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2020-12-31-accounts

Charity Registration Number: 1135474 Company Registration Number: 07010772 (England and Wales)

The Franciscan Missionaries of St. Joseph

Accounts

For the Year Ended 31 December 2020

The Franciscan Missionaries of St. Joseph Accounts for the Year Ending 31 December 2020

Index

1 Charity Information
2 Report of the Trustees
41 Auditor's Report
45 Statement of Financial Activities
48 Balance Sheet
49 Consolidated Statement of Cash Flows
51 Notes to the Accounts

The Franciscan Missionaries of St. Joseph

Charity Information

For the Year Ended 31 December 2020

Trustees Sister Maureen Murphy
Sister Anne Moore
Sister Margaret Nyabongoye
Sister Brenda Makokha
Sister Joan Kerley
Congregation Leader Sister Maureen Murphy
Congregational Bursar Sister Anne Moore
Secretary General Sister Brenda Makokha
Registered Office St Joseph’s Convent
150 Greenleach Lane
Worsley, Manchester
M28 2TS
Registered Charity Number 1135474
Registered Company Number 07010772
Accountants John A. Porter & Co.
74 Dickenson Road
Manchester
M14 5HF
Auditors Azets Audit Services
Alpha House, 4 Greek Street
Stockport
SK3 8AB
Bankers Royal Bank of Scotland plc
St Ann’s Street, St Ann’s Square
Manchester
M60 2SS
Investment Brokers Earnshaw Consultants Ltd
Cadman House
2 Wharf Road
Sale
M33 2AF
Solicitors Stone King LLP
13 Queen Square
Bath
BA1 2HJ

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Report of the Trustees

The Trustees present the report and audited accounts for the Congregation of the Franciscan Missionaries of St Joseph for the year ended 31 December 2020.

Introduction

The Congregation of the Franciscan Missionaries of St Joseph of the Third Order Regular of St Francis of Assisi (the Order) was founded in 1883 and is regulated by a Trust Deed dated 27[th] December 1963.

The Order was incorporated by order of the Charity Commissioners sealed on the 2nd day of June 1983 in the matter of a Charity for Roman Catholic purposes administered in connection with the Congregation of the Franciscan Missionary Sisters of St. Joseph of the Third Order Regular of St Francis of Assisi (hereinafter called "the Congregation") which Charity is regulated by a Trust Deed dated the 27[th] day of December 1963 as varied or affected by Schemes of the Charity Commissioners of the 14[th] day of December 1982 and the 29[th] day of August 1996.

The Order is registered with the Charity Commission under Charity Registration Number 1135474 and with Companies House as a Charitable Company Limited by Guarantee with no Share Capital (Registered Company Number 07010772 (England and Wales)). The Company was incorporated on 7 September 2009 and the functions and assets of The Order were transferred to the Company on 1 January 2011 by a Transfer Deed dated 18 February 2011.

The Congregation is an international Roman Catholic religious congregation supporting 108 Sisters worldwide and it is divided into five distinct regions or administrative areas across the world .

Mission

The Congregation of the Franciscan Missionaries of St Joseph aims to support the religious and other charitable works carried on by the members of the Congregation and to care for those members throughout their lives within the Congregation.

The charitable work of the Congregation is authorised in England and Wales or elsewhere under the direction of the Congregation as the Trustees and this is currently undertaken in England, Ireland, United States of America, Kenya, Uganda, Ecuador, The Netherlands and Germany.

The ministries of the Sisters of the Congregation are built on and supported by a ministry of prayer and benefit large numbers of the general public. Our ministries fall into the following main areas:

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

• Social and Pastoral Work

Many Sisters of the Congregation are involved in various forms of social or pastoral work, including care of the elderly, the sick and under privileged and chaplaincy in hospitals and universities.

• Operation of Residential Care Establishments

During the year the Sisters provided care and assistance to the elderly at two establishments operated by the Charity; Franciscan Convent, Blackburn which provides care for Sisters of the Congregation and some members of the general public and Franciscan Convent, Burnley which provides care for Sisters of the Congregation in need of care.

• Overseas Missionary Work

The Sisters are engaged in missionary activity in and beyond our own country or culture. The Charity helps to support Sisters working in healthcare, education, social and pastoral ministries in Kenya, Uganda and Ecuador.

Governance, Structure and Management

In terms of Canon Law, the Congregation is governed at an international level by the Congregational Leader and her General Councillors in Manchester, UK. They are elected every six years at a meeting of representatives of all the regions of the Congregation. The Congregational Leader and her Council govern the whole Congregation and historically have particular responsibility for the UK, The Netherlands, The United States and Germany. Ireland, Ecuador and Kenya are governed by a Regional Leader and her Council but are responsible to the Congregational Leadership Team who are the Trustees of the Charity. Uganda is governed by the Regional Leader and Council in Kenya. The Trustees are elected for their personal qualities, their understanding and experience of the ministries of the Sisters and to secure a good skills mix among them.

Each community is governed by a local Leader appointed by the Regional or Congregational Leader. Four communities without a resident local leader are now responsible to one appointed local leader. There is a system of accountability operational throughout the Congregation to ensure that the Congregational Leader and her Councillors are aware of the progress and development of the ministries carried out by the Sisters of the Congregation. The Congregational Leader visits every community at least once every three years and visits are also made by the Sisters in the Leadership Team at regular intervals.

In terms of Civil Law the Charity is governed by a Trust Deed dated 27 December 1963 and is a Registered Charity. The Trustees of the Charity are the Congregational Leader, her four Councillors and the Congregational Bursar. At the present time the Congregational Bursar is also a Councillor and this means there are five instead of the normal six Trustees. As all the Trustees are members of the Congregation they have a detailed knowledge of the work of the Charity and its structure. On being appointed there is a handover period of up to six months during which time the old and new teams work together to ensure continuity and a

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

full understanding of responsibilities. Trustees are required to take part in on-going training to ensure they are kept up to date with changes in legal, accountancy and investment regulations.

The names of the Trustees who served during the year are set out as part of the reference and administrative details which follow, together with brief biographical details on each of the Trustees.

From 1 January 2020 to 31 December 2020

Congregation Leader Sister Maureen Murphy
Congregational Councillors Sister Anne Moore
(Assistant Congregational Leader)
Sister Margaret Nyabongoye
Sister Brenda Makokha
Sister Joan Kerley
Congregational Bursar Sister Anne Moore

The Trustees were appointed at the General Chapter on 18 June 2017 for a six year term until the next General Chapter in June 2023.

The Secretary General’s appointment expired at the 2017 General Chapter and Sister Brenda Makokha was appointed for a period of three years. Sister Brenda Makokha was reappointed for a further period of three years in June 2020.

The Congregational Bursar’s appointment expired at the 2017 General Chapter and Sister Anne Moore was reappointed for a three year period. Sister Anne Moore was re-appointed for a further period of three years in June 2020.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Sister Maureen Murphy – Congregational Leader

Having had a career in hospital administration, Sister Maureen entered the Congregation at the age of 31. After initial training she completed a Certificate in Pastoral Studies at the Missionary Institute in London and was then appointed to Ecuador where she worked in catechetics, parish ministry and the initiation of Base Ecclesial Communities. After four years, sickness necessitated Sister Maureen’s return to the UK where she was asked to work in congregational finance. In 1993 Sister Maureen was appointed Congregational Bursar, a position she held until the 2011 General Chapter. In 1999 she was elected a General Councillor and she was re-elected for a second term in 2005. Sister Maureen served for six years as Chair of the Association of Provincial Bursars. She is also Treasurer to the Christian Council on Ageing.

Sister Maureen’s interest in theology led her to study by distance learning for a Bachelor of Theology Degree and she later obtained an MA in Theology, writing her dissertation on the subject of Spirituality and Ageing. Using her research she has been able to help members of our own Congregation who are ageing and has been invited to speak to other Congregations needing help in this area. She has also been able to train lay staff both in our own homes and those of other congregations.

Sister Maureen’s experience in Ecuador means that she is a fluent Spanish speaker and therefore able to communicate with our young Sisters in Ecuador who are not yet fluent in English.

We live in a time of great change in every area of life and Sister Maureen has completed study at the Craighead Institute in Glasgow following a diploma course in Organisational consultancy and facilitation to help enable our Congregation to move forward, change and develop with the needs of our time. She has also trained as a spiritual director.

Sister Maureen was re-elected as Congregational Leader at the 2017 General Chapter for a six year term .

Sister Anne Moore – Assistant Congregational Leader and Congregational Bursar

Sister Anne entered the Congregation at the age of 17. After initial formation she trained as a teacher in Sedgley Park College of Education and then taught for one year in St Hilda’s Comprehensive Secondary School in Burnley. She then did a diploma in Missiology at the Missionary Institute in London before going to Kenya in October 1976.

Sister Anne taught in a Secondary School in Kisii, Kenya, for eight years. From January 1985 till 2011 Sister Anne was the Religious Education Adviser for Kisumu diocese. This involved working with primary school teachers and catechists in the diocese. From 1993 to 2011 she was on the staff of the Mill Hill Missionaries Basic Formation Centre in western Kenya on a part time basis teaching some classes and helping with spiritual direction.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

In 1987 she was appointed Regional Superior for Kenya for six years and at the end of this term was reappointed for another six years until 1999. In 1999 she went to the Jesuit Milltown Institute in Dublin for 2 years where she did an MA in Spirituality. She went back to Kenya in 2001 and was appointed Regional Bursar, a position she held until the General Chapter of 2011. Sister Anne was also the Juniorate Directress and Chairperson of the Formation Team. She was elected onto the Regional Council as the Assistant Regional Leader .

At the 2011 General Chapter Sister Anne was elected as a member of the General Council and also as the Assistant Congregational Leader for a period of 6 years. After being elected to the General Council Sister Anne returned to the UK. Sister Anne was re-elected as Assistant Congregational Leader at the 2017 General Chapter for a further six year term .

Following the 2011 General Chapter Sister Anne was appointed as the Congregational Bursar for a 3 year term and has been reappointed to this position for further 3 year terms in June 2014, June 2017 and June 2020.

Sister Margaret Nyabongoye

Sister Margaret joined the Congregation after working for over a year as a qualified Nurse and Midwife. She finished her initial formation at the age of 27 years and was then appointed to the Holy Family Convent, Kisumu, Kenya, where she did a one year certificate course in Public Health, and later worked in Community Based Health Care and Child Survival programmes in the Archdiocese of Kisumu. After some years she was appointed to Marigat Mobile Clinic, a clinic run by the Franciscan Missionaries of St Joseph in a semi-arid area of the Rift Valley, Kenya.

In 1998/1999, Sister Margaret did a one year certificate course in Franciscan Formation and Spiritual Direction at the Franciscan Study Centre, Canterbury, UK. After completion, in 2000, Sister Margaret was appointed to the Nairobi Novitiate as the Assistant Novice Mistress. While in the novitiate, she also did some more selected studies on Formation in Tangaza College in Nairobi and after two years of assisting in the Novitiate, she was appointed Novice Mistress, a position she held for six years and at the end of 2008 went for a 3 months sabbatical course.

Sister Margaret was part of the African Regional Leadership Team for three terms (9 years) and as Formator to the Temporary Professed Sisters in the African Region for 6 years. Sister Margaret was also involved (between 2009 and 2011) in Pastoral Work in the Parish of Luanda in western Kenya and at the same time assisted in the Mill Hill Missionaries/FMSJ Joint Formation Programme, mainly in the area of Pastoral Outreach and Spiritual direction.

In 2011, Sister Margaret was part of a team of four sisters commissioned in the foundation of a new FMSJ community in Panyangara, Kotido Diocese, Karamoja, which is a

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

marginalized region in the northern part of Uganda. In Panyangara, Sister Margaret engaged in Pastoral work with the local community. During this time Sister also attended a course organised by the Association of Religious of Uganda on basic Financial Management. At the end of 2016, after 5 years in Uganda, Sister Margaret was appointed back to Kenya to assist in the finance office at a Diocesan Secondary School in Mpeketoni, Malindi Diocese.

At the 2017 General Chapter, Sister Margaret was elected as a member of the General Council for a six year term and was subsequently appointed as Novice Mistress in the UK for a period of three years. Sister Margaret was re-appointed to this position for a further period of three years in June 2020.

Sister Brenda Makokha – Secretary General

Sister Brenda entered the Congregation in 1997 at the age of 24. After her initial formation in Kenya, Sister Brenda was appointed to St. Theresa’s community in Marigat, in the Kenyan Rift Valley and here she was involved in parish work from December 1999 to 2002, working with internally displaced people at St. Francis Centre.

From 2002 to 2005, Sister Brenda trained as a social worker at Kobujoi Development Training Institute, obtaining a Diploma in Social Development work. Upon completion of her studies, Sister Brenda was appointed to Witu Parish in Malindi diocese to open a new FMSJ community. In Witu Sister Brenda was involved in working with other denominations in interreligious dialogue on issues of security. She was also involved in working with people living with HIV/AIDS and women’s groups. Due to the social dynamic of the ministry, Sister Brenda did a certificate course in Pastoral Counseling from December 2005 to August 2006 at Amani Counseling Centre in Nairobi.

From August 2007 to June 2008 the Congregation asked Sister Brenda to do a course in Formation and Administration at Loreto House/IMU in Dublin. She was then appointed preNovitiate director for the Congregation for a three year term. During this time Sister Brenda was part of the staff of the FMSJ and Mill Hill Missionaries Joint Basic Formation programme in Luanda.

In 2011, Sister Brenda was appointed Regional Superior for Africa covering Kenya and Uganda, for a six year period. During her term as Regional Superior, Sister Brenda also served as a member of the Executive Committee of the Sisterhoods of Kenya (AOSK) for six years, being responsible for formation. From 2013 to 2018 Sister Brenda was on the staff of the Mill Hill Missionaries formation programme in Nairobi accompanying students on their formation journey. In 2013 Sister Brenda also did an online certificate course in Child Protection in Development Practice through the Kimmage Development Studies Centre in Ireland. From 2016- 2018, Sister Brenda served on the Board of Trustees of Tangaza University College in Nairobi.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

At the 2017 General Chapter, Sister Brenda was elected as a member of the General Council for a six year term. Following the General Chapter she was appointed as the Secretary General for a term of three years. Sister Brenda was re-appointed to this position for a further period of three years in June 2020.

Sister Joan Kerley

Sister Joan Kerley entered the Congregation in Albany, N.Y. in 1973 at the age of 26, having already completed a Bachelor of Science cum laude degree from the College of St. Rose and a Master of Science degree from the State University of New York at Albany. When she entered, she was a primary school teacher in Rensselaer, N.Y. and received tenure there shortly before resigning to enter the novitiate in June 1974. Sister Joan has worked in the United States in several parishes as a director of religious education and as a missionary in Kenya from 1980 to 1984 where she taught in a secondary girls’ school in Nyabururu and then was the Director of Religious Education for the Diocese of Kisumu.

On her return to the U.S. Sister Joan attended the Institute of Religious Formation program in St. Louis, Mo., a post graduate program to prepare people for formation work. After 6 years as the Vocation Director in the U.S. and doing parish work in Middletown, Ct., Sister Joan attended Fordham University and completed a Master of Arts degree in Religious Education, specialising in spiritual direction and pastoral counselling. She has also completed a 3 year residency program in family systems therapy at Onondaga Pastoral Counseling Center to qualify as a fellow in the American Association of Pastoral Counseling. For the past 17 years, Sister Joan worked at Le Moyne College in Syracuse, N.Y. first in Campus Ministry and then as the first Director of the award winning Office of Servicelearning. She also worked as a spiritual director for over 15 years at the Spiritual Renewal Center in Syracuse, where she did individual spiritual direction as well as being part of a team which directed the Spiritual Exercises of St. Ignatius in daily life.

After being elected to the General Council in June 2011, Sister Joan moved to Manchester in December 2011. Currently she is formation coordinator for the Congregation and ongoing formation coordinator for the FMSJ Associate programme.

At the 2017 General Chapter Sister Joan was re-elected as a General Councillor for a six year term.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Trustees Responsibilities

The Trustees, who are also the Directors of The Franciscan Missionaries of St. Joseph for the purpose of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including income and expenditure, of the Charitable Company for that year. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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

The Trustees are ultimately responsible for the policies, activities and assets of the Charity. They meet regularly to review developments with regard to the Charity and to make any important decisions in conjunction with advice from our Professional Advisers .

Sisters live in the UK in 11 communities. The majority of houses are in Salford Diocese where the Congregation was founded, one house is in Leyland and one in Freshfield, Liverpool. From these various locations the Sisters minister to the poor and marginalised in society. Local leaders, in charge of these communities, liaise regularly with the Trustees.

The day to day responsibility for Franciscan Convent, Blackburn, a registered residential care home, rests with the Manager, Mrs Cheryl Weall. Similarly, day to day responsibility for Franciscan Convent, Burnley, rests with the Manager, Mrs Janet Crawford. Both Managers meet regularly with the Congregational Bursar who reports back to the Trustees.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Overseas Houses

There are overseas houses located in Ireland, the United States of America, Kenya, Uganda and Ecuador. In addition there are two Sisters located in The Netherlands. The Dutch Sisters reside in a state run retirement home and their Dutch Pensions are used to pay the retirement home fees. Any surplus personal allowance is periodically remitted to the UK Central Fund. No bank account is maintained in The Netherlands.

Internal transactions of overseas houses are not incorporated in the financial statements set out on pages 45 to 71.

Unaudited accounts for each overseas region and notes thereon, are set out on pages 72A to 123A.

There is now only one Sister in the United States and an accountant is employed part-time to prepare the accounts. There is no longer a US Region, the remaining Sister living in America is now part of the UK area.

A program to strengthen financial management overseas is ongoing. This program includes regular visits to each Region by the Bursar General and a re-affirmation of the financial guidelines under which each Region operates with particular regard to the requirement to communicate financial changes and planned financial changes to the Bursar General.

Where appropriate, the appointment of external Regional accountants will be considered and this has already been actioned in the United States of America Area. The Africa Region have appointed external auditors who assist with the preparation of the Africa Region accounts which are set out on pages 91A – 118A.

Working with Other Organisations

The Charity works closely with a number of other charities in the field of providing care to the vulnerable and elderly. In some instances Sisters are employed by these organisations, whilst in other circumstances the relationships are more informal. In all cases, working together with other charities enhances communication and understanding, thus enabling services to the elderly to be provided more effectively and avoiding duplication of effort. Examples of the organisations for which members have worked and with which the charity has co-operated during the year are as follows:

Roman Catholic Archdiocese of Liverpool Roman Catholic Diocese of Salford Caritas, Diocese of Salford Rainbow Family Trust, Salford Mill Hill Missionaries The Medaille Trust L’Arche, Manchester The DePaul Charity “Nightstop”

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

• Risk Management

In line with the requirement for Trustees to undertake a risk assessment, the Trustees have identified and reviewed the major risks to which the Charity is exposed and systems have been established to mitigate those risks. The Trustees have identified the following areas where risks may occur.

Risk Register - Governance Risks Risk Register - Governance Risks
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Organisation
lacks
direction &
forward
planning		 •The organisation has no
clear objectives, priorities
or plans
•Issues are addressed
piecemeal with no strategic
reference
•Needs of beneficiaries not
fully addressed
•Financial management
difficulties
•Loss of reputation		 ✓Organisation established a
strategic plan in 2017
✓6 year strategic plan
✓Re-structuring process of
The Order is due to
complete in 2023 – external
support working with the
organisation
✓Ethos of organisation
remains the provision of a
service for the poor and
vulnerable
✓Constitution & Directives
related to revised strategy
submitted for comment
✓Leadership Team meetings
held monthly to review
operations across the
organisation
✓Financial and operational
performance is reviewed at
both Trustee & Leadership
team meetings.		 Low Monitor &
Maintain
existing
controls

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Governance Risks - Continued Risk Register - Governance Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Trustee body
lacks
relevant skills
or
commitment		 •Organisation fails to
achieve its purpose
•Trustees are bypassed in
the decision making
process
•Resentment or apathy
amongst staff & volunteers
•Poor decision making
reflected in poor service
delivery		 ✓Trustee Body membership
static until 2023 with 6 year
term served by Trustees
✓Life commitment to The
Order
✓Trustee meetings held
separate to Leadership
Team meetings
✓Production of a Trustee
report annually
✓Trustees receive reports
from all operating areas and
provide opportunity for
regular communication
(either virtually via Zoom or
through use of WatsApp)
✓Trustee meetings held at
least quarterly		 Low Monitor &
Maintain
existing
controls
Trustees
dominated by
one or two
individuals
(or
connected
individuals)		 •Trustees body cannot
operate effectively as a
strategic body
•Decisions made outside
the Trustee body
•Conflicts of interest
•Pursuit of personal agenda
•Culture of secrecy
•Arbitrary overriding of
control mechanisms		 ✓Each Trustee has equal
voting rights so no one
individual with veto
✓All Trustees are elected
members of the organisation
✓All decisions taken are ratified
by either Trustees or
Leadership Team
✓The organisation promotes a
culture of openness and
communication across all
operational areas with
personnel required to declare
any conflicts of interest
✓Minutes of all meetings
circulated between members
of Leadership Team or
Trustee Body
✓Monthly newsletter produced
and disseminated across the
organisation
Low		 Monitor &
Maintain
existing
controls

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Governance Risks - Continued Risk Register - Governance Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Trustees are
benefiting
from the
organisation		 •Poor reputation, morale &
ethos
•Adverse impact on overall
environment
•Conflicts of interest
•Possible regulatory action		 ✓Trustees are all voluntary
✓Feedback mechanisms in
position for all personnel to
ensure ethos, morale and
reputation is maintained at
all levels within the
organisation
✓Trustees are committed to
ethos and operations of the
organisation – life
commitment
✓Advice & guidance obtained
as and when required from
external specialists in
relation to any potential
adverse issue including
regulatory concerns
✓No historical or current legal
issues impacting on the
organisation		 Low Monitor &
Maintain
existing
controls
Conflicts of
interest		 •Organisation unable to
pursue its own interests &
agenda
•Decisions may not be
based on relevant
considerations
•Impact on reputation
•Private benefit		 ✓Regular meetings where any
conflicts of interest would
have to be declared
✓All decisions taken relate to
the operation of the
organisation as all Trustees
and members of the
Leadership Team are 100%
committed – life commitment
✓Constitution of organisation
– aims and objectives are
reviewed on an ongoing
basis
✓Organisation activities
subject to scrutiny via
external specialists – e.g.
firm of accountants etc to
prevent any possible private
benefit		 Low Monitor &
Maintain
existing
controls

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020
Risk Register - Governance Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Ineffective
organisational
structure		 •Remoteness from
operational activities
•Uncertainty as to roles &
duties
•Decisions made at
inappropriate level to
excessive bureaucracy		 ✓Re-structure of congregation
ongoing and due to be
finalised in 2023
✓Regular contact between
senior personnel and
operating areas – Kenya &
Ecuador plus care homes in
Burnley and Blackburn etc.
✓Regular meetings /
discussions held with
personnel in relation to the
planned changes in the
organisations structure
✓Development of organisation
identified as being required
to address future
requirements
✓Use of Zoom meetings and
WatsApp to maintain
communication throughout
Covid-19 (coronavirus)
pandemic		 Low Monitor &
Maintain
existing
controls
Loss of key
staff		 •Experience / skills are lost
•Operational impacts on key
projects & priorities
•Loss of contact base &
corporate knowledge		 ✓Trustees and Leadership
Team members in position
for 6 year terms
✓Personnel skills regularly
reviewed and awareness of
the relevant roles across the
organisation
✓Care Home Managers
monitor skills and training of
personnel within relevant
locations
✓Team based ethos in
position to ensure coverage
of requirements
✓Local management are
responsible for operational
activities and ensuring key
personnel in position to
ensure maintenance of
activities		 Low Monitor &
Maintain
existing
controls

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Governance Risks - Continued Risk Register - Governance Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Reporting to
Trustees		 •Inadequate information
resulting in poor quality
decision making
•Failure of Trustees to fulfil
their control functions
•Trustee body becomes
remote & ill informed		 ✓Regular reports received and
discussed from all operation
areas
✓Trustees and Leadership
Team hold regular meetings
with minutes circulated
around members of the
relevant bodies
✓Ethos of organisation is
openness and transparency
✓Annual Trustees’ report
produced		 Low Monitor &
Maintain
existing
controls
Risk Register - Operational Risks Risk Register - Operational Risks
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Contract Risk •Contract has onerous
terms and conditions
•Contract has penalties for
non performance
•Contract does not comply
with the organisations
objectives		 ✓Legal advice in position re
contract terms and conditions
✓External specialists are
consulted for any activity
which may have a level of
risk associated and
measures established
accordingly
✓Contracts with organisations
reviewed on a regular basis
✓Financial limit established for
contracts which if exceeded
requires the Trustees to
review
✓Employment law contracts in
position		 Low Monitor &
Maintain
existing
controls

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Operational Risks - Continued Risk Register - Operational Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Customer /
client
dissatisfaction		 •Complaints are made by
beneficiaries
•Income is lost
•Loss of significant
contracts
•Claims for negligence
•Damage to reputation		 ✓Whistleblowing policy in
position
✓External auditing via
regulators – e.g. CQC & Fire
authorities etc. would identify
issues in respect of areas of
concern & result in remedial
action being undertaken by
the organisation
✓Feedback & reporting
mechanisms in position to
address any potential
dissatisfaction
✓Opportunities provided for
personnel to discuss any
issues on an ongoing basis
with senior personnel		 Low Monitor &
Maintain
existing
controls
Lack of
project or
service
development		 •Lack of compatibility with
objectives and strategies
•Loss of financial support
•Loss of relevant skills
required for the project or
service		 ✓6 year strategic plan in
position & subject to ongoing
review
✓Recent expansion of projects
in Kenya (December 2020)
✓Financial support for projects
is via a budget process
which is subject to regular
monitoring
✓Investment Committee
review funding requirements
✓Funding obtained from
external body in respect of
development of projects /
operations in Kenya		 Low Monitor &
Maintain
existing
controls

16

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Operational Risks - Continued Risk Register - Operational Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Dependency
on key
supplier		 •Loss of objectives if key
supplier is not there
•Lack of buying power by
the organisation		 ✓Organisation has no
dependency upon any
supplier
✓Tendering process
undertaken in respect of any
large contracts – three
quotations obtained
✓Retained surveyor in position
to review suppliers utilised or
to be used and ensure
objectives achieved
✓Organisation conducts
regular reviews of financial
operations in conjunction
with an external firm of
accountants		 Low Monitor &
Maintain
existing
controls
Building &
resource
capacity
unused		 •Underutilised or lack of
building space
•Mismatch of staff
allocations		 ✓Organisation has 2 care
homes – one of which is
leased plus the
Headquarters of the
organisation in Worsley plus
other premises which are
rented out – currently the
level of building space is felt
to meet the needs of the
organisation
✓Recruitment policy in
position to address any
vacancies within care
premises
✓Recruitment levels monitored
to ensure coverage of
requirements for all
operations – senior personnel
at relevant sites responsible
Low		 Monitor &
Maintain
existing
controls

17

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Operational Risks - Continued Risk Register - Operational Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Security of
assets /
information		 •Assets are lost or
damaged
•Assets are stolen		 ✓Locations occupied on a
24/7 basis
✓An Asset register is
maintained via insurance
contracts
✓GDPR policy in position and
communicated across the
organisation
✓Cloud system now used for
‘backing-up’ of data & data
retrieval
✓External IT support via a
member of accountancy
personnel
✓Deeds for premises and
contracts with Diocese held
in a fireproof safe at the
headquarters of the
organisation		 Low Monitor &
Maintain
existing
controls
Employment
Issues		 • Disputes amongst staff
• Non-compliance with
employment law / health
& safety law
• Claims for unfair
dismissal etc.
• Perceived lack of equal
opportunities
• Lack of staff awareness &
training
•Low morale		 ✓Professional advice and
guidance obtained on both
employment and health &
safety issues
✓DBS checks and references
are obtained prior to
personnel being employed
✓Staff training matrices
maintained at care facilities
✓Conduct of 1-1 with senior
personnel and supervisions /
appraisals conducted by in-
house managers for all
members of personnel
✓In person visits recommenced
following Covid-19
(coronavirus) pandemic plus
regular phone calls, emails
and regular communication to
maintain morale throughout
pandemic
✓Range of policies &
procedures related to
employment law and staffing
requirements in position
Low		 Monitor &
Maintain
existing
controls

18

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Operational Risks - Continued Risk Register - Operational Risks - Continued Risk Register - Operational Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
High turnover
of staff		 •Loss of specialist skills &
experience
•Increase in recruitment
costs
•Increase in training costs
•Decrease in morale		 ✓Regular review & monitoring
of staffing requirements by
senior personnel to ensure
operations able to be
maintained
✓Exit interviews undertaken
✓Relatively stable level of
personnel for a consistent
period		 Low Monitor &
Maintain
existing
controls
Health and
safety
compliance		 •Injuries to staff,
volunteers & members of
the public
•Damage to reputation
•Increased insurance
premiums
•Loss of services through
lack of personnel
•Loss of services through
enforcement action		 ✓Fire authorities conduct visits
to care homes to monitor
compliance
✓Professional advice and
guidance is sought from
specialists
✓Safeguarding reporting
procedures established &
followed
✓Regular review of policies and
procedures
✓General & specific risk
assessments are conducted &
reviewed
✓Specific contract in position to
cover legionella risk
✓Insurance policy and
coverage subject to annual
review via senior Leadership
team
✓Care regulator – CQC –
conduct visits to the care
homes operated by the
organisation with published
reports


Low		 Monitor &
Maintain
existing
controls

19

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Operational Risks - Continued Risk Register - Operational Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Business
continuity		 •Lack of access to the
premises
•Loss of information &
communication systems
•Loss of personnel in a key
job role		 ✓Operations maintained
effectively throughout the
Covid-19 (coronavirus)
pandemic
✓Information ‘backed up’ in the
cloud & new IT equipment
obtained for assistant to the
Bursar to enable ‘home
working’
✓Continuity plans established
for the care homes & head
office
✓Key staff have deputies and
team based ethos in position
within the organisation
✓Organisational review
currently in progress
considering all aspects of the
organisations’ operations – 6
year strategic plan
✓Organisation registered with
the Information
Commissioners’Office		 Low Monitor &
Maintain
existing
controls
Procedures &
systems		 •Lack of awareness of
procedures and systems
•Authority not sought for
major decisions
•Poor information
technology systems		 ✓Well established systems and
procedures in position within
the organisation
✓Senior personnel aware of
operations and maintenance
and communication of
systems and procedures
✓Information technology
systems are regularly
reviewed in relation to
organisational needs –
availability of third-party
support
✓Leadership team reviews and
communicates all major
decisions
✓Feedback obtained in respect
of systems and procedures
and linked to decision making
of the Leadership team as
required
Low		 Monitor &
Maintain
existing
controls

20

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Financial Risks Risk Register - Financial Risks Risk Register - Financial Risks
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Control of
budgets		 •Budget does not match
organisational objectives
•Poor credit control		 ✓Budget established and
subject to regular review
✓Investment performance is
monitored via regular monthly
meetings with external
specialists (virtually at
present)
✓Procedures established to
monitor the budget against
income / expenditure
✓Senior Leadership team
undertake a quarterly review
with external accountancy firm		 Low Monitor &
Maintain
existing
controls
Cash flow •Inability to meet
commitments
•Impact on operational
activities		 ✓Cash flow projections
obtained via liaison with
accountants
✓Reserves maintained at an
agreed level to ensure
organisation able to address
relevant issues
✓Commitments maintained as
far as reasonably practicable
& determined within the
overall budget plan for the
organisation
✓Virtual monthly meeting of the
Investment Committee to
review performance of
investments and to inform
budgeting
Low		 Monitor &
Maintain
existing
controls
Dependencies
on income
sources
•Loss of income		 ✓No major dependency on one
source of income
✓Diversification of investment
plans has been made in
conjunction with specialists
retained by the organisation
✓Income levels are monitored,
and budgets adjusted
accordingly		 Medium Dependency
on ‘Irish Aid’
for activities
in Kenya to
be kept
under
review with
alternative
sources of
finance
identified to
cover
require-
ments

21

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Risk Register - Financial Risks - Continued Risk Register - Financial Risks - Continued Risk Register - Financial Risks - Continued
This is the
risk area /
topic		 These are the potential
impacts on the
organisation		 This is how we are currently
reducing the risk		 Priority This is
what we
need to do
to further
reduce the
risk
Investment •Financial loss through
inappropriate investment
•Unforeseen investment
conditions
•Cash flow difficulties		 ✓Investment strategy is
regularly reviewed in
conjunction with specialists
✓Professional, impartial
investment advice is sought
✓Regular meetings and
appraisals take place with
Investment Manager /
Advisors
✓Accountants / Fund Managers
provide monthly information
and provide regular briefings
via telephone or ‘Zoom’
currently
✓Ethical and socially
responsible policy followed for
investments

Low		 Monitor &
Maintain
existing
controls
Financial
guidelines		 •Enforcement action
•Reputational damage		 ✓Qualified professionals are
regularly consulted to review
financial information and
ensure it is in line with
current legislation and best
practice
✓Regular appraisal meetings
take place to keep Trustees
up to date
✓Pension scheme operated
via retained accountants
✓No member of personnel
furloughed since end of March
2021ted via accountants with
any changes to financial
requirements and legislation
identified – e.g. furlough pay
for personnel		 Low Monitor &
Maintain
existing
controls
Fraud or error •Enforcement action
•Reputational damage		 ✓Financial control procedures
are regularly reviewed
✓‘Financial norms’ booklet
issued to all personnel in
The Order
✓Spending guidelines and
controls established with
relevant personnel required
to authorise spending of any
funds
✓Documented whistle blowing
policy is in place
✓Authorisation limits in position
in relationtofinancialaspects		 Low Monitor &
Maintain
existing
controls

22

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Conflict of Interest

In order to follow best practice, the Charity requires a register of interests to be compiled and maintained by the Trustees on an ongoing basis. The table below records the potential conflicts of interest where one of the Trustees of The Franciscan Missionaries of St. Joseph is also a Trustee of other Charities.

Sister Maureen Murphy

Date of Entry Description of Potential Conflict of Interest on Register January 2014 Trustee of Christian Council on Ageing

Public Benefit

The Charity Commission now requires charities to make a statement in their Trustees Report about the benefit they provide to the public. We welcome this opportunity to highlight our work because all our ministries are people centred and this applies both at home and overseas.

A detailed list of our ministries is given under the section heading Social and Pastoral Work on page 25. In addition to these various works our Sisters strive in their daily living and contact with people to provide a listening ear, kindness and practical help in the form of food and clothing to the many people who come knocking on our doors, a situation which is becoming more frequent as government help decreases and more people need support.

We welcome into our homes those who wish to join our communities for prayer and who seek spiritual help and guidance. Many such people are unable to afford to pay for professional help and they welcome the opportunity to share problems and seek solutions through counselling or spiritual direction given by our Sisters.

Whilst much of our charitable work is highly visible there are also immeasurable benefits to the public which derive from our ministry of prayer. We receive prayer requests from all over the world through our website and people greatly value this service.

Our elderly and infirm Sisters remain fully engaged in this ministry long after they become frail and physically disabled and they therefore continue to contribute to the well being of those around them.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Activities and specific objectives

As stated above under ‘Mission’ the activities of the Charity can be divided into four principal areas:-

1 . Caring for Members of the Congregation

In common with many other religious congregations, the age profile of the Sisters in the Congregation is increasing as existing members grow older and there are fewer religious vocations except in our Kenya Region. The age profile is shown below.

----- Start of picture text -----
Age Profile 2020
as at 31 December 2020
40
35
35
30 33
25
20
21
15
10
5 8
7 5
0
Under 30 30-49 50-59 60-69 70-79 80 & Over
----- End of picture text -----

The Congregation has an obligation, both legal and moral, to care for its members, none of whom have resources of their own and all of whom have devoted many years of their lives to the care of the elderly, poor and marginalized of our society. As the age profile of the Congregation increases so too does the need to provide increasing and increasingly expensive care to the Sisters. At the year end date, 14 Sisters were cared for in our two Care Homes. It remains the aim of the Trustees to:

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

2. Social and Pastoral Work

The following are examples of social and pastoral work undertaken by individual Sisters who play an important role in local communities.

The aims of Trustees in this area include:

3. Care Homes

The Charity operates two registered Care Homes for the elderly. The philosophy of care in both homes aims to provide the residents with a secure, relaxed and homely environment in which their care, well being and comfort are of prime importance.

The mission of the Franciscan Missionaries of St Joseph flows from our belief in the sanctity of life and the dignity of the human person. We believe every person is created in the image of God and has an equal right to our respect, care and love.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Our Franciscan ethos is the value base of our holistic care expressed in meeting the physical, spiritual, social and psychological needs of our older, sick and infirm Sisters. We provide this care in collaboration with our co-workers, sharing in the mission of Christ. “I have come that you may have life and have it abundantly” (John 10:10)

Franciscan Convent, Blackburn

There are thirteen registered rooms, several of which have en-suite facilities. There is also another floor which is not registered and which is used for the Sisters living in the convent but not requiring care. The Home provides care for both our own Sisters and for female members of the general public. The Home has its own chapel, which is open to visitors, and large grounds. The last Care Quality Commission Inspection which took place in January 2020 stated that the residents “told us they felt very safe and well cared for in the home and the staff were always kind, caring and respectful of their dignity and privacy”. The family of Sister Germaine Henry who died in Blackburn wrote “On behalf of the Henry family I would like to pass on our sincere thanks for not only your long-time care of Sister Germaine but also for extending such wonderful hospitality on the day of the funeral. It was always a joy to visit in Blackburn, knowing we were met with friendship, and fellowship on our arrival (not to mention the very welcome tray of tea, coffee and biscuits!)”.

An Infection Control Inspection was carried out by the Care Quality Commission in February 2021 and the report stated: “The registered manager had established robust infection prevention and control procedures which were understood and adhered to by the staff. Whilst the service was closed to all but essential visitors in accordance with Government guidelines, a room had been equipped with a screen to help facilitate safe visiting arrangements, when restrictions are eased. There was also clear signage for visitors and personal protective equipment (PPE) was available at the entrance to the home.

Franciscan Convent, Burnley

The Home has sixteen registered beds including three which are registered specifically for those suffering from dementia. Care is provided only for Sisters of the Congregation at the present time but can also be extended to Sisters of other Congregations. The Home has its own chapel, spacious lounges, a library and conservatory. Its town centre location means that it is easily accessible and ensures that the Residents can avail themselves of local facilities and amenities.

In running these two Homes the Trustees aim to:

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

4. Overseas Missionary Work

The Congregation has Sisters working overseas in Kenya, Uganda, Ecuador and Ireland. The one Sister in the USA is now retired though engages in voluntary work. There are two Sisters living in retirement in The Netherlands. A tremendous need continues for ministry overseas and the Sisters are engaged in many medical, pastoral, education, social work and catechetical apostolates particularly among the poor.

We closed Santa Clara house in Quito, Ecuador at the end of December 2018 and the Sister who lived there moved to our community in Puerto Quito in the costal region of Ecuador where she is engaged in parish and catechetical work.

The increased number of Sisters in Kenya has enabled our work there to expand and to respond to further unmet local needs. In promoting Christian values in their mission of evangelisation the Sisters endeavour to encourage confidence in the local people in order to help them to become self sufficient and to undertake leadership roles. We aim to continue to expand our work as needs arise.

In 2011 our Kenyan Sisters fulfilled their wish to become missionaries outside of Kenya when four sisters founded our new mission in Panyangara, Uganda.

At the beginning of May 2013 we closed our house in Nyabururu, in Kisii diocese, and opened a new house in Nyamira which is in a more remote and needy area of Kisii diocese.

A second house in Nairobi, Rochdale House, was opened in 2015 to support our Sisters’ ongoing work in Kenya. We now have two houses in Nairobi, namely Ingham House and Rochdale House.

In late 2016 our Kenyan Sisters were pleased to open a new house in Mpeketoni, Lamu County which makes it our third house in Malindi Diocese.

In December 2020 our Kenyan Sisters took over the management of St Vincent de Paul Mission hospital from the Sisters of Mercy. The hospital is in Muhoroni which is an outlying, rural area, of Kisumu diocese. The Sisters of Mercy asked our Sisters to take over the running of the hospital as they no longer had the personnel. The hospital offers

27

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

a much needed service to the local community, comprising inpatient and outpatient care, maternity services, a mortuary, an x-ray department and a pathology laboratory.

The novitiate in Nairobi continues to thrive and £14,000 per year is transferred each year from the UK to fund Kenya formation programmes. It is the aim of the Trustees to continue this funding for as long as possible.

Protection of Children and Vulnerable Adults

The Trustees recognise the need to ensure the protection and safety of all those the Charity serves. This means that all Sisters who are in any kind of ministry in Great Britain have to obtain clearance from the Disclosure and Barring Service (DBS). The same applies to all staff and volunteers. The Trustees are committed to the implementation of all policies and procedures of the Catholic Safeguarding Advisory Service.

Investment Policy

The Trust Deed dated 27[th] December 1963 does not specify investment powers and the 1961 Trustee Investment Act therefore applied.

Under a scheme of the Charity Commissioners dated 29[th] August 1996 the Trustees were granted wider powers of investment with an 85%:15% split between wider and narrower range investments.

The Trustee Act 2000 superseded this scheme and investments are now regulated by the Trustee Act 2000.

The Charity’s Investments are managed by Earnshaw Consultants Ltd of Sale, Cheshire. The investment strategy is set by the Trustees and takes into account income requirements in the short, medium and long term. An investment committee comprising of two Trustees, two Sisters of the Congregation and professional advisers meets monthly to review our investments. The aim is to provide income and capital growth to fund existing and future apostolates of the Congregation, both in the UK and overseas. Funds are also required for initial and on-going training programmes and for the costs of caring for our sick, elderly and incapacitated Sisters.

The policy is to maximise total return through a diversified portfolio and a level of income determined by the Trustees. We also endeavour to invest in socially responsible funds consistent with a Roman Catholic ethos in order to avoid investing in organisations or areas which have policies inconsistent with social justice.

Our ethical considerations will always take into account the requirement for security and the need to provide an acceptable investment performance but we are mindful of Christian teaching and endeavour to avoid investment in activities contrary to our beliefs.

28

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Achievements and Performance – Review of activities

We now describe the main achievements during the year in each of our principal activities.

1. Care of the Members of the Congregation

Throughout the year the Charity continued to assist the Sisters of the Congregation in their charitable and religious work. Fourteen Sisters were cared for in the Charity’s own care homes and the Charity enabled other Sisters to work and volunteer in their chosen ministries.

The 2017 General Chapter enabled a total review and evaluation of the Congregations work at home and overseas and formulated plans for future development.

The congregation is currently working on a revision and restructuring of our Constitutions and Directives. This is taking the place of the normal mid-Chapter evaluation and planning exercise across the congregation. The final proposals will be submitted to the Chapter in 2023 for formal approval and subsequently the new Constitutions will be sent to Rome for approval.

2. Social and Pastoral Work

Throughout the year Sisters continued to carry out various social and pastoral ministries and to play an invaluable role in local communities through their work. We continue to expand our ministries in response to local need and large numbers of people benefit from our work both in the UK and in all overseas missions. We describe the work of two of our sisters to illustrate some of our charitable activities.

a) Sister Maureen O’Driscoll

Sister Maureen O’Driscoll is a Registered General Nurse and a Registered Sick Children’s Nurse and she has been working at Francis House Children’s Hospice in Didsbury, Manchester, since it opened in 1991.

Sister Maureen with hospice resident

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

In 2014 a new unit called “Francis House Families Ltd” (website: www.francishouse.org.uk) opened and as an experienced senior nurse Sister Maureen was asked to go there to get the unit up and running.

The unit was set up in response to a need identified by hospice staff. It came to their attention that some of the young people who attended the hospice for regular care were returning home to very difficult circumstances. In one case, a single parent with health problems was struggling to provide 24 hour care for a young man with physical disabilities. The alternative would have been for him to be in a nursing home with elderly residents. The unit accommodates seven young people with serious lifelimiting illnesses. Their ages range from 19 to 31 years. Sister Maureen says the demand for places in the unit is high and another similar unit is opening soon.

Sister Maureen’s role as Senior Nurse is full-time and involves shift work (evenings and weekends). It includes nursing care, attending hospital appointments, liaising with other health care professionals, management duties and staff training. Sister Maureen says: “Although I loved nursing at the hospice, I am more useful here and I know it is the right place for me to be at the moment”.

Pandemic

In common with most people Sister Maureen says that the pandemic has had a dramatic effect on their lives at Francis House. She says “we think we have come through it well, all things considered”.

She describes the impact of the pandemic in this way: “the young ones were officially “shielded” and not allowed out. This was difficult at first. Two of them, who attended college, were doing lessons at home. Families were not allowed to visit. We used virtual platforms such as zoom and facetime. Medical appointments were on-line or telephone consultations. We did social distancing as much as possible, especially at meal times. Staff wore face masks all the time, and gloves and aprons when needed. At one time it looked as though we were going to run out of P.P.E (personal protective equipment). Our suppliers had run out of stock. Fortunately, our manager was able to source additional supplies”.

Sister Maureen also relates that when the testing started, it became a regular routine for staff and residents. They are all tested three times a week (one P.C.R. test, and two rapid lateral flow tests). She goes on to say that for months everyone was clear. Then she says, “it happened !!” Two staff had positive results. Emergency testing was arranged for everyone and results came back showing 3 residents and 5 more staff were positive. This, Sister Maureen says, was very worrying because the young ones all have serious underlying conditions and less resistance to infection. They had to be transferred to the main hospice where isolation facilities are easier. Fortunately all three had mild or no symptoms and were able to return after 10 days. Some of the staff, however, were very unwell with breathing problems and fatigue. Working with reduced staffing levels was another difficulty.

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Sister Maureen is relieved to say that since then the unit and hospice are now in a better place as they have all had the vaccine and restrictions are lifting. They are still all tested three times a week. Sometimes staff have been tested positive and had to isolate. Sister Maureen says that this happened to her too. She had no symptoms, but the P.C.R. test came back positive and she had to stay at home for 10 days and she adds, “the other Sister in our convent had to stay home too. Friends and family brought food, so we were not short of anything”.

At the moment (May 2021), Sister Maureen feels the outlook is more optimistic in that things seem to be slowly returning to normal. She says, “our young ones can go out. Families can visit. Medical appointments can be face to face if needed. We are fortunate in that we live in a lovely residential area with easy access to parks, shops, cinema, restaurants, and good transport links to other areas. Our young ones can have a good quality of life where medical needs are met, independence is promoted and family involvement is encouraged”.

Over the years, Sister Maureen has seen Francis House Hospice change and grow as it responds to the needs of the children and families. She can remember the day in early 1990 when Sr. Aloysius came to tell us that “we are thinking about the possibility of starting a hospice, and if so we will be using this building” (our convent). She says “I think we can be very proud of what we have achieved so far and look to the future with confidence. I think it is especially significant that we respect and support families of “all faiths and none”. We have children, families and staff of Muslim, Jewish and Christian faiths. After all, in any culture, a sick child is a sick child, and a parent is a parent”.

b) Sister Anne Pilling

Sister Anne is a registered nurse who worked in Kenya for twenty years before coming to the UK in 2000. From 2000 to 2006 Sister Anne was the manager of the Residential Care Home for our Sisters in Burnley. In 2006 Sister Anne moved to the retirement home for British members of St. Joseph’s Missionary Society of Mill Hill (Mill Hill Missionaries) as the nurse/line manager. This house was established in the Formby area of Liverpool in 1935 to provide retirement facilities for those who had spent their lives working overseas as Missionaries in Africa, Asia and South America.

Sister Anne with some residents

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Sister Anne says that although the house is not a Registered Care Home following government regulations is a requirement and a high quality of care is provided. There are 28 residents in the home at present requiring different levels of care, ranging from those whose needs are greater to those who are fairly independent. There are twelve Care staff, which includes two nurses, as well as ancillary staff, providing 24 hour care.

Sister Anne says there is a good team spirit among the staff, the majority of whom have worked together for many years. Sister Anne sees her job as making sure the residents are given the best possible care whilst maintaining their independence, giving them freedom of choice, and ensuring their need for privacy is upheld.

Impact of the Pandemic

Sister Anne relates how things changed dramatically in the Home at the beginning of the pandemic, from 22nd March 2020. This began, she recounts, when six of the residents developed high temperatures and another had no sense of taste or smell. On 28th March two residents were seen by the paramedics and advised to isolate in their rooms. By 31st March one resident had deteriorated to such an extent that Sister Anne phoned the NHS Helpline and the paramedics returned wearing what appeared like space suits and took the resident to hospital. No one was allowed to accompany him. Sadly, the resident died on 3rd April. Another of the residents with a high temperature was admitted to hospital on the 6th April and died on the 9th. Then the other nurse and two other carers were diagnosed with covid 19 and one of the ancillary staff, a cleaner, was also off work as she was showing symptoms. As well as that two assistant cooks and three domestic staff were too afraid to travel by public transport, so were furloughed.

Sister Anne recalls that they were in desperate need of PPE (Personal Protective Equipment) and the Rector of the house spent days contacting various suppliers to order what was needed. Eventually on the 11th of April a roll of aprons, a box of 200 gloves and 100 masks were delivered. She says, “we then had a meeting of key people including six of the residents to work out a plan of action”. The outcome of the meeting was that all residents were to be confined to their rooms and meals would be taken to them. There would also be no Mass in chapel. The residents were provided with meals in their rooms for many months. As a result of these measures the situation gradually began to improve. Sister Anne says there was a great sense of relief when all the remaining residents showing symptoms of covid 19 recovered well. As well as that staff off sick and on furlough returned to work when it was safe to do so, much to the relief of the staff left to care for the residents during these difficult months.

Sister Anne values and fosters a good rapport with the multidisciplinary medical personnel in the area. She says that since the onset of the Pandemic it is the

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

paramedics or a doctor allocated to the area, rather than a doctor from their own practice, that will come to the house to see a resident when necessary.

Sister Anne says, “I felt as if we were on a roller-coaster not knowing what was ahead of us. It was such a frightening, sad, and extremely difficult time for everyone”. However, she says, “even though it was tough going for the few of us staff left to cope during this time we pulled together, no-one complained, and there was a good team spirit”. Sister Anne says she is very happy to be able to use her gifts in caring for these retired members of the Mill Hill Missionaries who have spent their lives in service of the most disadvantaged and marginalised people in the poorer countries of the world.

3. Care Homes

Franciscan Convent, Blackburn

The quality of care provided in the Home is constantly monitored by the Trustees and the Home receives good reports from the Care Quality Commission. The care was recognised by Blackburn with Darwen Social Services and the Home was invited to be part of its Quality Assurance Scheme. All staff have recognised NVQ qualifications and many are now working to attain higher grades.

Franciscan Convent, Burnley

This home is also constantly monitored by the Trustees and inspected by the Care Quality Commission. It is well staffed by dedicated and qualified workers and an internal quality assurance scheme monitors the standard of care achieved. Starting in late October 2018 the windows were replaced at the home.

The works were finished in late March 2019 and the Congregation are extremely grateful to Salford Diocese for the generous contribution made for these works.

The home is used by the Congregation for UK gatherings of the Sisters so that the more frail Sisters who live there, and would otherwise be unable to travel, can still attend.

33

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

4. Overseas Missionary Work

A tremendous need continues for ministry overseas and the Sisters are engaged in many medical, pastoral, educational, social work and catechetical apostolates particularly among the poor. We have been able to expand our ministries in Kenya and particularly working with Street Children, widows and orphans of AIDS victims as well as AIDS patients in our clinics and home-based care programmes. The Sisters manage a home for physically disabled children who are stigmatised and ostracised in the society and culture.

Our numbers continue to expand in Kenya and Uganda and we are now in ten different areas of Kenya and one area in northern Uganda. Our houses are mostly in remote areas where our work includes health care, educational services, children's services, pastoral and social work with people who live in the poorest of circumstances.

In 2011 four of our Sisters opened a new mission in northern Uganda, among the Karamojong people. This is a very remote and neglected area of the country where access to maternal and child health care as well as to education is very limited. Our Sisters are making a difference to the quality of lives of the people. One Sister who is a qualified nursery school teacher runs the nursery school, another with a development degree is working pastorally among the people and a third is running a bakery project jointly with the Mill Hill Missionaries.

The mission in Witu located in Malindi Diocese has established a school for children who would otherwise not be educated. At the beginning of May 2013 we closed our house in Nyabururu, in Kisii diocese, and opened a new house in Nyamira which is in a more remote and needy area of Kisii diocese.

34

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

A second house in Nairobi, Rochdale House, was opened in 2015 to support our Sisters’ ongoing work in Kenya. We now have two houses in Nairobi, namely Ingham House and Rochdale House. In late 2016 our Kenyan Sisters were pleased to open a new house in Mpeketoni, Lamu County which makes it our third house in Malindi Diocese.

At the end of November 2020 the Africa Region will took on the management of St. Vincent's Mission Hospital in Muhoroni which is in a rural area of Kisumu diocese in western Kenya. This will be our second house in Kisumu diocese. The hospital was started and developed by the Sisters of the Institute of Our Lady of Mercy who approached our congregation to take over the management of the hospital as they no longer have the personnel. This hospital offers a much needed service to the local community comprising inpatient and outpatient care, maternity services, a mortuary, an x-ray department and pathology laboratory. We are very grateful for this opportunity to expand our work for the benefit of the people in this area.

In Quito, Ecuador, one of our Sisters who started a counselling service for priests and religious in the city in 2008 is now working full time and providing a much needed service which also includes an increasing number of lay people among the clients. She also responds to requests from Religious Communities for workshops with a psycho-spiritual focus and also helps to run courses on Safeguarding. Santa Clara house in Quito closed in late December 2018. Santa Clara was one of our two houses in Quito. Apart from the one remaining house in Quito we also have a house in Puerto Quito in the coastal region of Ecuador where the Sisters are engaged in parish work, catechetics and healthcare for the disabled.

35

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Investment Performance

The Mill Hill Pension Fund investments suffered significant reductions in value in the Spring following the Covid-19 outbreak. Valuations more than recovered in the second half of the year, so producing a positive return for the year as a whole. Investments were made in accordance with the Trustees Investment Policy referred to earlier in this report and in compliance with ethical guidelines.

Financial Review

Results for the Year

During 2020 total incoming resources amounted to £1,129,554 (2019 £1,086,555). Of the incoming resources, a total of £25,119 (2019 £51,149) related to fees receivable and other income of the Charity’s two care homes. £1,044,757 (2019 £898,301) was received by way of donations and legacies. This figure includes salaries and pensions of the Sisters amounting to £767,001 (2019 £523,473) covenanted to the Charity. Investment income and interest receivable totalled £27,203 (2019 £59,121) of which £24,843 (2019 £46,936) relates to designated funds.

Resources expended totalled £1,333,091 (2019 £1,537,967). The total expenditure on the Charity’s two care homes amounted to £1,003,446 (2019 £1,080,705). Total staff costs represent a very significant proportion of expenditure and amounted to £721,170 (2019 £667,221).

Expenditure incurred on maintaining the members of the Congregation and supporting them in their pastoral work and ministry amounted to £141,038 (2019 £172,665). Expenditure on governance costs and the fees paid to the Charity’s investment managers including fees paid to investment platforms during the year amounted to £59,009 (2019 £65,409).

Net outgoing resources for the year, were then £203,537 (2019 £451,412). Investment gains of £260,905 (2019 £866,408) resulted in a net inflow of funds for the year of £57,368 (2019 £414,996).

Reserves Policy and Financial Position

Reserves Policy

The reader will discern from the foregoing that the Charity carries out a diverse range of activities and is responsible for care and support of Sisters whose average age is increasing and whose needs are changing. The Trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed and endeavour to balance the need for such free reserves with the desire to more fully fund the reserves needed to support Sisters in their retirement.

36

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Such free reserves are needed to support the work of the Sisters in the future, in particular the support of the Congregation’s missionary and healthcare work overseas. There has been a release from the Maintenance of Retired Sisters Reserve in the year of £300,000 (2019 £350,000) to maintain the level of such free reserves.

Financial Position

The balance sheet shows total reserves of £6,953,687 (2019 £6,896,319). Of this, £1,430,443 (2019 £1,466,849) is represented by properties and other tangible fixed assets essential for the support and work of the Sisters.

The funds set aside to provide for the Sisters in their retirement, none of whom have resources of their own, have been reassessed during the year. The calculation, based on actuarial methods, indicated that £6.85M (2019 £6.82M) is needed to be set aside in order to provide a minimum pension. A minimum pension was set at £5,000 in 2003 and is rebased for inflation thereafter. In these accounts £1.45M (2019 £1.75M) has been set aside for this purpose. These funds embrace and are supplemented by the Mill Hill Pension Fund, a designated fund for the maintenance of retired Sisters created from donations by the Mill Hill Society primarily for that purpose and amounting to £5,302,480 (2019 £5,048,679) at the year end date. In addition, there are investments and monies in bank deposit accounts held within the United States of America and Ireland Regions totalling £852,083 (2019 £838,016) and £567,733 (2019 £623,671) respectively which are held for the future maintenance of retired Sisters.

Monies held in the United States of America included monies previously lodged in a deposit account which was regarded as constituting the Ecuadorian Sisters Retirement Fund. The account was closed towards the end of 2018 due to poor investment performance and the monies were transferred to the Albany House Investments Portfolio managed by Wells Fargo. In 2019, the monies were transferred to a new dedicated account managed by Wells Fargo and were substantially invested in fixed interest quoted securities and other cash equivalents. In March 2020, the monies were transferred to the UK and are presently held in a deposit account. It is intended that these monies will be set aside in their own dedicated bank deposit account, once interest rates return to normal. The monies representing the Ecuadorian Retirement Fund amounted to £88,188 (2019 £73,207)

The Covid-19 (coronavirus) pandemic significantly impacted our Mill Hill pension fund investments, and this was in line with stock markets worldwide. Investment valuations initially fell significantly but had fully recovered by the end of the year. Whilst we were pleased with this recovery in equity markets, it is clear that Covid-19 will continue to be a significant factor, with regard to equity markets, for many months to come. The investment committee continue to meet through technological means so as to manage the designated investments that comprise the Mill Hill Pension Fund.

The Trustees hope that, in the medium to long term, investment markets will continue to improve and that they will be able to designate more funds to the Sisters’ retirement fund. The calculations show clearly that this is a prudent and sensible policy.

37

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Future Plans

The Trustees do not anticipate any significant change to the Charity or its activities in the coming year. It is our intention to continue to meet the following objectives:

It is not thought that at this stage of the Covid-19 (coronavirus) pandemic, there will be any marked structural impact on our operating income and expenditure. However, this is premised on the continued avoidance of infection amongst the Congregation. If this position was to change in a material way then it would not be realistic to supply future guidance, beyond saying that we remain confident that the financial consequences of such a crisis could be weathered. The Trustees are of the opinion that the financial position is such that we will be able to continue to meet our future planned objectives with no significant change in our operations or activities for the next two years and indeed for the foreseeable future notwithstanding the adverse impact of the Covid-19 (coronavirus) pandemic on our financial investments.

38

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

The Covid-19 (coronavirus) pandemic is having a significant impact on The Order as our Sisters have not been able to perform their social and pastoral ministries through attending groups and individuals. We have consequently embraced technological means including ‘Zoom’ so that our Sisters can keep in touch with their ministries and to continue the invaluable role that they provide in their communities.

At the present time the whole congregation is engaged in a process of consultation with regard to reorganising and restructuring the governance of the congregation to make it more relevant for our present reality. Our final proposals will require the approval of Vatican authority and should be implemented following our next General Chapter in 2023.

39

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2020

Employees, Advisors and Members of the Congregation

The Trustees wish to record their recognition and gratitude to all their staff, professional advisors and individual Sisters of the Congregation for their dedication and commitment to the works of the Congregation throughout the year.

Approved by the Trustees on 16[th] September 2021 and signed on their behalf by:

……………………………………………… Sister Maureen Murphy Trustee and Congregational Leader ……………………………………………… Sister Anne Moore Trustee and Congregational Bursar

Registered Charity Number 1135474

40

Independent Auditor's Report to the Members of

The Franciscan Missionaries of St. Joseph

For the Year Ended 31 December 2020

Opinion

We have audited the financial statements of The Franciscan Missionaries of St. Joseph (the ‘Charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

41

Independent Auditor's Report to the Members of

For the Year Ended 31 December 2020 - Continued

The Franciscan Missionaries of St. Joseph

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

42

Independent Auditor's Report to the Members of

For the Year Ended 31 December 2020 - Continued

The Franciscan Missionaries of St. Joseph

Auditor's responsibilities for the audit of the financial statements - Continued

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Independent Auditor's Report to the Members of

The Franciscan Missionaries of St. Joseph

For the Year Ended 31 December 2020 - Continued

Extent to which the audit was considered capable of detecting irregularities, including fraud - Continued

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the Charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulation 2008. Our audit work has been undertaken so that we might state to the Charity's trustees those mattes 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 and the Charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Don Bancroft (Senior Statutory Auditor) for and on behalf of Azets Audit Services Chartered Accountants Statutory Auditors

Alpha House 4 Greek Street Stockport, SK3 8AB

Azets is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

44

The Franciscan Missionaries of St. Joseph

Statement of Financial Activities

For the Year Ended 31 December 2020

2020 2019
Unrestricted Designated Restricted Total Total
Note Funds Funds Funds Funds Funds
Incoming Resources £ £ £ £ £
Voluntary Income 2 944757 100000 - 1044757 898301
Activities for
Generating Funds 3 330 - - 330 319
Investment Income 4 2360 24843
 - 27203 59121
Incoming Resources
from Charitable
Activities 5 25626 - - 25626 51384
Other Incoming
Resources 6 31638 - - 31638 77430
Total Incoming Resources 1004711 124843 - 1129554 1086555

45

The Franciscan Missionaries of St. Joseph

Statement of Financial Activities - Continued For the Year Ended 31 December 2020

Note
Resources Expended
Fundraising trading:
cost of goods sold
and other costs
7
Investment
Management Costs
8
Charitable Activities
Charitable Activities
9
Governance Costs
10
Total Resources Expended
Costs of Generating
Funds
Net Outgoing
Resources before
Gains/(Losses) on
investments		 2019
Unrestricted Designated
Restricted
Total
Funds
Funds
Funds
Funds
£
£
£
-
-
720
-
24040
26106
1274082
-
1471838
34969
-
39303
Funds
Total
-
-
2020
-
-
1274082
£
£
24040
34969
1309051
24040
1537967
1333091
-
(304340)
100803
(451412)
(203537)
-

46

The Franciscan Missionaries of St. Joseph

Statement of Financial Activities - Continued

For the Year Ended 31 December 2020

2020 2019
Unrestricted Designated Restricted Total Total
Note Funds Funds Funds Funds Funds
Gains/(Losses) on
Investments £ £ £ £ £
Profit/(Loss) on Sale of
Investment Assets - 270647 - 270647 698607
Movement in Value of
Investment Assets - (97930) - (97930) 167801
Transfer of Ecuadorian
Retirement Funds - 88188 - 88188 -
Movement in Value of
MHP Fund - (19719) - (19719) (171087)
Movement in MHP
Designated Fund 19719 - - 19719 171087
Net Movement in Funds (284621) 341989 - 57368 414996
Reconciliation of Funds
Total Funds Brought Forward 1847640 5048679 6896319 6481323
Total Funds Carried Forward 1563019 5390668 - 6953687 6896319

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

47

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2020

Note
Fixed Assets
Freehold & Leasehold Property
Other Tangible Assets
Total Tangible Fixed Assets
14
Designated Funds Investments
15
Investments
Quoted Investments
Unquoted Investments at Cost
16
Total Fixed Assets
Current Assets
Sundry Debtors
20
Cash at Bank - Deposit Accounts
Cash at Bank - Current Accounts
Cash in Hand
Liabilities
Creditors: due within one year
21
Net Current Assets
Total Net Assets
The Funds of the Charity:
Restricted Funds
Designated Funds
Unrestricted Funds
Maintenance Reserve
17
General Fund
Total Charity Funds
24
Sister Maureen Murphy
Sister Anne Moore
Approved by the Directors on 16 September 2021		 £
9085
1421358
-
280
9099
276958
15170
2423
303650
83166
1450000
113019

48

The Franciscan Missionaries of St. Joseph

Consolidated Statement of Cash Flows

For the Year Ended 31 December 2020

Cash flows from operating activities
Net cash (outflow) in respect of operating activities
A
Cash flows from investing activities
Investment income and interest received
Proceeds from the disposal of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Purchase of investments
Net cash provided by investing activities
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents as at 1 January 2020
B
Cash and cash equivalents as at 31 December 2020
B
Write back of provision for professional fees in
relation to Blackrock Cork.		 £
836094
723390
650
(4374)
510245
(420000)
120237
112704
2020
(7533)
27203
6513		 2019
£
(523202)
59121
100
-
-
1579450
(1005011)
633660
110458
612932
723390

49

The Franciscan Missionaries of St. Joseph

Consolidated Statement of Cash Flows - Continued

For the Year Ended 31 December 2020

A Reconciliation of net movement in funds to net cash used in operating activities

Adjustments for:
Depreciation charge
(Gain) on sale of investment assets
Movement in Value of MHP Fund
Investment income and interest receivable
(Surplus) on disposal of tangible fixed assets
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Movement in Designated Fund
Net cash (outflow) in respect of operating activities
Net movement in funds (as per the Statement of
Financial Activities)
(Gain)/Loss on movement in value of investment
assets		 £
34267
(270647)
2020
57368
11945
(7533)
19719
(19719)
89457
97930
(27203)
(650)		 2019
£
414996
36459
(698607)
(167801)
171087
(59121)
(100)
(21318)
(27710)
(171087)
(523202)

B Analysis of cash and cash equivalents

MHP Bank Account
MHP Monies held on Investment Platforms
Cash at Bank - Deposit Accounts
Cash at Bank - Current Accounts
Cash in Hand		 2019
£
£
343204
27010
332214
16998
3964
723390
523402
276958
15170
2423
18141
2020
836094

50

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

a) Company Information:

The Franciscan Missionaries of St. Joseph is a Private Company Limited by Guarantee incorporated in England and Wales. The registered office is St. Joseph's Convent, 150 Greenleach Lane, Worsley, Manchester, M28 2TS.

The accounts have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and "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 Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102. The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. The accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention except as disclosed in the accounting policies certain items are shown at fair value. The principal accounting policies adopted are set out below.

c) Critical accounting estimates and areas of judgement:

Preparation of the accounts requires the Trustees to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include:

51

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

1 Accounting Policies - Continued

d) Assessment of going concern:

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The Trustees of the Charity continue to think that the Covid-19 (coronavirus) pandemic, will have no marked structural impact on our operating income and expenditure. However, this is premised on the continued avoidance of infection amongst the Congregation. If this position was to change in a material way then it would not be realistic to supply future guidance, beyond saying that we remain confident that the financial consequences of such a crisis could be weathered.

The Trustees have therefore concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due.

The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ended 31 December 2021, the most significant areas that affect the carrying value of the assets held by the Charity, notwithstanding the adverse impact of the Covid-19 (coronavirus) pandemic on our investments, are the level of investment return and the performance of the investment markets (see the investment policy and the risk management section of the Trustees' Report for more information).

Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Sisters' salaries and pensions are received under deeds of covenant and are stated inclusive of income tax but net of any deductions for social security payments and contributions to occupational pension schemes if relevant.

Donations are recognised on a remittance basis. Receipts of property, investments or other gifts in kind are included at market value.

Government coronavirus (Covid-19) grants are recognised in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

In accordance with the Charities SORP and FRS102, volunteer time is not recognised.

52

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

1 Accounting Policies - Continued

Dividends are recognised once the dividend has been declared as becoming payable and notification received of the dividend due. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Charitable grants and donations are made where the Trustees consider there is a real need following a review of the details of each particular case. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but not paid over at the year end date.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the Charity, it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the Charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

53

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

Tangible fixed assets are stated at cost less depreciation.

Depreciation is provided in equal amounts each year in order to write off the cost of fixed assets over their useful lives i.e.

Buildings and Alterations 2 %
Fixtures, Fittings and Furniture 15 %
Office Equipment 15 %
Motor Vehicles 25 %

Buildings are in constant use in furtherance of the Order's charitable objectives and are properly maintained to standards that ensure that their residual value is not less than their book value. Notwithstanding this, the Trustees have decided to depreciate buildings and alterations at the rate of 2% per annum.

Debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Deposits for more than three months and up to one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions are recognised where the Charity has an obligation at the balance sheet date as a result of a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts that may be due.

54

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

1 Accounting Policies - Continued

For the purposes of these accounts, no value has been placed on administrative and other services provided by Members of the Congregation.

Contributions in respect of the Charity's defined contribution pension scheme are charged to the statement of financial activities as they become payable in accordance with the rules of the scheme. The Charity has no liability beyond making its contributions and paying across the deductions for the employees' contributions.

Transactions of United Kingdom Sister Houses are incorporated in the financial statements.

The unaudited overseas accounts are set out on pages 72A - 123A and are not incorporated in the main accounts.

There are overseas houses located in Ireland, the United States of America, Kenya, Uganda and Ecuador.

There are two Sisters located in The Netherlands. The one Sister located in Munich, Germany transferred to the United Kingdom in Autumn 2020. The Dutch Sisters reside in a state run retirement home and their Dutch Pensions are used to pay the retirement home fees. Any surplus personal allowance is periodically remitted to the UK Central Fund. No bank account is maintained in The Netherlands.

The program to strengthen financial management, reporting and communication of all overseas regions is continuing.

As part of this program the Bursar General makes regular visits to each Region to re-affirm the financial guidelines under which each Region operates with particular regard to the requirement to communicate financial changes and planned financial changes to the Bursar General.

Where appropriate, the appointment of external Regional accountants will be considered and this has already been actioned in the United States and Africa Regions.

55

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

2 Voluntary Income

Donations and Other Voluntary Contributions
Other Donations:
Salaries and Remuneration
State Benefits
Pensions (Great Britain)
Pensions (Missions and Houses overseas)
Coronavirus (Covid-19) Grant Income
Legacies
Voluntary Contributions for Missions
Mission Appeals
Voluntary Contributions for Designated Funds
Restricted Funds
Designated Funds
Unrestricted Funds		 £
£
208824
17370
100000
944757
1044757
-
100000
71117
444293
31336
7379
55143
1044757
26747
82548
2020
944757		 2019
£
262393
214305
24300
207442
77426
-
20878
73104
18453
898301
-
898301
£
-
-
898301
898301

56

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

3 Activities for Generating Funds
2020 2019
£ £
Book and Calendar Receipts 330 319
Other Fund Raising Activities - -
330 319
4 Investment Income
2020 2019
£ £
Dividends and Interest Received
on Quoted Investments 24488 57085
Interest Received on Unquoted Investments - -
Bank Interest Received 2715 2036
27203 59121
Dividends and Interest Received on Quoted Investments and Bank Interest Received include
income from designated funds of £24,843 (2019 £46,936) - see note 15.
5 Incoming Resources from Charitable Activities
2020 2019
£ £
Fees and Remuneration - Residential Care Homes 25119 51149
Other Miscellaneous Income 507 235
25626 51384

57

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

6 Other Incoming Resources
2020 2019
£ £
Surplus on Sale of Motor Cars & Property 650 100
Bank Charges Managers Refund - 35
Transfers from Regions - see note 13 30988 77295
31638 77430
Bank Charges Managers Refund include income from designated funds of £Nil (2019 £35)
- see note 15.
7 Fundraising Trading: cost of goods sold and other
costs
2020 2019
£ £
Cost of Book Expenses - 720
Other Fund Raising Costs - -
- 720
8 Investment Management Costs
2020 2019
£ £
Investment Advice Fees 20724 20369
Investment Platform Fees - see note 15 3316 5737
24040 26106
£ £
Restricted Funds - -
Designated Funds 24040 24754
Unrestricted Funds - 1352
24040 26106

58

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

9 Charitable Activities

Education and Tuition
Sister House Expenses
Cont. to Missions External Programs - see note 13
Residential Care Home Expenses
Formation
Support Costs - see note 11
Restricted Funds
Designated Funds
Unrestricted Funds		 £
£
2020
89294
141038
1274082
1003446
-
-
1274082
1274082
2910
23394
14000		 2019
£
11049
172665
97797
1080705
14096
95526
1471838
£
10323
-
1461515
1471838

10 Governance Costs

Audit Fee
Legal and Other Professional Charges		 2019
£
£
9600
29703
39303
2020
9006
34969
25963

59

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

11 Support Costs

Office Expenses
Administration Salaries
Insurance
Travel
Bank Charges
Upkeep of Buildings
Depreciation - Vehicles and Fixtures & Fittings
Depreciation - Buildings & Alterations
General Chapter Expenses
Other Expenses
12
Wages & National Insurance
a)
Gross Wages
Employers National Insurance
Employers Pension Contributions - NEST
b)
Residential Care Home Employees
Sister House Employees
Central Fund Employees
c)
Average number of full time equivalent employees:
Residential Care Home Employees
Sister House Employees
Central Fund Employees		 £
£
£
38
5350
9688
2020
28918
28395
6784
240
22454
721170
14396
14396
1464
-
1
17125
689649
10928
681847
2020
1
89294
36
-
721170		 2019
£
12212
13825
7120
26671
1022
-
4589
28918
-
1169
95526
2019
£
627282
30934
9005
667221
£
637204
16192
13825
667221
33
1
1
35

d) No employees had emoluments in excess of £60,000 in either year.

60

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

12 Wages & National Insurance - Continued

13 MISSIONS

This note brings together the UK income and expenditure for sisters based overseas. The overseas accounts are not audited.

Region
Srs. Pensions
Vol. Contbs.
Mission Appeals *
Transfers from
Regions to
Central Fund **		 Ireland
USA
Africa
Ecuador
£
£
£
£
-
9010
-
-
18579
70538
5633
51888		 Total
2019
£
£
80031
73104
70467
85181
-
27589
-
70538
57521		 153135
77295
30988
155648
-
27589
70538
57521		 230430
18453
186636
17370
248883
204006

c) Expenditure relating to Mission and Other Houses Overseas

N.I. Contributions
Other Srs. Exps.
Transfer from
Central Fund for
External Pgrms.		 Ireland
USA
Africa
Ecuador
Total
2019
£
£
£
£
£
£
-
-
-
-
-
72
-
-
15
-
15
-
-
-
72
-
19868
97797
3526
-
-
15
15
23394
-
19868
97869
15
23409
3526
61

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

13 MISSIONS - Continued

14 Tangible Fixed Assets

Freehold Land
and Buildings		 Motor Cars Office
Equipment		 Fixtures &
Fittings		 Total
£ £ £ £ £
a) Cost or Valuation:
As at 1 January 2020 1659215 121142 31441 1029933 2841731
Additions at Cost - - 2214 2160 4374
Impairment (6513) - - - (6513)
Disposals - (2900) - - (2900)
At 31 December 2020 1652702 118242 33655 1032093 2836692
b) Depreciation:
As at 1 January 2020 202426 112889 30970 1028597 1374882
Charge for the Year 28918 4352 144 853 34267
Disposals - (2900) - - (2900)
At 31 December 2020 231344 114341 31114 1029450 1406249
c) Net Book Value:
As at 31 December 2020 1421358 3901 2541 2643 1430443
As at 31 December 2019 1456789 8253 471 1336 1466849

62

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

14
Tangible Fixed Assets - Continued
d)
Freehold Land and Buildings include alterations and are stated:
At 1 January 2020
At 1987 Valuation
At Cost
Cost or Valuation at 1 January 2020
At 31 December 2020
At 1987 Valuation
At Cost
Cost or Valuation at 31 December 2020
e)
Fixtures and Fittings are stated:
At 1 January 2020
At 1998 Valuation
At Cost
Cost or Valuation at 1 January 2020
At 31 December 2020
At 1998 Valuation
At Cost
Cost or Valuation at 31 December 2020
f)
Motor Cars and Office Equipment are stated at cost.		 £
310000
1349215
1659215
310000
1342703
1652703
908750
121183
1029933
908750
123343
1032093

g) Other capital expenditure authorised or contracted for before the year end date for which no provision has been made in the accounts is £Nil.

63

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

15 Designated Fund: MHP

In 1994 The Congregation created a pension fund for the maintenance of retired Sisters from donations made by the Mill Hill Society primarily for that purpose.

Balance as at 1 January 2020
Mill Hill Donation
Net Transfers (to)/from Central Fund
Movement on Value of Investments Held
Bank Interest Received
Investment Income
Profit on Sale of Investments
Investment Advice Fees
Investment Platform Fees
Bank Charges Managers Refund
Balance as at 31 December 2020
b)
Funds are invested as follows:
Quoted Investments
Cash at Bank - Deposit Account
Monies Held on Investment Platforms
Net Sundry Debtors
c)
Quoted Investments are incorporated
at Market Value i.e.
Cost
Surplus on Valuation
Market Value		 £
£
£
18141
24438
100000
2027566
(97930)
2020
(3316)
2020
405
(19719)
4760937
4760937
2733371
5048679
-
5302480
523402
-
5302480
2020
270647
(20724)		 2019
£
4348177
-
(171087)
205575
800
46136
643797
(19017)
(5737)
35
5048679
2019
£
4678465
343204
27010
-
5048679
2019
£
2552969
2125496
4678465

64

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

15A
Designated Fund: MHP - Continued
d)
The movement in quoted investments
during the year is as follows:
Cost as at 1 January 2020
Disposals
Additions
Cost as at 31 December 2020		 2019
£
£
2239803
(691845)
1005011
2552969
2552969
(239598)
2020
2733371
420000

e) The Mill Hill pension fund includes the following investments which represent more than 5% of the value of the portfolio at the start of the year or/and at the end of the year.

ASI UK Ethical Equity
Fidelity Sustainable European Equity
Invesco UK Smaller Companies Fund
Aegon Ethical Equity
Jupiter UK Smaller Companies
Schroder UK Smaller Companies Fund		 2019
£
£
392990
264579
268742
262570
264122
261284
1714287
254369
201520
260413
360009
1560880
291620
2020
192949

65

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

15B Designated Fund - Ecuadorian Sisters Retirement Fund

Monies constituting the Ecuadorian Sisters Retirement Fund, previously located and managed in the United States, were transferred to the Central Fund in March 2020.

Balance as at 1 January 2020
Funds transferred from United States
Add Annual Supplement
Balance as at 31 December 2020		 2019
£
£
-
-
-
-
2020
88188
-
88188
-

It is intended that these monies will be set aside in their own dedicated bank deposit account, once interest rates return to normal.

Meanwhile, it has been agreed that an annual addition will be made to the fund calculated in line with deposit account interest rates available to The Order.

16 Investments

Cost as at 1 January 2020
Disposals
Additions
Cost as at 31 December 2020		 2019
£
£
184406
(184406)
-
-
-
-
-
-
2020

b) The movement in unquoted investments during the year is as follows:

Cost as at 1 January 2020
Cost as at 31 December 2020		 2019
£
£
280
280
280
280
2020

66

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

17 Maintenance Of Retired Sisters

There is a substantial liability for the future costs of maintenance of Sisters in their retirement.

To provide for this Reserves have in the past been created by transfers from the Capital Fund of the Order. It is now necessary to supplement the operating funds by transfers from these reserves i.e.

Maintenance Reserve
Balance as at 1 January 2020
Less Transfer to Capital Account this Year
Balance as at 31 December 2020		 2019
£
£
2100000
350000
1750000
1750000
2020
1450000
300000

The Mill Hill Pension Funds support the Retired Sisters Maintenance Fund and total £5,302,480 (2019 £5,048,679).

A full report on the Mill Hill Pension Fund is provided in Note 15.

67

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

17 Maintenance Of Retired Sisters - Continued

The maintenance of retired Sisters has, as in previous years, been charged as an expense when the cost was incurred.

It has been possible in previous years to meet these costs from current income without recourse to the Pension Funds. This practice has not been sustainable since 2011 and the release of reserves to supplement current income will continue for the foreseeable future.

A pension of £8,100 (2019 £7,987) per Sister is regarded as the minimum target but is significantly less than the current need.

The effects of inflation are recognised and the annual pension target is now being indexed accordingly from a base figure of £5,000 in 2003.

The Trustees estimate that the funds needed to provide an annual inflation indexed pension of £8,100 (2019 £7,987) per sister from the date of retirement exceeds £6.85 million (2019 £6.82 million) of which £3.74 million (2019 £3.74 million) relates to Sisters over the age of 65.

The calculations continue the policy adopted in 2010 which incorporates different Regional life expectancy rates.

It is intended that further additions, whenever possible, will be made to the Pension Funds towards ensuring that future costs can be met.

18 United Kingdom Sister Houses

Transactions of United Kingdom Sister Houses are fully incorporated in the financial statements.

68

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

19 Taxation

Due to the charitable status of the Company, its activities are not liable to Corporation Tax.

20 Debtors

Salaries Receivable
Legacies Receivable
Income Tax Repayable
Prepayments
Other Debtors
Settlement of Investments Sold
rs : Amounts Due Within One Year
Accruals
Dowries Reserve
Settlement of Investments Purchased
Other Creditors
Africa Regional Fund
Pension Contributions, Social Security and Other
Taxes		 £
£
-
2125
2020
-
-
9099
2020
-
14338
561
8121
83166
-
13693
46453
6974		 2019
£
2474
-
813
-
-
95269
98556
2019
£
11539
30132
561
-
14638
14351
71221

21 Creditors : Amounts Due Within One Year

69

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

22 Lease Commitments

At the year end date the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases as follows

Rental Property £
2020
3115		 2019
£
3115

23 Contingent Liability

A liability exists for the repayment of legacies inherited by individual Sisters and is contingent on their departure

The total of such legacies were £
57479
2020		 2019
£
57479

24 Funds Analysis

Restricted Fund
Designated Fund
Mill Hill Pension Fund
Ecuador R'ment Fund
Unrestricted Funds
Maintenance Reserve
General Fund		 As at 1
As at 31
Jan 2020
Received
Expended
Transfer
Dec 2020
£
£
£
£
£
-
-
-
5048679
395490
5302480
-
-
88188
1750000
-
1450000
97640
1004711
113019
(121970)
(19719)
-
88188
-
-
319719
(1309051)
(300000)
-
6896319
1400201
6953687
88188
(1431021)

Designated Fund

A pension fund for the maintenance of retired Sisters has been created from donations made by the Mill Hill Society. See notes 15 and 17 for a full report.

70

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020 - Continued

25 Analysis of Net Assets between Funds

Fund balances at 31 December 2020
are represented by:
Tangible Fixed Assets
Designated Fund Investments
Investments
Net Current Assets		 Unrestricted Designated
Restricted
Total
£
£
£
£
1430443
1430443
-
5302480
280
280
132296
220484
-
-
5302480
-
-
-
88188
-
1563019
6953687
5390668
-

26 Additional Information

The Company is a Charitable Company Limited by Guarantee with no Share Capital and registered in England & Wales.

The Registered Number is 07010772

The registered office is located at St Joseph's Convent, 150 Greenleach Lane, Worsley, Manchester, M28 2TS.

The Trustees were not re-imbursed for any expenses. There are no other related party transactions to report.

Contingent liabilities are reported in Note 23. There are no other contingent liabilities to report.

There are no post balance sheet events to report.

71

The Franciscan Missionaries of St. Joseph Unaudited Overseas Accounts for the Year Ending 31 December 2020

Index

72A Accounts for the Ireland Region
81A Accounts for the United States of America Area
90A Accounts for the Africa Region
119A Accounts for the Ecuador Region

The Franciscan Missionaries of St. Joseph

Income for the Year Ended 31 December 2020

Ireland Region

Salaries and Pensions
Salaries
Pensions
Benefits
Voluntary Contributions
Financial Receipts
Investment Income
Mission Income
Other Income
Profit on Sale of Motor Car
Herald Magazine
Sister House Income
Total Income for the Year
2019
£
32270
128005
3250
547658
6
3244
-
160275
2214
-
Bank and Building Society Interest Received
and Other Similar Income
-
-
-
-
713397		 £
34519
131984
6
2551
-
-
-
93		 £
166503
1382
2557
288693
93
459228

72A

The Franciscan Missionaries of St. Joseph
Expenditure for the Year Ended 31 December 2020
Ireland Region
Education and Tuition
Sister House Expenses
Upkeep of Buildings
Other Sister House Expenses
Establishment Expenses
Office Expenses
Travel
Donations
Financial Expenses
Bank Charges
Exchange Adjustments
Investment Management Fees
Professional Fees
Depreciation
Mission and Other Houses Overseas
Formation
Total Expenditure For The Year
Surplus/(Deficit) for the Year
-
90
38977
4749
1620
500532
270
4100
2821
1009
45643
2019
£
207
-
687770
25627
713397
137469
137469
26
£
1983
807
-
123701
78
(49863)
2284
-
236
207		 £
-
123701
3026
(47294)
335965
-
415398
43830
459228

73A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2020
Ireland Region
Capital Account
Capital as at 1st January 2020
Movement in Value of Investments
Profit on Sale of Investments
Surplus/(Deficit) for the Year
Capital Fund
Current Liabilities
Sundry Creditors
2019
£
647046
768409
95709
27
25627
770596
2187
£
768409
(74316)
(20200)
43830
717723
-
717723

74A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2020

Ireland Region

Fixed Assets
Freehold Property
Fixtures and Fittings
Motor Cars
Total Tangible Fixed Assets
Investments
Total Fixed Assets
Current Assets
Sundry Debtors
Cash at Bank - Deposit Accounts
Cash at Bank - Current Accounts
Cash at Bank - Misean Cara Current Account
Cash in Hand
Total Assets
770596
57870
84800
45885
2451
191006
£
846
579590
-
12940
2019
3
13789
565801		 £
61963
81
2553
-
132871		 £
13580
902
3
14485
505770
520255
197468
717723

75A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

Ireland Region

1 Transactions with other Regions

Income and expenses of the Region which have been transacted through the United Kingdom Central Fund and which are not therefore included in the Regional account were as follows:-

2020 2019
£ £
Pensions Received 70538 65594
Expenses 15 -

2 Foreign Currencies

Transactions conducted in Euros are converted into Sterling at the average rate of exchange during the year. Assets and liabilities are converted at rates of exchange ruling at the balance sheet date.

3 Tangible Fixed Assets

3 Tangible Fixed Assets
Fixtures
Freehold land Motor and
and building Cars Fittings Total
a) Cost or Valuation £ £ £ £
At 1 January 2020 14346
 28010
 148288 190644
Additions at cost -
 - - -
Disposals - - - -
Exchange Adjustments 946 1850
 9789 12585
At 31 December 2020 15292 29860 158077 203229
b) Depreciation
At 1 January 2020 1406
 28008 147441 176855
Charge for the Year 207 -
 - 207
On Disposals -
 - - -
Exchange Adjustments 99
 1849 9734 11682
At 31 December 2020 1712
 29857 157175 188744

76A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2019

Ireland Region

Fixtures
Freehold land Motor and
and building Cars Fittings Total
c) Net Book Value £ £ £ £
At 31 December 2020 13580 3 902 14485
At 31 December 2019 12940 2 847 13789

Freehold land and building and motor cars are stated at cost.

h) Depreciation

Depreciation is provided in equal amounts each year in order to write off the cost of fixed assets over their useful lives i.e.:

Buildings and Alterations 2%
Fixtures and Fittings 15%
Motor Vehicles 25%

Buildings are in constant use in furtherance of the Order's charitable objectives and are properly maintained to standards that ensure that their residual value is not less than their book value. Notwithstanding this, the Trustees have decided to depreciate buildings and alterations from 1 January 2013 at the rate of 2% per annum and as such this was a change of accounting policy in 2013.

77A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

Ireland Region

4 Investments

Davy Group stockbrokers manage a portfolio of equity and bond funds.

The Davy Portfolio account for the year is as follows:

Value as at 1 January 2020
Movement in Value this year
Investment Income
Profit on Sale of Investments
Investment Management Fees
Exchange Adjustment
Balance as at 31 December 2020
Funds are invested as follows:
Quoted Investments
Cash at Bank
Sundry Creditors
Quoted Investments are incorporated
at Market Value i.e.
Cost
Surplus on Valuation
Market Value		 £
£
£
(20200)
(2167)
34180
2020
505770
505770
506036
563614
(71942)
2551
2020
266
-
506036
2020
478058
27712		 2019
£
456810
138416
3244
27
(4749)
(30134)
563614
2019
£
565801
-
(2187)
563614
2019
£
470091
95710
565801

78A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

Ireland Region

4 Investments - Continued

The Davy portfolio include the following investments which represent more than 5% of the value of the portfolio at the start of the year or/and at the end of the year.

Aberdeen Standard UK Ethical Platform 1 RETL Acc
Liontrust Investments Ltd UK Ethical 2 Net Acc Nav
Edentree Inv Management Amity UK Fund B Inst Inc
Kames Capital plc Ethical Corp Bond Retl Acc Nav
Kames Capital plc Ethical Equity B Instl Acc Nav
Davy Funds PLC GPS Balanced Growth B EUR ACC		 £
-
505770
-
2020
-
-
-
505770		 2019
£
122139
79380
112982
129787
121513
-
565801

79A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

Ireland Region

5 Missions

Expenditure relates to transfers for missions in Kenya and Ecuador and to donations to missions of other congregations and contributions to external mission programmes.

6 Misean Cara

Funds totalling €626,552 (2018 €516,574) were received from Misean Cara Ireland and were banked in a separate Mission bank account together with other private mission donations. The Mission bank transactions are summarised as follows:

Balance brought forward
Amounts Received from Misean Cara
Other Donations
Remitted to Ecuador
Remitted to Kenya
Training
Exchange Adjustments
Total Expended
Balance Carried Forward
Total		 £
334577
1063
2020
287629
334577
3323
45885
334496
81
332643
(1470)
-		 2019
£
118
545872
1786
547776
-
500532
-
1359
501891
45885
547776

Training relates to a contribution to Maynooth University located in County Kildare Ireland and relates to funding an on line course relating to safeguarding in Kenya/Uganda.

The Congregation is grateful to Misean Cara for these funds which enabled the Sisters to carry out a number of mission projects and to help many people.

80A

The Franciscan Missionaries of St. Joseph

Income for the Year Ended 31 December 2020

United States of America Area

£
Salaries and Pensions
Salaries
Pensions including Government Covid supplements
Voluntary Contributions
Financial Receipts
Bank Interest Received
Investment Income
Mission Appeals
Sister House Income
Other Income
Contribution from Mill Hill Sisters of New York Charitable Trust
Total Income for the Year
98748
-
95627
-
-
28431
131891
4712
-
-
98748
2019
£
-
-
4712
6266		 £
6266
-
95627
-
-
85396
187289

81A

The Franciscan Missionaries of St. Joseph

Expenditure for the Year Ended 31 December 2020

United States of America Area

Education and Tuition
Sister House Expenses
Establishment Expenses
Office Expenses
Travel
Donations
Financial Expenses
Bank Charges
Exchange Adjustments
Professional Fees
Depreciation
Missions
Contribution to Ecuadorian Retirement Fund
Formation
Total Expenditure for the Year
Surplus For The Year
131891
31292
-
-
64617
67274
26211
2390
2691
-
-
-
-
-
2019
£
-
33325
-		 £
21319
1888
2601
-
-
-
-		 £
-
28936
-
25808
-
11882
-
66626
120663
187289

82A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2020

United States of America Area

Capital Account
Capital as at 1 January 2020
Surplus For The Year
Transfers to Ecuador Region
Transfer from Ecuador Region (for pension contribution)
Remitted to UK Central Fund
Capital Fund
Designated Fund
Mill Hill Sisters of New York Charitable Trust
Current Liabilities
Ecuadorian Retirement Fund
73207
917678
664365
180106
2019
£
660435
67274
(15368)
712341
(47976)
-		 £
664365
120663
(17824)
11882
779086
(30988)
748098
109500
-
857598

83A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2020

United States of America Area

Fixed Assets
Freehold Property
Fixtures and Fittings
Motor Cars
Total Tangible Fixed Assets
Designated Funds Investments
Mill Hill Sisters of New York Charitable Trust
Investments
Investments
Ecuadorian Retirement Fund Dedicated Portfolio
Current Assets
Sundry Debtors
Other Cash and Bank Balances
Total Assets
917678
2019
£
-
73207
-
2494
2494
-
3961
3961
180106
657910		 -
4232		 £
-
-
1283
1283
109500
742583
-
4232
857598

84A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

United States of America Area

1 Transactions with other Regions

Income and expenses of the Area which have been transacted through the United Kingdom Central Fund and which are not therefore included in the Area account were as follows:

2020 2019
£ £
Pensions Received - -
Expenses - -

2 Foreign Currencies

Transactions conducted in US Dollars are converted into Sterling at the average rate of exchange during the year. Assets and liabilities are converted at rates of exchange ruling at the balance sheet date.

3 Tangible Fixed Assets

a)
Cost or Valuation
At 1 January 2020
Additions at cost
Disposals
Exchange Adjustments
At 31 December 2020
b)
Depreciation
At 1 January 2020
Charge for the Year
On Disposals
Exchange Adjustments
At 31 December 2020		 Total
£
£
£
12449
-
-
(361)
12088
8488
2601
-
(284)
10805
(55)
10254 1834
6599 1889
2601
-
-
Motor
Cars
Fixtures &
Fittings
10560 1889
-
-
-
-
(306)
(55)
8971 1834
-
(229)

85A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

United States of America Area

3 Tangible Fixed Assets - continued

c)
Net Book Value
At 31 December 2020
At 31 December 2019		 Motor
Fixtures
Cars
Fittings
Total
£
£
£
1283
3961
1283
-
-
3961

d) Basis of Valuation

Motor cars are stated at cost.

The Trustees revalued the fixtures and fittings on 30 November 1998.

e) Capital Expenditure

Capital Expenditure authorised or contracted for before 31 December 2019 for which no provision has been made in the accounts is £Nil.

86A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

United States of America Area

4 Quoted Investments

Quoted investments are stated at market value and comprise:

Christian Brothers CUIT Balanced Fund
Albany House Investments managed by Wells Fargo		 £
2020
400471
342112
742583		 2019
£
358157
299753
657910

The Albany House investments, managed by Wells Fargo, are substantially invested in fixed interest quoted securities and other cash equivalents.

The movement in quoted investments during the year is summarised as follows:

Investments as at 1 January 2020
Transfer from Mill Hill Sisters of New York
Withdrawal Wells Fargo Dedicated Ecuadorean Account
Missions
Transfer to UK Central Fund
Management Expenses
Investment Surplus/(Deficit)
Exchange Adjustments
Investments as at 31 December 2020		 £
2020
(1888)
95627
(20577)
742583
657910
29335
-
(17824)
-		 2019
£
723811
-
(69018)
(15747)
(47976)
(2390)
97864
(28634)
657910

Investment income is reinvested.

Investment income comprises dividends and interest received, the surpluses on the sale of investments and the movement arising on the value of unrealised investments.

87A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

United States of America Area

5 Designated Fund

The Mill Hill Sisters of New York Charitable Trust was established in 1999. Its purpose is the care of the elderly sisters of the community (that is, the Mill Hill Sisters of New York/Franciscan Missionaries of St. Joseph), and those who regardless of age become disabled or those who for whatever reason become unemployed.

The Trust Agreement provides for the return of all residual monies to the Albany Diocese once all the Sisters have been cared for.

Fund value as at 1 January 2020
Transfer to UK Central Fund
Transfer to Albany House Investment Funds
Withdrawal
Management Expenses
Bank Charges
Movement in value of funds Surplus/(Deficit)
Exchange Adjustment
Fund value as at 31 December 2020		 £
(29335)
(30)
109500
2020
(24507)
(1094)
20168
(4820)
180106
(30988)		 2019
£
188480
-
-
(27663)
(1258)
-
28502
(7955)
180106

Income is reinvested. There have been no other additions to the fund in the year. Withdrawals contribute to the maintenance of retired sisters from the United States including those sisters from the United States who now reside in the UK.

The funds are managed by Wells Fargo and are substantially invested in fixed interest quoted securities and other cash equivalents.

88A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

United States of America Area

6 Ecuador Region

The Ecuadorian Retirement Fund investments were held in a dedicated account managed by Wells Fargo. In March 2020 the fund was relocated and is now held in the UK Central Fund. All the unvestments were sold and the resulting cash balance was transferred to the UK on 5 March 2020.

Balance as at 1 January 2020
Movement in value of funds Surplus/Deficit
Transferred from Ecuador Region
Investment Management Charges
Monies Donated by USA Area
Exchange Adjustment
Transfer to UK Central Fund to close
Balance as at 31 December 2020		 £
(88188)
(75)
-
2020
73207
1681
11882
1493
-		 2019
£
73018
3398
-
(410)
-
(2799)
-
73207

7 Charitable Status

The Region was incorporated on the 21 January 1975 as the Mill Hill Sisters of New York pursuant to section 402 of the Not-For-Profit Corporation Law of the United States of America. In October 2007 the Region was reclassified as an Area. Accounts for the United States of America Area will continue to be reported separately in view of the amount of assets still managed in the United States.

89A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

Africa Region

The accounts for the Africa Region for the year ended 31 December 2020 have been prepared and audited by the Kenyan accountants, PAM & Associates and are reproduced on pages 91A - 118A.

90A

FRANCISCAN MISSIONARIES OF ST JOSEPH

AFRICA REGION

CONSOLIDATED FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31ST,2020

91A

CONTENTS PAGE
LIST OF COMMUNITIES 1
TRUSTEES REPORT 2
STATEMENT OF TRUSTEES RESPONSIBILITIES 3
REPORT OF THE INDEPENDENT AUDITORS 4 to 7
STATEMENT OF COMPREHENSIVE INCOME 8 to 10
STATEMENT OF FINANCIAL POSITION 11
STATEMENT OF CASH FLOWS 12
NOTES TO THE FINANCIAL STATEMENTS 13 to 26

92A

FRANCISCAN MISSIONARIES OF ST JOSEPH AFRICA REGION

LIST OF COMMUNITIES

1 Regional Office, Nairobi: Sr Margaret Bradbury

2 Ingham House, Nairobi: Sr. Bibiana Shilwatso

3 Rochdale House, Nairobi: Sr. Medrine Musundi

4 Novitiate Program, Ingham House, Nairobi: Sr. Bibiana Shilwatso

5 Holy Family Convent, Kisumu: Sr. Bernadette Nealon

6 Our Lady of Divine Providence Convent, Nyamira: Sr. Benter Atieno

7 St. Joseph's Convent Luanda: Sr. Dorcas Moraa

8 St. Francis Convent, Salawa: Sr. Veronica Asiago

9 St. Therese's Convent, Marigat: Sr. Florence Boyani

10 St. Claire's Convent, Malindi: Sr. Margaret Obwoge

11 Amani Convent, Witu: Sr. Phaustine Wangwa

12 St. Michael's Convent, Mpeketoni: Sr. Angelina Munyao

13 Maria Toto Ngina Ke'ekisii, Uganda: Sr. Christabel Shistukane

1 93A

FRANCISCAN ￿SsIoNAR TRusfEES REPORT FOR THE YEAR ENDED DECEMBER 31ST 2020 Th¢ Trustces have the pl￿u[C of presenting their retM)rt together with the consolidttted audit¢d rtnan¢i41 statcmcnts for the year ended December 31 SL 2020 VISION A transforn￿d society living life to the full through our lThd and 58viour Jesus Christ. VALUES Respect Human Dignity Commitment Prayer Integrity Compa￿10￿ Justi¢¢ and P¢ac¢ Results The results for the year are owt on ￿8¢5 8 to 26 Tru•teewRegionl Team 'I'rustee$ who served during the year Bre as follow$.' Sister Tecla Ch¢pn8'¢no-R¢8ion41 Leader Sister Margarrt Obwog¢: Assislant Regional Leader Sist¢r Hcnter Atieno-member Sister Margaret Tambasi-member Sister Bensrdette NeAlon-Mwnber Sister Margaret Bradbury-Re8ional Bursar EPH-AFRI A REGION Sister Annjcntrix MurUndU£￿ReBIO￿￿l L¢ad¢r Sister Medrine MusundiLo-Re8ional Leader Sister Pris¢a t4onarcri-Mcmber Sister Mary Monari-member Sister Bernad¢tt¢ N¢alon-M¢mber Sister Mar8aret Bradbury-Regional Bursar Regb¢¢red Offl¢e I￿￿h￿n House Ngong Ro&d P.0. BOK 21032-1)0505 N4irobi. BADker• KCB NCBA Centenary Bank-U8anda Aydltord Pam & Ass￿1&1¢4 Certified Publi¢ Accountants( Kenya) were appointed auditors for the year and have indic&ted th¢ir willingncs5 to conttnue in office in accordance with the provisions of Sectiun 159(2) of Ihe Companies Act and the Trustees ( P¢r￿￿1 SurAssion) A¢1. By Order of the Trustees Sister AnnJ¢ntrix Munmdu CfrRegloDl ￿￿tr Sister Medrine Musundi c￿R￿lOn￿l Loader Si51cr Margaret Bradbury Reglonal Bur**r sI￿a 94A

FRANCISCAN MISSIONARIES OF ST J(YSEPH AFRI CON OF TRUSTKES RESPONSIBILITIKS The Trust¢cs are required to prepare financial statements for each financiAI year thai give a truc and fair view of the state of affairs of th¢ Region as at the end of the financiAI yeAr of it's opernting results for that year. It also requires th¢ TNst¢¢s to ensure ihat the Region keeps prow a¢counting records that disclose, with rM%)nabl¢ accura￿. at any tim¢ thc financial position of the Region. They are also res￿nsIble for safeguardin8 the assots of the Congregation at the Regional t*v¢l. The Trnstees accept resw)nsibilty for th¢ annual financial statements. whi¢h hav¢ been prepared using appropriate accounting rx)licies supported by rc&sonAble, prudent jud¥ements and estimates in confomiity with Internation41 Financial Reportin8 Stsndards and th¢ r¢quircm¢nts of the Trustees (Perpetual Suc¢e$sion) A¢t. The Trustees are of thc opinion that th¢ finoncial stAt¢m¢nts give a true and fair view of the stste ofthe financial affaiTS of thc Rcgion and of its operaiin¥ results. 'lThe Trus¢¢¢s further acccpl responsibilily for the maint¢nan¢¢ of the accounting rccords, which may be reli¢d UFK)D in the prep8r8tion of the finanLLal ¥talements as well &$ 8d¢quat¢ sysl¢ms of int¢mal financial control. Nothing has wm¢ to the attention of the Trustees to indic81e tho1 the Re8ion will not rcrnain a going ¢on¢ern for Ai I￿$1 the next twelve months from the date of this s¢a¢¢m¢nt. Signed: Sister AnnJentrix Murnndu CfrRe81(tyD Sister M¢drin¢ Mus[u￿2 C￿Re￿IDn￿l Sister Margaret Bradby Regloo¥Jl Burjar -june 2021. 95A

INDEPENDENT AUDITOR'S REPORT

To the Trustees of Franciscan Missionaries of St Joseph Africa Region

Report on the Audit of the Financial Statements

Opinion

We have audited the Consolidated Financial Statements of Franciscan Missionaries of St Joseph Africa Region as set out on pages 8 to 26.These financial statements comprise the consolidated statement of financial position as at December 31st, 2020 and the consolidated statement of comprehensive income, comprehensive statement of change in equity and comprehensive statement of cash flows for the period then ended and a summary of accounting policies and other explanatory notes. In our opinion, the accompanying consolidated financial statements present fairly in all material respects, the consolidated financial position of the Region as at December 31st, 2020 and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and the Trustees(Perpetual Succesion) Act.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of materiaal misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control. An audit includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We are independent of the Trust.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. Those matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

4 96A

Key audit matter
Fixed Assets		 How the matter was addressed
Our proceduces in relation to the key audit matter included,
amongothers:
1)There was no fixed assets register maintained. This was
also observed by the previous Auditor.
2)Fixed assets had not been captured in the financial
statements.
3)Absence of fixed assets greatly affected the financial
statements as figures reported for the assets were understated
to a large extent for both the Region and Communities.
4)No depreciation expense was also recorded in the
statement of Comprehensive Income.
5)FMSJ Sisters carry out their mission in the Dioceses in
various areas around the country and they have purchased
assets for their Communities and constructed buildings.
These assets have not been captured in these Financial
Statements as the assets are located on pieces of land they
don't have title deeds too and therefore don’t possess full
ownership rights. The only assets captured are for the Region,
Novitiate Ingham and St. Joseph Convent, Luanda.
Bank Charges
1)We observed that bank charges were relatively high
2)Upon closer verification we noticed that even
withholding taxes in respect of both bank and
investments interest had been posted as bank charges.
3)We were therefore not able to match the KRA
withholding tax certificates with the QuickBooks
records as no withholding tax account existed.
4)FMSJ would therefore not be able to properly
claim the withholding taxes deducted.		 1)Regional Leadership Team was able to get a valuation report
for some assets e.g motor vehicles.For furnitures, fixtures, and
fittings purchase details were obtained from previous years
QuickBooks postings in the system. For the buildings, the
value posted was as per the Valuation Report of 2010.
2)The Auditors assisted the Accountant to open a Fixed Assets
Register to start capturing Fixed Assets as they are purchased.
3)Fixed assets have now been partially captured and respective
depreciation calculated and reflected in the Statement of
Comprehensive Income.
4)The Regional Leadership Team agreed to follow up the
matter of accountability of the properties situated on Diocesan
lands with the Secretary General of Kenya Conference of
Catholic Bishops who would assist them with clarifying
with Kenya Kenya Revenue Authority on the way forward.
5)Revaluation of the building at Ingham House should be done
immediately so as to get the correct current market value.
1)The Auditors guided the Regional Bursar to open a new
account 'Withholding Tax' in the Quickbooks system.
2)With the assistance of The Auditors, withholding tax
amounts were removed from bank charges account and
transferred to the new account 'withholding tax.'
3)The Auditors through the Regional Bursar also wrote
a letter to the Bank-NCBA to provide details of the
amounts making upto the withholding taxes paid as per
monthly KRA withholding tax certificates and the NCBA
Bank responded positively.

Information other than the financial statements and auditor's report thereon

The Trustees are responsible for the other information. The other information comprises the (information included in the Annual Report), but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

5

97A

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,consider whether this other information is materially inconsistent with the other financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information. We are required to report this fact. We have nothing to report in this regard.

Responsibilities of Regional Leadership Team and Those Charged with Governance for the Financial Statements

The Regional Leadership Team is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as the Regional Leadership Team determines is necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error. In preparing the financial statements,the Regional Leadership Team is responsible for assessing the Trust's ability to continue as a going concern, disclosing ,as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Trust or to cease operations , or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Trust's financial reporting process.

Auditor's Responsibilities for the Audit of the Trust's Financial Statements

Our objectives are to obtain reasonable assurance that the financial statements are free from material misstatements, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control.

6

98A

Evaluate the Appropriateness of the accounting rx)licies used and the r¢•sonablene55 of acc(yunting estimates and related dlsc1o5u￿S made by the management. Conclude on the appropriateness of mttnag¢m¢nl's use of the going concern basis ofaccounting an4 b&4ed on the audit evidence obtained whether A matrrial unccrtainty exists, related to events or conditions that may cast significant doubt on the Trust's ability to ¢ontinue as a going ¢on¢¢rn. If we conclude thAt a mttterial LWC¢rtainty ¢xi5t4 we are required to draw Attention in our Audilols report to the related disclosures in ihe financial thiem¢nts or, if such disclosures are inadequate. to mi>dify our opinion. Our conclusions a￿ based on the audil evidence obthined up to the dal¢ of our Audilols report. However. future events or ¢ondilion5 Inay use the Tn￿ to ce&se to continu¢ o going concern. EvaluAte the overall presenlation. structure and content of the financial statements. including the disclosur¢s. and wh¢th¢r the financial statements repres¢nt lh¢ underlying transactions And cvenls in a manner thAt Achieves fair presentstion. Obtsin sufficient appropriate audit evidence regarding the financiAI infomAtion of the Trust lo ¢xpress an opinion on th¢ financial statements. We are resp)nsible for ihe dire¢iion. supervision and perforniance of th¢ Trusl Audit. We remain solely responsibl¢ for our audil opinion. We communicate with those charged with governance regardin& amon8 other matters. the planned scope and timing of the audit and significant audit findin85, including any si8nificant defi¢ien¢ie8 in inlernal conlrol Ihai we identify during our audit. Report on Other i￿1 And Regulatory Requlrements The Compani¢y Act 2015 requires thAt in ¢anyin8 Out our audit we consid¢r and report lo you on the following matters. We confirni that.. l ) We have obtained all th¢ inforn)Ation and explanations whi¢h lo the best of our knowledge and belief were necessary for the purpos¢s of our audit; 2) In our opinion proper book5 of accouni have been kept by the Trust so far as il appears from the examinaiion of those books; 3) The Trusvs comprehensive slalemenl of financial FM)Sition is in #g￿ment with the books of account. The enga8¢m¢nl partner on the audit r¢5ul¢ing in this independent auditoe$ r¢p)rt is.. CPA Pmel Awlti Mbo80 Prnclijlng Certlflet¢ No. P9311PF616 IOD, PAM& A.%SOCIATES CERTIFIED PUBLIC ACCOUNTAKry KENY A) r*ts.J.wk.,yf20A........... 99A

FRANCISCAN MISSIONARIES OF ST FRANCISCAN MISSIONARIES OF ST JOSEPH
KENYA REGION
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31ST, 2020
Notes 2019 2019 2020 2020
INCOME 4 KSHS £ KSHS £
FMSJ -UK(Mother House) 1,765,251 12,722 1,872,851 12,624
ASEC 101,980 735 - -
Catholic Scholarship 35,000 252 35,000 236
Lilian Fonds/Chesire Grant 202,680 1,461 - -
FMSJ Ireland 12,940 93 - -
Persons of Goodwill 1,224,646 8,826 3,562,032 24,010
Sisters Salaries 14,489,786 104,429 15,809,119 106,561
Contribution From FMSJ Projects 3,291,220 23,720 3,107,973 20,949
Interest Income 503,671 3,630 350,137 2,360
Investment Income - - 484,936 3,269
Sustainability Income 3,048,560 21,971 793,308 5,347
Other Income 2,669,030 19,236 137,468 927
Garden/Farm Income 133,900 965 125,605 847
Gain/Loss on Exchange - - -333,143 (2,246)
TOTAL INCOME 27,478,664 198,040 25,945,286 174,884

8 100A

EXPENDITURES 2019 2019 2020 2020
Physical Well Being 4 KSHS £ KSHS £
Food 2,949,696 21,259 3,025,463 20,393
Garden/Farm Expenses 299,941 2,162 255,361 1,721
Household 743,854 5,361 695,390 4,687
Power and Fuel 829,216 5,976 921,441 6,211
Security 300,435 2,165 315,720 2,128
Maintenance 890,055 6,415 544,691 3,671
Insurance 84,816 611 40,188 271
Sisters Expenses 290,002 2,090 305,035 2,056
Medical Expenses 4,802,945 34,615 1,449,329 9,769
Personal Allowance 949,726 6,845 1,202,923 8,108
Medical Insurance - - 1,231,090 8,298
Physical Well Being-Other 4,885 35 - -
Total Physical Well Being 12,145,571 87,534 9,986,631 67,313
Mental Well Being 4
Recreation Expenses 21,910 158 28,995 195
Books/Periodicals/Subscriptions 132,369 954 232,440 1,567
Holiday 354,697 2,556 242,532 1,635
Education - Pre- Novitiate 5,000 36 33,500 226
Novitiate - - 35,390 239
Junioraite 732,473 5,279 219,065 1,477
On-Going Formation 137,022 988 256,723 1,730
Other 23,578 170 20,520 138
Celebration/Events-Professions 17,805 128 609,084 4,106
Sisters Celebration 185,153 1,334 263,682 1,777
Others 5,250 38 - -
Mental Well Being-Others 585 4 - -
Total Mental Well Being 1,615,842 11,645 1,941,931 13,090
Spiritual Well Being 4
Chapel 90,073 649 88,210 595
Pastoral Expenses 239,760 1,728 237,951 1,604
Donation 151,878 1,095 163,454 1,102
Retreat & Recollection 1,113,307 8,024 1,297,241 8,744
Spiritual Direction 11,193 81 10,000 67
Sisters Welfare 28,675 207 105,000 708
Spiritual Well Being-Other 7,490 54 - -
Total Spritual Well Being 1,642,376 11,837 1,901,856 12,820
Sustainability Expenses 4
Retirement Expenses 4,700,000 33,873 - -
FMSJ Development 2,429,281 17,508 - -
Vocation Promotion 200,753 1,447 23,000 155
Total Suistanability Expenses 7,330,034 52,828 23,000 155

9 101A

2019 2019 2020 2020
Administration 4 KSHS £ KSHS £
Transport 1,069,463 7,708 823,799 5,553
Motor Vehicle Running Expenses 847,288 6,106 1,050,263 7,079
Stationery/Postage/Printing 131,817 950 132,694 894
Telephone & Internet 83,750 604 282,698 1,906
Government Documents 173,149 1,248 106,445 717
Bank Charges 205,265 1,479 168,583 1,136
Dues & Subscriptions 95,253 686 38,903 262
Other Expenses 930 7 500 3
Foreign Exchange 180,707 1,302 - -
Total Administration 2,787,622 20,090 2,603,885 17,551
Personnel 4
Staff Capacity Building 214,740 1,548 157,500 1,062
Staff Welfare 31,027 224 20,060 135
Salaries & Wages 1,659,952 11,963 1,516,747 10,224
Employer Contribution - - 81,186 547
Total Personnel 1,905,719 13,735 1,775,493 11,968
Governance 4
Audit 257,520 1,856 124,079 836
Meetings-Stakeholder Hospitality 15,200 110 36,558 246
Planning & Evaluation 622,722 4,488 47,702 322
Monitoring & Evaluation 31,900 230 38,577 260
Total Governance 927,342 6,684 246,916 1,664
Chesire/Lilian Fonds 4
Feeding Programme 7,650 55 - -
School Fees 150,580 1,085 29,500 199
Total Chesire/Lilian Fonds 158,230 1,140 29,500 199
Depreciation 3
Depreciation-Buildings - - 2,014,514 13,579
Depreciation-Vehicles - - 675,000 4,550
Depreciation-Furniture,fittings & Equipment - - 90,905 613
Depreciation-Computers - - 147,360 993
Depreciation-Equipment - - 27,476 185
Total Depreciations 0 - 2,955,255 19,920
Total Expenditures 28,512,736 205,493 21,464,467 144,680
Surplus/(Deficit) -1,034,072 (7,453) 4,480,819 30,204

10 102A

FRANCISCAN M[￿l0￿ARlEs OF ST JOSEPH AFRICA REGION STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31sr, 2WI 2019 KSHS 2•19 2020 KSHS 2020 NON CURRENT ￿ET8 ProFety, Plant& Equipment In,950 41873371 279A51 CURRENT A&SETS Trade Receivgbles inv¢stment Prepoid Insurnnce Bank & C￿h Undew)sited Fund8 TOTAL CURRENT A￿E￿I 36.460 4,762,704 263 34.325 1.7CKI 5.309.713 84,442 53,386.847 12 35,790 569 359.853 5 38.457209 277.163 43356J73 311.751 J&78J.702 TOTAL A&SETS 43829J23 312.997 IOOJJ&973 07S781 EQUITY AND LIABILITIES Commth) Funds -2226J56 (16.(M6) 4&175.697 311247 CURRENT LIABILITIES Designated funds 'rrad¢ Payables Accrued F.xpenseS T¢)t•l C•rreDt Ll•bllltle• 45.398,159 257,520 327,187 1,856 53.954.504 970 125,802 54J181276 363,680 4S65S679 329 364J35 TOTAL V,QUITY AND LIADILITII 43.429J23 312,1)97 10•35&973 67S782 The financial 5tAt¢ments set out Oll Pa8es 8 ￿ 26 were approve41 by the Tnwt¢es Ml signed on their behdf by the following:_ Slgned.. R¢8ionAI.. SrAn￿lentr•X Murundu Signature......... ............... Co-Re8ional.. Sr Medrine Musundi Regional Bursar.. Sr MgrgAret BTrdbun SiBMture ..2021 li 103A

FRANCISCAN MISSIONARIES OF ST. JOSEPH -AFRICA REGION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31ST, 2020

2019 2019 2020 2020
KSHS £ KSHS £
Surplus/ ( Deficit) for the year -1,034,072 (7,453) 4,480,819 30,203
Depreciation - - 2,955,255 19,920
( Increase)/ Decrease in receivables 324,598 2,339 34,760 234
(Increase)/Decrease in Pre-Payments - - -84,442 (569)
Increase/(Decrease) in payables 810,882 5,844 8,425,597 56,793
Adjustments -602,542 -4,342 -4,480,819 (30,203)
NET CASH INFLOW/ (OUTFLOW) FROM
OPERATING ACTIVITIES -501,134 -3,612 11,331,170 76,378
INVESTING ACTIVITIES
Addition of assets - - -44,255,576 (298,305)
NET CASH INFLOW/(OUTFLOW) FROM
INVESTING ACTIVITES - - -44,255,576 (298,305)
FINANCING ACTIVITIES
Decrease/(Increase) in Fixed Deposit -4,762,704 -34,325 - -
(Decrease)/Increase in reserves - - 48,402,053 326,253
Decrease/(Increase) in Investments - - -547,009 (3,687)
NET CASH INFLOW/ ( OUTFLOW) FROM
FINANCING ACTIVITIES -4,762,704 -34,325 47,855,044 322,566
ANALYSIS OF CHANGES IN CASH
AND CASH EQUIVALENTS -5,263,838 (37,937) 14,930,638 100,639
Increase/ Decrease in bank and cash balances
Reconciliation
Opening cash and cash equivalents 43,721,048 315,100 38,457,209 259,221
Closing cash and cash equivalents 38,457,209 277,163 53,387,847 359,860
Net increase/ ( decrease) in cash -5,263,839 -37,937 14,930,638 100,639

12 104A

FRANCISCAN MISSIONARIES OF ST JOSEPH AFRICA REGION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31ST, 2020

NOTE 1 SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements are set out below:

a) Basis of preparation

(i) Basis of measurement

These financial statements set out on pages 8 to 26 have been prepared under historical cost convention.

(ii) Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)

(iii) Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may defer from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised and in any future periods affected.

b) Revenue recognition

Revenue is mainly received from donations ,salaries and stipends earned in the Communities where Sisters work as nurses or teachers , rent and other income. The Congregation also receives money from the Projects that are under their management.

c) Currency

These financial statements are presented in Kenya Shillings ( KShs) which is the Trust's functional currency.

d) Cash and Cash equivalents

For the presentation of cash flows in the financial statements, the cash and cash equivalents include cash in hand and cash at bank and mpesa.

13 105A

e) Transactions in foreign currency

Funds received in foreign currency are converted to KShs using the exchange rate on the day of conversion as given by the bank.

Exchange rates: Dec 31st,2019 Dec 31st,2020
UK £ 138.7531 148.3570
UGSHS 36.1667 33.3812
Euro 113.3679 133.895

f) Depreciation

Depreciation is charged so as to write off the assets over a period of expected life on reducing balance basis.A full year's depreciation is provided on all acquisitions

The rates used for this purpose are:

% per annum
Buildings 5%
Computers 30%
Fixtures,Furniture&Fittings 12.5%
Office Equipment 12.5%
Motor Vehicles 25%

NOTE 2

NOTE 2
2019 2019 2020 2020
KSHS £ KSHS £
Depreciation - - 2,955,255 19,920
Audit Fees 257,520 1,856 124,079 836

14 106A

NOTE 3
PROPERTY, PLANT&EQUIPMENT		 TOTAL KSH. 172,950 35,886,520 - 36,059,470
 - 2,525,119 2,525,119 33,534,351
 172,950 - 13,600 - 13,600
 - 1,700 1,700 11,900
 -
**COMPUTERS ** 30% KSH. 141,500 316,700 - 458,200 - 137,460 137,460 320,740 141,500 - - - - - - - - -
MOTOR VEHICLE 25% KSH. - 2,700,000 - 2,700,000
 - 675,000 675,000 2,025,000
 - - - - -
 - - - -
 -
**EQUIPMENTS ** 12.50% KSH. 31,450 156,180 - 187,630 - 23,454 23,454 164,176 31,450 - - - - - - - - -
**FURNITURE ** &FITTINGS 12.50% KSH. - 713,640 - 713,640 - 89,205 89,205 624,435 - - 13,600 - 13,600 - 1,700 1,700 11,900 -
BUILDING 5% KSH. - 32,000,000 - 32,000,000 - 1,600,000 1,600,000 30,400,000 - - - - - - - - - -
LAND 0% KSH. - - - -
 - - - -
 )
-		 - - - -
 - - - -
 -

.
PARTICULARS		 REGIONAL OFFICE
COST		 1.1.2020 Additions Disposals Total 31.12.2020
DEPRECIATION		 1.1.2020 Charges for the year 31.12.2020 31.12.2020 Net book value(NBV)
31.12.2019 Net book values(NBV		 NOVITIATE INGHAM HOUSE
COST		 1.1.2020 Additions Disposals Total 31.12.2020 DEPRECIATION
1.1.2020		 Charges for the year 31.12.2020 31.12.2020 Net book value(NBV)
31.12.2019 Net book value(NBV)

NO		 **1 ** **2 **

107A

FURNITURE
EQUIPMENTS
MOTOR
COMPUTERS TOTAL		 - 9,830 - 9,830 - 1,229 1,229 8,601 - - 29,448 - 29,448 - 6,569 6,569 22,879 -
30% - - - - - - - - - - 16,498 - 16,498 - 4,950 4,950 11,548 -
VEHICLE
25%		 - - - -
 - - - -
 - - - - -
 - - - -
 -
12.50% - 9,830 - 9,830
 - 1,229 1,229 8,601
 - - 12,950 - 12,950
 - 1,619 1,619 11,331
 -
&FITTINGS
12.50%		 - - - -
 - - - -
 - - - - -
 - - - -
 -
BUILDING 5% - - - - - - - - - - - - - - - - - -
LAND 0% - - - -
 - - - -
 - OUR LADY OF DIVINE PROVIDENCE - - - -
 - - - -
 -
PARTICULARS ROCHDALE HOUSE COST
1.1.2020		 Additions Disposals Total 31.12.2020
DEPRECIATION
1.1.2020		 Charges for the year 31.12.2020 31.12.2020 Net book value(NBV)
31.12.2019 Net book value(NBV)		 COST
1.1.2020		 Additions Disposals Total 31.12.2020
DEPRECIATION
1.1.2020		 Charges for the year 31.12.2020
31.12.2020 Net book value(NBV)
31.12.2019 Net book value(NBV)
**3 ** **4 **

108A

TOTAL - 8,299,462 - 8,299,462 - 419,098 419,098 7,880,364 - - 9,390 - 9,390 - 1,174 1,174 8,216 -
COMPUTERS 30% - 16,498 - 16,498 - 4,950 4,950 11,548 - - - - - - - - - -
MOTOR
VEHICLE		 25% - - - -
 - - - -
 - - - - -
 - - - -
 -
EQUIPMENTS 12.50% - - - - - - - - - - 9,390 - 9,390 - 1,174 1,174 8,216 -
FURNITURE
&FITTINGS		 12.50% - - - -
 - - - -
 - - - - -
 - - - -
 -
**BUILDINGS ** 5% - 8,282,964 - 8,282,964 - 414,148 414,148 7,868,816 - - - - - - - - - -
LAND 0% - - - - - - - - - - - - - - - - - -
PARTICULARS ST.JOSEPH CONVENT
COST
1.1.2020		 Additions Disposals Total 31.12.2020
DEPRECIATION
1.1.2020		 Charges for the year 31.12.2020
31.12.2020 Net book value(NBV)
31.12.2020 Net book value(NBV)		 ST.CLARE'S CONVENT
COST
1.1.2020
Additions		 Disposals Total 31.12.2020
DEPRECIATION
1.1.2020		 Charges for the year 31.12.2020
31.12.2020 Net book value(NBV)
31.12.2019 Net book value(NBV)
**5 ** **6 **

109A

LAND
BUILDING
FURNITURE EQUIPMENTS MOTOR
COMPUTERS TOTAL
PARTICULARS
&FITTINGS
VEHICLE		 - 7,326 - 7,326 - 366 366 6,960
 SUMMARY
TOTAL COST
-
40,290,290
727,240
219,800
2,700,000
491,196
44,428,526
TOTAL CHARGES FOR THE YEAR
-
2,014,514
90,905
27,476
675,000
147,360
2,955,255
GRAND TOTAL NET BOOK VALUE
-
38,275,776
636,335
192,324
2,025,000
343,836
41,473,271
30% - - - - - - - -
25% - - - - - - - -
12.50% - - - - - - - -
12.50% - - - -
 - - - -
5% - 7,326 - 7,326 - 366 366 6,960
0% - - - -
 - - - -
MARIA TOTO
COST
1.1.2020		 Additions Disposals Total 31.12.2020
DEPRECIATION
1.1.2020		 Charges for the year 31.12.2020
31.12.2020 Net book value(NBV)
31.12.2019 Net book value(NBV)
7

110A

FRANCISCAN MISSIONARIES OF ST JOSEPH AFRICA REGION
NOTE 4
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31ST, 2020
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS
KSHS		 TOTAL 2019 1,765,251 101,980 35,000 202,680 12,940 1,224,646 14,489,786 2,669,030 3,048,560 3,291,220 133,900 26,974,993 - - 26,974,993 - 503,671 - 503,671 27,478,664
TOTAL 2020 1,872,851 - 35,000 - - 3,562,032 15,809,119 137,468 793,308 3,107,973 125,605 25,443,356 - 0 25,443,356 FINANCIAL INCOME 484,936 350,137 (333,143) 501,930 25,945,286
MARIA TO - - - - - - 441,142 - - - - 441,142 - 0 441,142 - - - INCOME
501,930
0
0
0
0
0
0
0
0
0
0
0
0		 441,142
OUR LADY -
-		 - - - 26,700 739,138 - - - - 765,838 - 0 765,838 - - - 765,838
NST. MICHA -
-		 - - - 620 791,504 - - - 10,405 802,529 - 0 802,529 - - - 802,529
AMANI CO - - - - - 7,740 795,092 - - - - 802,832 - 0 802,832 - - - 802,832
**SST. CLARE ** - - - - - 3,100 915,994 - - - - 919,094 - 0 919,094 - - - 919,094
ST. THERE - - - - - - 1,283,547 23,000 - - 26,205 1,332,752 - 0 1,332,752 - - - 1,332,752
ST. FRANC - - - - - 10,500 746,410 - - - 51955 808,865 - 0 808,865 - - - 808,865
ST. JOSEPH - - - - - - 1,226,083 - - - - 1,226,083 - 0 1,226,083 - - 1,226,083
**HOLY FAM ** - - - - - 147,333 950,063 - - - - 1,097,396 - 0 1,097,396 - - - 1,097,396
ROCHDAL - - - - - 12,000 546,850 - - - 2,400 561,250 - 0 561,250 - - - 561,250
UNOVITIAT - - - - - - - 10,700 - - - 10,700 300,000 300,000 310,700 - - 310,700
FINGHAM HO - - - - - - 1,470,866 15,500 - - 34,640 1,521,006 - 0 1,521,006 - - - 1,521,006
REGIONAL O 1,872,851
S		 - 35,000 - - 3,354,039 5,902,430 88,268 793,308 3,107,973 - 15,153,869 Inter-Congregation Transfer
-300,000		 -300,000 14,853,869 484,936 350,137 -333,143.00 15,355,799
INCOMES Donations &Grant-FM ASEC Catholic Scholarship Lilian Fonds FMSJ Ireland Persons of Goodwill Sister's Salaries Other Income Sustainability Income Contribution from Proj Garden/Farm Income Total
Novitiate		 Total INCOME Investment interests Interest on Bank acct Gain/(Loss) on Exchg TOTAL INCOME

111A

TOTAL 2019 2,949,696 299,941 743,854 829,216 300,435 890,055 84,816 290,002 4,802,945 949,726 - 4,885 12,145,571 21,910 132,369 354,697 5,000 - 732,473 137,022 23,578 17,805 185,153 5,250 585 1,615,842 90,073 239,760 151,878 1,113,307 11,193 28,675 7,490 1,642,376 200,753 4,700,000 2,429,281 7,330,034
TOTAL 2020 3,025,463 255,361 695,390 921,441 315,720 544,691 40,188 305,035 1,449,329 1,202,923 1,231,090 - 9,986,631 28,995 232,440 242,532 33,500 35,390 219,065 256,723 20,520 609,084 263,682 - - 1,941,931 88,210 237,951 163,454 1,297,241 10,000 105,000 - 1,901,856 23,000 - - 23,000
MARIA TO 164,212 1,698 40,733 25,661 - 31,392 - 2,930 3,473 76,923 - - 347,022 - 14,625 6,993 - - - 1,665 - - 16,317 - - 39,600 4,429 - 22,365 - - - - 26,794 - - - 0
OUR LADY 197,299 2,800 74,633 65,300 - 11,170 - 930 12,600 78,000 - - 442,732 2,200 34,653 7,500 - - - - - - 29,000 - - 73,353 4,660 - 4,845 - 2,000 - - 11,505 - - - 0
ST. MICHA 244,332 15,170 40,440 26,450 - 7,300 - 12,200 15,525 96,000 - - 457,417 - 33,111 26,500 - - - - 20,000 6,700 - - - 86,311 4,920 41,500 5,500 - - 22,000 - 73,920 - - - 0
AMANI CO 304,967 10,410 79,558 55,901 - 14,580 - 5,779 3,420 117,000 - - 591,615 - 36,179 26,000 - - - - - 2,500 17,350 - - 82,029 2,172 8,000 7,690 8,000 - 10,000 - 35,862 - - - 0
ST. CLARE 273,481 400 69,170 80,828 - 18,850 - 45,700 75,511 94,000 - - 657,940 - 500 2,000 - - - - - 2,200 30,330 - - 35,030 1,700 31,500 - 500 - - - 33,700 - - - 0
ST. THERE 337,144 68,435 93,800 121,805 - 31,440 - 30,368 28,960 188,000 - - 899,952 - 33,289 28,800 - - - - 520 - - - - 62,609 4,847 - 8,500 - - - - 13,347 - - - 0
ST. FRANC 251,331 72,110 35,395 90,810 - 29,800 - 62,979 1,695 90,000 - - 634,120 - 9,748 6,000 - - - - - - 3,200 - - 18,948 7,750 200 13,200 3,500 - - - 24,650 - - - 0
ST. JOSEP 343,426 14,850 61,320 113,388 135,720 104,150 - 42,220 50,068 111,000 - - 976,142 800 4,242 9,000 20,500 - - - - 2,500 40,750 - - 77,792 5,225 - 800 15,000 - 3,000 - 24,025 - - - 0
HOLY FAM 218,689 3,000 50,084 89,026 - 23,060 - 20,555 19,015 86,000 - - 509,429 - 1,140 11,041 - - 19,780 - - - 28,090 - - 60,051 2,860 100,061 5,000 40,000 - - - 147,921 - - - 0
ROCHDAL 202,700 19,589 24,772 21,890 - 1,200 - 3,530 300 93,000 - - 366,981 755 913 12,225 - - 46,000 32,000 - - 20,200 - - 112,093 452 480 3,060 150 1,000 - - 5,142 - - - 0
NOVITIAT - - - - - - - 22,640 63,405 - - - 86,045 19,240 2,720 - - 35,390 - - - - - - - 57,350 10,610 - 3,640 16,035 7,000 - 37,285 - - - 0
INGHAM H 476,496 16,771 87,935 220,642 180,000 2,420 - 6,800 1,410 118,000 - - 1,110,474 - 10,920 4,000 - - - - - - 39,945 - - 54,865 2,535 13,500 16,100 - - - - 32,135 - - - 0
REGIONAL 11,386 30,128
 37,550 9,740 - 269,329 40,188 48,404 1,173,947 55,000 1,231,090 -
 2,906,762 6,000 50,400
s		 102,473 13,000
 - 153,285 F
223,058		 - 595,184 e
38500		 - -
 1,181,900 36,050 42,710 72,754 1,214,056 - 70,000 -
h		 1,435,570 23,000 - - 23,000
EXPENDITURES Physical Well Being Food Garden/Farm Expenses Household Fuel Security Maintenance Insurance Sister's Expenses Medical Personal Allowances Medical Insurance Physical Well Being-O Total Mental Welbeing Recreation Expenses Books/Periodicals/Sub Holiday Education-Pre Novitiat Novitiate JunioraIte On-Going Other Celebration /Events-Pr Sisters Cel Other Mental Welbeing-Othe Total Spiritual Wellbeing Chapel Pastoral Expenses Donations Retreat & Recollection Spiritual Direction Sisters Welfare Spiritual Wellbeing-Ot Total Sustainability Expens Vocation Promotion Retirement Expenses FMSJ Development Total

112A

TOTAL 2019 1,069,463 847,288 131,817 83,750 173,149 205,265 95,253 930 180,707 2,787,622 1,659,952 31,027 214,740 - 1,905,719 257,520 15,200 622,722 31,900 150,580 7,650 1,085,572 - - - - - - - - 28,512,736 Surplus/(Deficit)
4,270,868
-1,620
80,046
11,716
96,799
-25,319
-13,877
-3,228
-20,232
-6,558
-11,094
52,302
-1,755
4,428,048
(1,034,072)
TOTAL 2020 823,799 1,050,263 132,694 282,698 106,445 168,583 38,903 500 - 2,603,885 1,516,747 20,060 157,500 81,186 1,775,493 124,079 36,558 47,702 38,577 29,500 - 276,416 52,771 52,771 2,014,514 675,000 90,905 147,360 27,476 2,955,255 21,517,238
MARIA TOT 1,598 21,096 1,958 167 599 - - - - 25,418 4,063 - - - 4,063 - - - - - - 0 - - - - - 0 442,897
EOUR LADY 5,559 63,490 4,850 - 8,050 15,300 - - - 97,249 88,697 - - - 88,697 - - - - - - 0 - - - - - - - 0 713,536
NST. MICHA 29,920 58,600 700 - 5,350 8,521 1,473 - - 104,564 88,911 2,500 - - 91,411 - - - - - - 0 - - - - - - - 0 813,623
NAMANI CO 11,515 20 1,675 2,429 450 6,871 3,250 - - 26,210 73,674 - - - 73,674 - - - - - - 0 - - - - - - - 0 809,390
ST. THERESA'S CONVE 20,900 - - 21,272 6,950 5,628 1,500 - - 56,250 156,406 - - - 156,406 - - - - - - 0 - - - - - - - 0 939,326
47,890 66,100 9,280 21,180 6,050 3,575 - - - 154,075 205,997 - - - 205,997 - - - - - - 0 - - - - - - 0 1,335,980
ST. FRANCI 25,450 2,500 380 4,900 - 1,134 - 500 - 34,864 110,160 - - - 110,160 - - - - - 0 - - - - - - 0 822,742
ST. JOSEPH 39,000 - 819 6,276 - 4,914 1,410 - - 52,419 91,524 - - - 91,524 - - - - 29,500 - 29,500 - - - - - - 0 1,251,402
**HOLY FAMI ** 30,675 66,765 12,161 4,000 - 1,265 - - - 114,866 168,330 - - - 168,330 - - - - - - 0 - - - - - - 0 1,000,597
ROCHDALE 10,920 23,480 1,650 22,720 3,206 3,342 - - - 65,318 - - - - 0 - - - - - - 0 - - - - - - 0 549,534
NOVITIATE 6,260 11,000 14,670 16,100 - 1,944 - - - 49,974 - - - - 0 - - - - - - 0 - - - - - - 0 230,654
FINGHAM HO 5,240 6,750 1,735 350 - 5,457 - - - 19,532 305,620 - - - 305,620 - - - - - - 0 - - - - - - 0 1,522,626
REGIONAL O 588,872 730,462
 82,816
 183,304
e		 75,790
 110,632 31,270
 - -
o		 1,803,146 223,365 17,560 157,500
 81,186
 479,611 124,079 e
36,558
47,702
38,577		 -
s		 - 246,916 52,771 52,771 Depreciation&Amortz n
2,014,514		 675,000 90,905 147,360
27,476		 2,955,255
11,084,931
Administration Transport Motor Vehicle Runn Stationery/Postage/P Telephone & Inttern Government Docume Bank Charges Dues & Subscription Other Expenses Foreign Exchange L Total Personnel Salaries & Wages Staff Welfare Staff Capacity Build Employer Contributi Total Governance Audit Meetings-Stakehold Planning & E Monitoring & Chesire/Lilian Fond Feeding Total Other Expenses Tax on interests Total Depreciation-Buildi Depreciation-Vehicl Deprec-Furn&Fittgs Deprec-Computers Deprec-Office Equip Total TOTAL EXPENDI

113A

FRANCISCAN MISSIONARIES OF ST.JOSEPH
AFRICA REGION
NOTES TO THE FINANCIAL STATEMENT		 FOR THE YEAR ENDED DECEMBER 31ST, 2020. TOTAL KSH. 2019 1 Bank-Regional office-KCB-Ksh.
8,849,172
8,849,172
7,255,034
2 Bank-Regional office-KCB-Card
53,617
53,617
53,617
3 Bank-Centenary-Ugx
1,939,419
1,939,419
215,003
4 Bank-Regional-NIC-Ksh.
35,750,870
35,750,870
30,002,697
5 Bank-Regional-NIC-Euro.
6,094,938
6,094,938
504,652
6 Cash-projects
0
0
0
7 Cash-Regional office-Ksh.
76,063
76,063
52,034
8 Cash-Regional-Ugx
90,771
90,771
156
9 Cash-Regional-Ksh.
0
0
0
10 Mpesa-Regional office-Ksh.
4,467
4,467
52,397
11 Mpesa-Saving-Mshwari-Ksh.
10,000
10,000
10,000
12 Bank-Ingham-KCB-Ksh.
4,484
4,484
5,900
13 Cash-Ingham-Ksh.
776
776
1,426
14 Bank-Rochdale-Ksh.
7,074
7,074
4,482
15 Cash-Rochdale-Ksh.
845
845
1,551
16 Cash-Novitiate-Ksh.
20,395
20,395
6,005
17 Bank-Novitiate-Ksh.
57,621
57,621
6,566
18 Bank-Holy Family KCB-Ksh.
82,962
82,962
6,937
19 Cash-Holy Family-Ksh.
20,169
20,169
0
20 Bank-KCB-Our Lady Div-prov-Ksh.
246
246
566
21 Cash-Our Lady of Dev-prov-Ksh.
23,503
23,503
328
22 Bank-KCB-St Joseph-Ksh.
72,001
72,001
59,942
23 Cash-St Joseph-Ksh.
4,788
4,788
18,319
24 Bank-St Francis-KCB-Ksh.
27,150
27,150
34,039
25 Cash-St Francis-Ksh.
4,282
4,282
2,130
26 Cash-St Francis-Farm.
29,515
29,515
29,515
27 Cash-Liliane-Fonds
129,380
129,380
46,880
28 Bank-St Therese-KCB-Ksh.
4,296
4,296
7,038
29 Cash-St Therese-Ksh.
79
79
565
30 Bank-St Claire-KCB-Ksh.
3,241
3,241
5,413
31 Cash-St Claire-Ksh.
844
844
28,294
32 Bank-Amani-KCB-Ksh.
814
814
5,336
33 Cash-Amani-Ksh.
7,131
7,131
11,331
34 Mpesa Amani
3,844
3,844
1,680
35 Cash-St Michael-Ksh.
1,180
1,180
13,791
36 Bank-St Michael-KCB-Ksh.
983
983
-534
37 Cash-Maria Toto-Ugx.
3,377
3,377
2,382
38 Cash-M.Toto-Kitchen Garden-Ugx.
6,550
6,550
11,738
TOTAL
52,869,317
5,260
7,919
78,016
103,131
23,749
76,789
190,327
4,375
4,085
11,789
2,163
9,927
53,386,847
38,457,210
TTOTAL KSH. 2020
EMARIA TO NGINA KE' UGANDA
ST. MICHA **CONVENT ** MPEKETON
AMANI **CONVENT ** WITU
SST. CLARE' **CONVENT ** MALINDI
ST. THERE **CONVENT ** **MARIGAT **
ST. FRANCI CONVENT SALAWA
ST. JOSEPH **CCONVENT ** LUANDA
OUR LADY
 PROVIDEN **NYAMIRA **
HOLY FAM
 SCONVENT KISUMU
NOVITIATE
 INGHAM H NAIROBI
ROCHDALE
 HOUSE NAIROBI
INGHAM
 HOUSE NAIROBI
REGIONAL
 OFFICE NAIROBI
NOTE 5 PARTICULARS
(Cash & Bank)

114A

2019 2020
NOTE 6 COMMON FUNDS
As of 01.01.2020 -589,741 -2,226,356
Surplus/(Deficit) -1,034,072 4,480,819
Adjustments -602,542 43,921,234
As of 31.12.2020 -2,226,356 46,175,697

NOTE 7 Designated Funds-Projects/Individuals/Communities

Convents
St. Francis
Maria Toto Ngina Ke'ekisii
Holy Family
FMSJ Projects
Cardinal Voughan Hope Centre
Marigat Mission Dispensary
Salawa Mission Dispensary
St. Francis Rehab Project
St. Joseph Rehab Centre
St. Vincent de Paul Charity Prog
Tuvumiliane HIV and Aids Support
Development Office
Designated for the Poor
Individuals
Fr. Jim O'Connell
John Mary
Regional Office		 113,000
6,256
7,508
126,764
1,626,356
1,434,374
4,994,840
4,807,257
5,877,520
5,722,519
2,315,142
602,591
3,448,024
30,828,623
407,021
196,918
603,939
-		 14,000
0
-
14,000
2,720,904
2,326,761
3,831,332
5,884,680
3,992,051
6,541,883
2,456,616
4,216,256
1,648,024
33,618,507
1,139,399
173,918
1,313,317
(12,226)

23 115A

Non FMSJ Projects
Chesire Disabilities
4,935
Ebukuya
143,653
EMP Feeding Program
568,978
EMP Kotido Nursery
101,493
EMP Luanda Widows
566,965
EMP MC Kisumu/KUAP Services
-
EMP Nyamira School
33,786
EMP Amani Nursary
63,942
Kotido Projects
-
EMP Amani Catholic Academy
-
1,483,752
Regional Misean Cara Indirect F
2,935,089
Sisters
Sr. Medrine Musundi
-
Sr. Ann Moore
682,244
Sr. Bernadette Nealon
1,453,852
Sr. Margaret Bradbury
87,513
Sr. Phaustine Wangwa
18,356
Sr. Margaret K. Obwogi
395
2,242,360
FMSJ Development Funds
FMSJ Restricted Funds
4,700,000
Retirement Funds
2,429,281
7,129,281
Total
45,349,808
Other Designated Funds
St. Joseph's Convent-Luanda
-
St. Francis Convent-Salawa
-
Total
-
Grand Total
45,349,808		 5,289
107,653
99,031
0.71
647,230
4,574,739
8,633
-
1,576,849
25,000
7,044,424
2,745,590
107,145
615,286
1,117,874
50,591
-
(1)
1,890,895
4,700,000
2,429,281
7,129,281
53,743,789
98,075
112,640
210,715
53,954,504

24 116A

TOTALS KSHS 0 4,138,236 4,138,236 892,503 3,245,733 0
Computers 25% KSHS - 491,196 491,196 122,799 368,397 -
M.Vehicles 25% KSHS - 2,700,000 2,700,000 675,000 2,025,000 -
Equipment, COST
Furn&Fittings		 10% KSHS 01.01.2020 Additions
947,040		 Disposals 31.12.2020
947,040		 Wear&Tear Allowance
94,704		 NBV 2020
852,336		 NBV 2019
-

117A

TAX COMpufATIOF4 SCHEDUL&DECEMBER 31sr 2020 2019 KSHS 13.635.932 2020 KSHS 4,480.819 Profit1( LK>ss) befor¢ tsx Add: DeprKiation Donations 2.955.255 163.454 IAss'. Wew & Tear -892,503 Adjust¢d profiv (1058) 13.635.932 0.707.025 Loss blfwd -30.694.736 -17.058,804 Adjusted profiV(108s) -17,058.81M -10.351.779 ptyable• 25y• Tax due previous period Tax JM)w due T&x PAid .52,771 Tax due Current period -52,771 Tax pfty&bl¢ SI￿￿d by: Sr. A TrnJetttrix CtrReziDnal L*der Sr Medrlne Musuodl CopRegional i%ader Sr Margare Reglonl Burnar 2021 26 118A

The Franciscan Missionaries of St. Joseph
Income for the Year Ended 31 December 2020
Ecuador Region
Salaries and Pensions
Salaries
Voluntary Contributions
Financial Receipts
Bank Interest Received
Sister House Income
Sale Proceeds from Santa Clara House
Total Income for the Year
2812
38648
433
-
57261
15368
2019
£
£
1926
9675
4459
-
-
16060

119A

The Franciscan Missionaries of St. Joseph

Expenditure for the Year Ended 31 December 2020

Ecuador Region

Education and Tuition
Sister House Expenses
Establishment Expenses
Office Expenses
Travel
Donations
Financial Expenses
Bank Charges
Professional Fees
Exchange Adjustments
Formation
Contribution to External Programs
Total Expenditure for the Year
Surplus/(Deficit) for the Year
61716
(4455)
57261
4648
6767
-
-
1249
6417
559
1560
-
48532
203
4965
2019
£		 £
3166
3196
690
1299
261
1423		 £
-
50132
4880
5155
19
-
60186
(44126)
16060

120A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2020

Ecuador Region

Capital Account
Capital as at 1 January 2020
Add Transfers from U.S.A.
Less Transfer to Maintenance Reserve
Surplus/(Deficit) for the Year
General Funds
Maintenance Reserve
Total Funds
Represented By
Cash and Bank Balances
Monies Held in U.S.A.
2019
73207
126780
15231
131235
126780
199987
£
116004
-
131235
(4455)
199987
73207		 £
126780
17824
144604
11882
132722
(44126)
88596
88188
176784
88596
88188
176784

121A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

Ecuador Region

1 Transactions with other Regions

Income and expenses of the Region which have been transacted through the United Kingdom Central Fund and which are not therefore included in the Regional account were as follows: -

as follows: -
2020 2019
£ £
Pensions Received 5633 5633
Voluntary Contributions 51888 49160
Expenses - -

Voluntary Contributions include monies raised for external programmes.

2 Foreign Currencies

Transactions conducted in American Dollars are converted into Sterling at the average rate of exchange during the year. Assets and liabilities are converted at rates of exchange ruling at the balance sheet date.

3 Tangible Fixed Assets

The cost of property and other tangible fixed assets purchased by the Region is written off to expenditure in the year in which it is incurred .

This policy is considered appropriate given the political instability of the region.

122A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2020

Ecuador Region

4 Maintenance Reserve

The Ecuadorian Retirement Fund investments were held in a dedicated account managed by Wells Fargo in the USA. In March 2020 the fund was relocated and is now held in the UK Central Fund. All the investments were sold and the resulting cash balance was transferred to the UK on 5 March 2020.

Balance as at 1 January 2020
Movement in value of funds Surplus/Deficit
Transferred from Ecuador Region
Investment Management Charges
Monies Donated by USA Area
Exchange Adjustment
Balance as at 31 December 2020		 £
1681
11882
2020
73207
(75)
-
1493
88188		 2019
£
73018
3398
-
(410)
-
(2799)
73207

123A