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2021-12-31-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 2021

The Franciscan Missionaries of St. Joseph Accounts for the Year Ending 31 December 2021

Index

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

The Franciscan Missionaries of St. Joseph

Charity Information

For the Year Ended 31 December 2021

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 2021

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 2021.

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 97 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 2021

• 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 and The United States. 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 2021

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 2021 to 31 December 2021

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 2021

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 2021

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 2021

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 2021

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 2021

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 10 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 2021

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 42 to 68.

Unaudited accounts for each overseas region and notes thereon, are set out on pages 70A to 119A.

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 88A – 114A.

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 2021

• 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		 ✓A 6 year plan is established by
‘The Chapter’ and is subject to
regular review and evaluation
✓On-going reviews and
considerations cover a range of
aspects related to the operations
of the organisation.
✓An evaluation and planning
meeting is scheduled for June
2023 when a new congregational
leader will be elected
✓The Bursar provides a financial
report to trustee meetings on a
regular basis and there are
regular meetings with external
accountants and an investment
committee is in position which
reviews the organisation
investment portfolio		 Low Monitor &
Maintain
existing
controls
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		 ✓Trustees and senior leadership
team are elected to their
positions and serve for a set
period
✓Personnel within the organisation
are consulted in respect of
aspects arising and this can be
via ‘What’s App’ or e-mail or via
Zoom meetings etc.
✓Service delivery is reviewed on a
regular basis through discussions
and 1-1 meetings via Zoom in
recent years due to Covid
pandemic
✓The organisations’ constitution is
being reviewed in preparation for
the Chapter and changes
communicated to the whole
congregation		 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 2021

Risk Register - Governance Risks - Continued 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
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		 ✓Organisation promotes an ‘open
culture’ – able to undertake global
communication through
technology mechanisms to ensure
this is evidenced
✓Regional decision making can take
place – for example – Kenya but
would be subject to review and
dialogue being conducted prior to
decision being taken
✓The structure & culture of the
organisation would constrain any
individual actions and the
organisation actively encourages
individuals to‘air their views’

Low		 Monitor &
Maintain
existing
controls
Trustees are
benefiting from
the
organisation		 •Poor reputation,
morale & ethos
•Adverse impact on
overall environment
•Conflicts of interest
•Possible regulatory
action		 ✓No personal visits to Kenya have
been possible due to Covid 19
pandemic since 2019 but 1 – 1
Zoom meetings held with all
personnel
✓Representations made from
regions – Ecuador, Kenya and
Ireland are addressed by the
planning committee and
information relayed back to the
areas
✓Whistleblowing policy & ethos of
organisation would identify any
conflicts of interest		 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		 ✓All aspects of the organisation
are considered by the elected
chapter – it determines actions
and requirements based on
discussion and consultation
✓Revised constitution due to be
implemented from June 2023
with a revised structure
✓Reputational risk would be
addressed through involvement of
legal support as and when
required		 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 2021
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		 ✓The Chapter is provided with a
‘mandate’ to put into effect over a
six-year period. Last mandate
was established in 2017 and is
due for review in 2023
✓Use of Zoom meetings enabling
discussion and consideration of
relevant aspects across the
organisation
✓Current leadership team will
provide ‘a snapshot’ of the
progress made since 2017 prior
to the June 2023 meeting when a
new mandate will be established		 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		 ✓Facilitator reviewing constitution
recently communicated
information related to the
‘strengths and qualities’ required
by a Congregational leader as a
new one will need to be elected
in June 2023
✓Other senior appointments can
just be ‘renewed’ – for example –
Bursar role
✓Impact on operations will be
minimised due to possibility of
some personnel remaining on the
Leadership team		 Low Monitor &
Maintain
existing
controls
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		 ✓Formal monthly meeting with
minutes documented
✓Trustees are also the individuals
on the senior leadership team
✓Decision-making is via
consultation and communication
with feedback mechanisms
enabled to ensure information is
provided to all relevantparties		 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 2021

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		 ✓The organisation sets its own
mandate with regular reviews
conducted and monitoring via the
senior leadership team
✓The mandate is subject to a ‘mid-
term’ review to ensure that the
issues identified originally are
relevant & realistic
✓Level of contracts felt to be
minimal with review of any large
building projects at sites
outsourced and reviewed by a
surveyor prior to commencement		 Low Monitor &
Maintain
existing
controls
Customer /
client
dissatisfaction		 •Complaints are made
by beneficiaries
•Income is lost
•Loss of significant
contracts
•Claims for negligence
•Damage to reputation		 ✓Staff complaints procedure in
place for raising of issues
✓Legal processes followed if
necessary – example provided in
respect of an individual in one of
the Care Homes
✓No claims in recent years linked
to negligence
✓Diocese would deal with any
concerns in respect of
reputational risk – involvement in
the organisation established via
the – R.L.S.S. if any assistance
required		 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		 ✓Responsibility of caring for
members established internally
✓External accountants appointed
and provide feedback and
guidance related to organisation
financial affairs
✓On-going reviews across all
operational areas to ensure
awareness of situation and any
action required		 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 2021

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 does not have one
key supplier
✓Use of an energy broker to obtain
best deal in conjunction with other
organisations in the diocese
✓Organisation is financially
independent and obtains on-going
financial advice to enable
operational activities to be
maintained		 Low Monitor &
Maintain
existing
controls
Building &
resource
capacity
unused		 •Underutilised or lack
of building space
•Mismatch of staff
allocations		 ✓Head Office is a residential
premises but space available
within for meetings and office
work as required
✓Hybrid working undertaken by
Bursar during Covid & continued
✓2 care home buildings – 1 is
rented the other is owned
✓Portfolio of residential premises
✓Roles and responsibilities are
designated with contracts of
employment issued and a
probationary period in position for
all appointments to determine
suitability		 Low Monitor &
Maintain
existing
controls
Security of
assets /
information		 •Assets are lost or
damaged
•Assets are stolen		 ✓Asset Register in position
✓Insurance policy and coverage of
relevant aspects established
✓Mobile assets would be password
protected
✓GDPR policy and procedures in
position and communicated
✓Use of external organisation in
relation to information storage in
‘the cloud’		 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		 ✓External consultancies used for
both HR & Health & Safety
✓Legal support provision also
available via insurance company
used by the organisation
✓Equal Opportunities Policy in
position and reviewed on a regular
basis
✓Care staff – mandatory training
organised by the Care Home
Managers
✓Regular communication across the
organisation via Zoom, telephone,
or e-mail mechanisms
Low		 Monitor &
Maintain
existing
controls

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Report of the Trustees

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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		 ✓Staff recruitment is undertaken by
Managers of the Care Homes
using a variety of mechanisms
✓Recent turnover of staff in kitchens
but now addressed
✓Training organised across the
organisation by senior personnel
✓No significant increase in level of
recruitment costs identified in
recent times
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		 ✓Use of external consultancy to
provide support and guidance
✓No incidents or accidents in recent
years
✓Use of Agency personnel during
Covid 19 pandemic but issues
managed by the senior personnel
at the premises
✓Visits during Covid 19 by CQC in
respect of infection control with no
issues identified
✓Service maintained throughout
pandemic and on-going
development of systems and
procedures		 Low Monitor &
Maintain
existing
controls
Business
continuity		 •Lack of access to the
premises
•Loss of information &
communication
systems
•Loss of personnel in
a key job role		 ✓Organisational business continuity
plan reviewed in 2021 and subject
to annual consideration
✓Both Care homes have a business
continuity plan
✓Back-up of information via ‘the
cloud’
✓Key personnel considered both
internally & externally		 Medium Consider
conducting
a ‘test’ of IT
systems to
ensure
relevant
information
can be
restored as
required
Key
personnel –
external
accountants
& bursar
role –
succession
planning to
be reviewed

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

Risk Register - Operational Risks - Continued 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
Procedures &
systems		 •Lack of awareness of
procedures &
systems
•Authority not sought
for major decisions
•Poor information
technology systems		 ✓Congregational Leader and
support to the Bursar would be
aware of the systems and
procedures to be followed
✓Any major decisions are required
to be ratified by senior leadership
team
✓Information technology felt to be ‘fit
for purpose’
✓Hardware and Software
requirements addressed on a ‘as
and when’ replacement required
basis
✓Microsoft software used includes
updates to protect information
security
✓Bursar and her support attend
annual IT awareness re security
incorporating aspects such as
‘phishing’
Low		 Insurance
policy etc.
to be
reviewed in
terms of
‘cyber risk’
coverage
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		 ✓Regular financial report provided
at Trustees meetings
✓Identification of any financial
issues raised & discussed
✓Annual budget established and
monitored
✓Involvement of external
accountancy organisation to assist
with financial planning & reviews
✓Investment committee with senior
personnel involvement
Low		 Monitor &
Maintain
existing
controls
Cash flow •Inability to meet
commitments
•Impact on operational
activities		 ✓Projected income established and
regularly reviewed
✓Production of quarterly accounts in
conjunction with external
accountancy organisation
✓Quarterly accounts review budget
established and variance and
determines any action required
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 2021

Risk Register 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
Dependencies
on income
sources
•Loss of income		 ✓Investment committee with
involvement of an external fund
manager – to review financial
portfolio
✓Long-standing relationship and
regular reviews of performance of
investments undertaken through
investment committee		 Low Monitor &
Maintain
existing
controls
Investment •Financial loss through
inappropriate
investment
•Unforeseen
investment conditions
•Cash flow difficulties		 ✓Monthly investment committee
meeting
✓Investments and financial
guidance audited annually by
independent auditors
✓Investment committee aims to
maximise income & ensure
maintenance of operations across
the organisation		 Low Monitor &
Maintain
existing
controls
Financial
guidelines		 •Enforcement action
•Reputational damage		 ✓Accounts are submitted to the
charity commission
✓Accounts submitted to
Companies House
✓Processes in position – i.e.
investment committee and
external accountancy
involvement ensure management
of risk from a reputational and
enforcement action perspective		 Low Monitor &
Maintain
existing
controls
Fraud or error •Enforcement action
•Reputational damage		 ✓Procedures in position to ensure
fraud or error cannot occur
✓Checking of information by
personnel involved and any
issues would be raised
✓Independent assessment
conducted of the accounts of the
organisation
✓Double signature requirement in
position related to withdrawal of
funds
✓Limit established on debit cards
issued to individuals		 Low Monitor &
Maintain
existing
controls

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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 21. 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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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 2021
as at 31 December 2021
40
35
36
30
25 29
20
15
17
10
5
6 5 4
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, 13 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

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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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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

On the 9[th] June the Home organised a Garden Party to celebrate the Queen’s Platinum Jubilee and they invited friends and family of the Sisters and residents. Many of those who came for the Party wrote to say how much they enjoyed it. Two of those who sent letters of gratitude said:

“Dear Sister Nuala & Sisters, Just a short note to say a big thank you for inviting us to yesterday’s Jubilee Garden Party. It was lovely to see everyone again after such a long time and we really enjoyed the whole afternoon”.

“Dear Sister Nuala,

I feel I must write to thank you again for the wonderful Jubilee Garden Party. It was all so beautiful – the garden, the marquee, the decorations, the entertainment and of course the pleasure of seeing again old

Garden Party for the Queen’s Platinum Jubilee

friends and acquaintances. It must have meant so much work by yourself, the Sisters and the staff and volunteers – all much appreciated by me.

It was such an unexpected pleasure to be involved in celebrating our wonderful Queen’s jubilee”.

HEALTHWATCH Blackburn with Darwen, conducted an announced Enter and View visit on 3[rd] May 2022. This was undertaken by authorised representatives from Healthwatch Blackburn with Darwen who have the authority to enter health and social care premises, announced or unannounced, to observe and assess the nature and quality of services and obtain the view of those people using the services.

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Report of the Trustees

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In the Summary of their report the following observations were made:

The Franciscan Convent represents a true community environment with members of the order and the wider community living together in a very caring environment. The grounds and the building are spacious, well maintained and homely with opportunities for faith-based activity if chosen. Both staff and residents (who were not Sisters) told us that they felt comfortable in the environment “I am not religious at all, but this does not matter, there is no pressure to be involved.”

The staff to resident ratio is very favourable and staff were generally long serving, facilitating a high level of person-centred provision. This was perhaps captured best by a relative who told us. “The best thing is staff spend time with her even if no actual care needs at the time, I don’t think she would get that anywhere else no matter how much you pay.”

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.

On the 23[rd] March 2022 the Manager carried out a Quality Assurance Questionnaire for the Sisters.

When asked if they felt the staff in the Home treated them with respect all the Sisters replied positively with one saying “with the upmost respect and always ready to oblige”.

When asked if they found the Manager approachable replies were all affirmative for example, “Most certainly couldn’t ask for a better Manager – simply the best”. They said “all their needs were met

Sister Sarah Relaxing in the Convent Garden

by the staff, over and above, always so concerned and helpful”.

Another response was “we have a perfect team of staff and especially the Manager – always ready to help and meet our requirements and they are always so kind and cheerful”.

An Infection Control Inspection was carried out by the Care Quality Commission in August 2020 and the report stated: “The registered manager had completed robust environmental audits and risk assessments and identified how to use available funding

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For the Year Ended 31 December 2021

to improve the environment and minimise infection risks. This included buying a powerful carpet cleaner, ordering new chairs which were easier to clean, foot operated soap/hand gel dispensers and bins.

In running these two Homes the Trustees aim to provide excellent residential care, ensuring that Residents needs are fully met and that they enjoy as high a quality of life as possible. Both homes are regularly inspected and any indication of failure to comply with Care Quality Commission standards is immediately addressed and corrected.

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 coastal 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

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

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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 Standards Agency.

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.

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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. Thirteen 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. 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 Joan O’Gorman

For the past 53 years Sister Joan O’Gorman’s ministry has been within Caritas, previously Catholic Children’ Rescue Society, in the Catholic Diocese of Salford. Sister Joan says, “This time has been exciting, creative and enjoyable and at times emotional and it has been a privilege to walk alongside so many people who have also been my teachers”.

Sister Joan (coloured scarf)

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

After her Social Work Training Sister Joan joined the Rochdale Community where she established a Day Centre for families as well as a Therapeutic Day Centre which included older children excluded from school. Sister Joan says she also enjoyed really valuable times away together with the families.

After Rochdale Sister Joan worked on the Family Placement Team in Didsbury which involved one to one work with some very traumatised children - preparing them for Foster and Adoptive Placements. Sister Joan says, “It was wonderful to witness a child, sometimes after a few years, being able to begin to trust enough to believe that they were not going to be let down again”

During the time when Sister Joan was the congregational leader of the Franciscan Missionaries of St Joseph from 1999 till 2011 she kept informal contact with those who wished to do so – children and families, children, now adults, who had been in Residential Care, Foster Care, Birth Families and Adoptive Families.

Since 2012 Sister Joan’s ministry has taken her to Bury where she opened a new Caritas Centre “with the help of wonderful, totally committed volunteers”. The work was community based including working with all age groups and circumstances. Sister Joan relates that they also made their first foray into Food Banks, establishing two and then handing them over to the local communities. A ‘Drop In’ for the Homeless and for those with no sense of belonging was welcomed into the Bury

Sister Joan with homeless friends and volunteers

Centre. It is this work that is today being developed and extended by a newly formed team of enthusiastic, compassionate, skilful, mainly young people, and in which Sister Joan has been asked to play a part.

The Impact of COVID-19

About a year before Covid, Sister Joan in her role with Caritas established a small Food Bank in Radcliffe in a corner of a Community Centre. They did this, Sister Joan says, because there was evidence of a need and there was no Food Bank in the town.

When Covid struck most of Sister Joan’s Caritas Food Bank volunteers had to shield due to age and/or health issues. Immediately, Sister Joan continues, the local Baptist Church and a very active Community Group from the estate offered to help and they joined forces and she says the needs around us just spiralled. From there on in the

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The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

work grew - with many other Project Workers joining when they were unable to carry on with their work during Covid and to this day Sister Joan relates they have maintained strong links and Town Councillors came on board too. Sister Joan is so grateful for the generous support from the local authorities and from many pots of funding, businesses and local people who also make a valuable contribution. In addition a Consortium of Food Banks has been established and they work together - ensuring appropriate and nutritious food for all races and cultures.

From working together as the need around us grew Sister Joan says - ‘Radcliffe Growing Together’ was born and is still developing - ably led by the Chair of the Community Group from the estate from which we work. They have regular meetings and a WhatsApp Group used on a daily basis. Sister Joan is happy to see how the work has developed in that they are offering far more than food, furniture and clothing to the people they serve - local people, the homeless, those challenged by addiction, asylum seekers, refugees, those in debt and those with mental health issues. Sister Joan says, “we endeavour to leave no-one behind, to do all we can to improve general health and well-being and to help people move on when we can. It is so true that ‘together we are stronger’”.

Sister Joan has been given a recent appointment within Caritas which is that of Co-ordinator of Pastoral Care - a role she is exploring with colleagues at the moment.

b) Sister Nuala McGarvey

Sister Nuala McGarvey has been the community leader of our registered Care Home, Franciscan Convent, Blackburn for the last 6 years, after she returned from South America.

In 1995, after completing nursing and midwifery training, Sister Nuala was appointed to Ecuador to help with administration and nursing in a medical Dispensary in El Guasmo, a major port city in

Sister Nuala (right)

Ecuador. The medical facility had been established by the Sisters in this poverty stricken area of Ecuador in 1986. Sister Nuala says these were formative years living and working among people for whom it was a daily struggle to get by. The peoples general optimism, their faith and wilfulness not to be overpowered by the challenges they faced made a deep impression on Sister Nuala.

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Report of the Trustees

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Over 15 years, conditions improved for the people in El Guasmo and in 2011 Sister Nuala joined some of our Sisters who had gone to a new mission in Puerto Quito, in the north of Ecuador. For the following years until 2016 Sister Nuala was involved in a project with young adults who had physical and mental disabilities.

In 2016 Sister Nuala returned to the UK to take up her present position in Franciscan Convent, Blackburn, after the death of the previous, highly regarded, Community Leader. Franciscan Convent is a registered Care Home for both Sisters of the congregation as well as female members of the public. At present the Convent is home to five of our Sisters and four lady residents. There are also 20 Care Staff employed.

Sister Nuala describes this new ministry as a considerable change in both pace and place. She feels that perhaps the principal role of the community leader is one of presence, trying to be aware of what is central to the life of the community and building around that while recognising the individuality of each person and their own particular needs at this stage in their life.

The Impact of COVID-19

Sister Nuala says that Covid-19 had a profound effect on the community at Franciscan Convent. In common with most people the national lockdown with its attendant restrictions on visitors and movement was difficult. For the Sisters the Mass, liturgy and prayer are central points of the day but during the lockdown the priest could not come into the convent for the celebration of Mass nor could other friends from the local area come in. Also Sister Nuala says: “Last year was a particularly difficult year as we had the deaths of five Sisters within two months”. Although the Sisters deaths were not as a direct result of Covid it was a very sad and lonely time for the community with so many restrictions in place.

In pre Covid times, the daily community Mass at the convent was frequently well attended by other parishioners who afterwards would be invited to tea in the dining room. This was a good opportunity to socialise and keep in touch with the lives and concerns of friends and families. Sister Nuala has seen that this has been a means of friendships forming which have endured for many years and have been a source of mutual benefit. She says that post Covid,” we hope things can resume once again”.

On the general and practical side of things, Sister Nuala

----- Start of picture text -----
Sister Nuala (left)
----- End of picture text -----

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The Franciscan Missionaries of St. Joseph

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says her responsibilities include spending time with the community and residents to keep them up to date with any changes to daily programmes and upcoming events. Providing transport to medical appointments or for shopping trips is also essential. Sister Nuala also coordinates with the Care Home management in many areas pertaining to the life of the Home as well as ensuring the Congregational Leader is kept informed of the well-being of the Sisters and residents.

Sister Nuala and the Care Home management and staff organised a very successful garden party in honour of the Queen’s Platinum Jubilee. This was a fun-filled, very joyful occasion with friends, neighbours and Sisters from other communities coming together to celebrate.

Sister Nuala recounts that at present, as a community, they are hoping to provide a home for a Ukrainian family through the UK government's Homes for Ukraine sponsorship scheme as there is an annexe building in the convent grounds which has recently become unoccupied. This process is still ongoing but Sister Nuala is liaising with the relevant bodies in preparation for this.

Sister Nuala says it has been a privilege for her to have been able to serve the community here in Blackburn over the past few years. She also says that she is learning so much from the life experience of an older and wiser generation.

"Blessed be God, how wonderful are His ways"

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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

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.

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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 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.

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 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.

32

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

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.

33

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

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 2021 total incoming resources amounted to £849,244 (2020 £1,129,554). Of the incoming resources, a total of £45,125 (2020 £25,119) related to fees receivable and other income of the Charity’s two care homes. £779,871 (2020 £1,044,757) was received by way of donations and legacies. This figure includes salaries and pensions of the Sisters amounting to £591,525 (2020 £767,001) covenanted to the Charity. Investment income and interest receivable totalled £7,369 (2020 £27,203) of which £7,247 (2020 £24,843) relates to designated funds.

Resources expended totalled £1,490,846 (2020 £1,333,091). The total expenditure on the Charity’s two care homes amounted to £1,054,580 (2020 £1,003,446). Total staff costs represent a very significant proportion of expenditure and amounted to £759,491 (2020 £721,170).

Expenditure incurred on maintaining the members of the Congregation and supporting them in their pastoral work and ministry amounted to £167,211 (2020 £141,038). 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 £75,675 (2020 £59,009).

Net outgoing resources for the year, were then £641,602 (2020 £203,537). Investment gains of £567,176 (2020 £260,905) resulted in a net outflow (2020 inflow) of funds for the year of £74,426 (2020 £57,368).

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.

34

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

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 £150,000 (2020 £300,000) to maintain the level of such free reserves.

Financial Position

The balance sheet shows total reserves of £6,879,261 (2020 £6,953,687). Of this, £1,404,491 (2020 £1,430,443) 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 £6.89M (2020 £6.85M) 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 £1.30M (2020 £1.45M) 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 £5,384,240 (2020 £5,302,480) 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 £919,536 (2020 £852,083) and £594,394 (2020 £567,733) 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 (2020 £88,188)

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 continued to meet, initially through technological means and more recently in person 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.

35

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

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.

36

The Franciscan Missionaries of St. Joseph

Report of the Trustees

For the Year Ended 31 December 2021

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.

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 31[st] August 2022 and signed on their behalf by:

……………………………………………… Sister Maureen Murphy
Trustee and Congregational Leader
……………………………………………… Sister Anne Moore
Trustee and Congregational Bursar
Registered Charity Number 1135474

37

Independent Auditor's Report to the Members of

The Franciscan Missionaries of St. Joseph

For the Year Ended 31 December 2021

Opinion

We have audited the financial statements of The Franciscan Missionaries of St. Joseph (the ‘Charity’) for the year ended 31 December 2021 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.

38

Independent Auditor's Report to the Members of

For the Year Ended 31 December 2021 - 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.

39

Independent Auditor's Report to the Members of

For the Year Ended 31 December 2021 - 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 2021 - 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 section 1212 of the Companies Act 2006.

41

The Franciscan Missionaries of St. Joseph

Statement of Financial Activities

For the Year Ended 31 December 2021

2021 2020
Unrestricted Designated Restricted Total Total
Note Funds Funds Funds Funds Funds
Incoming Resources £ £ £ £ £
Voluntary Income 2 779871 - - 779871 1044757
Activities for
Generating Funds 3 - - - - 330
Investment Income 4 122 7247
 - 7369 27203
Incoming Resources
from Charitable
Activities 5 45468 - - 45468 25626
Other Incoming
Resources 6 16536 - - 16536 31638
Total Incoming Resources 841997 7247 - 849244 1129554

42

The Franciscan Missionaries of St. Joseph

Statement of Financial Activities - Continued For the Year Ended 31 December 2021

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		 2020
Unrestricted Designated
Restricted
Total
Funds
Funds
Funds
Funds
£
£
£
-
-
-
-
29137
24040
1415171
-
1274082
46538
-
34969
£
29137
-
-
1415171
46538
Funds
Total
-
-
2021
-
£
1461709
29137
1333091
1490846
-
(619712)
(21890)
(203537)
(641602)
-

43

The Franciscan Missionaries of St. Joseph

Statement of Financial Activities - Continued

For the Year Ended 31 December 2021

2021 2020
Unrestricted Designated Restricted Total Total
Note Funds Funds Funds Funds Funds
Gains/(Losses) on
Investments £ £ £ £ £
Profit/(Loss) on Sale of
Investment Assets - 95835 - 95835 270647
Movement in Value of
Investment Assets - 471341 - 471341 (97930)
Transfer of Ecuadorian
Retirement Funds - - - - 88188
Transfer Between
Funds 463526 (463526) - - -
Net Movement in Funds (156186) 81760 - (74426) 57368
Reconciliation of Funds
Total Funds Brought Forward 1563019 5390668 - 6953687 6896319
Total Funds Carried Forward 1406833 5472428 - 6879261 6953687

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

44

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2021

Note
Fixed Assets
Freehold & Leasehold Property
Other Tangible Assets
Total Tangible Fixed Assets
14
Designated Funds Investments
15
Investments
Quoted Investments
16
Unquoted Investments at Cost
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		 £
12051
1392440
-
280
6974
135403
3259
2630
148266
58016
1300000
106833

Registered Charity Number 1135474

Approved by the Directors on 31 August 2022

45

The Franciscan Missionaries of St. Joseph

Consolidated Statement of Cash Flows

For the Year Ended 31 December 2021

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 2021
B
Cash and cash equivalents as at 31 December 2021
B
Write back of provision for professional fees in
relation to Blackrock Cork.		 £
836094
7369
-
(6944)
423258
-
423683
(215417)
2021
(639100)
-
620677		 2020
£
(7533)
27203
650
6513
(4374)
510245
(420000)
120237
112704
723390
836094

46

The Franciscan Missionaries of St. Joseph

Consolidated Statement of Cash Flows - Continued

For the Year Ended 31 December 2021

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
Loss/(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		 £
(25150)
(639100)
463526
(463526)
(74426)
2125
(471341)
(7369)
254
32642
(95835)
2021		 2020
£
57368
34267
(270647)
97930
19719
(27203)
(650)
89457
11945
(19719)
(7533)

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		 2020
£
£
523402
18141
276958
15170
2423
836094
620677
463450
135403
3259
2630
15935
2021

47

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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:

48

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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 2022, the most significant areas that affect the carrying value of the assets held by the Charity 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.

49

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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.

50

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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.

51

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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 70A - 119A 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.

52

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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		 £
£
201136
2858
-
779871
100628
2021
779871
-
-
103202
265331
24430
12905
62971
779871
779871
6410		 2020
£
7379
208824
31336
444293
82548
55143
26747
71117
17370
944757
100000
1044757
£
-
100000
944757
1044757

53

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - Continued

3
Activities for Generating Funds
Book and Calendar Receipts
Other Fund Raising Activities
4
Investment Income
Dividends and Interest Received
on Quoted Investments
Interest Received on Unquoted Investments
Bank Interest Received		 £
£
2021
122
-
2021
-
-
-
7369
7247		 2020
£
330
-
330
2020
£
24488
-
2715
27203
Dividends and Interest Received on Quoted Investments and Bank Interest Received include Dividends and Interest Received on Quoted Investments and Bank Interest Received include
income from designated funds of £7,247 (2020 £24,843) - see note 15.
5 Incoming Resources from Charitable Activities
2021 2020
£ £
Fees and Remuneration - Residential Care Homes
45125		 25119
Other Miscellaneous Income
343		 507
45468 25626

54

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - Continued

6
Other Incoming Resources
Insurance Payout for Medical Expenses
Surplus on Sale of Motor Cars & Property
Transfers from Regions - see note 13
7
Cost of Book Expenses
Other Fund Raising Costs
8
Investment Management Costs
Investment Advice Fees
Investment Platform Fees - see note 15
Restricted Funds
Designated Funds
Unrestricted Funds
Fundraising Trading: cost of goods sold and other
costs		 £
£
£
£
4019
29137
2021
-
-
2021
-
2021
-
29137
16536
25118
-
-
-
29137
16536		 2020
£
-
650
30988
31638
2020
£
-
-
-
2020
£
20724
3316
24040
£
-
24040
-
24040

55

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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		 £
£
26595
-
1054580
1415171
4670
76642
-
1415171
167211
1415171
2021
85473		 2020
£
2910
141038
23394
1003446
14000
89294
1274082
£
-
-
1274082
1274082

10 Governance Costs

Audit Fee
Legal and Other Professional Charges		 2020
£
£
9006
25963
34969
37488
2021
9050
46538

56

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - Continued

11 Support Costs

Office Expenses
Administration Salaries
Insurance
Travel
Bank Charges
Upkeep of Buildings
Depreciation - Vehicles and Fixtures & Fittings
Depreciation - Buildings & Alterations
Deficit on Sale of Motor Cars & Property
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		 £
£
£
-
85
34
759491
85473
759491
15299
15271
1569
-
17735
726457
11928
254
36
3724
13061
2021
28918
38406
6667
1
709157
2021
1
15924		 2020
£
9688
14396
6784
22454
1464
-
5350
28918
-
-
240
89294
2020
£
681847
28395
10928
721170
£
689649
17125
14396
721170
36
1
1
38

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

57

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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
£
£
£
£
-
9184
-
-
63124
5633
40078
85811		 2020
Total
Total
£
£
85181
71117
2021
100628
103202
-
72308
-
-
-
45711
-
85811		 156298
30988
-
203830
-
72308
45711
85811		 187286
17370
2858
203830
204656
206688

c) Expenditure relating to Mission and Other Houses Overseas

N.I. Contributions
Other Srs. Exps.
Transfer from
Central Fund for
External Pgrms.		 2020
Ireland
USA
Africa
Ecuador
Total
Total
£
£
£
£
£
£
-
-
-
-
14197
15
2021
-
14397
-
-
200
-
-
14197
15
-
56623
23394
-
14397
-
76642
20019
200
-
70820
23409
20219
91039
-
~~58~~

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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 2021 1652702 118242 33655 1032093 2836692
Additions at Cost - - - 6944 6944
Impairment - - - - -
Disposals - - (641) (3004) (3645)
At 31 December 2021 1652702 118242 33014 1036033 2839991
b) Depreciation:
As at 1 January 2021 231344 114341 31114 1029450 1406249
Charge for the Year 28918 2776 572 376 32642
Disposals - - (577) (2814) (3391)
At 31 December 2021 260262 117117 31109 1027012 1435500
c) Net Book Value:
As at 31 December 2021 1392440 1125 1905 9021 1404491
As at 31 December 2020 1421358 3901 2541 2643 1430443

59

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - Continued

14
Tangible Fixed Assets - Continued
d)
Freehold Land and Buildings include alterations and are stated:
At 1 January 2021
At 1987 Valuation
At Cost
Cost or Valuation at 1 January 2021
At 31 December 2021
At 1987 Valuation
At Cost
Cost or Valuation at 31 December 2021
e)
Fixtures and Fittings are stated:
At 1 January 2021
At 1998 Valuation
At Cost
Cost or Valuation at 1 January 2021
At 31 December 2021
At 1998 Valuation
At Cost
Cost or Valuation at 31 December 2021		 £
310000
1342702
1652702
310000
1342702
1652702
908750
123343
1032093
908750
127283
1036033

f) Motor Cars and Office Equipment are stated at cost.

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.

60

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - Continued

15A 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 2021
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
Balance as at 31 December 2021
b)
Funds are invested as follows:
Quoted Investments
Cash at Bank - Deposit Account
Monies Held on Investment Platform
Net Sundry Debtors
c)
Quoted Investments are incorporated
at Market Value i.e.
Cost
Surplus on Valuation
Market Value		 £
£
£
2405949
5302480
5384240
463450
-
5384240
2021
95835
4904855
4904855
2498906
471341
2021
59
7188
-
15935
(25118)
(4019)
2021
(463526)		 2020
£
5048679
100000
(19719)
(97930)
405
24438
270647
(20724)
(3316)
5302480
2020
£
4760937
523402
18141
-
5302480
2020
£
2733371
2027566
4760937

61

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - Continued

15A
Designated Fund: MHP - Continued
d)
The movement in quoted investments
during the year is as follows:
Cost as at 1 January 2021
Disposals
Additions
Cost as at 31 December 2021		 2020
£
£
2552969
(239598)
420000
2733371
(327422)
2021
2405949
-
2733371

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
Aegon Ethical Equity
Royal London Sustainable Leaders Trust		 2020
£
£
360009
291620
260413
220864
1132906
2021
302787
414257
1309405
322407
269954

62

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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 2021
Funds transferred from United States
Add Annual Supplement
Balance as at 31 December 2021		 2020
£
£
-
88188
-
88188
88188
-
-
2021
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.

The first such addition will be made in 2022 following the increase in interest rates now available to The Order. There were no additions in 2021 as a consequence of the very low interest rates which prevailed at that time.

16 Investments

There have been no investments held in the year or in the previous year.

63

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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 2021
Less Transfer to Capital Account this Year
Balance as at 31 December 2021		 2020
£
£
1750000
300000
1450000
1450000
2021
1300000
150000

The Mill Hill Pension Funds support the Retired Sisters Maintenance Fund and total £5,384,240 (2020 £5,302,480).

Monies transferred to the Capital Fund of the Order from the Mill Hill Pension Fund in the year totalled £463,526 (2020 £19,719) and is in addition to the monies transferred from the Maintenance Reserve.

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

64

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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 £8,657 (2020 £8,100) 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 £8,657 (2020 £8,100) per sister from the date of retirement exceeds £6.89 million (2020 £6.85 million) of which £3.25 million (2020 £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.

65

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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		 £
£
15227
34107
-
561
8121
58016
-
-
2021
-
-
6974
2021
6974
-
-		 2020
£
6974
-
2125
-
-
-
9099
2020
£
13693
46453
561
-
8121
14338
83166

21 Creditors : Amounts Due Within One Year

66

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - 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

payments under non-cancellable operating leases as follows
£
2021		 2020
£
Rental Property 5000 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
2021		 2020
£
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 2021
Received
Expended
Transfer
Dec 2021
£
£
£
£
£
-
-
-
5302480
574423
5384240
88188
-
88188
1450000
-
1300000
113019
841997
106833
-
-
-
613526
(1461709)
(150000)
(29137)
(463526)
-
-
6953687
1416420
6879261
-
(1490846)

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.

67

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021 - Continued

25 Analysis of Net Assets between Funds

Fund balances at 31 December 2021
are represented by:
Tangible Fixed Assets
Designated Fund Investments
Investments
Net Current Assets		 Unrestricted Designated
Restricted
Total
£
£
£
£
1404491
1404491
-
5384240
280
280
2062
90250
-
-
5384240
-
-
-
88188
-
1406833
6879261
5472428
-

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.

68

The Franciscan Missionaries of St. Joseph Unaudited Overseas Accounts for the Year Ending 31 December 2021

Index

70A Accounts for the Ireland Region
79A Accounts for the United States of America Area
88A Accounts for the Africa Region
115A Accounts for the Ecuador Region

The Franciscan Missionaries of St. Joseph

Income for the Year Ended 31 December 2021

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
-
-
93
93
459228
2020
£
34519
131984
2557
288693
6
2551
-
166503
1382
-
Bank and Building Society Interest Received
and Other Similar Income		 £
-
-
83
32874
129861
6
-
-		 £
162735
1340
6
337172
83
501336

70A

The Franciscan Missionaries of St. Joseph

Expenditure for the Year Ended 31 December 2021

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
Interest
Professional Fees
Depreciation
Mission and Other Houses Overseas
Formation
Total Expenditure For The Year
Surplus/(Deficit) for the Year
2020
£
207
-
687770
43706
459228
123701
123701
-
-
78
(49739)
2284
-
335965
236
3026
1983
807
(47170)
-		 £
1
-
567
207
2053
754
183
165051
79
53382
8391		 £
-
165234
3374
62060
317173
-
547841
(46505)
501336

71A

The Franciscan Missionaries of St. Joseph
Balance Sheet as at 31 December 2021
Ireland Region
Capital Account
Capital as at 1st January 2021
Movement in Value of Investments
Profit/(Loss) on Sale of Investments
Surplus/(Deficit) for the Year
Capital Fund
Current Liabilities
Sundry Creditors
(74192)
(20200)
43706
717723
-
717723
2020
£
768409
£
717723
77245
-
(46505)
748463
-
748463

72A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2021

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
13580
2020
3
14485
505770
520255
-
902
£
61963
132871
81
2553
197468
717723		 £
116326
-
57622
19348
5125		 £
12428
839
3
13270
536772
550042
198421
748463

73A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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:-

2021 2020
£ £
Pensions Received 85811 70538
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 2021 15292
29860		 158077 203229
Additions at cost -
 - - -
Disposals - - - -
Exchange Adjustments (1072) (2094)
 (11084) (14250)
At 31 December 2021 14220 27766 146993 188979
b) Depreciation
At 1 January 2021 1712
29857		 157175 188744
Charge for the Year 207 -
 - 207
On Disposals -
 - - -
Exchange Adjustments (127)
(2094)		 (11021) (13242)
At 31 December 2021 1792
 27763 146154 175709

74A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

Ireland Region

Fixtures
Freehold land Motor and
and building Cars Fittings Total
c) Net Book Value £ £ £ £
At 31 December 2021 12428 3 839 13270
At 31 December 2020 13580 3 902 14485

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.

75A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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 2021
Movement in Value this year
Investment Income
Interest Paid
Profit on Sale of Investments
Investment Management Fees
Exchange Adjustment
Balance as at 31 December 2021
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		 £
1
£
£
246
-
537018
2021
444538
92234
2021
536772
536772
537018
-
8275
(54539)
2021
506036
77245
-		 2020
£
563614
(71942)
2551
-
(20200)
(2167)
34180
506036
2020
£
505770
266
-
506036
2020
£
478058
27712
505770

76A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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.

Davy Funds PLC GPS Moderate Growth B EUR ACC £
536772
2021
536772		 2020
£
505770
505770

77A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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 €386,444 (2020 €329,364) 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
Bank Refund
Remitted to Ecuador
Remitted to Kenya
Training
Exchange Adjustments
Total Expended
Balance Carried Forward
Total		 £
1
-
81
317905
19348
317173
732
-
2021
336391
337253
337253
780		 2020
£
45885
287629
1063
-
334577
-
332643
3323
(1470)
334496
81
334577

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.

78A

The Franciscan Missionaries of St. Joseph

Income for the Year Ended 31 December 2021

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
95627
-
92771
-
-
85396
187289
6266
-
-
95627
2020
£
-
-
6266
6041		 £
6041
-
92771
-
-
20745
119557

79A

The Franciscan Missionaries of St. Joseph

Expenditure for the Year Ended 31 December 2021

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
187289
25808
-
-
66626
120663
21319
1888
2601
11882
-
-
-
-
2020
£
-
28936
-		 £
(8880)
2398
1283
-
-
59
-		 £
-
27477
-
(5140)
-
-
-
22337
97220
119557

80A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2021

United States of America Area

Capital Account
Capital as at 1 January 2021
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
-
857598
748098
109500
2019
£
664365
120663
(17824)
779086
(30988)
11882		 £
748096
97220
(24005)
-
821311
-
821311
101694
-
923005

81A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2021

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
857598
£
-
-
-
4232
4232
-
1283
1283
109500
742583
2020		 -
3461		 £
-
-
8
8
101694
817842
-
3461
923005

82A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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:

2021 2020
£ £
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 2021
Additions at cost
Disposals
Exchange Adjustments
At 31 December 2021
b)
Depreciation
At 1 January 2021
Charge for the Year
On Disposals
Exchange Adjustments
At 31 December 2021		 Total
£
£
£
12088
-
-
149
12237
10805
1283
-
141
12229
23
10380 1857
8971 1834
1283
-
-
Motor
Cars
Fixtures &
Fittings
10254 1834
-
-
-
-
126
23
10372 1857
118

83A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

United States of America Area

3 Tangible Fixed Assets - continued

c)
Net Book Value
At 31 December 2021
At 31 December 2020		 Motor
Fixtures
Cars
Fittings
Total
£
£
£
8
1283
8
-
-
1283

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 2021 for which no provision has been made in the accounts is £Nil.

84A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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		 £
2021
460742
357100
817842		 2020
£
400471
342112
742583

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 2021
Transfer from Mill Hill Sisters of New York
Missions
Transfer to UK Central Fund
Management Expenses
Investment Surplus/(Deficit)
Exchange Adjustments
Investments as at 31 December 2021		 £
2021
(2456)
92205
9515
817842
742583
-
(24005)
-		 2020
£
657910
29335
(17824)
-
(1888)
95627
(20577)
742583

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.

85A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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 2021
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		 £
-
-
101694
2021
(20618)
(724)
12248
1288
109500
-		 2020
£
180106
(30988)
(29335)
(24507)
(1094)
(30)
20168
(4820)
109500

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.

86A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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 2021
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 2021		 £
-
-
-
2021
-
-
-
-
-		 2020
£
73207
1681
11882
(75)
-
1493
(88188)
-

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.

87A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

Africa Region

The accounts for the Africa Region for the year ended 31 December 2021 have been prepared and audited by the Kenyan accountants, Anchinga and Associates Certified Public Accountants and are reproduced on pages 89A - 114A.

88A

FRANCISCAN MISSIONARIES OF SAINT JOSEPH REGISTERED TRUSTEES (AFRICA REGION)

ANNUAL REPORT

AND

FINANCIAL STATEMENTS

31 DECEMBER 2021

89A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

CONTENTS
PAGE
Trust Information 1
List of Communities 2
Report of the Trustees 3
Statement of the Trustees' Responsibilities 4
Report of the Independent Auditor 5 - 7
Financial Statements:
Statement of Income and Expenditure 8
Statement of Financial Position 9
Statement of Changes in Reserves 10
Statement of Cash Flows 11
Notes 12 - 20
The following pages do not form an integral part of these financial statements:
Schedule of Income and Expenditure 21 - 24

90A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

TRUST INFORMATION

TRUSTEES / REGIONAL TEAM TRUSTEES

Sr. Margaret Bradbury Regional Bursar Sr. Margaret Obwoge Member Sr. Tecla Chepng'eno Member Sr. Benter Atieno Member Sr. Margaret Tambasi Member Sr. Bernadette Nealon Member Sr. Mary Monari Member REGIONAL TEAM Sr. AnnJentrix Murundu Co-Regional Leader Sr. Medrine Musundi Co-Regional Leader Sr. Prisca Bonareri Member Sr. Bernadette Nealon Member Sr. Mary Monari Member REGISTERED OFFICE Ingham House P.O. Box 21032-00505 Nairobi INDEPENDENT AUDITOR Anchinga and Associates Certified Public Accountants 2nd Floor, Adlife Plaza, Chania Drive P.O. Box 67731 - 00200 Nairobi, Kenya. BANKERS NCBA Bank Kenya Plc Nairobi Kenya Commercial Bank Nairobi Ecobank Limited Nairobi African Banking Corporation Nairobi Centenary Bank Kotido, Uganda

1

91A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

LIST OF COMMUNITIES

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.		 Community Name
Regional Office
Ingham House
Rochdale House
Novitiate Program - Ingham House
Holy Family Convent
Our Lady of Divine Providence Convent
St. Joseph's Convent
St. Francis Convent
St. Theresa's Convent
St. Clare Convent
Amani Convent
St. Michael's Convent
Maria Toto Ngina Ke'ekisii
St. Bakhita Convent
Office
Development Office		 Location
Nairobi
Nairobi
Nairobi
Nairobi
Kisumu
Nyamira
Luanda
Salawa
Marigat
Malindi
Witu
Mpeketoni
Uganda
Muhoroni
Nairobi		 Sister-in-Charge
Sr. Margaret Brad
Sr. Bibiana Shilwa
Sr. Medrine Musu
Sr. Bibiana Shilwa
Sr. Bernadette Ne
Sr. Monica Onyad
Sr. Dorcas Moraa
Sr. Veronica Asia
Sr. Florence Boya
Sr. Margaret Obw
Sr. Praxedes Lum
Sr. Angeline Muny
Sr. Christabel Shi
Sr. Margaret Tam
Manager
Zacharia Chiliswa

Sr. Margaret Bradbury Sr. Bibiana Shilwatso Sr. Medrine Musundi Sr. Bibiana Shilwatso Sr. Bernadette Nealon Sr. Monica Onyado Sr. Dorcas Moraa Sr. Veronica Asiago Sr. Florence Boyani Sr. Margaret Obwoge Sr. Praxedes Lumula Sr. Angeline Munyao Sr. Christabel Shistukane Sr. Margaret Tambasi

2 92A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

REPORT OF THE TRUSTEES

The Trustees submit their report together with the audited financial statements for the year ended 31 December 2021, which disclose the state of affairs of the organization.

PRINCIPAL ACTIVITY

The principal activity of the organization is to minister to those most in need - the poor, the uneducated, the sick and the dying.

RESULTS

Surplus for the year Actual
2021
KSh
283,710		 Actual
2021
£
1,865		 Actual
2020
KSh
4,480,819		 Actual
2020
£
30,203

TRUSTEES / REGIONAL TEAM

The Trustees who held office during the year and to the date of this report are shown on page 1.

INDEPENDENT AUDITORS

The auditors, Anchinga & Associates, Certified Public Accountants (K) were appointed during the year and have expressed their willingness to continue in office.

BY ORDER OF THE TRUSTEES

Sr AnnJentrix Murundu Co- Regional Leader

Sr Margaret Bradbury Regional Bursar

Signature………………………..

Signature……………………………

3 93A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

STATEMENT OF THE TRUSTEES' RESPONSIBILITY

The Trustees are required to prepare financial statements which give a true and fair view of the state of affairs of the organization as at the end of the financial year and of the results for that year. The Trustees are also required to ensure that the organization maintains proper accounting records which disclose with reasonable accuracy the financial position of the organization. The Trustees are also responsible for safeguarding the assets of the organization.

The Trustees accepts responsibility for the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.They also accept responsibility for:

The Trustees are of the opinion that the financial statements give a true and fair view of the financial position of the organization as at 31 December 2021 and of its performance and cash flows for the year then ended in accordance with organization's accounting policies set out on 12 and 13.

In preparing these financial statements, the Trustees have assessed the organization's ability to continue as a going concern.Nothing has come to the attention of the Trustees to indicate that the organization will not remain a going concern for at least the next twelve months from the date of this statement.

So far as the Trustees are aware, there is no relevant audit information which the auditor is unaware of, and the Trustees have taken all the steps that ought to have been taken in order to become aware of any relevant audit information and to establish that the auditor is aware of that information.

Approved by the Trustees on………………………………………2022 and signed on its behalf by;

Sr AnnJentrix Murundu Co- Regional Leader

Sr Margaret Bradbury Regional Bursar

Signature………………………..

Signature……………………………..

4 94A

P.O. Box 67731 – 00200 Nairobi Suite 2E3 Office: 0700 16 16 99, 0780 16 16 99 2[nd] Floor, Adlife Plaza Cell: 0722 72 15 50 Ring Road – Kilimani Email: info@pna.co.ke Nairobi, Kenya

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FRANCISCAN MISSIONARIES OF SAINT JOSEPH REGISTERED TRUSTEES (AFRICA REGION)

Opinion

We have audited the accompanying financial statements of Franciscan Missionaries of St. Joseph, set out on pages 8 to 20 which comprise the statement of income and expenditure, statement of financial position as at 31 December 2021, statement of changes in reserves and statement of cashflows for the year ended, and a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of Franciscan Missionaries of St. Joseph as at 31 December 2021 and of its financial performance and cashflows for the year then ended in accordance with the accounting policies set out on page 12 and 13.

Other Matter

The financial statements of the organization for the year ended 31 December 2020 were audited by another auditor whose report expressed an unqualified audit opinion on those financial statements.

Basis of Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). 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 organization in accordance with the International Ethics Standards Board for Accountants, Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Kenya, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Restriction on use

This report is made available solely to the Franciscan Missionaries of St. Joseph management team and the Trustees.To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the management team and the Trustees of Franciscan Missionaries of St. Joseph as a body, for this report, or for the opinions we have formed.

Other information

The management is responsible for other information. The other information comprises the report of theTrustees, statement of Trustees' responsibilities, schedules of Financial position and incomes and expenditure for Communities and Development office 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.

In connection with our audit of the financial statements , 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 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 that fact. We have nothing to report in this regard.

5 95A

P.O. Box 67731 – 00200 Nairobi Suite 2E3 Office: 0700 16 16 99, 0780 16 16 99 2[nd] Floor, Adlife Plaza Cell: 0722 72 15 50 Ring Road – Kilimani Email: info@pna.co.ke Nairobi, Kenya

REPORT OF THE INDEPENDENT AUDITORS (CONTINUED) TO THE MEMBERS OF FRANCISCAN MISSIONARIES OF SAINT JOSEPH REGISTERED TRUSTEES (AFRICA REGION)

The Trustees' responsibilities for the financial statements

The Trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with the accounting policies set out on page 12 and 13 and for such internal control as 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 organization'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 organization or to cease operations, or has no realistic alternative but to do so.

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

Auditor's responsibilities for the audit of the financial statements

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 International Standards on Auditing 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.

As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit. We also:

i) 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.

ii) 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 organisation’s internal control.

iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.

6 96A

P.O. Box 67731 – 00200 Nairobi Suite 2E3 Office: 0700 16 16 99, 0780 16 16 99 2[nd] Floor, Adlife Plaza Cell: 0722 72 15 50 Ring Road – Kilimani Email: info@pna.co.ke Nairobi, Kenya

REPORT OF THE INDEPENDENT AUDITORS (CONTINUED) TO THE MEMBERS OF FRANCISCAN MISSIONARIES OF SAINT JOSEPH REGISTERED TRUSTEES (AFRICA REGION)

Auditor's responsibilities for the audit of the financial statements (Continued)

iv) Conclude on the appropriateness of Trustees' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the organisation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained upto the date of our auditor's report. However, future events or conditions may cause the society to cease to continue as a going concern.

v) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other matters

We also report on the following matters;

i.) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii.) In our opinion, proper books of account have been kept by the organization so far as it appears from the examination of those books;

iii.) The organization's Statement of Financial Position is in agreement with the books of account.

The engagement partner responsible for the audit resulting in this independent auditors’ report is CPA Peter N Anchinga- P/No. 1426.

Nairobi - Kenya

Date: ............................................2022

7 97A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

Annual report and financial statements
For the year ended 31 December 2021
STATEMENT OF INCOME AND EXPENDITURE
Actual
2021
Note
KSh
Income
3
33,279,166
Expenditure
Personnel expenses
4 (a)
5,009,701
Physical well being
4 (b)
11,728,398
Mental well being
4 (c)
2,942,959
Spiritual well being
4 (d)
1,922,760
Sustainability expenses
4 (e)
104,812
Administration expenses
4 (f)
5,937,830
Governance
4 (g)
1,166,359
Chesire / Lilliane Fonds
4 (h)
272,270
Luanda widows
4 (i)
83,710
Depreciation
4 (j)
3,826,657
Total expenditure
32,995,456
Surplus for the year
283,710		 Actual
2021
£
218,864
32,947
77,133
19,355
12,645
689
39,051
7,671
1,791
551
25,166
216,999
1,865		 Actual
2020
KSh
26,278,429
1,775,493
9,986,631
1,941,931
1,901,856
23,000
2,937,028
246,916
29,500
-
2,955,255
21,797,610
4,480,819		 Actual
2020
£
177,130
11,968
67,315
13,090
12,819
155
19,797
1,664
199
-
19,920
146,927
30,203

Notes on pages 12 to 20 form an integral part of these financial statements.

Report of the independent auditor- page 5-7

8 98A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

STATEMENT OF FINANCIAL POSITION

Note
RESERVES
Accumulated fund
Non-current liability
Designated funds
5.
REPRESENTED BY
Non-current assets
Property and equipment
6.
Current assets
Receivables
7.
Cash and cash equivalents
8.
Investment
9.
Current liabilities
Payables
10.
Net current assets		 2021
KSh
81,929,011
81,929,011
38,890,508
120,819,519
80,562,251
239,484
34,741,215
5,795,583
40,776,282
519,014
40,257,268
120,819,519		 2021
£
538,816
538,816
255,768
794,584
529,827
1,575
228,480
38,115
268,170
3,413
264,757
794,584		 2020
KSh
46,175,697
46,175,697
53,954,504
100,130,201
41,473,271
87,142
53,386,847
5,309,713
58,783,702
126,772
58,656,930
100,130,201		 2020
£
311,226
311,226
363,656
674,882
279,532
587
359,830
35,788
396,205
855
395,350
674,882

The financial statements on pages 8 to 20 were approved and authorized for issue by the Trustees

on………………………………………2022 and were signed on its behalf by;

Sr AnnJentrix Murundu

Co - Regional Leader

Sr Margaret Bradbury Regional Bursar

Signature………………………..

Signature…………………………….

Notes on pages 12 to 20 form an integral part of these financial statements.

Report of the independent auditor- page 5-7

9

99A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

STATEMENT OF CHANGES IN RESERVES

Year ended 31 December 2021
At start of year
Surplus for the year
At end of year
Year ended 31 December 2020
At start of year
Surplus for the year
Prior year adjustment (Note 14 - i)
Prior year adjustment (Note 14 - ii)
Prior year adjustment (Note 14 - iii)
Prior year adjustment (Note 14 - iv)
Prior year adjustment (Note 14 - v)
Prior year adjustment (Note 14 - vi)
Transfer from designated funds
At end of year		 Accumulated
fund
KSh
81,645,301
283,710
81,929,011
(2,226,356)
4,480,819
(13,100)
905,500
43,921,234
28,586
23,419,590
210,715
10,918,313
81,645,301

a) The transfer above relates to funds initially in the designated funds that were were utilised in the purchase of land.

b) The amount of sh. 23,419,590 above relates to adjustment to recognize the cost of land and buildings purchased in the previous periods that were not captured in the books of account. Broken down as; Land (Sh. 5,799,590) and Buildings (Sh. 17,620,000)

Notes on pages 12 to 20 form an integral part of these financial statements. Report of the independent auditor- page 5-7

10 100A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021

STATEMENT OF CASHFLOWS
Note
Operating activities
Cash generated from operations
11.
Net cash generated from operating activities
Investing activities
Interest received
3.
Acquisition of fixed assets
6.
Increase in investment in money market fund
9.
Net cash used in investing activities
Financing activities
Decrease in designated funds
5.
Net cash used in financing activities
(Decrease) / increase in cash and cash equivalents
Movement in cash and cash equivalents
At start of year
Fund balance (Development office)
Retranslation difference
(Decrease) / increase in cash and cash equivalents
At end year
8.		 2021
KSh
14,690,204
14,690,204
785,783
(19,404,348)
(485,870)
(19,104,435)
(15,063,996)
(15,063,996)
(19,478,227)
53,386,848
832,594
-
(19,478,227)
34,741,215		 2021
£
96,612
96,612
5,168
(127,615)
(3,195)
(125,643)
(99,070)
(99,070)
(128,101)
359,830
-
(3,249)
(128,101)
228,480		 2020
KSh
59,732,223
59,732,223
-
(44,255,576)
(547,009)
(44,802,585)
-
-
14,929,639
38,457,209
-
-
14,929,639
53,386,848		 2020
£
402,598
402,598
-
(298,284)
(3,687)
(301,971)
-
-
100,626
289,282
-
(30,079)
100,626
359,830

Notes on pages 12 to 20 form an integral part of these financial statements.

Report of the independent auditor- page 5-7

11 101A

Annual report and financial statements For the year ended 31 December 2021 Notes to The Financial Statements

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region)

1. GENERAL INFORMATION

Franciscan Missionaries of Saint Joseph Registered Trustees is incorporated in Kenya under the Trustees (Perpetual Succession) Act chapter 164.

2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the accounting policies as set out below. These accounting policies are in accordance with policies and guidelines of Franciscan Missionaries of Saint Joseph.

a) Income Recognition

Donor income is recognized when the monetary value of the donation can be measured with sufficient reliability, there is reasonable assurance of receipt and conditions for receipt, if any, have been met. Donations in kind whose monetary value cannot be quantified are not recognized as income. Income is mainly received from donations, salaries and stipends earned in the communities where Sisters work as nurses or teachers.

The Congregation also receives funds in form of contributions from the projects that are under their management.

b) Property and Equipment

All Property and equipment are initially recognized at cost and thereafter stated at historical cost less accumulated depreciation. Historical cost comprises expenditure initially incurred to bring the asset to its location and condition ready for its intended use.

Land is not depreciated.

Depreciation on other fixed assets is calculated on a reducing balance method to write down the cost of each asset to its residual value over its estimated useful life using the following annual rates:

Land
Buildings
Motor vehicles
Furniture and fittings
Equipment
Computers		 Rate %
Nil
5
25
12.5
12.5
30

The assets' residual value and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting date. Gains and losses on disposal of property and equipment are determined by reference to their carrying amount and depreciation are taken into account through the statement of income and expenditure.

c) Translation of foreign currencies

Transactions in foreign currencies during the year are converted into Kenya Shillings at rates ruling at the transaction dates. Assets and liabilities at the date of this report which are expressed in foreign currencies are translated into Kenya Shillings at rates ruling at that date. The resulting differences from conversion are dealt with in the statement of income and expenditure.

The rates used for translation of transactions and conversion of balances in Pound to Kshs were as follows;

Average exchange rate 2021
KSh
152.05		 2020
KSh
148.36

12 102A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021 Notes to The Financial Statements (Continued)

d) Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents comprise cash in hand and deposits held at call with banks.

e) Taxation

No provision has been made for taxation in view of the nature of the organization.

f) Receivable

Receivables comprise prepayments and other receivables and are recorded at net realisable value. No provisions have been made in these financial statements. However, an assessment is made on the recoverability of receivables to determine provisions and write-offs required.

g) Payables

Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method.

h) Retirement benefit obligations

The society and its employees contribute to the National Social Security Fund (NSSF), a statutory defined contribution scheme registered under the NSSF Act. The organization's contributions to the defined contribution scheme are charged to the statement of income and expenditure in the year to which they relate.

i) Designated funds

These are funds held for specific purposes and only to be used for that purpose.

j) Comparatives

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.

13 103A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021 Notes to The Financial Statements (Continued)

3. Income

Grants and donations
FMSJ - UK (Mother House)
Member funding
Misean Cara
ASEC
Catholic Scholarship
Lilliane Fonds / Chesire
Persons of Goodwill
Sisters' salaries
Contribution from FMSJ Projects
Interest income
Investment income
Sustainability income
Garden income
Other income
Donations in kind
Total income
4.
Expenditure
a.) Personnel
Staff capacity building
Staff welfare
Salaries and wages
NSSF employer contribution
Total personnel
b.) Physical well being
Food
Household
Garden / farm expenses
Power and fuel
Security
Maintenance
Insurance
Sisters' expenses
Medical expenses
Personal allowance
Medical insurance
Water
Physical well being - Other
Total Physical well being
c.) Mental well being
Recreation expenses
Books / periodicals / Subscriptions
Holiday
Education
Pre-Novitiate
Novitiate
Junioraite
Ongoing formation
Other
Celebrations / events
Professions
Jubilee
Sisters' celebrations
Others
Funeral expenses
Total Mental well being		 2021
KSh
2,031,565
1,549,813
3,831,746
52,878
65,000
322,149
2,695,116
16,542,051
2,512,721
201,061
584,722
710,961
110,340
1,764,668
304,375
33,279,166
229,911
22,418
4,658,454
98,918
5,009,701
3,208,656
615,605
249,511
991,465
350,854
865,541
135,715
342,686
2,490,258
1,155,200
1,292,955
2,225
27,727
11,728,398
41,332
337,398
284,248
36,250
310,700
146,792
365,655
274,692
398,056
177,140
178,612
99,470
292,614
2,942,959		 2021
£
13,361
10,193
25,200
348
427
2,119
17,725
108,791
16,525
1,322
3,845
4,676
726
11,606
2,002
218,866
1,512
147
30,637
651
32,947
21,102
4,049
1,641
6,520
2,307
5,692
893
2,254
16,377
7,597
8,503
15
182
77,132
272
2,219
1,869
238
2,043
965
2,405
1,807
2,618
1,165
1,175
654
1,924
19,354		 2020
KSh
1,872,851
-
-
-
35,000
-
3,562,032
15,809,119
3,107,973
350,137
484,936
793,308
125,605
137,468
-
26,278,429
157,500
20,060
1,516,747
81,186
1,775,493
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		 2020
£
12,624
-
-
-
236
-
24,010
106,561
20,949
2,360
3,269
5,347
847
927
-
177,130
1,062
135
10,224
547
11,968
20,393
-
1,721
4,687
6,211
2,128
3,671
271
2,056
9,769
8,108
-
8,298
67,315
195
1,567
1,635
226
239
1,477
1,730
138
4,106
-
1,777
-
-
13,090

14

104A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021 Notes to The Financial Statements (Continued)

d.) Spiritual well being
Chapel
Pastoral expenses
Donation
Retreat and recollection
Spiritual direction
Sisters' welfare
Spiritual well being - other
Total Spiritual well being
e.) Sustainability expenses
Vocations promotion
f.) Administration
Transport
Motor vehicle running expenses
Stationery / postage / printing
Telephone and internet
Professional / consultancy
Government documents
Bank charges
Dues and subscriptions
Other expenses
Office supplies
Withholding tax
Contribution to FMSJ
Foreign exchange loss
Domain registration and maintenance
Total Administration
g.) Governance
Audit
Meetings - Stakeholder hospitality
Planning and evaluation
Monitoring and evaluation
Seminars and workshop
Total governance
h.) Chesire / Lilliane Fonds
School fees
i.) Luanda widows
j.) Depreciation
Buildings
Motor vehicles
Furniture, fittings and fixtures
Computers
Equipment
Total depreciation
Total expenditure		 2021
KSh
73,401
361,930
463,656
960,623
5,550
57,197
403
1,922,760
104,812
1,846,381
1,176,327
100,455
389,514
231,200
59,820
169,264
72,558
389,195
40,265
29,904
1,332,042
63,905
37,000
5,937,830
284,200
49,870
618,314
-
213,975
1,166,359
272,270
83,710
2,794,789
506,250
84,517
378,959
62,142
3,826,657
32,995,456		 2021
£
483
2,380
3,049
6,318
37
376
3
12,646
689
12,143
7,736
661
2,562
1,521
393
1,113
477
2,560
265
197
8,760
420
243
39,051
1,869
328
4,066
-
1,407
7,670
1,791
551
18,380
3,329
556
2,492
409
25,166
216,997		 2020
KSh
88,210
237,951
163,454
1,297,241
10,000
105,000
-
1,901,856
23,000
823,799
1,050,263
132,694
282,698
-
106,445
168,583
38,903
500
-
-
-
333,143
-
2,937,028
124,079
36,558
47,702
38,577
-
246,916
29,500
-
2,014,514
675,000
90,905
147,360
27,476
2,955,255
21,797,611		 2020
£
595
1,604
1,102
8,744
67
708
-
12,820
155
5,553
7,079
894
1,906
-
717
1,136
262
4
-
-
-
2,246
-
19,797
836
246
322
260
-
1,664
199
-
13,579
4,550
613
993
185
19,920
146,928

15 105A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021 Notes to The Financial Statements (Continued)

5.
Designated funds
i.) Convents
St. Francis
Our Lady of Divine Providence
Sub-total
ii.) FMSJ Projects
Cardinal Voughan Hope Centre
Marigat Catholic Mission Health Centre
Salawa Catholic Mission Dispensary
St. Francis Rehabilitation Centre
St. Joseph Rehabilitation Centre
St. Vincent De Paul Charity Program
Tuvumiliane HIV and AIDS Support
Development Office
Designated for the Poor
Sub-total
iii.) Individuals
Fr. Jim O'Connell
John Mary
Sub-total
iv.) Regional Office
v.) Non - FMSJ Projects
Chesire Disabilities
Ebukuya
EMP Feeding Program
EMP Kotido Nursery
EMP Luanda widows
EMP Misean Cara Kisumu / KUAP services
EMP Nyamira School
EMP Amani Nursery
Kotido Project
EMP Amani Catholic Academy
ECD Score
AOSK and CRS
Misean Cara Kisumu / KUAP - Other
St. Clare Nursery School - Kaile
Sub-total
This relates to balances of funds received from
donors for a specific purpose.		 2021
KSh
-
366,610
366,610
1,341,895
566,183
3,693,057
276,977
7,410,697
467,338
(100,986)
(113,444)
-
13,541,717
1,795,594
130,118
1,925,712
2,904,201
(27,592)
13,253
406,829
7,296
684,913
3,149,874
408,291
63,058
1,387,356
1,321,877
(156)
1,733
3,933,940
402,205
11,752,877		 2021
£
-
2,411
2,411
8,825
3,724
24,288
1,822
48,737
3,074
(664)
(746)
-
89,060
11,809
856
12,665
19,100
(181)
87
2,676
48
4,504
20,716
2,685
415
9,124
8,693
(1)
11
25,872
2,645
77,295		 2020
KSh
14,000
-
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)
5,289
107,653
99,031
1
647,230
4,574,739
8,633
-
1,576,849
25,000
-
-
-
-
7,044,425		 2020
£
94
-
94
18,340
15,684
25,825
39,666
26,908
44,096
16,559
28,420
11,109
226,607
7,680
1,172
8,852
(82)
36
726
668
0
4,363
30,836
58
-
10,629
169
-
-
-
-
47,485

16 106A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements For the year ended 31 December 2021 Notes to The Financial Statements (Continued)

5.
Designated funds (continued)
vi.) Regional Misean Cara Indirect Fund
vii.) Sisters
Sr. Medrine Musundi
Sr. Ann Moore
Sr. Bernadette Nealon
Sr. Margaret Bradbury
Sr. Margaret K. Obwogi
Sub-total
viii.) FMSJ Restricted Funds
Development Fund
Retirement Fund
Land Project
(Transfer to accumulated funds)
Sub-total
ix.) Other Designated Funds
St. Joseph's Convent - Luanda
St. Francis Convent - Salawa
Sub-total
TOTAL		 2021
KSh
382,990
-
1,011,654
345,674
31,446
(1)
1,388,773
-
-
17,545,941
(10,918,313)
6,627,628
-
-
-
38,890,508		 2021
£
2,519
-
6,653
2,273
207
(0)
9,133
-
-
115,393
(71,806)
43,587
-
-
-
255,769		 2020
KSh
2,745,590
107,145
615,286
1,117,874
50,591
(1)
1,890,895
2,429,281
4,700,000
-
-
7,129,281
98,075
112,640
210,715
53,954,504		 2020
£
18,507
722
4,147
7,535
341
(0)
12,745
16,375
31,680
-
-
48,055
661
759
1,420
363,684

17 107A

Land
Buildings
Equipment
Motor
vehicles
Furniture
and fittings
Computers
Total
Total		 KSh
KSh
KSh
KSh
KSh
KSh
KSh
£		 NIL
5%
12.50%
25%
12.50%
30%		 Cost At start of year
-
40,290,290
219,800
2,700,000
727,240
491,196
44,428,526
299,470		 Prior year adjustment
Note 14 5,799,590
17,620,000
104,798
-
-
-
23,524,388
158,566		 Retranslation difference
-
-
-
-
-
-
-
(11,136)		 Additions (Note i)
18,232,078
-
213,110
-
39,800
919,360
19,404,348
127,615		 At end of year
24,031,668
57,910,290
537,708
2,700,000
767,040
1,410,556
87,357,262
574,515		 Depreciation At start of year
-
2,014,514
27,476
675,000
90,905
147,360
2,955,255
19,920		 Prior year adjustment
Note 14 -
-
13,100
-
-
-
13,100
88		 Retranslation difference
-
-
-
-
-
-
-
(486)		 Charge for the year
-
2,794,789
62,141
506,250
84,517
378,959
3,826,656
25,166		 At end of year
-
4,809,303
102,717
1,181,250
175,422
526,319
6,795,011
44,688		 Net book value
24,031,668
53,100,987
434,990
1,518,750
591,618
884,237
80,562,251
529,827		 Note i The addition of land relates to part payment for land purchased in Mau Summit, Molo during the year. Note ii The prior year adjustment for buildings above relate to costs of building acquired in the previous periods that were not capitalized. Since the dates of acquisition could not be ascertained, management opted to depreciate them from year 2021.

108A

Total £ 1,301 (135) 298,305 299,470 - 19,920 19,920 279,550
Total KSh 172,950 - 44,255,576 44,428,526 - 2,955,255 2,955,256 41,473,270
Computers KSh 141,500 - 349,696 491,196 - 147,360 147,360 343,836
Furniture
and fittings		 KSh - - 727,240 727,240 - 90,905 90,905 636,335
Motor
vehicles		 KSh - - 2,700,000 2,700,000 - 675,000 675,000 2,025,000
Equipment KSh 31,450 - 188,350 219,800 - 27,476 27,476 192,324
Buildings KSh - - 40,290,290 40,290,290 - 2,014,514 2,014,514 38,275,776
Property and equipment (Continued) Year ended 31 December 2020 Cost At start of year Retranslation difference Additions At end of year Depreciation At start of year Charge for the year At end of year Net book value
6.

109A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region) Annual report and financial statements

Annual report and financial statements
For the year ended 31 December 2021
Notes to The Financial Statements(Continued)
7.
Receivables
Staff debtors
Prepayments
Undeposited funds
8.
Cash and cash equivalents
Cash at bank
Cash in hand
Card
M-Pesa
9.
Investment
Money market fund
10. Payables
Accounts payables
Accrued audit fees
Accrued expenses
PAYE
NHIF
NSSF
Feeding program fund
11. Cash generated from operations
Reconciliation of surplus to cash generated from operations:
Surplus for the year
Adjustments for:
Interest received
Depreciation
Prior year adjustment
Transfer from designated funds
Changes in working capital
Other receivables
Other payables
Cash generated from operations
For the purposes of the statement of cash flows, the year-end cash and
cash equivalents comprise the above;
This relates to investment in Britam Wealth Management Fund at a rate
of 9% p.a.		 2021
KSh
194,394
45,090
-
239,484
34,526,960
152,664
8,648
52,943
34,741,215
5,795,583
-
284,200
-
175,554
8,040
15,120
36,100
519,014
283,710
(785,783)
3,826,656
207,408
10,918,313
(152,342)
392,242
14,690,204

 2021
£
1,278
297
-
1,575
227,071
1,004
57
348
228,480
38,115
-
1,869
-
1,155
53
99
237
3,413
1,866
(5,168)
25,166
1,364
71,806
(1,002)
2,580
96,611		 2020
KSh
1,700
84,442
1,000
87,142
52,895,271
419,648
53,617
18,311
53,386,847
5,309,713
970
-
125,802
-
-
-
-
126,772
4,480,819
-
2,955,255
43,921,234
-
(50,682)
8,425,597
59,732,223		 2020
£
11
569
7
587
356,540
2,829
361
123
359,853
35,790
7
-
848
-
-
-
-
855
30,203
-
19,920
296,051
-
(342)
56,793
402,625

12. Country of registration

Franciscan Missionaries of Saint Joseph is registered in Kenya under the Trustees (Perpetual Succession) Act chapter 164 and is domiciled in Kenya.

13. Presentation currency

These financial statements are presented in Kenya Shilling (KSh) and Pound.

14. Prior year adjustment

i.) Relates to accumulated depreciation for the Development Office for the period ended 31 December 2020.

ii.) Relates to accumulated fund balance for the Development office for the period ended 31 December 2020.

iii.) Relates to fund balance adjustment passed in the 2020 audit.

iv.) Relates to correction of misstated 2020 accrued audit fees .

v.) Relates to recognition of costs for land and buildings purchased in the previous periods.

vi.) Being write - back of unsupported balances for Joseph (Sh. 98,075) and St. Francis (Sh. 112,640) convents.

20

110A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region)
Annual report and financial statements
For the year ended 31 December 2021		 Schedules of Financial Statements for the Regional office and Communities Total 2020 Kshs 1,872,851 - - 35,000 - - 3,562,032 - 15,809,119 137,468 793,308 3,107,973 125,605 484,936 350,137 (333,143) 25,945,286 1,516,747 20,060 157,500 81,186 1,775,493 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
Total 2021 Kshs 2,031,565 1,549,813 3,831,746 52,878 65,000 322,149 2,695,116 304,375 16,542,051 1,764,668 710,961 2,512,721 110,340 584,722 201,061 - 33,279,166 4,658,454 22,418 229,911 98,918 5,009,701 3,208,656 249,511 615,605 993,690 350,854 865,541 135,715 342,686 2,490,258 1,155,200 1,292,955 27,727 11,728,398

St.
Bakhita
Muhoroni		 Kshs - - - - - - - - 266,991 - - - - - - 266,991 - - - - - 123,991 - 19,938 9,425 - - - 258 4,286 52,000 - 1,080 210,978

Maria
Toto Ngina
Ke'ekisii		 Kshs - - - - - - - - 522,384 - - - - - - - 522,384 3,859 - - - 3,859 220,459 9,790 57,865 43,856 - 8,658 - - 4,662 78,072 - 4,359 427,721
Our Lady
of Divine
Providence
Convent		 Kshs - - - - - - - - 749,642 - - - - - - - 749,642 90,510 - - - 90,510 171,392 2,785 44,386 74,105 - 6,280 - 10,310 17,280 72,000 - 8,000 406,538
St.
Michael
Convent		 Kshs - - - - - - 85,150 - 765,796 - - - 2,700 - - - 853,646 87,840 12,000 - - 99,840 206,738 9,830 33,645 7,650 - 3,150 - 58,472 100 76,000 - - 395,585
Amani
Convent		 Kshs - - - - - - - - 853,164 40 - - - - 200 - 853,404 97,350 - - - 97,350 264,844 300 49,160 95,508 - 52,210 7,050 - 2,880 111,000 - - 582,952
St. Clare
Convent		 Kshs - - - - - - - - 1,047,118 12,000 - - - - - - 1,059,118 156,444 - - - 156,444 280,597 14,401 55,861 93,045 - 13,090 - 34,400 34,220 99,700 - - 625,314

St.
Theresa
Convent		 Kshs - - - - - - 5,000 - 1,477,258 7,000 - - 2,630 - - - 1,491,888 89,124 - - - 89,124 328,831 29,340 82,193 110,104 112,414 23,077 - 73,605 96,735 135,500 - 2,150 993,949
St. Francis
Convent		 Kshs 1,005,056 - - - - 151,179 3,500 - 1,089,925 - - - 85,510 - - - 2,335,170 110,160 - - - 110,160 185,118 91,550 23,173 86,960 - 289,110 - 30,150 6,950 63,000 - - 776,011
St. Joseph
Convent		 Kshs - - - - - 170,970 - - 1,425,826 - - - - - - - 1,596,796 175,657 - - - 175,657 257,516 16,630 39,228 117,033 57,640 65,220 - 37,085 24,310 97,000 - - 711,662
Holy
Family
Convent		 Kshs - - - - - - - - 1,145,601 - - - - - - - 1,145,601 168,864 - - - 168,864 235,320 17,750 32,304 77,759 100 10,300 - 9,454 25,329 86,000 - - 494,316
Rochdale
House		 Kshs - - - - - - - - 471,150 - - - 9,500 - - - 480,650 - - - - - 160,052 16,940 23,464 9,600 - 1,000 - 1,899 2,099 72,000 - 160 287,214
Novitiate Kshs - - - - - - - - 300,000 45,204 - - - - - - 345,204 - - - - - 9,457 - 3,630 - - - - 25,814 51,929 - - - 90,830
Ingham
House		 Kshs - - - - - - - - 2,154,682 15,470 - - 10,000 - - - 2,180,152 358,663 - - - 358,663 761,463 40,195 140,012 261,827 180,700 1,670 - 28,100 4,490 174,900 - 5,485 1,598,842
Development
Office		 Kshs - 1,549,813 3,831,746 - - - - 265,575 - 47,499 - - - - - - 5,694,633 2,996,747 2,966 - 22,680 3,022,393 - - - - - - - - - - - - -
Regional
Office		 Kshs Statement of Income and Expenditure 1,026,509 - - 52,878 65,000 - 2,601,466 38,800 4,272,514 1,637,455 710,961 2,512,721 - 584,722 200,861 - 13,703,887 323,236 7,452 229,911 76,238 636,837 2,878 - 10,746 6,818 - 391,776 128,665 33,139 2,214,988 38,028 1,292,955 6,494 4,126,487
Income Donations and Grants - FMSJ - UK Member funding Misean Cara ASEC Catholic Scholarship Lilliane Fonds Persons of Goodwill Donations in kind Sisters' salaries Other income Sustainability income Contribution from Projects Garden / farm income Interest on investment Bank interest Gain on foreign exchange Total Income Expenditure Personnel Salaries and wages Staff welfare Staff capacity building NSSF Employer contribution Total Physical well being Food Garden / farm expense Household Fuel, power and water Security Maintenance Insurance Sisters' expenses Medical Personal allowances Medical insurance Physical well being - Other Total

111A

Franciscan Missionaries of Saint Joseph Registered Trustees (Africa Region)
Annual report and financial statements
For the year ended 31 December 2021		 Schedules of Financial Statements for the Regional office and Communities (Continued) Total 2020 Kshs 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
Total 2021 Kshs 41,332 337,398 284,248 36,250 310,700 146,792 365,655 274,692 398,056 177,140 178,612 99,470 292,614 - 2,942,959 73,401 361,930 463,656 960,623 5,550 57,197 403 1,922,760
St. Bakhita
Muhoroni		 Kshs - - 2,000 - - - - - 5,000 1,000 - - - - 8,000 - - - - - - - -

Maria Toto
Ngina
Ke'ekisii		 Kshs 4,063 5,308 4,662 - - - - - - - 33,958 - - - 47,990 408 - 11,822 - - 3,497 403 16,129
Our Lady of
Divine
Providence
Convent		 Kshs - 88,975 13,630 - - - - - - - 22,574 - - - 125,179 4,607 45,000 5,500 - - 1,200 - 56,307
St. Michael
Convent		 Kshs - 62,291 8,000 - - - - 35,000 3,550 - 3,500 - - - 112,341 5,105 45,900 89,650 - 1,000 - - 141,655
Amani
Convent		 Kshs - 54,607 11,000 - - - - - - - 7,600 - - - 73,207 4,260 - - - - - - 4,260
St. Clare
Convent		 Kshs - 5,000 26,000 - - - - - 5,032 29,150 1,575 700 - - 67,457 3,700 64,000 6,544 - - 1,000 - 75,244
St.
Theresa
Convent		 Kshs - 28,766 12,000 - - - - 2,500 - - - - - - 43,266 16,161 25,950 26,328 - 2,500 - - 70,939
St. Francis
Convent		 Kshs - 10,985 12,000 - - - - - - - - - - - 22,985 6,084 - 247,696 2,200 - 23,000 - 278,980
St. Joseph
Convent		 Kshs - 24,096 8,000 2,500 - 2,200 - - 4,562 - 43,270 - - - 84,628 15,950 - 10,650 10,000 - 2,500 - 39,100
Holy
Family
Convent		 Kshs - 1,930 20,000 - - 4,070 - 208,890 2,500 - 6,000 24,000 - - 267,390 5,050 87,940 5,500 8,000 - 1,000 - 107,490
Rochdale
House		 Kshs - 680 12,800 - - 43,000 10,000 - - - 8,733 - - - 75,213 1,456 - 8,000 - - - - 9,456
Novitiate Kshs 37,269 1,020 - - 10,700 - - 20,342 - - - 5,880 - - 75,211 1,000 - 5,921 77,400 - - - 84,321
Ingham
House		 Kshs - 6,500 12,000 - - - - 7,960 - - - 68,890 - - 95,350 7,370 - 15,205 - - - - 22,575
Development
Office		 Kshs - - - - - - - - - - - - - - - - - - - - - - -
Regional Office Kshs Statement of Income and Expenditure (Continued) - 47,240 142,156 33,750 300,000 97,522 355,655 - 377,412 146,990 51,402 - 292,614 - 1,844,741 2,250 93,140 30,841 863,023 2,050 25,000 - 1,016,304
Mental well being Recreation expenses Books / periodicals / Subscriptions Holiday Education - Pre-Novitiate Novitiate Junioriate Ongoing Other Celebrations / events - Professions Jubilee Sisters' celebrations Other Funeral expenses Mental well being- Other Total Spiritual well being Chapel Pastoral expenses Donations Retreat and recollection Spiritual direction Sisters' welfare Spiritual well being - Other Total

112A

Total 2020 Kshs 23,000 23,000 823,799 1,050,263 132,694 282,698 - 106,445 168,583 - 38,903 500 - - - 333,143 2,937,028 124,079 36,558 47,702 38,577 - 246,916 - 29,500 29,500 - 2,014,514 675,000 90,905 147,360 27,476 2,955,255 21,797,611
Total 2021 Kshs 104,812 104,812 1,846,378 1,176,327 100,456 389,514 231,200 59,820 169,264 40,265 72,558 389,196 29,904 1,332,042 37,000 63,905 5,937,830 284,200 49,870 159,009 459,305 213,975 1,166,359 - 272,270 272,270 83,710 2,794,789 506,250 84,517 378,959 62,142 3,826,657 32,995,456
St.
Bakhita
Muhoroni		 Kshs - - 23,500 - 440 24,000 - - - - - - - - - - 47,940 - - - - - - - - - - - - - - - - 266,918
Maria Toto
Ngina
Ke'ekisii		 Kshs - - 733 22,644 1,394 3,830 - - - - - - - - - - 28,601 - - - - - - - - - - 348 - - - - 348 524,648
Our Lady of
Divine
Providence
Convent		 Kshs - - 36,900 22,950 1,560 - - 200 4,494 - - - - - - - 66,104 - - - - - - - - - - - - - 1,444 4,354 5,797 750,435
St. Michael
Convent		 Kshs - - 64,750 30,650 - - - 1,500 9,179 - - - - - - - 106,079 - - - - - - - - - - - - - - - - 855,500
Amani
Convent		 Kshs - - 82,430 - 1,350 11,300 - - 4,477 - 898 - - - - - 100,455 - - - - - - - - - - - - 325 - 388 713 858,937
St. Clare
Convent		 Kshs - - 69,730 24,000 - 43,791 - 4,079 7,366 - - - - - - - 148,966 - - - - - - - - - - - - - - 1,027 1,027 1,074,452
St.
Theresa
Convent		 Kshs - - 169,390 54,900 16,329 45,897 - - 5,882 - 4,050 550 - - - - 296,998 - - - - - - - - - - - - - - - - 1,494,276
St. Francis
Convent		 Kshs - - 46,610 20,430 15,600 45,984 - - 1,880 - 1,396 163,308 - - - - 295,208 - - - - - - - - - - - - - - - - 1,483,344
St. Joseph
Convent		 Kshs - - 127,910 78,080 - - - - 5,302 - 45,720 - - - - - 257,012 - - - - - - - 272,270 272,270 83,710 393,441 - - 3,464 - 396,905 2,020,944
Holy
Family
Convent		 Kshs - - 79,402 60,354 16,326 50 1,000 3,500 742 - - 10,960 - - - - 172,334 - - - - - - - - - - - - - - - - 1,210,394
Rochdale
House		 Kshs - - 750 42,420 1,871 50,974 - - 3,258 - - - - - - - 99,273 - - - - - - - - - - - - - - - - 471,156
Novitiate Kshs - - 52,282 - 9,536 16,700 150 4,956 6,587 - - 4,600 - - - - 94,811 - - - - - - - - - - - - 1,488 - 1,075 2,563 347,736
Ingham
House		 Kshs - - 25,596 17,520 1,712 917 - - 6,565 - - - - - - - 52,310 - - - - - - - - - - - - - - - - 2,127,740
Development
Office		 Kshs - - 100 2,060 - 37,458 200,000 - 13,960 40,265 - 208,203 - 1,332,042 37,000 - 1,871,088 - - - 459,305 213,975 673,280 - - - - - - - - 11,462 11,462 5,578,223
Regional
Office		 Kshs Statement of Income and Expenditure (Continued) 104,812 104,812 1,066,295 800,319 34,338 108,613 30,050 45,585 99,572 - 20,494 1,575 29,904 - - 63,905 2,300,650 284,200 49,870 159,009 - - 493,079 - - - - 2,401,000 506,250 82,704 374,051 43,836 3,407,841 13,930,750
Sustainability expenses Vocation promotion Total Administration Transport Motor vehicle running Stationery / printing / postage Telephone and internet Professional / consultancy Government document Bank charges Office supplies Dues and subscriptions Other expenses Withholding tax Contribution to Regional office Domain registration and maintenance Foreign exchange loss Total Governance Audit Meetings - Stakeholders Planning and evaluation Monitoring and evaluation Seminars and workshop Total Chesire / Lilliane Fonds Feeding Programme School fees Total Luanda Widows Depreciation Building Motor vehicle Furniture and fittings Computers Office equipment Total Total Expenditure

113A

Total 2020 - 38,275,776 636,335 192,324 2,025,000 343,836 41,473,271 1,700 52,895,271 419,648 53,617 18,311 84,442 1,000 5,309,713 58,783,702 100,256,973 46,175,697 53,954,504 970 - - - 12,946 - 112,856 126,772 100,256,973
Total 2021 Kshs 24,031,668 53,100,987 591,618 434,990 1,518,750 884,237 80,562,250 - 194,394 34,526,961 152,663 8,648 52,943 45,090 - 5,795,583 40,776,282 121,338,532 81,929,010 38,890,508 - 36,100 - 175,554 15,120 8,040 284,200 519,014 121,338,532
St. Bakhita
Muhoroni		 Kshs - - - - - - - - 73 - - - - - 73 73 73 - - - - - - - - - 73

Maria Toto
Ngina
Ke'ekisii		 Kshs - 6,612 - - - - 6,612 - - 8,012 - - - - - 8,012 14,624 14,624 - - - - - - - - - 14,624
Our Lady of
Divine
Providence
Convent		 Kshs - - - 30,477 - 10,105 40,582 - 4,119 1,134 - - - - - 5,253 45,835 45,835 - - - - - - - - - 45,835
St. Michael
Convent		 Kshs - - - - - - - - 300 9 - - - - - 309 309 309 - - - - - - - - 309
Amani
Convent		 Kshs - - 675 2,713 - - 3,388 - 2,474 138 - 257 - - - 2,869 6,257 6,257 - - - - - - - - - 6,257
St. Clare
Convent		 Kshs - - - 7,189 - - 7,189 - 3,263 6,515 - - - - - 9,778 16,967 (3,033) - - 20,000 - - - - - 20,000 16,967
St. Theresa
Convent		 Kshs - - - - - - - - 1,884 103 - - - - - 1,987 1,987 1,987 - - - - - - - - - 1,987
St. Francis
Convent		 Kshs - - - - - - - - 1,023,794 18,358 - - - - - 1,042,152 1,042,152 1,042,152 - - - - - - - - - 1,042,152

St. Joseph
Convent		 Kshs - 7,475,375 - - - 8,084 7,483,459 - 65,125 521 - - - - - 65,646 7,549,105 7,533,005 - - 16,100 - - - - - 16,100 7,549,105
Holy Family
Convent		 Kshs - - - - - - - - 31,772 5,596 - - - - - 37,368 37,368 37,368 - - - - - - - - - 37,368
Rochdale
House		 Kshs - - - 7,526 - - 7,526 - 12,966 4,447 - - - - - 17,413 24,939 24,939 - - - - - - - - - 24,939
Novitiate Kshs - - 10,413 - - - 10,413 - 46,665 32,383 - - - - - 79,048 89,461 89,461 - - - - - - - - - 89,461
Ingham
House		 Kshs - - - - - - - - 49,294 8,378 - - - - - 57,672 57,672 57,672 - - - - - - - - - 57,672
Development
Office		 Kshs - - - 80,236 - - 80,236 - 1,126,029 1,260 - - - - 1,127,289 1,207,525 1,008,811 - - - - 175,554 15,120 8,040 - 198,714 1,207,525
Regional
Office		 Kshs Statement of Financial Position 24,031,668 45,619,000 580,530 306,849 1,518,750 866,048 72,922,845 194,394 32,159,276 65,736 8,648 52,686 45,090 - 5,795,583 38,321,413 111,244,258 72,069,550 38,890,508 - - - - - - 284,200 284,200 111,244,258
Non - current assets Property and Equipment Land Buildings Furniture and Fittings Equipment Motor vehicle Computers Total non-current assets Current assets Staff debtors Cash at bank Cash in hand Card M-Pesa Prepaid insurance Undeposited funds Investment Total current assets Total assets Fund Balance and Liabilities Accumulated Fund Designated Funds Current Liabilities Accounts payable Feeding Program Fund Net Pay payable PAYE payable NSSF payable NHIF payable Accrued Audit fee Total current liabilities Total Fund and liabilities

114A

The Franciscan Missionaries of St. Joseph

Income for the Year Ended 31 December 2021

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
2020
£
1926
9675
4459
-
16060
-		 £
2117
18866
3793
-
-
24776

115A

The Franciscan Missionaries of St. Joseph

Expenditure for the Year Ended 31 December 2021

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
-
50132
261
1423
2020
£
3166
5155
19
-
3196
4880
690
1299
60186
(44126)
16060		 £
280
3028
(1073)
4210
552
1303		 £
-
42091
7518
782
75
-
50466
(25690)
24776

116A

The Franciscan Missionaries of St. Joseph

Balance Sheet as at 31 December 2021

Ecuador Region

Capital Account
Capital as at 1 January 2021
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 UK
88596
176784
£
126780
11882
132722
(44126)
176784
88188
2020
88188
88596
17824
144604		 £
88596
24005
112601
-
112601
(25690)
86911
88188
175099
86911
88188
175099

117A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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: -
2021 2020
£ £
Pensions Received 5633 5633
Voluntary Contributions 40078 51888
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.

118A

The Franciscan Missionaries of St. Joseph

Notes to the Accounts for the Year Ended 31 December 2021

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 2021
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 2021		 £
-
-
-
88188
2021
88188
-
-		 2020
£
73207
1681
11882
(75)
-
1493
88188

119A