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2020-12-31-accounts

Charity registration number England and Wales 220240 Scotland SC039530

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries)

Report and Accounts

31 December 2020

Borucki & Co 42 Radnor Road Harrow Middlesex HA1 1RZ

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Report and accounts Contents

Page
Legal and administrative information 1
Trustees' report 2
Auditors' report 7
Statement of financial activities 9
Balance sheet 10
Cash flow statement 11
Accounting policies 12
Notes to the accounts 14

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Legal and administrative information

Trustees As directors of Verona Fathers Limited
The Reverend Alberto Pelucchi mccj - Chairman
The Reverend John Clark mccj
The Reverend Martin Devenish mccj - Secretary
The Reverend John Downey mccj
The Reverend Robert Hicks mccj (resigned 29th January 2020)
Provincial Superior The Reverend Alberto Pelucchi mccj
Provincial Treasurer The Reverend Martin Devenish mccj
Provincial Office The Verona Fathers/Comboni Missionaries
London Road
Sunningdale
Berkshire SL5 0JY
Telephone 01344 621238
Charity number
England and Wales 220240
Scotland SC039530
Auditors Borucki & Co
42 Radnor Road
Harrow
Middlesex HA1 1RZ
Bankers Royal Bank of Scotland plc
6th Floor
1 Princes Street
London EC2R 8BP
Investment Managers Brewin Dolphin Ltd
12 Smithfield Street
London EC1A 9BD
Solicitors Pothecary Witham Weld
84, Eccleston Square
London SW1V 1PX70
Chartered Surveyors Gould Baxter
Hamilton House
Mabledon Place
London WC1H 9BB

1

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Trustees' report

The Trustees present their Report and Accounts for the year ended 31st December 2020

INTRODUCTION

The Sons of the Sacred Heart (The Verona Fathers/Comboni Missionaries) are an international Roman Catholic Religious and Missionary Order of ordained priests and lay brothers founded by Bishop Daniel Comboni in Verona (Italy) in 1867 specifically to serve the missionary endeavours of the Roman Catholic Church in the South of the world. Inspired by the Gospel, its Members live common life together and practice life-long religious vows of poverty, chastity and obedience, all in furtherance of the Roman Catholic Religion. Everything is placed and held in common: Members do not own property of any kind or possess individual Accounts with banks or similar financial institutions. There are presently worldwide some one thousand six hundred (1,600) Verona Fathers/Comboni Missionaries of thirty-seven (37) different nationalities working in some forty-three (43) different countries throughout Europe, Africa, Asia and the Americas. The aims of the Verona Fathers/Comboni Missionaries - in the United Kingdom and Overseas - may be summarised as follows:

GOVERNANCE

The Verona Fathers/Comboni Missionaries are governed at an international level by a Superior-General and four (4) General Councillors who reside at our General Headquarters in Rome. The Superior-General and his Councillors are elected for a sixyear term of office (renewable upon re-election for one further term only) at a 'General Chapter' which is held in Rome every six (6) years and which is composed of 'Provincial Superiors' and elected 'Delegates' from each of the twenty-seven (27) semiautonomous 'Provinces' or 'Circumscriptions' into which the Order is divided along geographical lines. All those who participate in the 'General Chapter' are perpetually professed Members of the Order who have freely chosen to dedicate their lives, their time, their energies and their talents to the Church's missionary work.

One of these 'Provinces' or 'Circumscriptions' is the 'London Province' which consists of the Communities resident and working in the United Kingdom. The 'Province' is governed by a 'Provincial Superior' and a four-member 'Provincial Council' - all of whom are elected for a three-year term of office which is renewable upon re-election, generally for one further term only. The Provincial Superior and his Council meet regularly during the year to:

In fulfilment of the objectives of the Trust, it is the policy of the Charity to undertake a range of charitable activities in the United Kingdom and to support Members of the Congregation living and working at home and overseas - in a special way those in Africa.

The Accounts accompanying this Report are the Accounts of the Charitable Trust upon which the assets of the 'London Province' are held - the Trust governed by a Trust Deed dated 6th April 1959, and later registered under the 'Charities Act 1960' with Charity Number 220240.

Verona Fathers Limited

In line with financial and legal developments in the United Kingdom, the 'Sons of the Sacred Heart' or 'Verona Fathers/Comboni Missionaries' were registered as 'Verona Fathers Limited' in England and Wales with Company Registration Number 594993 in 1959. Under the terms of the Trust Deed designating it thus, 'Verona Fathers Limited' acts as the Trustee for the 'Sons of the Sacred Heart of Jesus' or 'Verona Fathers/Comboni Missionaries'. The Provincial Superior, pro tempore, is the ex-ufficio Chairman of 'Verona Fathers Limited' and the other Directors of the Company are nominated by the Provincial Superior with the approval of his Council.

2

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Trustees' report

CURRENT TRUSTEES:

The Directors who served in the year are the following Verona Fathers/Comboni Missionaries:

Rev. Alberto Pelucchi mccj - Provincial Superior and Chairman of the Trustees

Rev. Martin Devenish mccj - Provincial Treasurer and Secretary to the Trustees

Rev. John Clark mccj - Director/Trustee

Rev. John Downey mccj - Director/Trustee

Rev. Robert Hicks mccj - Director/Trustee (resigned 29th January 2020)

TRUSTEES' RESPONSIBILITIES WITH REGARD TO THE ACCOUNTS

Under charity law, the trustees are responsible for preparing the Trustees' Annual Report and the financial statements for each financial year which show a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period.

In preparing these financial statements, generally accepted accounting practice entails that the Trustees:

The Trustees are required to act in accordance with the Trust Deed of the Charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Charity and to prevent and detect fraud and other irregularities.

MANAGEMENT

While the Trustees are ultimately responsible for the policies, activities and assets of the Charity, the day to day management of the Charity's activities and the implementation of its policies is the responsibility of the Provincial Superior and his Council. The Province's finances are administered and managed by the Provincial Treasurer who is accountable to the Provincial Superior, his Council, the other Members of the Province and Order, and the Charity Commissioners. Whenever the Trustees or management (Provincial Superior and Council, and/or the Provincial Treasurer) are in need of professional advice there are designated individuals/companies to whom they may turn (solicitors, lawyers, accountants, auditors, bankers and investment managers).

OTHER ORGANISATIONS

The Verona Fathers/Comboni Missionaries, individually and collectively in the five (5) Communities that make up the 'London Province', have a number of Organizations and bodies with whom they need to interact on a regular basis:

3

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Trustees' report

PUBLIC BENEFIT

The Trustees have consulted the guidance made available by the Charity Commission for England and Wales on the Public Benefit requirement of the Charities Act 2011. The Trustees are confident that they have complied with their duty under the Charities Act 2011 in that they have had due regard to public benefit guidance published by the Commission. In furtherance of the Trust's charitable purposes for the public benefit, the Trustees give details of their activities in the following paragraphs.

ACTIVITIES

During the year ended 31st December 2020, the Charity - consisting of five (5) Roman Catholic Religious Communities that are home to twenty-two (22) permanent Members and various visiting Members from abroad - continued to share in the Church's missionary endeavours through a life of prayer and the following traditional apostolic activities:

REVIEW AND DEVELOPMENTS

Mission Appeals - During 2020, with the prevailing COVID-19 Pandemic, we were only able to visit and appeal in twentyone (21) Roman Catholic Parishes in the Dioceses of East Anglia, Menevia and Northhampton in England and Wales, and a further three (3) Parishes in the Diocese of Dunkeld and the Archdiocese of St Andrew's and Edinburgh in Scotland, due to restrictions placed upon Places of Worship by the Governments in all three countries. Notwithstanding such difficulties and the continuing unfavourable economic climate, the Priests in the Parishes we were able to visit continued to extend a warm welcome to Members, and the Faithful continued to respond with their customary generosity. We are pleased to report that all monies collected from our Mission Appeals were distributed to our Missions and Missionaries abroad.

Mission Offices - Over the year the Mission Offices in Horsforth (Leeds) and Carmyle (Glasgow) mailed out the four (4) quarterly issues of our Magazine, Comboni Mission, to our friends and supporters throughout the United Kingdom. The magazine has a circulation of approximately twenty thousand (20,000) and we distribute some forty thousand (40,000) copies of our Missionary Calendar. As is indicated in our Audited Accounts, the wonderful response from our readers was typical of their great thoughtfulness in our regard.

www.SouthWorld.net - Our non-profit monthly web-magazine 'SouthWorld' with news and current affairs emanating from Africa, Latin America and Asia is proving very successful and continues to attract interest from as far afield as Eastern Europe, North America and South-East Asia.

During the course of the year ending 31st December 2020, the Trustees noted and have closely monitored two areas of increased expenditure. Premises' expenditure has continued to be a major expense as properties grow older and renovations become necessary to facilitate the care of our elderly Confrères, as with other Community and personal care costs given the rising age profile of the Confrères of the Province. As a result of the rising age profile of the Members, during 2019 the Trustee's commissioned a project to digitalize the Archives of the Order's activities in the United Kingdom for future reference, this has continued during 2020. In the absence of sufficient funds from Mission Appeals to support our work abroad and in order to help finance the activities of the Generalate it was necessary to draw funds from the investment portfolios.

4

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Trustees' report

The Province is involved in applying the Acts of the last 'General Chapter' which was held in Rome from August 29th until October 4th 2015, necessitating the Provincial Superior, Rev. Alberto Pelucchi mccj, to attend a series of on-line PanEuropean Meetings and thereafter relaying the policies and decisions of those Meetings to the Members in the Province. Over the coming years, and following the decisions of the last Chapter, changes are expected regarding the structures of the Institute and thus also of this Province, however we do not foresee significant changes regarding the type of activity that we undertake in these Isles. The General Council has of late assigned one (1) Confrère to this Province from the United States of America, and the average age of our Membership in the United Kingdom presently stands at just under seventy (70) years.

TRUSTEES' INVESTMENT AND OTHER POWERS

According to the Trust Deed, the Trustees have the power to invest any money forming part of the Trust Fund and to apply income and capital for the charitable purposes of the Trust here in the United Kingdom and abroad. They are responsible for the upkeep of land and properties held on Trust and may purchase and sell such land and property as seems prudent and convenient. They may also borrow money for any of the foregoing purposes and accept donations.

INVESTMENT POLICY

The Trustees have an investment policy primarily aimed at enhancing the real value of monies invested through having a diversified portfolio of bonds and equities in addition to which income is generated to contribute towards the Charity's ongoing general expenses. Our Investment Managers are instructed to follow a policy of 'Moderate Investment Risk', and to avoid investing in companies where their main business activities are in the areas of armaments and military equipment, tobacco, gambling or pornography.

The general fund portfolio remains at a low level as, for the time being, expenditure can be, in normal years, funded by current income. The retirement portfolio is invested ethically to provide both growth and income.

RAISING FUNDS

The Charity manages its own activities in respect to raising funds and does not employ the services of professional fundraisers. It aims to achieve best practice in the way in that it communicates with its supporters primarily by taking care with both the tone of its communications and the accuracy of the data it holds to minimise the pressures upon such individuals. It collects, stores and uses personal data in accordance with data protection legislation, and specifically does not use data for other than the purpose(s) for which it was collected, sell or swap data to any third party, or profile such information for statistical analysis. Again, it ensures that communication preferences can be changed at any time. The

Charity undertakes to react to and investigate any complaints regarding its activities for raising funds, and to learn from them and improve its service. During the year, however, the Charity received no complaints about such activities.

CORONAVIRUS (COVID-19) PANDEMIC

The effect of the coronavirus outbreak on the income of the charity is difficult to predict, however since March 2020 we have been unable to undertake Mission Appeals in Parishes as the Churches have been closed. While we expect donations and investment income to decline we will be able to continue our work for the foreseeable future as our charitable expenditure, and in particular the donations to the Missions, is to a large extent dependent on funds available.

RESERVES POLICY

The Trustees are very conscious of the commitment of the Charity to continue its work in the future and the need to safeguard resources, especially with an increase in the number of Members reaching retirement age. With this in view the Trustees have designated funds to a Reserve and Retirement Fund. This fund is intended to provide income for the future needs of aged or infirm Confrères as they return to the United Kingdom after having served abroad. Despite the deficit made in the year, given the level of reserves the Trustees have every confidence that the Trust can continue to function within its objects and that there are no going concern issues.

RISK ASSESSMENT

The Trustees have assessed the major risks to which the Charity is exposed in the United Kingdom, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to mitigate our exposure to major risks. The Trustees have carried out a thorough review of our insurance cover and established that cover is indeed comprehensive, particularly in regard to property, vehicle and Employers' Liability insurance.

5

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Trustees' report

Safeguarding children and vulnerable adults remains a priority for the Trustees, and during the course of the year the Trustees have continued to consult the 'Safeguarding Co-ordinator' for the Diocese of Arundel and Brighton (to which the 'London Province' of the Verona Fathers/Comboni Missionaries is aligned in England and Wales in terms of its child safeguarding practice and structure, and in following the national Catholic Safeguarding Advisory Service (CSAS) Policy and Procedures' guidance), and to attend the training seminars in this regard organized by their 'Safeguarding Office'. Members in any kind of Ministry obtain clearance from the 'Disclosure and Barring Service' of the Home Office (previously the 'Criminal Records Bureau'), and the Province continues to address safeguarding practice regularly at Meetings of the 'Provincial Council' and at yearly Provincial Assemblies. The Trustees are aware of their obligation to report any serious incidents to the Charity Commission.

A number of our Members are infirm and are being presently cared for by others Members of their respective Community. The Trustees continue to ensure that there is adequate monitoring of their health and well-being while at the same time having due regard for their personal dignity and sense of worth. Where necessary, in dialogue with medical professionals and Social Services, those requiring nursing care on a long-term basis are offered places in a suitable local nursing home. In line with this policy, one of our elderly Members was moved to a Nursing Home run by the Little Sisters of the Poor in Robroyston (Glasgow G33 1QT).

The major risk arising with our investments is the instability of the stock market which may lead to reductions in income and losses in capital. In an attempt to mitigate against our exposure to this risk, the Trustees receive a regular quarterly report on our investments from our Investment Managers and review our 'Investment Policy' periodically with Members of the 'Charity Team' from Brewin Dolphin.

The Trustees take their legal responsibilities seriously and discussed the provisions that would be required for the implementation of the General Data Protection Regulation (GDPR) in May 2018. Consequently, the Charity now has a written 'Data Protection Policy', 'Complaints Policy', and 'Privacy Policy' which are subject to yearly review, and has updated its websites to remain compliant with this legislation. The Trustees will continue to monitor that way in which data is held by the Charity and recognise the importance of protecting the identity of supporters in accordance with GDPR legislation.

FUTURE DEVELOPMENTS

The Trustees intend to continue the activities of the Charity as outlined above in the 'Review and Development' Section of the Report.

THE CHARITY'S ASSETS

Acquisitions and disposal of fixed assets during the year are recorded in the notes to the Accounts.

Signed on behalf of the Trustees:

Martin Devenish mccj Director/Trustee Approved by the Directors/Trustees on 25th June 2021

6

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries)

Independent auditors' report to the Trustees of the Sons of the Sacred Heart of Jesus

We have audited the financial statements of The Sons of the Sacred Heart of Jesus for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows and the related notes.The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the report and accounts other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in 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 there is a material misstatement in the accounts or a material misstatement of the other information. 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 where the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 requires us to report to you if, in our opinion:-

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 3, the Trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, 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 charity or to cease operations, or have no realistic alternative but to do so.

7

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries)

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of report

This report is made solely to the charity’s Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor's 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.

Borucki & Co

25th June 2021

Chartered Accountants and Statutory Auditors 42 Radnor Road Harrow Middlesex HA1 1RZ

Borucki & Co is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

8

Sons of the Sacred Heart of Jesus

(also known as The Verona Fathers/Comboni Missionaries) Statement of financial activities (incorporating an income and expenditure account) for the year ended 31 December 2020

General
Designated Restricted
Notes
fund
fund
fund
2020
Income
£
£
£
£
Voluntary income
Donations and gifts
395,143
-
57,155
452,298
Legacies
154,099
-
-
154,099
Salaries and pensions
1
39,012
-
-
39,012
Ministry
55,773
-
-
55,773
Investment income
Dividends and interest
2
105,566
38,129
-
143,695
Other income
Miscellaneous income
14,763
-
-
14,763
Total income
764,356
38,129
57,155
859,640
Expenditure
Raising funds
Investment managers fees
25,024
8,807
-
33,831
Charitable Activities
Pastoral activities
Promotional magazine costs
35,015
-
-
35,015
Upkeep of communities
3
616,731
19,939
-
636,670
Donations and missions
4
340,610
-
890
341,500
Management and administration
5
244,521
-
-
244,521
Other expenditure
8
-
-
-
-
Governance costs
10,320
-
-
10,320
Total expenditure
1,272,221
28,746
890
1,301,857
Total income less expenditure
(507,865)
9,383
56,265
(442,217)
Net gains (losses) on investments
347,589
129,536
-
477,125
Net income (expenditure) before transfers
(160,276)
138,919
56,265
34,908
-
Transfers between funds
-
-
-
-
Net movement in funds
(160,276)
138,919
56,265
34,908
Balances brought forward 1 January
4,637,060
4,948,720
19,040
9,604,820
Balances carried forward 31 December
4,476,784
5,087,639
75,305
9,639,728		 General
Designated
Restricted
2019
fund
fund
fund
£
£
£
£
453,744
434,404
-
19,340
105,919
105,919
-
-
41,072
41,072
-
-
56,665
56,665
-
-
154,871
113,462
41,409
-
23,064
23,064
-
-
835,335
774,586
41,409
19,340
29,621
22,160
7,461
-
36,305
36,305
-
-
747,318
724,516
22,802
-
634,217
433,917
-
200,300
194,494
194,494
-
9,625
9,625
-
-
12,491
12,491
-
-
1,664,071
1,433,508
30,263
200,300
(828,736)
(658,922)
11,146
(180,960)
712,138
534,177
177,961
-
(116,598)
(124,745)
189,107
(180,960)
-
-
-
-
-
(116,598)
(124,745)
189,107
(180,960)
9,721,418
4,761,805
4,759,613
200,000
9,604,820
4,637,060
4,948,720
19,040

Continuing operations

None of the charity's activities were acquired or discontinued during the above two financial years.

Statement of total recognised gains and losses

The charity has no recognised gains or losses other than those shown above and therefore no separate statement of total gains and losses has been prepared.

9

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Balance Sheet as at 31 December 2020

Notes
Fixed assets
Tangible assets
9
Investments at market value
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due
within one year
12
Net current assets
Capital and reserves
Unrestricted Funds
General funds
Designated funds
13
Restricted funds
14		 2020
£
3,415,828
6,210,245
9,626,073
64,825
473,147
537,972
(524,317)
13,655
9,639,728
4,476,784
5,087,639
9,564,423
75,305
9,639,728		 2019
£
3,415,689
6,154,803
9,570,492
45,359
476,955
522,314
(487,986)
34,328
9,604,820
4,637,060
4,948,720
9,585,780
19,040
9,604,820

Approved by the Trustees and signed on their behalf

Martin Devenish mccj Director/Trustee Approved by the Trustees on 25th June 2021

10

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Statement of cash flows for the year ended 31 December 2020

Note
Cash generated in operating activities
A
Cash flows from investing acivities
Investment income
Proceeds of investment sales
Purchases of investments
Purchase of fixed assets
Cash provided (used) in investing activities
Increase in cash and cash equivalents in year
Movement in year
(Decrease) increase in cash at bank and in hand
(Decrease) increase in deposits and cash held by investment managers for re-
investment		 2020
£
(553,148)
143,695
1,768,210
(1,459,523)
(16,038)
436,344
(116,804)
(3,808)
(112,996)
(116,804)		 2019
£
(1,000,680)
154,871
1,460,406
(1,468,414)
(18,768)
128,095
(872,585)
(850,874)
(21,711)
(872,585)

A. Reconciliation of net movement in funds to net cash flow from operating

Net income (expenditure)
Deduct investment income
Add depreciation
Add/(deduct) net movement on investments.
Increase (decrease) in creditors
(Increase) decrease in debtors		 2020
£
34,908
(143,695)
15,899
(477,125)
36,331
(19,466)
(553,148)		 2019
£
(116,598)
(154,871)
16,588
(712,138)
(44,014)
10,353
(1,000,680)

11

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Principal accounting policies for the year ended 31 December 2020

1 Basis of preparation and assessment of going concern

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Trust constitutes a public benefit entity as defined by FRS 102.

The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.

2 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Donations are recognised when the Trust has been notified in writing of both the amount and settlement date.

Legacies are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date.

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.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield in the investment portfolio.

3 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

The cost of generating funds includes the fees paid to investment managers in respect of the management of the charity's investment portfolios.

Expenditure on charitable activities comprises direct expenses incurred on the defined charitable purposes of the charity and includes staff costs attributable to the activity.

Governance costs comprise of expenditure on compliance with, and advice, on constitutional and statutory matters. As all expenditure can be attributed to specific categories no apportionment between heading has been necessary. Irrecoverable VAT is included in the items of expenditure to which it relates.

4 Tangible fixed assets

Freehold land and buildings are included at a valuation based either on a value estimated by the Trustees in 1999 or on historical cost. The Trustees do not consider that the expense of a professional valuation in order to ascertain the separate values of the land and buildings is justified.

The buildings are in constant use in furtherance of the charitable objectives and are maintained to standards that ensure that their residual value is not less than the book value. Buildings are not depreciated, for the reason stated above, they have a very long useful economic life such that annual depreciation would be immaterial.

All assets costing more than £1,000 and with an expected life of more than one year are capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: Plant, equipment, fixtures and fittings 20% or 25% on cost. Motor vehicles 25% on cost.

After five years plant, equipment, fixtures and fittings with a net book value of nil are written out of the accounts as in the opinion of the Trustees such assets have a negligible residual value.

12

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Principal accounting policies for the year ended 31 December 2020

5 Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

7 Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

8 Fund accounting

The general fund comprises those monies, which may be used towards meeting the charitable objectives of the charity at the discretion of the Trustees.

The designated funds are monies set aside out of general funds and designated for specific purposes by the Trustees. The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

9 Taxation

The Trust, as a registered charity, is exempt from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.

13

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Notes to the Accounts

for the year ended 31 December 2020

1 Salaries and pensions of members

General
Designated
Restricted
fund
fund
fund
2020
£
£
£
£
Salaries
3,000
-
-
3,000
Pensions
36,012
-
-
36,012
39,012
-
-
39,012
2
Investment income
General
Designated
Restricted
fund
fund
fund
2020
£
£
£
£
Dividends and interest from investments
105,400
38,129
-
143,529
Bank and other interest
166
-
-
166
105,566
38,129
-
143,695
3
Charitable activities
General
Designated
Restricted
fund
fund
fund
2020
£
£
£
£
Upkeep of communities
Staff costs
85,760
-
-
85,760
Premises
139,628
-
-
139,628
Provisions and household
82,266
-
-
82,266
Other community and personal costs
293,178
19,939
-
313,117
Depreciation
15,899
-
-
15,899
616,731
19,939
-
636,670
4
Donations and missions
General
Designated
Restricted
fund
fund
fund
2020
£
£
£
£
Donations
9,894
-
-
9,894
Contributions to the work of
the Generalate
201,702
-
-
201,702
Contributions to Missions
129,014
-
890
129,904
340,610
-
890
341,500
2020
£
Chad
-
Colombia
-
Congo
4,000
Egypt
10,000
Ethiopia
15,000
Eritrea
-
Ghana
3,000
Ireland
-
Italy
15,662
Kenya
20,767
Malawi
5,000
Mexico
8,323
Mozambique
-
Philippines
6,976
Portugal
9,416
South Sudan
5,463
Uganda
14,088
United States
2,548
Vietnam
-
Contributions of less than £2,500
9,661
129,904
Contributions to the Missions of the Verona Fathers throughout the world are set out below:		 General
Designated
Restricted
2019
fund
fund
fund
£
£
£
£
3,060
3,060
-
-
38,012
38,012
-
-
41,072
41,072
-
-
General
Designated
Restricted
2019
fund
fund
fund
£
£
£
£
152,308
110,899
41,409
-
2,563
2,563
-
-
154,871
113,462
41,409
-
General
Designated
Restricted
2019
fund
fund
fund
£
£
£
£
83,721
83,721
-
-
178,968
178,968
-
-
85,035
85,035
-
-
383,006
360,204
22,802
-
16,588
16,588
-
-
747,318
724,516
22,802
-
General
Designated
Restricted
2019
fund
fund
fund
£
£
£
£
18,025
18,025
-
-
411,145
210,845
-
-
402,347
202,047
-
200,300
834,517
430,917
-
200,300
2019
£
5,000
6,180
13,794
-
3,000
17,986
-
4,158
20,132
217,694
43,250
8,500
-
4,000
34,005
-
20,233
4,415
402,347
5
Management and administration
Office expenses
Loss (profit) on exchange
Digital archive project
Professional fees		 General
Designated
Restricted
fund
fund
fund
2020
£
£
£
£
8,256
-
-
8,256
1,005
-
-
1,005
206,159
206,159
29,101
-
29,101
244,521
-
-
244,521		 General
Designated
Restricted
2019
fund
fund
fund
£
£
£
£
6,923
6,923
-
-
546
546
155,704
155,704
-
-
31,321
31,321
-
194,494
194,494
-
-

6 Net incoming (outgoing) resources before transfers

14

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Notes to the Accounts for the year ended 31 December 2020

This is stated after charging (crediting)
General
Designated
Restricted
fund
fund
fund
£
£
£
Staff costs (note 7)
92,670
-
-
Auditors remuneration
6,800
-
-
Accounting and other
3,520
-
-
Depreciation
15,899
-
-
7
Staff costs and Trustees' remuneration
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension contributions
The average number of employees, analysed by function was:
Office
Domestic
No employee earned more than £60,000 per annum (including benefits) during the year o		 2020

£
92,670
6,800
3,520
15,899
2020
£
85,760
5,288
1,622
92,670
2
3
5
r in the previous		 General
Designated
Restricted
2019
fund
fund
fund
£
£
£
£
83,721
83,721
-
-
5,600
5,600
-
-
6,891
6,891
-
-
16,588
16,588
-
-
2019
£
79,689
3,485
547
83,721
2
3
5
year.

No trustee received any remuneration or reimbursement of expenses in respect of services as a trustee during the year or in the previous year. All members of the Order, including the trustees, are maintained by the Trust.

8 Other expenditure

Expenditure incurred in respect of historical liabilities for which insurance cover cannot be traced, or where historical policy limits are inadequate.

9 Tangible fixed assets

Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
On disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
10 Investments
Listed Investments
Market value at 1 January 2020
Additions at cost
Disposal proceeds
Gain (loss) in year
Market value at 31 December 2020
Cash held by investment managers for re-investment
Cost of listed investments at 31 December 2020
11 Debtors
Other debtors
Legacies
Prepayments		 Freehold
land and
buildings
Motor
vehicles
Furniture
and
equipment
Total
£
£
£
£
3,391,418
148,640
-
3,540,058
-
10,920
5,118
16,038
-
(37,994)
-
(37,994)
3,391,418
121,566
5,118
3,518,102
-
124,369
-
124,369
-
14,620
1,279
15,899
-
(37,994)
-
(37,994)
-
100,995
1,279
102,274
3,391,418
20,571
3,839
3,415,828
3,391,418
24,271
-
3,415,689
2020
2019
£
£
5,900,434
5,180,288
1,459,523
1,468,414
(1,768,210)
(1,460,406)
477,125
712,138
6,068,872
5,900,434
141,373
254,369
6,210,245
6,154,803
5,009,876
4,996,077
2020
2019
£
£
5,357
40,281
50,500
4,000
8,968
1,078
64,825
45,359

15

Sons of the Sacred Heart of Jesus (also known as The Verona Fathers/Comboni Missionaries) Notes to the Accounts for the year ended 31 December 2020

12 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Due to Provinces, Procures and Missions
Sundry creditors
Accruals
Due to Generalate in Rome		 2020
2019
£
£
397,709
413,469
42,551
46,620
44,001
12,000
40,056
15,897
524,317
487,986

13 Designated funds

The income funds of the charity includes the following designated funds, set aside from the unrestricted funds of the Trust by the trustees for specific purposes:

Reserve and Retirement fund
Capital fund		 At 1 January
2020
Incoming
resources
Utilised/
realised
At 31
December
2020
£
£
£
£
1,557,302
167,665
(28,746)
1,696,221
3,391,418
-
-
3,391,418
4,948,720
167,665
(28,746)
5,087,639

14 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and other monies held on trust to be applied for specific purposes:

Mission donations
Nekemte School Project Ethiopia
St Daniel Comboni Secondary School Nairobi		 At 1 January
2020
Incoming
resources
Utilised/
realised
At 31
December
2020
£
£
£
£
-
3,865
(300)
3,565
-
53,290
-
53,290
19,040
-
(19,040)
-
19,040
57,155
(19,340)
56,855

The specific purposes for which the funds are to be applied are as follows:

The Mission Fund consists of donations received for specific missions and projects.

The Nekemte School Project consists of funds collected to build a school in Ethiopia.

St Daniel Comboni Secondary School Nairobi represents donations for a secondary school in Kenya.

15 Analysis of net assets between funds

Analysis of net assets between funds
Fixed assets
Current assets
Creditors: amounts falling due
within one year		 General
Designated
Restricted
fund
funds
funds
2020
£
£
£
£
4,543,005
5,083,068
-
9,626,073
458,096
4,571
75,305
537,972
(524,317)
-
-
(524,317)
4,476,784
5,087,639
75,305
9,639,728

16