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2021-12-31-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 2021

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
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
Drummond House,
1 Redhaughs Avenue,
Edinburgh EH12 9JN
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 2021

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 a 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 five hundred (1,500) 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 their 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 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 endeavours.

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

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 di f h i d 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:

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.

3

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

ACTIVITIES

During the year ended 31st December 2021, the Charity - consisting of five (5) Roman Catholic Religious Communities that are home to twenty-three (23) 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 2021 we were able to visit and appeal in seventy-seven (77) Roman Catholic Parishes in the Dioceses of Brentwood and Lancaster in England and Wales, but were unfortunately unable to visit any Parishes in Scotland due to COVID-19 and the restrictions placed upon such Appeals by the Church Authorities there. 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 2021, the Trustees have continued to closely monitor 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 which presently stands at sixty-four (64) years of age. 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 2021. 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.

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.

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

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 continuing effects of COVID-19 Infections on the income of the charity are difficult to predict, however 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.

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.

5

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

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 at the beginning of the year moved to a Nursing Home run by ‘Oakminister Healthcare’ in Glasgow City Centre (G20 6UQ).

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 regular quarterly reports 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 23rd September 2022

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 2021 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

23 September 2022

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 2021

General
Designated Restricted
Notes
fund
fund
fund
2021
Income
£
£
£
£
Voluntary income
Donations and gifts
432,973
-
13,245
446,218
Legacies
155,091
-
-
155,091
Salaries and pensions
1
38,878
-
-
38,878
Ministry
66,018
-
-
66,018
Investment income
Dividends and interest
2
102,806
48,740
-
151,546
Other income
Miscellaneous income
8,571
-
-
8,571
Total income
804,337
48,740
13,245
866,322
Expenditure
Raising funds
Investment managers fees
25,470
12,695
-
38,165
Charitable Activities
Pastoral activities
Promotional magazine costs
44,241
-
-
44,241
Upkeep of communities
3
612,728
5,204
-
617,932
Donations and missions
4
246,950
-
74,729
321,679
Management and administration
5
13,791
-
-
13,791
Other expenditure
8
-
-
-
-
Governance costs
10,300
-
-
10,300
Total expenditure
953,480
17,899
74,729
1,046,108
Total income less expenditure
(149,143)
30,841
(61,484)
(179,786)
Net gains (losses) on investments
474,298
216,233
-
690,531
Net income (expenditure) before transfer
325,155
247,074
(61,484)
510,745
-
Transfers between funds
(500,000)
500,000
-
-
Net movement in funds
(174,845)
747,074
(61,484)
510,745
Balances brought forward 1 January
4,476,784
5,087,639
75,305
9,639,728
Balances carried forward 31 December
4,301,939
5,834,713
13,821
10,150,473
-
-
-		 General
Designated Restricted
Notes
fund
fund
fund
2021
Income
£
£
£
£
Voluntary income
Donations and gifts
432,973
-
13,245
446,218
Legacies
155,091
-
-
155,091
Salaries and pensions
1
38,878
-
-
38,878
Ministry
66,018
-
-
66,018
Investment income
Dividends and interest
2
102,806
48,740
-
151,546
Other income
Miscellaneous income
8,571
-
-
8,571
Total income
804,337
48,740
13,245
866,322
Expenditure
Raising funds
Investment managers fees
25,470
12,695
-
38,165
Charitable Activities
Pastoral activities
Promotional magazine costs
44,241
-
-
44,241
Upkeep of communities
3
612,728
5,204
-
617,932
Donations and missions
4
246,950
-
74,729
321,679
Management and administration
5
13,791
-
-
13,791
Other expenditure
8
-
-
-
-
Governance costs
10,300
-
-
10,300
Total expenditure
953,480
17,899
74,729
1,046,108
Total income less expenditure
(149,143)
30,841
(61,484)
(179,786)
Net gains (losses) on investments
474,298
216,233
-
690,531
Net income (expenditure) before transfer
325,155
247,074
(61,484)
510,745
-
Transfers between funds
(500,000)
500,000
-
-
Net movement in funds
(174,845)
747,074
(61,484)
510,745
Balances brought forward 1 January
4,476,784
5,087,639
75,305
9,639,728
Balances carried forward 31 December
4,301,939
5,834,713
13,821
10,150,473
-
-
-		 General
Designated
Restricted
2020
fund
fund
fund
£
£
£
£
452,298
395,143
-
57,155
154,099
154,099
-
-
39,012
39,012
-
-
55,773
55,773
-
-
143,695
105,566
38,129
-
14,763
14,763
-
-
804,337
48,740
13,245
866,322		 859,640
764,356
38,129
57,155
33,831
25,024
8,807
-
35,015
35,015
-
-
636,670
616,731
19,939
-
341,500
340,610
-
890
242,350
242,350
-
-
-
-
-
12,491
12,491
-
-
953,480
17,899
74,729
1,046,108		 1,301,857
1,272,221
28,746
890
(149,143)
30,841
(61,484)
(179,786)
474,298
216,233
-
690,531		 (442,217)
(507,865)
9,383
56,265
477,125
347,589
129,536
-
34,908
(160,276)
138,919
56,265
-
-
-
-
-
(174,845)
747,074
(61,484)
510,745
4,476,784
5,087,639
75,305
9,639,728		 34,908
(160,276)
138,919
56,265
9,604,820
4,637,060
4,948,720
19,040
4,301,939
5,834,713
13,821
10,150,473		 9,639,728
4,476,784
5,087,639
75,305
-
-
-

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 2021

Notes 2021 2020
£ £
Fixed assets
Tangible assets 9 3,411,629 3,415,828
Investments at market value 10 6,812,502 6,210,245
10,224,131 9,626,073
Current assets
Debtors 11 97,106 64,825
Cash at bank and in hand 296,075 473,147
393,181 537,972
Creditors: amounts falling due
within one year 12 (466,839) (524,317)
Net current (liabilities)/assets (73,658) 13,655
10,150,473 9,639,728
Capital and reserves
Unrestricted Funds
General funds 4,301,939 4,476,784
Designated funds 13 5,834,713 5,087,639
10,136,652 9,564,423
Restricted funds 14 13,821 75,305
10,150,473 9,639,728

Approved by the Trustees and signed on their behalf

Martin Devenish mccj Director/Trustee Approved by the Trustees on 23rd September 2022

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 2021

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		 2021
£
(406,892)
151,546
2,065,777
(1,947,346)
(10,000)
259,977
(146,915)
(177,072)
30,157
(146,915)		 2020
£
(553,148)
143,695
1,768,210
(1,459,523)
(16,038)
436,344
(116,804)
(3,808)
(112,996)
(116,804)

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		 2021
£
510,745
(151,546)
14,199
(690,531)
(57,478)
(32,281)
(406,892)		 2020
£
34,908
(143,695)
15,899
(477,125)
36,331
(19,466)
(553,148)

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 2021

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 2021

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 2021

1 Salaries and pensions of members

Salaries
Pensions
2
Investment income
Dividends and interest from investments
Bank and other interest
3
Charitable activities
Upkeep of communities
Staff costs
Premises
Provisions and household
Other community and personal costs
Depreciation
4
Donations and missions
Donations
Contributions to the work of
the Generalate
Contributions to Missions		 General
Designated
Restricted
fund
fund
fund
2021
£
£
£
£
3,000
-
-
3,000
35,878
-
-
35,878
38,878
-
-
38,878
General
Designated
Restricted
fund
fund
fund
2021
£
£
£
£
102,790
48,740
-
151,530
16
-
-
16
102,806
48,740
-
151,546
General
Designated
Restricted
fund
fund
fund
2021
£
£
£
£
87,133
-
-
87,133
142,307
-
-
142,307
69,012
-
-
69,012
300,077
5,204
-
305,281
14,199
-
-
14,199
612,728
5,204
-
617,932
General
Designated
Restricted
fund
fund
fund
2021
£
£
£
£
9,314
-
-
9,314
190,564
-
-
190,564
44,072
-
74,729
118,801
246,950
-
74,729
318,679		 General
Designated
Restricted
2020
fund
fund
fund
£
£
£
£
3,000
3,000
-
-
36,012
36,012
-
-
39,012
39,012
-
-
General
Designated
Restricted
2020
fund
fund
fund
£
£
£
£
143,529
105,400
38,129
-
166
166
-
-
143,695
105,566
38,129
-
General
Designated
Restricted
2020
fund
fund
fund
£
£
£
£
85,760
85,760
-
-
139,628
139,628
-
-
82,266
82,266
-
-
313,117
293,178
19,939
-
15,899
15,899
-
-
636,670
616,731
19,939
-
General
Designated
Restricted
2020
fund
fund
fund
£
£
£
£
9,894
9,894
-
-
202,592
201,702
-
-
129,904
129,014
-
890
342,390
340,610
-
890

Contributions to the Missions of the Verona Fathers throughout the world are set out below:

Colombia
Congo
Egypt
Ethiopia
Ghana
Italy
Kenya
Lay Missionaries
Malawi
Mexico
Philippines
Portugal
South Sudan
Tanzania
Uganda
United States
Contributions of less than £2,500		 2021
£
4,000
-
-
55,000
-
-
10,484
4,865
3,600
15,004
-
3,810
189
2,739
9,400
-
9,710
118,801		 2019
£
-
4,000
10,000
15,000
3,000
15,662
20,767
5,000
8,323
6,976
9,416
5,463
-
14,088
2,548
9,661
129,904
5
Management and administration
Office expenses
Loss (profit) on exchange
Digital archive project
Professional fees		 General
Designated
Restricted
fund
fund
fund
2021
£
£
£
£
7,357
-
-
7,357
-
-
-
-
-
-
6,434
-
6,434
13,791
-
-
13,791		 General
Designated
Restricted
2020
fund
fund
fund
£
£
£
£
8,256
8,256
-
-
1,005
1,005
206,159
206,159
-
-
26,930
26,930
-
242,350
242,350
-
-

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 2021

This is stated after charging (crediting)
General
Designated
Restricted
fund
fund
fund
£
£
£
Staff costs (note 7)
94,110
-
-
Auditors remuneration
6,800
-
-
Accounting and other
3,500
-
-
Depreciation
14,199
-
-
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 or		 General
Designated
Restricted
fund
fund
fund
£
£
£		 2021

£
94,110
6,800
3,500
14,199
2021
£
87,133
5,322
1,655
94,110

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 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
10 Investments
Listed Investments
Market value at 1 January 2021
Additions at cost
Disposal proceeds
Gain (loss) in year
Market value at 31 December 2021
Cash held by investment managers for re-investment
Cost of listed investments at 31 December 2021
11 Debtors
Other debtors
Legacies
Prepayments
Due from Generalate Rome		 Freehold
land and
buildings
Motor
vehicles
Furniture and
equipment
Total
£
£
£
£		 Freehold
land and
buildings
Motor
vehicles
Furniture and
equipment
Total
£
£
£
£
3,391,418
121,566
5,118
3,518,102
-
10,000
-
10,000
-
(12,987)
-
(12,987)
3,391,418
118,579
5,118
3,515,115
-
100,995
1,279
102,274
-
12,920
1,279
14,199
-
(12,987)
-
(12,987)
-
100,928		 2,558
103,486
3,391,418
17,651		 2,560
3,411,629
3,391,418
20,571		 3,839
3,415,828
2021
2020
£
£
6,068,872
5,900,434
1,947,346
1,459,523
(2,065,777)
(1,768,210)
690,531
477,125
6,640,972
6,068,872
171,530
141,373
6,812,502
6,210,245
5,303,003
5,009,876
2021
2020
£
£
7,247
5,357
-
50,500
5,059
8,968
84,800
-
97,106
64,825

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 2021

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		 2021
2020
£
£
400,835
397,709
45,964
42,551
20,040
44,001
-
40,056
466,839
524,317

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
Building maitenance fund
Capital fund		 At 1 January
2021
£
1,696,221
-
3,391,418
5,087,639		 Transfers
Incoming
resources
Utilised/
realised
At 31
December
2021
£
£
£
-
226,066
(15,631)
1,906,656
500,000
38,907
(2,268)
536,639
-
-
-
3,391,418
500,000
264,973
(17,899)
5,834,713

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
2021
Incoming
resources
Utilised/
realised
At 31
December
2021
£
£
£
£
3,865
13,245
(13,245)
3,865
53,290
(51,000)
2,290
18,150
-
(10,484)
7,666
75,305
13,245
(74,729)
13,821

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
2021
£
£
£
£
4,925,425
5,298,706
-
10,224,131
(156,647)
536,007
13,821
393,181
(466,839)
-
-
(466,839)
4,301,939
5,834,713
13,821
10,150,473

16