OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

The Order of Friars Minor Charitable Trust

Annual Report and Accounts

31 December 2020

Charity Registration Numbers: 232177 (England and Wales) SC039191 (Scotland)

Contents

Reports

Reference and administrative details of
the charity, its trustees and advisers 1
Trustees’ report 2
Independent auditor’s report 18
Accounts
Statement of financial activities 23
Balance sheet 24
Statement of cash flows 25
Principal accounting policies 26
Notes to the accounts 32

The Order of Friars Minor Charitable Trust

Reference and administrative details of the charity, its trustees and advisers

Trustees Rev Michael Copps OFM (Chairman) Rev Patrick Lonsdale OFM Rev Antony Jukes OFM Rev Edmund Highton OFM Rev Michael O’Grady OFM The trustees are incorporated under the Charities Act 2011 Custos Rev Michael Copps OFM Custodial Secretary Rev Patrick Lonsdale OFM Provincial Bursar Rev Michael O’Grady OFM Principal address The Franciscan Friary 557 High Road Woodford Green Essex IG8 0RB Charity registration numbers 232177 (England and Wales) SC039191 (Scotland) Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Solicitors SBP Law Glade House 52-54 Carter Lane London EC4V 5EF Stockbrokers J M Finn & Co 4 Coleman Street London EC2R 5TA Principal bankers NatWest Group 1st Floor 440 Strand London WC2R 0QS

The Order of Friars Minor Charitable Trust

1

Trustees’ report 31 December 2020

The trustees present their statutory report together with the accounts of The Order of Friars Minor Charitable Trust for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out on pages 26 to 31 and comply with applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102).

INTRODUCTION

The Order of Friars Minor was founded by St Francis of Assisi in 1209. It has maintained its essential character through the centuries. Friars live in communities, observing the Gospel of Our Lord Jesus Christ, under vows of poverty, celibate chastity and obedience, in accordance with the ‘Rule of 1223’ written by the Founder. The Minister General’s headquarters are in Rome where he is assisted by a General Definitory or Council, governing the Order Worldwide. The British Custody is part of the Order.

CONSTITUTION

The accounts accompanying this report are the accounts of the charitable trust on which the assets of the British Custody are held and through which its finances operate. The charity is governed by a trust deed dated 1 December 1963 as amended by a scheme dated 12 June 1973, and is registered under the Charities Act 2011. Since 2007 the trust has also been registered with the Office of the Scottish Charity Regulator (OSCR).

The trustees of the charity are an incorporated body under the Charities Act 2011.

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES

The principal aims of the charity are the support of charitable purposes connected with the Roman Catholic Religion and the support of the charitable work of the Order generally. This work is described in more detail in the following paragraphs. Although the majority of friaries are situated in England, the charity has one house in Glasgow, Scotland. The objectives described below apply in Scotland with special emphasis on the overseas mission work.

In setting out and planning the activities of the charity, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

Pastoral

The Order of Friars Minor in this Custody has four parishes in its care. Most of the friars of the Custody are engaged in pastoral and educational work – supporting and encouraging prayer and worship, administering the sacraments, preaching, teaching, providing spiritual and material sustenance to those in need. In addition, they give retreats and missions to other parishes and to convents. There is an obvious public benefit from these activities, as they are designed to promote harmony and cooperation in the parishes concerned and in the wider community.

The Order of Friars Minor Charitable Trust

2

Trustees’ report 31 December 2020

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Educational

To be able to provide the pastoral and spiritual support mentioned above, the members of the Custody must have the opportunity to obtain firstly the initial formation needed in the preparation for their ministry and then the further training and formation to equip them to serve the Church and the faithful in a rapidly changing society. The trustees need, therefore, to keep a close eye on the requirements to remain active and fruitful preachers of the Gospel. In addition, the friars take an active interest and play a part in the provision of primary, secondary and tertiary education in the schools of their parishes. These schools have a Catholic ethos and have no restriction with regard to colour, race, or income, thus providing an obvious public benefit.

Overseas missions

The Order of Friars Minor is the largest missionary Order in the Church. This Custody began missionary work in India and South Africa over 60 years ago. Initially they sent men out to those countries to begin the work of serving the people and establishing a Catholic presence there. Over time these missions have grown and now provide their own indigenous friars. With the decline in vocations in this country, the support now takes the form of grants financed by donations from Franciscan parishes and educational assistance to overseas students.

Grant making policy

The bulk of the grants made by the charity usually arise through the restricted funds i.e. the Franciscan Missionary Union (FMU) and Saint Antony’s Bread. In both cases money is deposited with the friars by the faithful to be used in the Franciscan missions and for the relief of poverty. The policy of the charity, therefore, is to use all the money so contributed for the furtherance of those two aims.

In total, grants of approximately £283,000 (2019 – £398,000) have been made during the year both as direct donations from the income of the charity and from disbursement of contributions by the faithful to the FMU and St Antony’s Bread. As usual, the Franciscan Missionary Union made contributions to missionary areas, especially in India and South Africa, for both general support and specific projects amounting to approximately £179,000 during the year (2019 – £198,000). In addition, the charity makes a regular annual donation to about a dozen charities that provide services allied to the Franciscan ethos e.g. Shelter, NSPCC and CAFOD totalling circa £68,000 (2019 - £85,000). More details are given in note 4 to the accounts.

The Order of Friars Minor Charitable Trust 3

Trustees’ report 31 December 2020

ACTIVITIES, OBJECTIVES AND SPECIFIC POLICIES (continued)

Investment policy

The charity has a portfolio of investments with a market value as at 31 December 2020 of £16,646,590 (2019 - £15,759,688).

The charity has set up a Sick and Retired Reserve to provide assistance to communities with elderly and infirm friars. This reserve is represented by a large part of the charity’s portfolio of stocks and shares, managed under the guidance of a fund manager. The fund managers have been asked by the trustees to keep a prudent balance between gilts and equities and to ensure the risk is spread by investing in a wide range of industrial shares of the larger companies. The twin aims are to raise some income to support the present elderly friars and to achieve a capital appreciation so as to build up the fund for future years.

The trustees have also instructed the fund managers to refrain from buying shares in companies associated with armaments, tobacco and contraceptives, as well as any pursuing activities at variance with the charity’s objectives. It has also recently disposed of its holdings in fossil fuel shares and invested in renewable energy instead, following the lead given by Pope Francis.

REVIEW OF THE YEAR

Pastoral work

Formation, training and education

All the formation, training and education of friars in initial formation now takes place outside the Custody of Great Britain. The Postulancy is currently located in Ennis, Ireland, the Novitiate year is based in Killarney, Ireland, and the study of Philosophy takes place in Maynooth University, with friars resident in the friary of Athlone. After completing Philosophy, friars go to Rome, Italy, for the study of Theology. Friars from the Custody in initial formation will have summer placements in the Custody so as to maintain links with the Custody.

Throughout the year we did not have one friar in initial formation.

Antony Jukes, in his capacity as Novice Director, and Donal Walsh, have attended meetings of the Interprovincial Secretariat for Formation and Studies (ISFS). These meetings are also attended by all friars of the Irish Province involved in formation ministry. Due to Covid-19 restrictions, these meetings have taken place online.

In August 2020, three men began their novitiate year at the Interprovincial Novitiate in Killarney, one is from the German Province, one from the Dutch Province and one from the Custody in Switzerland.

The Order of Friars Minor Charitable Trust 4

Trustees’ report 31 December 2020

REVIEW OF THE YEAR (continued)

Overseas missions

The Franciscan Missionary Union was established many years ago to help the Missionary endeavours of the Order of the Friars Minor. In the 1930’s and 1940’s, the English Province established Missionary Dioceses in India and South Africa. The work done in both countries was considerable and is now in the care of indigenous Franciscan Friars.

The Franciscan Missionary Union has, therefore, opened out towards other Missionary endeavours in various parts of the world. While still keeping in contact with our older Missionary work in India and South Africa we have branched out considerably to help the poor and marginalised in both East and West Africa as well as Sri Lanka and Madagascar. We also try to respond to any emergency situations where and when they occur in conjunction with Missio Scotland, SCIAF and Mary’s Meals.

We endeavor to obtain good estimates and reports for any proposed projects. These grants are made to particular Franciscan Provinces and are administered by fellow Franciscans. The source of these monies comes from the wonderful generosity of friends of the Missions who continue to support the work done by the FMU.

Promotion of vocation

The following is a report from Donal Walsh, Vocations Director:

“Due to Covid 19 restrictions and the Pandemic, promotion of vocations for most of 2020 has had to change from a more in-person means of contact and communication with those showing interest in the Franciscan Order, to the ever present virtual and social media ways of telephone, emails, and Zoom meetings with individuals and groups.

Thus, from March 2020, there has been very little travelling in the UK to meet Enquirers or for vocation meetings, gatherings and youth events. During 2020, I received some 43 enquiries about the Franciscan way of life, all of whom received a reply and acknowledgement, and about 10 of whom I have been in communication over several months.

There have been many hours of phone calls, emailing and virtual Zoom meetings with some Enquirers as well as a few Zoom conference calls with other Vocation Promotors in the UK and Ireland, and several Franciscans of the English-speaking world who also minister in this area. Some of these meetings were of a business-like manner and others of a training nature with some guest speakers. This, I feel, is of important support and benefit to me and a way to meet and listen and learn new approaches in animating and promoting vocational service.

Lastly, in 2020, on three occasions I have given talks for Schools using Zoom on Franciscan life, mostly to 5[th] year Senior School students from several classes along with their teachers.”

The Order of Friars Minor Charitable Trust

5

Trustees’ report 31 December 2020

REVIEW OF THE YEAR (continued)

OFS spiritual assistance

The following is a report from Donal Walsh in his role as Spiritual Assistant to the Order of Secular Franciscans:

“I am one of three Spiritual Assistants in the UK who assist, guide and support members of the Order of Secular Franciscans (OFS), females and males, who live in their homes, often scattered, who usually meet frequently for prayer, discussion and solidarity as they live out their Franciscan ideals as brothers and sisters.

My role as a Spiritual Assistant is to attend to fraternity meetings and special gatherings especially those of the 9 regions of the UK which comprise about 60 local fraternities. Needless to say, it would be a mammoth task for the 3 of us to visit all local groups over a year so we mostly concentrate on regional fraternal meetings and special events. Again, due to Covid restrictions in 2020, actual meetings in person have not taken place but have been replaced by virtual Zoom meetings of the regional Chapter and Council considering overall life and structures, decisions and plans for the OFS in Britain. Many of these Zoom meetings have been monthly lasting some 2 hours which I have mostly attended. Although some have been dealing with business, other meetings have been sharing and dialogue between members and have been a source of support and encouragement for us all especially during the difficult period in 2020 of a local and global virus pandemic.

Finally, the three Spiritual Assistants with OFS leadership have met via Zoom on three occasions in order to discuss planning, with sharing and support for one another.”

Vigilance with regard to the care of children and vulnerable persons and relevant training

It is totally accepted that the complete safety at all times of minors and vulnerable persons demands the highest concern and compliance of all members of the Catholic Church.

Our Custody is committed to full implementation of the principles, procedures and practice of the Catholic Church in England and Wales. These are set out by the National Catholic Safeguarding Commission and implemented and supervised by the Catholic Safeguarding Advisory Service. We receive regular information from these two bodies and act on any recommendation or change advised to achieve best practice.

We are aligned with the Brentwood Diocese Safeguarding Commission, which provides highly professional knowledge and practical support. We maintain close contact and frequent communication with Simon Moules, the Commission Coordinator. He provided us with a full day’s training which all friars active in England attended. We also engaged in other full days provided by the respective Diocese in which we work. Most of the friars attended another training day to hear three victims of abuse recount their experience and its consequences. At every monthly meeting of our trustees, Safeguarding is an agenda item. Listening to the firsthand accounts of victims of abuse is currently seen as a helpful means to achieve better understanding and practice. Our Safeguarding Lead led us in some detail at one such meeting through an account of one victim and the long consequences of her historic abuse. We offer pastoral care to anyone who has suffered abuse. As well as giving victims the assurance that they are trusted and their accounts are well heard, we recognise our duty on occasion to offer

The Order of Friars Minor Charitable Trust

6

Trustees’ report 31 December 2020

REVIEW OF THE YEAR (continued)

Vigilance with regard to the care of children and vulnerable persons and relevant training (continued)

financial help. With the guidance of our solicitors specialising in abuse cases we have negotiated appropriate compensation for two victims whose abuse is historic.

Guardians’ Report 2020

Glasgow

The Custody Chapter was held in July 2018 with the appointment of three friars to the Glasgow Friary. The great upheaval of the last 15 months has been the Covid-19 pandemic and national lockdown with the complete closure of the churches and the resulting loss of income and pastoral activity. Previously, the three friar priests presided at parish Masses with the parish priest providing chaplaincy to the parish school. The two halls at St Francis and Blessed John Duns Scotus, and adjoining rooms, were used by parish and other local groups such as the Twelve Steps programmes. Public Masses have begun again and approved groups are able to meet within the social distancing regulations. Until March 2020, regular Masses in Tamil and Vietnamese had been conducted by visiting priests from their respective ethnic chaplaincies. Friars and parishioners took part in training programmes on Safeguarding as provided by the Archdiocese of Glasgow and the Scottish Catholic Safeguarding Service. Much of this has continued online. The Safeguarding Audit 2020 for Religious Communities and the 2020 Archdiocesan Audit for parishes have been completed and submitted.

Clevedon

There are three Friars in Clevedon.

Sunday Masses are celebrated in the Parish Church in Clevedon and in the nearby village of Yatton. The parish hall, attached to the church at Clevedon, is well used by the parish and other local groups, such as the Secular Franciscans, the Rotary Club, a mother and toddler group, and a number of exercise, art and language classes.

The Friars continue to minister to people in local residential and nursing homes. One of them acts as Chaplain to the parish school, which is situated in Nailsea.

Stratford

There are four Friars at Stratford. They minister to a large congregation of various nationalities and ethnic backgrounds in the London Borough of Newham. There are families from different countries of Africa and Asia, as well as from Ireland and continental Europe. The Parish Priest acts as Chaplain to the Parish Primary School (St Francis), and is on a rota of Priests from the Newham Deanery who provide chaplaincy care at Newham General Hospital.

The Order of Friars Minor Charitable Trust

7

Trustees’ report 31 December 2020

REVIEW OF THE YEAR (continued)

Guardians’ Report 2020 (continued)

Stratford (continued)

Before the restrictions that came into effect at the time of the pandemic, small teams of parishioners would use the friary kitchen to make up sandwiches and hot drinks for homeless people who called at the friary on weekday mornings. There was a hot take-away meal available on Saturdays. Parishioners contributed generously to the expenses of this project, and there were also donations of food (mainly bread) from some of the local stores. The parish hall was used for two periods of three months to provide beds for about 15 people one night each week during the winter months. This project was run by volunteers from the parish and further afield. There was also a dinner one Saturday near to Christmas.

Since the lockdown periods during the pandemic, the Friars themselves have made sandwiches, and though these have been taken by homeless or needy people, the uptake has not been as great as formerly. This is probably because of government and local authority intervention to provide accommodation out of the area for homeless people. We hope to resume the former practice, if needed, once the restrictions are lifted.

Woodford Green

On the very last day of the year, Brother Malachy died to reduce the community to seven friars. Three of them had care of the busy parish, one was involved in administration of the Order, and the others were retired or semi-retired. From March, Covid-19 made its presence felt and this curtailed most of our pastoral contact except for funerals. We soon got into streaming our services to parishioners and those who tuned in. We frequently had a hundred people being involved this way. The Friars continued to provide chaplaincy to the parish primary school and to the high school by way of streaming when the schools were open. Care of those in nursing homes was very difficult and limited because of the need of social distancing. Parishioners’ activities in terms of care of the disadvantaged were curtailed but collecting food for food banks continued. The parish centre, with its large hall and meeting rooms had to be closed. Throughout the year, preparations were being made to install a new heating system for the whole building.

COVID-19

The Covid-19 pandemic has changed the shape and nature of the world. It has impacted not only the basic nature of social interactions but has also had a significant economic impact at every level in ways which have been outside of the charity’s control.

Due to the age profile of the Friars, many are currently practising self-isolation. This means there have been some adaptations to how ministry has been exercised during this period. The charity’s investment income will no doubt continue to be affected because of the impact of the pandemic on the economy and on the commercial sector in particular. In addition, voluntary income in the form of Mass, Clergy and Stole Offerings has been reduced during those periods when all churches were required to close their doors. Expenditure has been reduced as a result of lockdown as travel was curtailed and other costs were affected also.

The Order of Friars Minor Charitable Trust

8

Trustees’ report 31 December 2020

COVID-19 (continued)

The trustees have reviewed the income and expenditure of the charity and considered the impact of the pandemic during the months following the financial year end. Whilst there will be challenging times ahead, the trustees are of the view that there will be no significant impact on the overall finances of the charity.

FUTURE PLANS

We are still between chapters and the communities are now settled in and functioning well. However, while that is true, we are very aware that we rely on the good health of a few friars who are key to managing our life together. These friars are wearing two or more hats, are aging and therefore this is a worry. At the moment we are managing but we are exploring ways of becoming less vulnerable including the closure of another friary.

The planning to replace the heating system in the church and friary at Woodford was completed by the year end and work commenced in January 2021. The total cost is estimated at £800,000 and will be apportioned between the custody, parish and local Franciscan community.

FINANCIAL REVIEW

Investment performance

The portfolio comprises 76% equities, 4% gilts, and 20% unit trusts and fixed interest funds. The overall value of the portfolio increased by £886,902 from a market value of £15,759,688 at the end of 2019 to a value of £16,646,590 at the end of 2020. This does, however, include a further cash injection of £750,000 in July 2020.

Income and expenditure

A summary of the year’s results can be found on page 23 of this annual report and accounts. Total income amounted to £802,623 compared to £1,174,840 in 2019. Total expenditure during the year decreased from £1,011,694 in 2019 to £803,298 in 2020 as a result of fewer grants and donations being made.

Net expenditure for the year before gains on investments, therefore, amounted to £675 (2019 – net income of £163,146). Net gains on investments of £206,999 (2019 – £1,860,474) resulted in a net increase in funds for the year of £206,324 compared to a net increase of £2,023,620 in 2019.

Financial position and reserves policy

The balance sheet shows total funds of £21,450,515 (2019 - £21,244,191). Of this, £545,214 (2019 – £626,030) is restricted for specific purposes. £505,396 (2019 – £581,218) is restricted in respect of the Franciscan Missionary Union, which receives money specifically for the Order’s missions abroad. The remainder of the restricted funds represent a number of individually small funds made up of donations for specific purposes.

The Order of Friars Minor Charitable Trust 9

Trustees’ report 31 December 2020

FINANCIAL REVIEW (continued)

Financial position and reserves policy (continued)

The charity has unrestricted funds of £20,905,301 (2019 – £20,618,161). Of this £2,213,374 (2019 – £2,292,430) represents tangible fixed assets. About 10 per cent of the total resources owned by the charity comprise tangible fixed assets. The Franciscan Custody in this country can only carry out the aims set out in the first part of this report if it has the use of such assets. Not only are the assets an essential prerequisite for the work of the Custody, but much of the property is not at the complete disposal of the Custody; if the trustees were to vacate any of this property they would regard themselves as obliged to offer it to the Bishop or some other religious order that was prepared to carry on the same work.

In these circumstances, therefore, it seems advisable to recognise the resource as a separate fund rather than as an available resource.

The charity has four designated funds.

The first of these is the Sick and Retired Reserve. The average age of the friars in the Custody is steadily increasing and the elderly and infirm friars now outnumber those who have to provide the supporting income. Given the small number of vocations in recent years, there may not be sufficient support available within the Custody unless some of the present resources are set aside for the future. A Sick and Retired Reserve has been set up to provide for the current members of the Order.

The second designated fund is the Maintenance Fund standing at £1,500,000 at the end of the year. A quinquennial review carried out at the end of 2015 on one of the charity’s major properties indicated that this fund will need to be enlarged over the next ten years.

As mentioned above, the Custody is faced with a reducing number of friars in the coming years. That will of necessity give rise to decisions on changes to present activities and new ventures necessitating additional capital expenditure. Therefore, it is deemed prudent to set aside through a designated Mission and Development Fund a reserve which the trustees can utilise as and when needed for new initiatives in furthering the mission of the OFM.

The fourth designated fund is the Formation Fund which comprises monies set aside towards funding the formation and education of friars.

The amount of free reserves available after deducting the above designated funds and tangible fixed assets is £7,191,927 (2019 - £6,825,731). The policy of the trustees towards the General Reserve is to hold an amount roughly equivalent to one and a half year’s unrestricted expenditure. The actual amount of free reserves held at 31 December 2020 clearly exceeded the amount demanded by the policy. However, the trustees are aware of the uncertainties created by Covid-19 (see above) and the need, therefore, to be cautious. In addition, the charity has recently embarked on a programme of quinquennial reviews of the charity’s properties and it is expected that the results will show that significant investment will be needed in the properties over the next decade. Once the results of the reviews are known, it is the intention to increase the value of the Maintenance Fund thereby reducing free reserves.

The Order of Friars Minor Charitable Trust 10

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

Until 11 November 2014, according to the Statutes of the Order, the friars in Great Britain constituted a Province, i.e., an entity with more than forty professed friars. As such, the Province was administered by a governing body, known as the Definitory, consisting of the Minister Provincial, a Vicar-Provincial, and five other friars, elected by all the brethren at the triennial Chapter. The members of the Definitory were also trustees of the charity.

Because of the decreasing numbers and ageing of the friars, the Province became, as of the Chapter held in November 2014, a Dependent Custody of the Province of Ireland. In effect, for Canon law purposes, the friars in Great Britain became a semi-autonomous entity, led by the Custos and a Council of three friars. They were appointed by the Minister General of the Order, but after three years there will be an election of the Custos and Council and thereafter there will be an election every three years. Major appointments and decisions regarding the friars and houses of the Custody need to be ratified by the Provincial of Ireland and his Definitory. The trustees, however, continue to administer the charity and they are solely responsible for the financial management of the Custody.

The Council assigns friars to the various friaries and parishes served by the Franciscans and appoints officers needed for the administration of the Custody. Each friary has a Guardian and Vicar, appointed by the Council, who have responsibility for the friars in their community. The running of each friary is discussed regularly by the whole community.

As all trustees are members of the Order they have a detailed knowledge of the work of the charity and of its structure. On being appointed, new trustees are required to spend one full day with those trustees leaving office. They also meet with the Order’s legal, accounting, investment and property advisers during the course of a day to obtain a full briefing of their responsibilities and the charity’s position.

The names of the trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts and brief biographical details on each of the trustees who served during the year are given below:

Reverend Michael Copps OFM

Father Michael Copps has been a member of the Order since 1965. After initial formation he was involved in pastoral work in parishes and the education of new members as Novice Director. From 1981 to 1990 he was elected Guardian of the community at Chilworth and held the post of Novice Director for the same period. From 1990 to 1999 he was a parish priest in Nottingham and was Guardian of the community from 1994 to 1997. In 1999 he became parish priest in Forest Gate, East London and in 2002 in Stratford and Guardian of the community. In 2005 he was elected Minister Provincial of the Province of Friars Minor in this country and served in that capacity until 2014. He has also served on the Finance Committee of the Province. After a period as parish priest and Guardian at Stratford he was elected as Custos in 2018. Also in that year, he took up the role of Guardian in Woodford Green.

The Order of Friars Minor Charitable Trust

11

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Governance (continued)

Reverend Patrick Lonsdale OFM

Father Patrick Lonsdale entered the Order in 1965. He gained a BA at the University of Kent in Canterbury. Since Ordination in 1974 he has worked in various friaries and parishes of the Custody, and has been Guardian at Craigmillar, Woodford, Forest Gate, Glasgow, Chilworth and Nottingham. He was also Parish Priest at Craigmillar, Glasgow and Chilworth. He was a Trustee and Definitor from 1996 to 2005. He served as Custos and Trustee from 2014 to 2018, and is currently a Councillor and Trustee. From 1990 to 1996 he was National Assistant to the Secular Franciscan Order. From 1996 to 2002 he was a member of a hermitage community at Penmaenmawr, which was a joint project with the Capuchins. Over the years Patrick has also served as Secretary of the Province, Secretary of Formation, and as Animator of Vocations. He is currently Guardian of the community at Stratford and is Religious Assistant to the Federation of Poor Clares in Great Britain.

Reverend Antony Jukes OFM

Father Antony Jukes joined the Order of Friars Minor in 2002, having previously worked and completed his training as an accredited Chartered Accountant. As part of his formation as a Franciscan Friar, Antony completed a BA and an MA degree in Theology at the Franciscan International Study Centre in Canterbury. After ordination as a priest he served in our Franciscan parish in the Gorbals area of Glasgow for two years and then worked for two years in youth ministry at the Cold Ash Centre before returning to Canterbury to help with the formation of friars and to teach in the Study Centre. With the closure of the Study Centre in June 2017, Antony moved to the friary in Killarney, Ireland, where he is now the Novice Director in the new Interprovincial Noviciate.

Reverend Edmund Highton OFM

Father Edmund Highton has been a member of the Order since 1966. He had commercial experience of economics, commercial law and the finance of foreign trade through the "Institute of Export" prior to joining the Order. He spent many years as a missionary in South Africa, where he was a member of the Bishop's Council for about ten years with duties including the distribution of educational bursaries for secondary and tertiary education. He was a Parish Priest, caring for financial and pastoral concerns, from 1975 onwards. Now back in Britain, his present duties include the care of the Franciscan Missionary Union and being Parish Priest of Blessed John Duns Scotus in Glasgow.

The Order of Friars Minor Charitable Trust 12

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Governance (continued)

Reverend Michael O’Grady OFM

Father Michael O’Grady joined the Franciscan Order in September 2008 after working for the HSBC Bank in various roles, including business banking, for twenty years. He began his postulancy in Chilworth before moving to Ennis for his novitiate year where he took his simple vows in September 2011. He then moved to Canterbury to begin his academic formation with a year of Franciscan Studies and two years of philosophy. In 2014 he moved to the fraternity in Stratford to begin his theology degree at Heythrop College, London. Michael took his solemn vows in September 2015 and was ordained a deacon in July 2017. Upon completion of his studies in 2017 Michael was sent to St Boniface’s, San Francisco for three months as part of his diaconate placement working with the homeless. In 2018 he spent two months in Kraainem, Belgium with the Irish friars in preparation for his ordination to the priesthood in March 2018. He was then assigned as parish priest in Stratford and nominated as bursar of the Custody. He now serves on the Council and is a trustee of the charity.

Structure and management

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet monthly to review developments with regard to the charity and its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including property consultants, investment managers, solicitors and accountants. The day to day management of the charity’s activities, and the implementation of policies, is delegated to the appropriate members of the Order or senior staff. Financial decisions are overseen by the trustees. Mandates with the principal bankers are in place, to the effect that any cheque or online payment above £5,000 must have two authorisations, including one by a trustee. Online banking has been introduced at Custody level enabling daily monitoring of bank balances and other financial controls.

The Custody comprises 26 friars (as at 31 December 2020) who lived as part of four communities during the year. Three of these community houses are situated in the South of England (Clevedon, Somerset; Stratford in East London and Woodford Green, Essex) whilst the fourth community house is in Glasgow, Scotland. The four houses that remain open continue to exercise parochial responsibilities in collaboration with the bishops of the dioceses concerned.

As stated above, each community has a local guardian appointed by the Council. The local guardian is responsible for both the needs and the care of the friars in his community and he liaises regularly with the trustees. All local superiors meet together occasionally with the trustees to discuss developments and future plans and strategy.

Key management personnel

The strategic direction and the day-to-day management of the work of the charity is in the hands of the trustees and the Guardians at each friary. They are all members of the Order of Friars Minor and receive no remuneration for this work. All these friars have had many years‘ experience in the Order and are well aware of their responsibilities without the need for specific performance indicators.

The Order of Friars Minor Charitable Trust 13

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Working with other organisations

The friars in the parishes served by the Custody work very closely with the bishops administering the dioceses within which the parishes are situated. That will include membership of the local deanery and helping out in neighbouring parishes where possible. In addition, most communities have a primary school in the parish and there is close connection with these schools as well as secondary schools serving the parishes of the friars. The friars are also engaged in working with statutory bodies, other Christian Churches, other faith communities, and other voluntary groups.

Trustees’ responsibilities statement

The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales and in Scotland requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity’s trust deed. 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.

The Order of Friars Minor Charitable Trust 14

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management

The trustees undertake an annual review of the principal risks and uncertainties that the charity faces categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review. They also ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity should those risks materialise.

The trustees have identified five main areas where risks may occur: governance and management; operational; financial; reputational; and regulatory.

Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. They also work in close collaboration with their insurers so as to maintain adequate coverage of the risks.

Apart from the impact of Covid-19 on the charity and its work (see above), the key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

The Order of Friars Minor Charitable Trust 15

Trustees’ report 31 December 2020

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management (continued)

Fundraising statement

The charity does not carry out any direct fundraising with the public. It does not use the services of any third party organisation to help in its fundraising activities and no complaints were received about its fundraising activities during the financial year. However, if a complaint was to be received, it would be handled by a trustee.

The Order of Friars Minor Charitable Trust 16

Trustees’ report 31 December 2020

MEMBERS OF THE ORDER

The trustees wish to record their recognition of the professionalism and commitment of the individual members of the Order.

Their dedication and positive approach are much appreciated.

Signed on behalf of the trustees:

Michael Copps

Trustee

Approved by the trustees on: 20 September 2021

The Order of Friars Minor Charitable Trust

17

Independent auditor’s report 31 December 2020

Independent auditor’s report to the members of The Order of Friars Minor Charitable Trust

Opinion

We have audited the accounts of The Order of Friars Minor Charitable Trust (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and notes to the accounts. 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 accounts:

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

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.

The Order of Friars Minor Charitable Trust 18

Independent auditor’s report 31 December 2020

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual 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 in relation to which the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 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.

The Order of Friars Minor Charitable Trust 19

Independent auditor’s report 31 December 2020

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

The Order of Friars Minor Charitable Trust 20

Independent auditor’s report 31 December 2020

Auditor’s responsibilities for the audit of the accounts (continued)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

As a result of our procedures we did not identify any key audit matters relating to irregularities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

The Order of Friars Minor Charitable Trust

21

Independent auditor’s report 31 December 2020

Use of our 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 and in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. 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.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

29 September 2021

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Order of Friars Minor Charitable Trust 22

Statement of financial activities Year to 31 December 2020

Notes Unrestricted
funds
£		 Restricted
funds
£

2020
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2019
Total
funds
£
Income from:
Donations and legacies
1
Investments and bank interest
2
Charitable activities
. Church repository sales
Other sources
3
Total income
Expenditure on:
Raising funds
. Investment management fees
Charitable activities
. Grants and donations in support of
the work of the Order and other
charities
4
. Support of members of the Order
and their ministry
5
. Supplies for church repositories
Total expenditure
Net income (expenditure) before
gains on investments
7
Net investment gains
Net income (expenditure) and net
movement in funds for the year
Reconciliation of funds:
Total funds brought forward
at 1 January 2020

Total funds carried forward
at 31 December 2020
167,092

477,023
4,428

24,340

114,692

—

—

15,048

281,784

477,023

4,428

39,388
260,310

561,932

11,605

4,554

321,244

2,525

—

12,670
581,554

564,457

11,605

17,224
672,883
129,740
802,623
838,401
336,439
1,174,840
72,082
89,372
427,046
4,242


—
193,430
17,126

—


72,082

282,802

444,172
4,242
71,631
187,387
509,785

9,811
—
210,900
22,180

—
71,631
398,287
531,965

9,811
592,742
210,556
803,298
778,614
233,080
1,011,694
80,141
206,999		 (80,816)

—
(675)

206,999		 59,787

1,860,474		 103,359

—		 163,146

1,860,474
287,140
20,618,161		 (80,816)

626,030
206,324

21,244,191		 1,920,261
18,697,900		 103,359

522,671		 2,023,620
19,220,571
20,905,301


545,214

21,450,515		 20,618,161
626,030		 21,244,191

All of the charity’s activities were derived from continuing operations during the above two financial periods.

All recognised gains and losses are included in the above statement of financial activities.

The Order of Friars Minor Charitable Trust

23

Balance sheet 31 December 2020

Notes 2020
£		 2020
£		 2019
£		 2019
£
Fixed assets
Tangible fixed assets
11
Investments
12
Current assets
Debtors
. Amounts falling due after one year
13
. Amounts falling due within one
year
13
Cash at bank and in hand
Creditors: amounts falling due
within one year
14
Net current assets
Total net assets
The funds of the charity
Restricted funds
15
Unrestricted funds
. Designated funds
16
. Tangible fixed assets fund
17
. General fund		 225,042
90,859
2,331,106		 2,213,374
16,646,590		 253,145
156,095
2,901,429		 2,292,430
15,759,688
18,859,964
2,590,551		 18,052,118
3,192,073
2,647,007
(56,456)		 3,310,669
(118,596)
11,500,000
2,213,374
7,191,927		 11,500,000
2,292,430
6,825,731
21,450,515 21,244,191
545,214
20,905,301		 626,030
20,618,161
21,450,515 21,244,191

Approved by and signed on behalf of the trustees by:

Michael Copps

Trustee

Approved by the trustees on: 20 September 2021

The Order of Friars Minor Charitable Trust 24

Statement of cash flows Year to 31 December 2020

Notes
2020
£		 2019
£
Cash flows from operating activities:
Net cash (used in) provided by operating activities
A
Cash flows from investing activities:
Investment income and bank interest received
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Purchase of investments

Net cash (used in) provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2020
Cash and cash equivalents at 31 December 2020
B


**(365,928) **		 (256,791)


484,409
(8,902)
1,827,716
**(2,503,999) **		 562,785
(189,309)
1,859,805
(1,772,166)
**(200,776) ** 461,115

(566,704)
2,979,731		 204,324
2,775,407

2,413,027		 2,979,731

Notes to the statement of cash flows for the year to 31 December 2020. A Reconciliation of net movement in funds to net cash used in operating activities

B 2020
£		 2019
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Gains on investments
Investment income and bank interest receivable
Decrease in debtors
(Decrease) increase in creditors
Net cash used in operating activities
206,324
87,958
(206,999)
(478,452)
87,380
(62,139)		 2,023,620
86,211
(1,860,474)
(564,457)
41,402
16,907
(365,928) (256,791)
Analysis of changes in net debt
2019
£		 Cash flows
£		 2020
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 2,901,429
78,302		 (570,323)
3,619		 2,331,106
81,921
2,979,731 (566,704) 2,413,027
Analysis of changes in net debt
2019 Cash flows 2020
£ £ £
Cash at bank and in hand 2,901,429 (570,323) 2,331,106
Cash held by investment managers 78,302 3,619 81,921
Total cash and cash equivalents 2,979,731 (566,704) 2,413,027

The Order of Friars Minor Charitable Trust 25

Principal accounting policies 31 December 2020

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

Basis of accounting

The accounts have been prepared for the year to 31 December 2020 with comparative information given in respect to the year to 31 December 2019.

The accounts have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with the principles set out in 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 (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

The accounts are presented in sterling and are rounded to the nearest pound.

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:

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 at least one year from the date of approval of these accounts.

Since March 2020, the Covid-19 pandemic has changed the shape and nature of the world. It has impacted not only the basic nature of social interactions but has also had a significant economic impact at every level in ways which have been outside of the charity’s control.

The Order of Friars Minor Charitable Trust 26

Principal accounting policies 31 December 2020

Assessment of going concern (continued)

Due to the age profile of the Friars, many have had to self-isolate. This means there have been some adaptations to how ministry is being exercised. The charity’s income has been, and will continue to be, affected by the pandemic due to the impact of the closure of churches on voluntary income in the form of Mass, Clergy and Stole Offerings and also because of reduced investment income as the corporate sector reacts to Covid-19. Expenditure has reduced slightly as a result of the lockdown as travel was curtailed and other costs were affected also.

The trustees, along with their investment managers, will continue to monitor the impact of the pandemic and other factors on stock markets but the charity is a long term investor and the trustees take a long term view.

The trustees have reviewed the income and expenditure of the charity and considered the continuing impact of the pandemic. Whilst there will continue to be challenges ahead, the trustees are of the view that there will be no significant impact on the overall finances of the charity.

Therefore, the trustees of the charity have 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 ending 31 December 2021, 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 – both of which may be impacted by Covid-19 and other factors outside of the charity’s control.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, legacies, investment income, interest receivable, church repository sales, the surplus on disposal of assets and other income.

Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

The Order of Friars Minor Charitable Trust 27

Principal accounting policies 31 December 2020

Income recognition (continued)

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

Dividends are recognised once the dividend has been declared and notification has been 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. Income from repository sales is recognised when the risks and rewards of ownership have transferred to the buyer.

All other income is measured at fair value and accounted for on an accruals basis.

Expenditure recognition and the basis of allocating costs

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

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and governance support costs.

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. These costs are allocated directly to support of members of the Order and their ministry. All other costs are directly allocated to the headings in the statement of financial activities and there is no apportionment. The classifications in the statement of financial activities are as follows:

The Order of Friars Minor Charitable Trust

28

Principal accounting policies 31 December 2020

Expenditure recognition and the basis of allocating costs (continued)

All expenditure is stated inclusive of irrecoverable VAT.

Tangible fixed assets

All assets costing more than £1,500 and with an expected useful life exceeding one year are capitalised.

The trustees are the legal owners of churches and other parish land and buildings. In the event of the Order ceasing its ministry in a parish, the trustees would consider themselves obliged to allow such assets to continue to be used indefinitely and rent free to meet the needs of the parish for a church and related accommodation. As such assets are not therefore susceptible to a meaningful valuation and there is no reliable information as to their cost, they are not valued for the purposes of these accounts.

The buildings consist of churches, presbyteries and parish halls and were constructed up to 100 years ago, with additions and improvements since. They are situated in Clevedon (Somerset), Yatton (Somerset), Stratford (London) and Woodford Green (Essex).

The Order of Friars Minor Charitable Trust 29

Principal accounting policies 31 December 2020

Tangible fixed assets (continued)

The freehold of the land and buildings legally owned by the charity and occupied rent free on behalf of the Trustees of Nottingham Academy are valued at £nil. The trustees consider that no meaningful value can be attributed to these assets, since they are not used directly by the charity, do not generate income and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues.

Depreciation is provided at the rate of 20% per annum on cost in order to write each asset off over its expected useful life.

Expenditure on the purchase and replacement of furniture and equipment is capitalised and depreciated over a five year period, based on the estimated useful life of the asset, on a straight line basis.

Fixed asset investments

Listed 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 charity does not acquire put options, derivatives or other complex financial instruments.

As noted above 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.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is 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 at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

The Order of Friars Minor Charitable Trust 30

Principal accounting policies 31 December 2020

Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Funds structure

The funds of the charity are in the main unrestricted and available for use in furtherance of the charity's objectives at the discretion of the trustees. Within the total unrestricted funds of the charity are funds representing non-liquid assets and funds which the trustees have designated for specific purposes. Details of these are provided in notes 16 and 17.

Details of funds raised for a specific purpose or subject to donor-imposed conditions, and therefore restricted, are given in note 15.

Services provided by members of the Order

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the term of the lease.

The Order of Friars Minor Charitable Trust 31

Notes to the accounts 31 December 2020

1 Income from: Donations and legacies

Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£


Unrestricted
funds
£

Restricted
funds
£

2019
Total
funds
£
Donations
. Pastoral offerings
. General donations
Legacies
Salaries and pensions of
individual religious
received under deed of
covenant and Gift Aid		 60,952
31,130
—

104,692		 60,952
135,822
146,556

14,471
—

147,431
146,556

161,902
92,082
2,475
72,535
104,692

10,000

—		 196,774
12,475
72,535
161,027

15,793

83,490
147,431

173,813

—
308,458

189,606

83,490
167,092
114,692		 281,784
260,310
321,244
581,554

2 Income from: Investments and bank interest

Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£


Unrestricted
funds
£

Restricted
funds
£

2019
Total
funds
£
Income from listed
investments
Other interest receivable
Unwinding of debtor held
at present value (note 13)		 470,831
7,621
(1,429)		 —

—
—		 470,831
7,621
(1,429)		 561,146
10,499
(9,713)		 —
2,525
—		 561,146
13,024
(9,713)
477,023
—		 477,023 561,932 2,525 564,457

3 Income from: Other sources

Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£

Unrestricted
funds
£

Restricted
funds
£

2019
Total
funds
£
Sundry income 24,340 15,048 39,388
4,554
12,670
17,224

The Order of Friars Minor Charitable Trust

32

Notes to the accounts 31 December 2020

4 Expenditure on: Grants and donations in support of the work of the Order and other charities

charities
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£


Unrestricted
funds
£

Restricted
funds
£

2019
Total
funds
£
Grants to institutions
Support of the Order’s
Generalate
For the relief of poverty and
advancement of education and
religion generally
. Foreign Missions of the Order
of Friars Minor
. Miscellaneous grants to
institutions
For the advancement of
religion
.Support of Franciscan
parishes in the UK - mainly
church refurbishment
Other donations		 11,671

—
68,000
—
9,701		 —
179,379
—
—
14,051		 11,671
179,379
68,000
—
23,752
14,353

63,729

37,000

437

71,868
—

197,990

—

—

12,910
14,353

261,719

37,000

437

84,778
89,372 193,430 282,802
187,387
210,900
398,287

5 Expenditure on: Support of members of the Order and their ministry

Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£


Unrestricted
funds
£

Restricted
funds
£

2019
Total
funds
£
Living and personal expenses
of friars
Premises
Depreciation of freehold
property
Grants to former members
Friars’ formation
Governance costs (note 6)
Other costs		 131,296
58,162
81,292
35,312
6,020
44,055
70,909		 1,702

851
—

—

6,084

—

8,489		 132,998
59,013
81,292
35,312
12,104
44,055
79,398
161,609

62,475

80,996

50,398

12,560

91,094

50,653
7,063

—

—

—

7,058

—

8,059
168,672

62,475

80,996

50,398

19,618

91,094

58,712
427,046
17,126		 444,172
509,785
22,180
531,965

The Order of Friars Minor Charitable Trust 33

Notes to the accounts 31 December 2020

6 Governance costs

Governance costs
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2019
Total
funds
£
Legal and professional
Meeting costs		 43,328
727		 —
—		 43,328
727		 87,733
3,361		 —
—		 87,733
3,361
44,055 — 44,055 91,094 — 91,094

7 Net income (expenditure) before gains on investments

This is stated after charging:

Net income (expenditure) before gains on investments
This is stated after charging:
Unrestrictedfunds
2020
Total
funds
£		 2019
Total
funds
£
Auditor’s remuneration (including VAT)
. Statutory audit services
. Other services
Depreciation
Operatinglease rentals		 25,000
3,000
87,958
1,346		 24,000
3,000
86,211
1,346

8 Staff costs and remuneration of key management personnel

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees and the Guardians at each friary. They received no remuneration in the year (2019 - none).

There are no staff costs as the charity does not employ staff (2019 - none).

9 Trustees expenses and transactions with trustees

As members of the Order, the trustees’ living expenses during the year were borne by the charity.

As members of the Order, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the charity under gift aid. During the year the amount donated by the trustees to the charity was £9,696 (2019 - £10,570).

The trustees have purchased insurance to protect the charity from any loss arising from negligent acts, errors or omissions on the part of the trustees and to indemnify the trustees or other officers against the consequences of any neglect or default on their part. The insurance premium paid by the charity during the year totalled £518 (2019 - £488) and provides cover of up to a maximum of £1,000,000 (2019 - £1,000,000).

10 Taxation

The Order of Friars Minor Charitable Trust is a registered charity and, therefore, is not liable to taxation on income and gains derived from its charitable activities, as it falls within the various exemptions available to registered charities.

The Order of Friars Minor Charitable Trust 34

Notes to the accounts 31 December 2020

11 Tangible fixed assets

Freehold
land and
buildings
£		 Improvements
to freehold
buildings
£
Motor
vehicles
£		 Furniture
and
equipment
£		 2019
Total
£
Cost or valuation
At 1 January 2020
Additions
Disposals
At 31 December 2020
At cost
At deemed cost (1983 valuation)
Depreciation
At 1 January 2020
Charge for the year
Disposals
At 31 December 2020
Net book values
At 31 December 2020
At 31 December 2019		 3,287,052
—
—		 305,091
8,902
—		 82,985
—
(21,046)		 7,907
—
—		 3,683,035
8,902
(21,046)
3,287,052 313,993 61,939 7,907 3,670,891
286,745
3,000,307		 313,993
—		 61,939
—		 7,907
—		 670,584
3,000,307
3,287,052 313,993 61,939 7,907 3,670,891
1,300,814
65,741
—		 24,230
15,551
—		 62,060
5,085
(21,046)		 3,501
1,581
—		 1,390,605
87,958
(21,046)
1,366,555 39,781 46,099 5,082 1,457,517
1,920,497 274,212 15,840 2,825 2,213,374
1,986,238 280,861 20,925 4,406 2,292,430

As permitted under Financial Reporting Standard 102 (FRS 102), the charity has continued to adopt a policy of not revaluing its tangible fixed assets.

It is likely that there are material differences between the open market values of the charity’s land and buildings and their book values. These arise from the specialised nature of some properties, i.e. the churches and other parish buildings, and the effects of inflation. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of trustees, is not justified in terms of the benefit to the users of the accounts.

The historical cost of the freehold land and buildings included above at a 1983 valuation cannot be ascertained with accuracy. Under the transitional rules of FRS 102 this valuation is now regarded as deemed cost.

The Order of Friars Minor Charitable Trust

35

Notes to the accounts 31 December 2020

12 Investments

Investments
Total
2020
£		 Total
2019
£
Listed investments
Market value at 1 January 2020
Additions at cost
Disposals at opening book value
(proceeds: £1,827,716; realised losses £143,975)
Unrealised gains
Market value at 31 December 2020
Cash held by investment managers for reinvestment
Cost of listed investments at 31 December 2020		 15,681,386
2,503,999
(1,971,691)
350,973		 13,908,552
1,772,165
(1,853,729)
1,854,398
16,564,669
81,921		 15,681,386
78,302
16,646,590 15,759,688
12,797,223 12,072,571

Listed investments held at 31 December 2020 comprised the following:

Total Total
2020 2019
£ £
UK government securities 602,213 1,582,975
Unit trusts 2,447,609 3,298,848
UK fixed interest 967,510 734,793
Equities 12,547,337 10,064,770
16,564,669 15,681,386

The following individual holdings were deemed material in comparison with the market value of the entire listed portfolio held at the year end.

2020
Market
value
£
Percentage
of total
portfolio
%
602,213
3.6%		 2019 2019
Market
value
£		 Market
value
£		 Percentage
of total
portfolio
%
United Kingdom Treasury 1.25% Index
Linked 2027		 602,213 952,690 6.1%

The Order of Friars Minor Charitable Trust 36

Notes to the accounts 31 December 2020

13 Debtors

Debtors
Total
2020
£		 Total
2019
£
Prepayments and other sundry debtors
Proceeds from disposal of freehold properties (see below)
. Amounts falling due within one year
Proceeds from disposal of freehold properties (see below)
. Amounts falling due after one year		 62,756
28,103		 128,209
27,886
90,859
225,042		 156,095
253,145
315,901 409,240

In 2012, the charity disposed of a freehold property in Dundee, Scotland for agreed proceeds of £510,000. Under the agreed payment schedule, £250,000 was received prior to 31 December 2020. The balance will be received as follows: 2021 - £30,000 each year, 2022 and 2023 - £35,000 each year and £40,000 for each of the following four years. This sale agreement constitutes a financial arrangement as defined by FRS 102. Therefore, in order to comply with the Charities SORP FRS 102 and FRS 102 itself, the proceeds receivable from the disposal of the property have been discounted to their present value using an effective discount rate of 0.4%, the rate available to the charity on commercial bank deposits. The notional interest is credited to the statement of financial activities as the discount is “unwound”.

14 Creditors: amounts falling due within one year

Total
2020
£		 Total
2019
£
Accruals and other creditors
Deferred income
Expense and similar creditors		 40,545
11,287
4,624		 99,500
17,147
1,949
56,456 118,596

The Order of Friars Minor Charitable Trust 37

Notes to the accounts 31 December 2020

15 Restricted funds

The income funds of the charity include the following restricted funds, comprising the unexpended balances of donations received for specific purposes:

At 1
January
2020
£		 Income
£		 Expenditure
£		 At 31
December
2020
£
Franciscan Missionary Union
Stratford Building Project
Other restricted funds		 581,218
11,920
32,892		 120,683
—
9,057		 (196,505)
—
(14,051)		 505,396
11,920
27,898
626,030 129,740 (210,556) 545,214
At 1
January
2019
£		 Income
£		 Expenditure
£		 At 31
December
2019
£
Franciscan Missionary Union
Stratford Building Project
Other restricted funds		 489,551
11,920
21,200		 311,837
—
24,602		 (220,170)
—
(12,910)		 581,218
11,920
32,892
522,671 336,439 (233,080) 626,030

The Franciscan Missionary Union represents monies received specifically for the Order’s missions abroad.

The Stratford Building Project represents monies received specifically to assist with the remodification of buildings of a parish administered on behalf of the local diocese by the friars in Stratford, London. The majority of the building work was undertaken in 2010.

Other restricted funds represent a number of individually small funds made up of donations for specific purposes.

16 Designated funds

The unrestricted funds of the charity include the following funds designated for specific purposes.

At 1
January
2020
£		 Designated
in year
£		 Utilised/
Released in
year
£		 At 31
December
2020
£
Sick and retired reserve
Maintenance fund
Mission and development fund
Formation fund		 8,000,000
1,500,000
1,000,000
1,000,000		 10,327
—
—
—		 (10,327)
—
—
—		 8,000,000
1,500,000
1,000,000
1,000,000
11,500,000 10,327 **(10,327) ** 11,500,000

The Order of Friars Minor Charitable Trust 38

Notes to the accounts 31 December 2020

16 Designated funds (continued)

Designated funds(continued)
At 1
January
2019
£		 Designated
in year
£		 Utilised/
Released in
year
£		 At 31
December
2019
£
Sick and retired reserve
Maintenance fund
Mission and development fund
Formation fund
 8,000,000
1,500,000
1,000,000
1,000,000
31,905

—

—

—		 (31,905)
—
—
—		 8,000,000
1,500,000
1,000,000
1,000,000
11,500,000
31,905		 (31,905) 11,500,000

This consists of monies which the trustees have set aside in order to provide for older friars and those in ill health. The reserve has been calculated so as to provide income to communities with elderly or sick friars to care for.

 Maintenance fund

The maintenance fund represents monies set aside by the trustees for the upkeep and repair of the buildings of the Custody. A quinquennial review carried out towards the end of 2015 on one of the charity’s major properties indicated that this fund will need to be expended over the next ten years in respect to that one property alone.

The mission and development fund comprises monies set aside towards funding new initiatives in furtherance of the mission of the Order.

 Formation fund

The formation fund comprises monies set aside towards funding the formation and education of friars. The monies held in the formation fund are reviewed on a regular basis during the year by the trustees.

17 Tangible fixed assets fund

Tangible fixed assets fund
Total
2020
£		 Total
2019
£
At 1 January 2020
Net movement in year
At 31 December 2020		 2,292,430
79,056		 2,189,332
103,098
2,213,374 2,292,430

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. This fund has been established to recognise the fact that the assets are required for the day-to-day operation of the charity and are not available for other purposes or as a general reserve.

The Order of Friars Minor Charitable Trust 39

Notes to the accounts 31 December 2020

18 Analysis of net assets between funds


General
funds
£
Designated
funds
£
Tangible
fixed assets
fund
£
Restricted
funds
£
 Total
2020
£
Fund balances at 31
December 2020 are
represented by:
Tangible fixed assets
Investments
Net current assets
Total net assets		 —
5,146,590
2,045,337		 —
11,500,000
—		 2,213,374
—
—
—
—
545,214		 2,213,374
16,646,590
2,590,551
7,191,927 11,500,000 2,213,374 545,214 21,450,515

General
funds
£
Designated
funds
£
Tangible
fixed assets
fund
£
Restricted
funds
£
Total
2019
£
Fund balances at 31
December 2019 are
represented by:
Tangible fixed assets
Investments
Net current assets
Total net assets		 —
4,259,688
2,566,043		 —
11,500,000
—		 2,292,430
—
—		 —
—
626,030		 2,292,430
15,759,688
3,192,073
6,825,731 11,500,000 2,292,430 626,030 21,244,191

The total unrealised gains at 31 December 2020 constitute movements on revaluation and are as follows:

Total
2020
£		 Total
2019
£
3,608,815
3,608,815
1,835,142
(80,725)
1,854,398
3,608,815
Unrealised gains included above:
On investments
Total unrealised gains at 31 December 2020
Reconciliation of movements in unrealised gains
Unrealised gains at 1 January 2020
In respect to disposals in the year
Net gains (losses) arising on revaluation in the year
Total unrealisedgains at 31 December 2020		 3,767,042
3,767,042
3,608,815
(192,342)
350,973
3,767,042

19 Ultimate control

The charity, which is constituted as a trust, was controlled throughout the period by the Order of Friars Minor by virtue of the fact that the Superior of the Province has the power to appoint the trustees.

The Order of Friars Minor Charitable Trust 40

Notes to the accounts 31 December 2020

20 Connected charities

The Order of Friars Minor Charitable Trust is connected to one other charity by virtue of the fact that the trustees of the Order have the power to appoint trustees of the connected charity and the charities use the same principal address.

The connected charity is:

The connected charity is:
Name
Commissariat of the Holy Land		 Charity
RegNo
263616		 Charitable objectives
The support of the work of the Custody
of the Holy Land, the advancement of
the Roman Catholic religion and the
relief of poverty.

21 Related party transactions

Other than as disclosed in note 9, there were no further related party transactions (2019 - none).

22 Operating lease commitments

At 31 December 2020, the charity had the following future minimum commitments in respect of non-cancellable operating leases:

Motor Vehicles Motor Vehicles
2020
£		 2019
£
Payments due in less than oneyear 348 348

23 Contingent liability

The trustees have been notified of potential claims in respect to the care and welfare of children in the care of the charity during and after the 1960’s. The amounts involved, if any, cannot be quantified at the current time.

The Order of Friars Minor Charitable Trust 41