The Provincial Chapter is the Provincial governing body or the Order which is here defined as the body of the members of the Order (called ‘Tertiaries’) who have taken a vow to Follow the Rule and Principles of the Order in the spirit of Saint Francis of Assisi._
> _2 The members of the Third Order (called ‘Tertiaries’) who have taken a vow to Follow the Rule and Principles of the Third Order in the spirit of Saint Francis of Assisi._
For the period of these accounts the following Tertiaries have served on the Provincial Chapter and so have been the trustees of TSSF:
Name Office Date commenced or ceased during the year 2021-2022 Timothy Higgins Acting Minister Provincial Martin Allen Provincial Secretary John Lovatt Provincial Treasurer Chris Jenkins Link Tertiary - South West England Anne Lindley Link Tertiary, Central and East England Robin Minney Link Tertiary, North East, North West Carol Robertson Link Tertiary - Scotland and Ireland Wendy Scott Link Tertiary - East Midlands and Yorkshire to June 2021 David McCormick Link Tertiary - East Midlands and Yorkshire from June 2021 Peter Thompson Link Tertiary - Central South England to June 2021 Louise Scott-Joynt Link Tertiary - Central South England from June 2021 to April 2021 Alison Tyler Link Tertiary - London and South East Karen Vincent Link Tertiary - Wales, Severn, West Midlands and Marches
to August 2021
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TSSF
**THIRD ORDER, SOCIETY OF ST FRANCIS**
**TRUSTEES REPORT FOR THE YEAR ENDED 31ST MAY 2022**
**OBJECT** The object of The Society of St Francis is to build a Community of those who accept Christ as their Lord and Master, and are dedicated to Him in body and spirit. They surrender their lives to Him and to the service of His people.
## **The Annual Report**
## **Objectives and Activities**
The European Province of the Third Order of the Society of St Francis, as part of worldwide religious Order, is dedicated to enable people of all conditions to approach the Christian faith using the example of Saint Francis, and to live out the ideals of Franciscan spirituality within contemporary society.
The Order looks to create a sense of Franciscan Community throughout the European Province while encouraging individual members to remain faithful to their local churches. Entry to the organisation is by mutual agreement and at least two years’ preparation under the oversight of a more experienced member in Franciscan history and spirituality. On profession the individual pledges annually to maintain a vow of lifelong intention, God being their helper.
The Order seeks to achieve our objectives through our elected Provincial Chapter and through Cluster groups, Area meetings and monthly local groups, meeting regularly.
## **Public Benefit**
The European Province is a major net contributor to the Order world-wide ensuring that other Provinces, particularly Africa and other deprived areas, are represented across their geographical regions and are able to participate in international Franciscan forums. The Province, through groups, organises activities and publications, which reflect aspects of Franciscan spirituality. The Order publishes Franciscan scholarship and Franciscan perspectives on the issues of the day whilst firmly keeping the door open to all opinions and theological ideas through our regular newssheet and a twice yearly magazine, the former for short newsworthy articles; the latter for more reflective issues.
The Province also seeks to sponsor educational opportunities for individuals from deprived parts of the Order (again, particularly Africa, but also South America, Papua New Guinea, Polynesia and the Solomon Islands) to enable lay or ordained individuals to increase their own Franciscan knowledge which may then be shared with their home communities through our support of Franciscan Aid.
The Province also pays great attention to issues of Creation, Justice and Peace without adopting particular policy positions, thus allowing those holding a wide variety of opinions to come together and share points of view, maintaining unity in diversity.
## **Governance and Management**
The Order administers its funds both through its General Fund and the Area Funds which are incorporated into the whole. Provincial Chapter undertakes to meet local requirements as requested. The aim of this system is to facilitate local independence in meeting the needs of the local organisation of Areas.
## The General Fund
The General Fund includes all the income and expenditure of the Provincial General Fund and the Area accounts, as described above.
## Restricted Funds
The Knox Dick fund was set up from a legacy for a specific continuing purpose of supporting Tertiaries who need some financial assistance to be able to go on retreat.
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TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31ST MAY 2022**
## Designated Funds
The Order sets aside funds designated for specific purposes within the scope of the Provincial
Funds and in keeping with the objects of the Society. They can be time limited as in the case of the General Chapter and the Development Fund, or, as with the Mary Whittam Fund, perceived as its purpose may at some time be ended.
a) The General Chapter Fund has been set up to build up provision for the General Chapter Activities which will take place during 2021-2, to mark the 800th anniversary of the founding of the Order of St Francis.
b) The Mary Whittam Bequest Fund was established to give grants for Tertiaries attending Spiritual Direction training.
**c)** The Development Fund was set up to provide funds for areas of our organisation which need substantial investment outside of normal expenditure.
**d)** The Dixon Trees Fund was established in memory of Peter Dixon, who was Provincial Novice Guardian for many years and died of Covid, so Chapter members as a memorial to him each donated a small sum so that some trees could be purchased for planting by the National Trust
**e)** The Study Group Fund arranges Study weekends (similar to a retreat weekend) and historically each member paid the weekend cost privately. However, this year their payments for the weekends were sent to the TSSF Province bank account, so were treated as designated agency payments.
## **Reserves Policy**
TSSF seeks to ensure that our reserves provide for both long term and medium term needs. At present we have already identified the need to provide for:-
• the cost of the work of Areas and Networks in preparing resources to encourage our vocation during the year 2021-2022, with a General Chapter to which all 1700 Tertiaries are invited, planned for October 2022, in celebration of the 800th anniversary of the founding of the Order in 2021.
• the cost of Development and publications before and after the General Chapter as a result of the year of work in 2021-2022.
• Unforeseen legal and professional fees. We are staffed entirely by volunteers, and recent discussions of our trustees concluded that rather than employ full or part time skilled staff, it would be more efficient to make use of professional advice as and when needed, particularly from legal firms. Recent experiences were the GDPR regulations, where the trustees sought legal advice; a disgruntled member of the Order requested information under the GDPR regulations, and we needed legal advice as to disclosure; legal advice was taken when it appeared that a tertiary might take legal action against the trustees. We anticipate these cases where legal advice will be needed will increase. Professional advice for unforeseen events in accounting, safeguarding, insurance and investment may need to be sought. We also seek to maintain a balance of reserves as recommended by the Charities Commission for our annual expenses.
On this basis, we reckon our reserves should be at least £147,000. The actual funds held are £451,000, of which £88,000 are in a restricted fund for retreats, leaving £363,000 in unrestricted funds. This leaves a surplus over Reserves of £216,000: the main reason for the increased surplus is a bequest of £71,000, but we continue to actively look at how we can best use this surplus within our Objects. The new initiative ‘Funding our Purpose’ is designed to find projects from our membership to address this surplus. Our reserves policy is regularly reviewed by Chapter to ensure our reserves are properly maintained and i nvested.
## **Policy on Investment**
We try to constantly be aware of ethical issues surrounding investments and so try to invest our assets in an ethical manner. We have for the time being selected CCLA, whose main shareholders are The CBF Church of England Investment Fund and the COIF Charities Investment Fund, who take care to ensure their investments are ethical.
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TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31ST MAY 2022**
## **Annual Review of the Order**
The organisation is governed as one of the five Provinces making up the worldwide Order, each responsible for its own governance. This responsibility is given to those who are appointed as Trustees meeting as the Chapter for that purpose. Each Chapter member carries a specific role and responsibility for the work and life of the Community - currently numbering in excess of 1700 Tertiaries. Each Tertiary is attached to one of the 42 Areas of the Province which are identified geographically, members meeting at least monthly with the purpose of resourcing and enabling the specific work and call of the members of the Order.
Each Area is responsible for its programme within the general aim of equipping Tertiaries to practise and develop Franciscan life and vocation. In so doing members are active in the wider community and in public life, with specific interests and commitments. Many of these spring directly from the inspiration and values of Saint Francis of Assisi. These activities can be broadly identified as responding to matters of public interest; at the forefront is our relationship with the environment from climate change to biodiversity as well of division and inequality and related injustice.
Increasing numbers of people and communities speak with concern about threats to the resources of the Planet. Franciscans are likely to be propelled to engage publicly with a passion that experiences the natural world as a created community including all of life, particularly the ‘more than human’, as we express concern for the care and protection of the environment.
In pursuit of these activities, the following items of this Review can be grouped around two dimensions: the first giving attention to the **development** of programmes to equip Tertiaries in their vocation, shaped by the vision of their life in community and in communion with all creation; the second, attention to matters of **governance** to better align them with our core purposes.
## **Development:**
1. A major aspect of this is named as the work of **Formation** and aims to enable Tertiaries to grasp and practise the life of Tertiaries. Training programmes for those new to the Order are now well advanced and being introduced across the province. New attention is being given to resourcing on-going daily life and support in the application of our core guiding document, The Principles.
2. Pursuit of Justice and Peace together with Creation and environment is a core element of the work of Tertiaries. Over the past year a new network of advocates across the Province has received induction training; this new network of Advocates, is resourced through four regional gatherings, so that Advocates will provide guidance and resources for local Areas as well as being proactive with programmes that inspire and encourage Tertiaries in effective ways.
3. As a result of Covid 19 we have introduced effective on-line programmes and developing work via video conferencing, and these have created rich opportunities for enlivening productive relationships across the Province.
4. The impact of Covid has impeded some of our normally expected work of engagement. However, it has been possible to engage in such work by providing significant funding to our connected Religious Communities [for example the Society of Saint Francis Orders] and in so doing support and sustain work with asylum seekers, and assist those who normally offer support, retreat and renewal for the wider community.
5. The design and planning for a General Chapter as a consultation and equipping for members across the Province; this follows a cycle of approximately seven years. Work begun a year ago will be drawn together in four regional gatherings at the close of the year. The purpose of a General Chapter is to form and clarify the mind of the Order in vision and vocation connecting with contemporary issues.
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TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31ST MAY 2022**
## **Governance**
1. During the year a significant item has been the final report of an Independent Review of structure, processes and appointments in the Province. This is in response to recent challenging experience and the Review is now turning this into informed learning for change. The team included legal, academic and informed expertise in the life of religious communities. There will be put in place a Review Implementation Task Group.
2. The responsibilities and statutory requirements to protect and support those at risk has continued to respond to a changing landscape for provision nationally. New policy and practice has been put in place in step with national and statutory Safeguarding requirements and the requirements of GDPR. There is now in place a documented GDPR policy. With the guidance of the Provincial Safeguarding Officer and the Chapter Safeguarding Lead, work has progressed in both the revision of safeguarding policy and casework. The network of Safeguarding Advocates is being strengthened to embed a more effective culture and practice for safeguarding.
3. Communications and specifically the website facility have continued to improve access and information. The addition last year of Mailchimp has been effective in enabling direct, targeted and managed communication with individual Tertiaries across the Province. The addition of a sales facility to the new website is also proving of value. As we emerge from Covid these provisions are becoming significant.
4. Chapter has now started to operate the new _‘Funding our Purpose’_ provision designed to encourage Tertiaries to grow new initiatives and projects by making the necessary finance available to them. This venture is currently to receive a further focus in order to make best impact from the resources provided by Tertiaries.
## **Giving**
The Order is committed to supporting Franciscan activities and charities both on a regular basis and on the occasional 'one off' contribution.
## **STATISTICAL SUMMARY as at 31 May 2022**
|**Professed**|**Noviced**|**Postulants**|**Enquirers**|**Members**|
|---|---|---|---|---|
|31.5.18 1718|105|49|255|**1823**|
|31.5.19 1671|132|46|82|**1803**|
|31.5.20
1623|151|74|142|**1774**|
|31.5.21
1642|117|72|59|**1759**|
|**31.5.22**
**1563**|**155**|**65**|**21**|**1718**|
|**_During year to May 31st 2019:_**|||||
|Noviced|
45||||
|Elected to Profession|16||||
|Released from vows|17||||
|Deaths|
30||||
|**_During year to May 31st 2020:_**|||||
|Noviced|70||||
|Elected to profession|25||||
|Released from vows|28||||
|Deaths|50||||
|**_During year to May 31st 2021:_**|||||
|Noviced|
69||||
|Elected to Profession|35||||
|Released from vows|19||||
|Deaths|
51||||
|**_During year to May 31st 2022:_**|||||
|Noviced|
54||||
|Elected to Profession|34||||
|Released from vows|13||||
|Deaths|
52||||
The increases in novicings and professions are encouraging, although not keeping pace with those dying or being released from vows.
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TSSF
THIRD ORDE SOCIETY OF ST FRANCIS
TRUSTEES REPORT
FOR THE YEAR ENDED 31ST MAY 2022
TFiUSTEES' RESPONSIBILiTIES IN RESPECT OF THE FINANCIAL STATEMENT5
Acknowledging the guidance of the Charity Commi55ion's'Internal financial controls for Chantie5'1cc8-July 20121 and
vear which give a true and fair view of the state Df affairs of the T55F and of the Incoming rE50urces or application of
resource5 of the Order for that period. In preparing these financial statements, the Tru5rees are required to..
make judgments and estimates rhat are reasonable and prudent.,
stale whether applicable aCCOuniinQ standards have been ffollowed, subject to any materlal
It IS Our duty a5 charity trustees to ensure that the charity's resources are proietted in Order that the charity can
one or iwo trusiees or senior offflce holders. or as applylng to some but not others.
to Identily and manage the risk of conflitts of Intere5tr, Ioss, waste, briberyi theft or fraud,.
to ensure that we comply 4Yith the charity law and an¥ regulatsons relatino to finance.
It Is our belleff that we Ilve our Ilves and condutt ourselves as trustees that we do Indeed keep ourselves Informed
and enable them to ensure thai the flnanclal statements comply wllh the Charltles Act 20LI. the Charlty {Accounts
and Reports) Regulatlons and the prov1510n5 of the trust deed. They are also responsible for safeguarding the a55et5
of the charity and hence for taking reasonable 5reps for rhe prevention and detection of fravd and other
5ignatvre Declaration
I declare, in rny capacity of Charity Trustee that the Tru5tee5 have approved the report above, have iuthorised
Full naffle.. WILLIAM JOHN LOVA
Dated.'16.12.22
TSSF
## **INDEPENDENT EXAMINER'S REPORT ON THE ACCOUNTS**
I report on the accounts of the Trust for the year ended 31 May 2022 which are set out on pages 11 to 22.
## **Respective responsibilities of trustees and examiner**
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act
- to state whether particular matters have come to my attention
## **Basis of Independent Examiner's statement**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent Examiner's statement**
In connection with my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the 2011 Act, and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
J. Irvinesmith FCIE
Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF Dated: 4th January 2023
10
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31ST MAY 2022**
|Notes
INCOME AND ENDOWMENTS FROM:
Donations and Legacies
3a
Charitable Activities
3b
Investments
3c
TOTAL INCOME
EXPENDITURE ON:
Charitable Activities
4a
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
Transfers between funds
5,6
OTHER RECOGNISED GAINS AND LOSSES:
Gain/(Loss) on Investments
7
Surplus/(Deficit) of Retreat Funds
17
Surplus/(Deficit) of Agency Funds
17
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total Funds Brought Forward
Adjustment to Area Funds
19
TOTAL FUNDS CARRIED FORWARD|Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2022/21
2021/20
£
£
£
£
£
174,652
7,997
-
182,649
109,171
1,254
-
-
1,254
1,289
5,074
-
2,287
7,361
7,189
180,980
7,997
2,287
191,264
117,649
75,499
12,285
182
87,966
117,065
75,499
12,285
182
87,966
117,065
105,481
(4,288)
2,105
103,298
584
(5,988)
5,988
-
-
-
2,221
-
846
3,067
28,171
-
3,007
-
3,007
(600)
-
1,395
1,395
-
101,714
6,102
2,951
110,767
28,155
190,628
66,703
84,891
342,222
314,067
-
(2,000)
-
(2,000)
-
292,342
70,805
87,842
450,989
342,222|
|---|---|
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 13 to 22 form part of these financial statements.
11
TSSF
THIRD ORDE SOCIETY OF ST FRANCIS
BALANCE SHEET
AS AT 31ST MAY 2022
Unrestricted Desionated
Funds
Funds
Restritted
Funds
31-May-22
TDtal
31-Nay-21
Total
Note
Fixed A%Sèts
Tangible assets
Long Term Investments
179,096
80,729
259,825
256,758
Current A55ets
Cash at bank and In hand
Debtors.. HNRC Cift aid tax refund
Stock
Total Current set5
110.770
62
3.512
114,344
70,805
7,113
188,688
62
3,5L2
192,262
82,399
63
4.082
S6,544
io
FO,8QS
7,113
Creditors.. due within one year
1.098
1,098
1,080
NET CUFiRENT ASSETS
113,246
70,805
7,113
191,164
85,464
TOTAL ASSETS less current liabilities
292.342
70.805
87.842
450.989
342.222
NET AS5Ers
292,342
70,80S
87,842
45D,989
342,222
Funds of the Charity
General Unre5rricted Funds
Restricted Funds
Desionated Funds
292,342
292,342
87.842
70,805
190,628
84.89L
66,703
87,842
70,805
Total Fund5
292.342
70,805
87,842
450,989
342,222
Approved by the Trusiees on ip December 2022, and
Signed on their behalf by
Trustee
PRINT..
WILLIAM JOHN LOATr
12
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31ST MAY 2022**
## 1. ACCOUNTING POLICIES
## **Income**
## _Recognition of Income_
These are included in the Statement of Financial Activities (SOFA) when:
▪ the charity becomes entitled to the income;
▪ the trustees believe it is probable they will receive the income; and
▪ the monetary value can be measured with sufficient reliability
## _Income with related expenditure_
Where income has related expenditure (as with fundraising or contract income) the income and related expenditure are reported gross in the SOFA.
## _Grants and Donations_
Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the income.
## _Tax reclaims on Donations and Gifts_
Income from tax reclaims are included in the SOFA in the same financial period as the gift aid claim is submitted to HMRC. _Contractual Income and Performance Related Grants_
This is only included in the SOFA once the related goods or services has been delivered.
## _Donated Services and Facilities_
These are only included in income (with an equivalent amount in expenditure) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on this income is the estimated value to the charity of the service or facility received.
## _Volunteer Help_
The value of any voluntary help received is not included in the accounts but is described in the trustees' annual report.
## _Investment Income_
This is included in the accounts when receivable.
## _Investment gains and losses_
This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
## _Types of income_
Area Income is defined as contributions made directly to the Area and used for defraying Area costs. It also includes donations given specifically for Franciscan Aid or other Franciscan causes.
## **Expenditure and liabilities**
## _Liability recognition_
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
## _Governance Costs_
Include costs of the preparation and examination of statutory accounts, the costs of the trustees' meetings and cost of any legal advice to trustees on governance or constitutional matters.
## _Grants with performance conditions_
Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.
13
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST MAY 2022**
## _Grants payable without performance conditions_
These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.
## _Assets_
Tangible fixed assets for use by the charity:
These are capitalised if they can be used for more than one year, and cost at least £3,500. They are valued at cost or, if gifted, at the value to the charity on receipt.
## _Stocks and work in progress_
Stocks held include educational literature and brochures distribution and are measured at the lower or cost or net realisable value.
## _Investments_
Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at trustees' best estimate of market value.
## _Types of expenditure_
## _Third Order development and support_
**Area costs** are for Area Team and Area Meeting costs only. Funds are collected for charity (and they have to be a Franciscan Charity) which are held by the area ‘on trust’ until paid out to the specified charity. Supplementary details are shown here consolidated from all Areas. Costs vary widely from Area to Area due to geographical and **Communications** include publications/website/and TSSF training and instructions manuals
**Formation** supports all professed Tertiaries in their Franciscan life. This can be written guidance, training courses and continual support by the Provincial Formation Guardian to Area Formation Guardians. **The Contemplative network** supports Tertiaries who seek to deepen their prayer life by practising contemplation.
**Special Needs Support** transcribes publications and other documents for the benefit of Tertiaries
**Creation, Justice and Peace** seeks to raise awareness and knowledge of these matters in TSSF. **Link Tertiaries** costs are incurred by LT’s in visiting and supporting their Areas
**Novitiate costs** are for the training and support of all who join the Order during the stages of Enquirer, Postulant and Novice. The Provincial Novice Guardian supports Area Novice Guardians in their work with novices. **The Study Network** supports study days for all Tertiaries.
**Spiritual Direction** funds courses for Tertiaries to become Spiritual Directors from time to time.
## _Finance and administration_
**Administration** includes the Honoria paid to both the Membership Secretary and the Minute Secretary together with the expenses of the Provincial Secretary.
## _Outreach_
**Mission.** We seek to maintain a presence at Greenbelt when possible. **Website.** The website provides public access to information and application for membership for the Order. In addition there is a tertiary only section giving TSSF members facilities of enquiry, intercessory prayer lists and documentation downloads.
## _Giving_
To maintain a presence in Assisi to support tertiaries visiting Assisi, to maintain ecumenical relations and for outreach to tourists, TSSF makes a contribution toward the rent of a flat in Assisi. Franciscan Aid is a separate organisation. Grants for aid are initiated by a Tertiary.
TSSF supports Franciscan activities and charities throughout the world and gives donations to the First and Second Orders in recognition of their support to TSSF
## _Governance_
These costs include: Trustee Expenses Costs of Chapter Meetings Independent Examiner's remuneration
14
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST MAY 2022**
## _Basis of preparation_
The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Ireland (FRS102) and the Charities Act 2011.
The charity meets the definition of a public benefit entity under FRS102.
The Trustees consider that the charity is a going concern as it has prepared what it considers to be a viable budget that shows that the current level of unrestricted reserves is appropriate to support the activities planned for the coming year and the foreseeable future.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
2. TANGIBLE FIXED ASSETS AND CAPITAL COMMITMENTS
The charity held no fixed assets during the current or previous financial year.
The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st May 2021 : None
31st May 2022: None
15
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST MAY 2022**
|3. INCOME FROM:
Note
a) Donations and Legacies
Area Income
6(a)
Bequests
Contributions
Donations
Gift Aid Tax Recovered
b) Charitable Activities
Primary Purpose Trading
c) Investment Income
Interest & Dividends
5(a)|Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2022/21
2021/20
£
£
£
£
£
-
7,997
-
7,997
5,522
70,727
-
-
70,727
100
90,994
-
-
90,994
94,233
3,180
-
-
3,180
-
9,751
-
-
9,751
9,316
174,652
7,997
-
182,649
109,171
1,254
-
-
1,254
1,289
1,254
-
-
1,254
1,289
5,074
-
2,287
7,361
7,189
5,074
-
2,287
7,361
7,189|
|---|---|
16
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31ST MAY 2022**
|4. EXPENDITURE ON:
a) Charitable Activities
Note
Third Order Development and Support
Areas
6(a)
Cluster Meetings
Communications - IT
Contemplative Network
Formation
General Chapter 2021
Creation Justice and Peace
Link Tertiaries Expenses
Minister Provincial
Steering Group Expenses
Study Network
Support - Retreats
5(a), 6(a)
Diversity and Inclusion
Finance and Administration
Administration Expenses
Insurance
Treasury
Website and IT Costs
6(a)
Outreach
Publications:
Little Portion - Production and Postage
Franciscan - Subscription and Postage
Intercession Leaflets
TOD Expenses
Assisi Booklets and Other
Publications
Manuals
Noviciate Publications
Cost of goods sold - Primary Purpose Trading
Giving
Assisi Commit.
Donation to CSC
Donation to CSF
Donation to SSF
Franciscan Aid
6(a)
Franciscans International
Other Donations
6(a)
Grants
Governance
Accountancy Services and Independent Exam
Central Fund Contributions**
Trustees' Expenses
Chapter Meetings
Safeguarding
Data Protection *
Independent Review *|Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2022/21
2021/20
£
£
£
£
£
-
10,229
-
10,229
5,165
493
-
-
493
-
381
-
-
381
4,308
398
-
-
398
-
-
-
-
-
381
-
-
-
-
103
40
-
-
40
169
159
-
-
159
237
-
-
-
-
534
176
-
-
176
-
1,430
-
-
1,430
120
-
80
182
262
200
55
-
-
55
665
500
-
-
500
500
1,441
-
-
1,441
960
1,170
-
-
1,170
1,973
3,404
269
-
3,673
-
8,501
-
-
8,501
7,713
12,574
-
-
12,574
12,287
600
-
-
600
550
-
-
-
-
299
145
-
145
-
-
-
-
-
5,899
1,753
-
-
1,753
-
1,603
-
-
1,603
1,602
1,250
-
-
1,250
1,250
-
-
-
-
15,000
11,000
-
-
11,000
12,000
-
-
-
-
20,000
3,000
1,510
-
4,510
3,416
1,015
-
-
1,015
1,015
-
197
-
197
1,888
2,000
-
-
2,000
-
1,098
-
-
1,098
1,080
9,510
-
-
9,510
9,386
1,367
-
-
1,367
378
9,323
-
-
9,323
1,766
863
-
-
863
700
-
-
-
-
821
250
-
-
250
4,700
75,499
12,285
182
87,966
117,065|
|---|---|
* Data Protection and Independent Review: Further legal expenses to ensure compliance, and the legal costs of an independent internal review were incurred in 2022/21, 2021/20 and 2020/19. **Central Fund: Every Province contributes to this to assist in outreach in the worldwide provinces as well as in addition to meet the expenses of the meetings of the Minister Provincials on a regular basis, and to accumulate funds to cover the cost of the InterProvincial Third Order Conference (IPTOC) which takes place every six years.
17
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31ST MAY 2022**
|5. RESTRICTED FUNDS
a) this year
Knox Dick Investment Account
Knox Dick Current Account
b) last year
Knox Dick Investment Account
Knox Dick Current Account|Balance
Income
Investment
Expend-
Transfers
Balance
01-Jun-21
Valuation
iture
31-May-22
£
£
£
£
£
£
79,883
-
846
-
-
80,729
5,008
2,287
-
(182)
-
7,113
84,891
2,287
846
(182)
-
87,842
Balance
Income
Investment
Expend-
Transfers
Balance
01-Jun-20
Valuation
iture
31-May-21
£
£
£
£
£
£
71,023
-
8,860
-
-
79,883
2,996
2,212
-
(200)
-
5,008
74,019
2,212
8,860
(200)
-
84,891|
|---|---|
The Investment valuation is calculated on 31st May 2022 (Last year: 31st May 2021) and details are provided in note 7. Knox Dick: This fund relates to a legacy which enables members of the order who are unable to self fund, to go on retreat.
|6. DESIGNATED FUNDS
a) this year
Area Funds
Area Funds -held on trust for Retreats
Development Fund
General Chapter 2021
Mary Whittam Bequest
Dixon Trees
Study Group -held on trust
b) last year
Area Funds
Area Funds -held on trust for Retreats
Development Fund
General Chapter 2021
Mary Whittam Bequest|Balance
Income
Adjustment
Expend-
Transfers
Balance
01-Jun-21
iture
31-May-22
£
£
£
£
£
£
22,645
7,997
(2,000)
(12,285)
5,988
22,345
1,058
9,161
-
(6,154)
-
4,065
20,000
-
-
-
-
20,000
10,000
-
-
-
-
10,000
13,000
-
-
-
-
13,000
-
25
-
(25)
-
-
-
3,555
-
(2,160)
-
1,395
66,703
20,738
(2,000)
(20,624)
5,988
70,805
Balance
Income
Investment
Expend-
Transfers
Balance
01-Jun-20
Valuation
iture
31-May-21
£
£
£
£
£
£
23,166
4,522
-
3,565
(1,478)
22,645
1,793
1,000
-
1,600
(135)
1,058
20,000
-
-
-
-
20,000
10,000
-
-
103
103
10,000
13,000
-
-
-
-
13,000
67,959
5,522
-
5,268
(1,510)
66,703|
|---|---|
The Development Fund has been set up to provide funds for areas of our organisation which need substantial investment outside of normal expenditure. The review of Chapter life, structure and appointments which is in process is expected to result in major changes. In addition, we anticipate launching a further website and social media initiative as a result of Covid-19.
General Chapter 2021 Fund: This fund was established to build up provision for the General Chapter Activities which will take place from 2021, the 800th anniversary of the founding of the Third Order of St Francis, culminating in celebrations in 2022.
The Mary Whittam Fund was established to give grants for Tertiaries attending Spiritual Direction training. The Area Funds were re-classified in 2020 from general unrestricted funds to designated funds to provide clarity and transparency. Area Income is defined as contributions made directly to the Area and used for defraying Area costs. It also includes donations given specifically for Franciscan Aid or other Franciscan causes.
The Dixon Trees fund relates to Peter Dixon, who was Provincial Novice Guardian for many years and died of Covid, so Chapter members as a memorial to him each donated a small sum so that some trees could be purchased for planting by the National Trust.
The Study Group Fund arranges Study weekends (similar to a retreat weekend) and historically each member paid the weekend cost privately. However, this year their payments for the weekends were sent to the TSSF Province bank account, so were treated as agency payments.
The Adjustment to Area Funds of £2,000 relates to Sweden funds that were previously considered to be a part of the European Province. It has become apparant that they should not have been considered to be a part of the TSSF accounts as they are audited/examined in Sweden and filed with the Swedish authorities. Further information is given in note 19.
18
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST MAY 2022**
|7. INVESTMENTS
Movement in the year:
Market Value - 1st June 2021/1st June 2020
Purchases at cost, less disposals at carrying value
Revaluation/Net unrealised gains/(losses)
Market Value - 31st May 2022/31st May 2021|Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2022/21
2021/20
£
£
£
£
176,875
79,883
256,758
228,588
-
-
-
-
2,221
846
3,067
28,171
179,096
80,729
259,825
256,759|
|---|---|
Holding at 31st May 2022: 3,777 shares in the CCLA Knox Dick Investment Fund - Income Shares and 8,380 shares in the CCLA Designated Fund - Income Shares (as at 31st May 2021: 3,777 shares in the CCLA Knox Dick Investment Fund - Income Shares and 8,380 shares in the CCLA Designated Fund - Income Shares).
|8. CASH AT BANK AND IN HAND
Note
Areas Accounts
Current Accounts
Deposit Accounts
Retreats Account
9. DEBTORS
Gift Aid Tax Recoverable
10. STOCK
Charitable activities:
Opening
Added/Valued in period
Expensed in period
Impaired/Disposed as waste
Closing
Total this year|Unrestricted
Fund
£
-
110,770
-
-
110,770|Designated
Restricted
Fund
Fund
£
£
26,410
-
32,849
-
11,546
-
-
7,113
70,805
7,113
Stocks surplus from|
|---|---|---|
|||primary purpose sales|
The stock values have been calculated as the discounted net realisable value. Some estimates had to be made due to limited access to the store at the Franciscan Convent at Freeland due to the Covid-19 pandemic.
19
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST MAY 2022**
|11. CREDITORS
Independent Examiners Fees
Note 12
Other charity creditors
12. FEES FOR EXAMINATION OF THE ACCOUNTS
Independent examiner's fees for reporting on the accounts
Independent examiner's fees for accountancy services|31-May-22
31-May-21
£
£
1,098
1,080
-
6
1,098
1,086
2022/21
2021/20
£
£
813
804
285
276
1,098
1,080|
|---|---|
13. ANALYSIS OF STAFF COSTS , TRUSTEE REMUNERATION
AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL
|Gross Wages and Salaries
Honoraria
Employer's National Insurance Costs
Pension Contributions|31-May-22
31-May-21
£
£
-
-
1,000
2,000
-
-
-
-
1,000
2,000|
|---|---|
The charity had no employees and therefore no employees received emoluments in excess of £60,000 (2021/2020: None).
In 2022/21 and 2021/20 only honoraria was expended, no payments were made by the charity under PAYE.
Average number of full time equivalent individuals who were engaged in each of the following activities:
|Activities in furtherance of organisation's objects
Support and Administration|2022/21
2021/20
TOTAL
TOTAL
0.375
0.375
-
-
0.375
0.375|
|---|---|
The key management personnel of the charity comprises of the Board of Trustees, Area Teams and Chapter Members. No Trustees are remunerated.
20
TSSF
## **THIRD ORDER, SOCIETY OF ST FRANCIS**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST MAY 2022**
13. ANALYSIS OF STAFF COSTS , TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL
## TRUSTEES AND OTHER RELATED PARTIES
Travel expenses reimbursed to trustees, which were incurred whilst attending trustee meetings totalled £1,367 in this financial period (2021/20: £378).
No other payments were made to trustees or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them.
No donations were received during the year from Trustees or Related Parties.
## 14. RISK ASSESSMENT
The Trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks. During the previous financial year, a risk assessment policy for Covid-19 was issued by the trustees to all the Areas.
## 15. RESERVES POLICY
The Trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Covid-19 pandemic, the increased obligations and risks with GDPR and perceived increased risks with Professional Indemnity confirm that our level of reserves needs to be maintained at its current level. The Trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees will endeavour not to set aside funds unnecessarily.
## 16. AREA RETREATS
As detailed in Appendix 1, some Areas run Area Retreats, which they organise and they are intended to be self funded. In most cases they are self financed, but due to timing differences that often occur between when an Area takes in deposits, and subsequently pays out funds for the Retreat, there are occasions where the charity has temporarily financed any shortfall.
In 2022/21, the surplus on funds received and expended was calculated as £3,007. These funds plus the balance brought forward from last year are held in the Area bank accounts.
## 17. STUDY GROUP
As detailed in Appendix 1, the Study Group arranges Study weekends, which they organise and they are intended to be self funded.
In 2022/21, the surplus on funds received and expended was calculated as £1,395. These funds are held in the Province bank account.
## 18. PUBLIC BENEFIT
The Charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
## 19. ADJUSTMENT TO AREA FUNDS
In 2015 an amount of £2,000 was transferred to the Sweden local bank account and possibly in error, the Sweden bank account was considered at that time to be the responsibility of, and accountable to, the European Province. However, it has appeared since then that the Sweden Area submits its accounts for audit or examination in Sweden, and submits its accounts to the Swedish authorities. Accordingly, the Sweden accounts are no longer considered to be a part of the TSSF annual accounts process as they are audited/examined in their own country of residence.
21
TSSF
## Appendices
The following pages do not form part of the statutory financial statements which are subject to Independent Examination
## Funds on Trust for Area Retreats
The Charity temporarily holds funds on trust for Area retreats. Each area maintains separate accounts which are submitted annually to the Provincial Treasurer for consolidation and review.
They are noted here for transparency purposes.
The funds received and expended during the year are as follows:
|Funds for Retreats bfwd at 1st June 2021
Funds for Retreats surplus for year end 31st May 2022
Contribution from Province
Re-allocated to Province
Funds for Retreats cfwd at 31st May 2022
Represented by:
Held in Areas bank accounts on behalf of Retreatants
The Charity received and expended funds on trust for tree planting in memory.
They are noted here for transparency purposes.
The funds received and expended during the year are as follows:
Funds for Dixon Trees bfwd at 1st June 2021
Funds held at 31st May 2022
Represented by:
Held in charity bank account
The Charity temporarily holds funds on trust for study weekends.
They are noted here for transparency purposes.
The funds received and expended during the year are as follows:
Funds for Study Group bfwd at 1st June 2021
Funds held at 31st May 2022
Represented by:
Held in charity bank account
Retreat funds received 2022/21
Retreat funds expended 2022/21
Funds on Trust for Dixon Trees
Dixon Trees funds received 2022/21
Dixon Trees funds expended 2022/21
Funds on Trust for Study Group
Study Group funds received 2022/21
Study Group funds expended 2022/21|2022/21
£
1,058
9,161
(6,154)
3,007
-
-
4,065
2022/21
£
4,065
2022/21
£
-
25
(25)
0
2022/21
£
-
£
0
3,555
(2,160)
1,395
2022/21
£
1,395|
|---|---|
22