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2022-12-31-accounts

Missionaries of Saint Francis De Sales

Annual Report and Accounts

31 December 2022

Charity Registration Number 234926

Contents

Reports

Reports
Reference and administrative information 1
Trustees’ report 3
Independent auditor’s report 14
Accounts
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Principal accounting policies 22
Notes to the accounts 27

Reference and administrative information

Trustees Rev Benny Joseph Valiyaveettil
Rev Paul Gonsalves (resigned 14 April 2023)
Rev John Terry McGrath
Rev Thomas Kulandaisamy
Rev Roy Karakkattu (appointed 14 April 2023)
Provincial Rev Benny Joseph Valiyaveettil
Provincial Bursar Rev John Terry McGrath
Principal address 28 Peveril Road
Duston
Northampton
NN5 6JW
Administrative office 4 Christ Church Oval
Harrogate
HG1 5AJ
Registered Office 1 St. Joseph’s Cottage
Devizes
SN10 1DD
Telephone 01423 817515
Website www.msfstoday.org
Charity Registration 234926
Number
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Santander Corporate & Commercial
2 Triton Square
Regents Place
London
NW1 3AN
Solicitors Trueman’s Solicitors & Advocates
38 St Aldates
Eden House
Oxford
OX1 1BN

Missionaries of Saint Francis De Sales 1

Reference and administrative information

Investment managers BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London EC2N 2DL

Missionaries of Saint Francis De Sales 2

Trustees’ report Year to 31 December 2022

The trustees present their statutory report together with the accounts of Missionaries of Saint Francis De Sales (the “charity”) for the year ended 31 December 2022.

The accounts have been prepared in accordance with the accounting policies set out on pages 22 to 26 of the attached accounts and comply with the charity’s trust deed, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Introduction

The Congregation of the Missionaries of Saint Francis de Sales (the “Congregation”) (also known as the Fransalian Fathers) is a Roman Catholic religious congregation with a membership of 1,480 priests and brothers worldwide. It was founded in Savoy in 1838. Today, the Generalate is located in Rome. The Congregation is structured into missions, regions, vice-provinces and provinces. At present, England is constituted as a Province with a Provincial appointed by the Superior General.

The accounts accompanying this report are the accounts of the charitable trust on which the assets of the Congregation in England and Wales are held.

Mission

The object of the English Province of the Congregation of Saint Francis de Sales (ie the charity), as set out in its governing document, is the furtherance of the Roman Catholic faith through pastoral care of churches, education and mission and by caring for members of the Congregation throughout their life.

By its active involvement in various dioceses, the charity aims to re-vitalize parish life, work for the renewal of faith through retreats and counselling, enable and support the members to live out their faith and to put that faith into practice through a variety of religious and other charitable works.

When setting the objectives and planning the work of the charity for the year, and when encouraging the work of individual priests, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

The works or ministries of the Fransalian Fathers, and hence the charity, fall into the following main areas:

Worship and prayer

Members of the Congregation are given the opportunity for private worship and to continue to develop their knowledge and trust in Jesus and the Church through quiet prayer, study of the Gospel and spiritual development in the spirit of Saint Francis de Sales. In addition, members of the Congregation celebrate and pray with the wider community including people of all faiths and none. They do this through the animation of parishes and churches, involvement in ecumenical dialogue, both with other Christian denominations, as well as members of Jewish and Muslim faiths. They offer spiritual guidance and are also available to listen in times of need, through the giving of retreats and the celebration of the Liturgy, preaching and teaching, as well as through prayer groups and church services and good pastoral care of people.

Missionaries of Saint Francis De Sales 3

Trustees’ report Year to 31 December 2022

Mission (continued)

Social and pastoral work

Many members of the Congregation are involved in various forms of social or pastoral work throughout the country including family support and chaplaincy in hospitals, educational establishments and prisons.

The Fathers aim is to be all things to all people by living a gentle spirit that is open to others and accepting of difference. In particular, their concern is that all people, and especially the poor and marginalised in society, be enabled to live a life that is fully human, no matter what their personal background, faith, gender or individual circumstances.

Overseas missionary work

The charity also helps support other Fransalian Fathers working in education, healthcare and social and pastoral fields in Africa and India, thereby helping some of the world’s poorest and most disadvantaged people and contributing to the life and work of the Church. The charity supports projects associated with the works in India or Africa which assures financial aid, closer contacts and better understanding of one another.

Activities, achievements and relevant policies

As stated above under “Mission”, one of the aims of the charity is to care for individual members of the Congregation throughout their lives with the Congregation. The charity seeks to enable and support them to live out their faith and to put that faith into practice through a wide variety of religious and other charitable works, as well as by a life of prayer and personal goodness.

The main work of the charity is to share the mission of the Catholic Church, to be involved in parish renewal, education, in the spirit and model of Saint Francis de Sales.

Worship and prayer includes: promoting the values and vision set out in the Gospel and the teachings of St Francis de Sales including the promotion of human dignity, teaching respect of different cultures, working for a society based on justice and peace and encouraging care and respect for all creation; celebrating Sunday Mass, providing daily Mass, making provision for baptisms, weddings and funerals; providing religious instruction and supervision; creating opportunities for other public devotions and services; the provision of retreats where those who attend can reflect in a peaceful atmosphere rooted in Gospel values; celebrating the sacrament of Penance, especially during the time of Advent and Lent; praying with those who are house bound, sick or dying; preaching and teaching the Faith.

Missionaries of Saint Francis De Sales 4

Trustees’ report Year to 31 December 2022

Activities, achievements and relevant policies (continued)

The charity enables and supports individual members of the Congregation in ministry and outreach work thereby furthering the message set out in the Gospel to help one another and love one’s neighbour.

The following are examples of the social and pastoral work undertaken by individual members: working in parishes, visiting, helping in catechetical programmes and helping parishioners develop their spiritual lives; administrative and secretarial support to Church organisations; pastoral care/chaplaincy in hospitals, hospices, nursing homes; prison visiting; preaching, catechetical instruction and liturgical celebrations with the SyroMalabar community.

The objectives of the trustees in this area include:

The charity provides financial support for the Congregation’s missions in Africa, as well as specific projects in different parts of India. These are assessed on an individual basis.

The missions are under the control of members of the Congregation and the financial support is used to enable particular works, e.g. set up primary education, provide accommodation and education for street children.

Grants, donations and other payments in support of missionary work and ministry are decided on by the trustees in consultation with other members of the Congregation as appropriate. In the main, the charity supports the work of the Congregation in overseas countries.

Whilst the trustees give occasional support to United Kingdom organisations whose work is within the objects of the charity, the charity does not regard itself as a grant making entity and applications for grants and donations are not invited.

Missionaries of Saint Francis De Sales 5

Trustees’ report Year to 31 December 2022

Activities, achievements and relevant policies (continued)

Listed investments - policy

The charity’s listed investments are managed by BlackRock Investment Management (UK) Limited and there are no restrictions on the charity’s power to invest.

The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s view of the market prospects in the medium term.

The policy is to maximise total return through a diversified portfolio whilst providing a level of income advised by the trustees from time to time. There is also an ethical policy precluding investment in any company which, after reasonable enquiry, clearly has significant profits from an activity which is contrary to the objectives of the Roman Catholic Church.

The performance of the portfolio and the charity’s investment strategy are reviewed by the trustees who meet with the investment managers regularly.

Listed investments - performance

The investment managers continued to invest in accordance with the trustees’ investment policy set out earlier in this report and comply with the ethical guidelines given to them.

During the year the charity’s listed investments achieved an income yield of 3%.

The trustees will continue to review performance but, given that they view their investments as being for the long term, they remain confident that the policy adopted is appropriate for the charity.

Investment properties

The charity now owns four investment properties located at:

The houses have tenants, and the lettings are managed by local estate agents. The investment properties are held to produce a regular income and to protect the charity’s capital for the long term.

Missionaries of Saint Francis De Sales 6

Trustees’ report Year to 31 December 2022

Financial review

A summary of the year’s results may be found on page 19 of the accounts.

Total income in the year was £351,793 (2021 – £683,290 including one substantial donation of £488,954 from The Dympna Centre (Charity Registration No. 296650) which closed during 2021 and transferred certain of its net assets to the charity). Further details of voluntary income are given in note 1 to the attached accounts.

Total expenditure in the year was £274,887 (2021 – £156,038). Expenditure of £254,166 (2021 – £140,703) was incurred in caring for the members of the Congregation and enabling them to carry out their work. Expenditure on raising funds, including costs in respect of rental income amounted in total to £13,489 (2021 – £10,046). Donations in support of the charity’s objectives amounted to £7,232 (2021 - £5,289).

Therefore, net income for the year before investment movements was £76,906 (2021 - £527,252). Losses on listed investments of £117,840 (2021 – gains on listed investments of £83,889 together with gains on the revaluation of investment property of £165,000) resulted in a net decrease in funds of £40,934 (2021 – net increase of £776,141).

The balance sheet shows total funds of £3,747,739 (2021 – £3,788,673) of which £574,291 (2021 – £573,311) represents tangible fixed assets of the charity and has been set aside as a separate fund in recognition of the fact that such assets are required to support the day-today work of the charity and cannot, therefore, be realised easily if needed to meet future contingencies.

Included in total funds is an amount of £132,558 (2021 – £138,954) which is restricted. These monies comprise donations subject to donor-imposed conditions. Full details of these restricted funds can be found in note 13 to the accounts, together with an analysis of movements in the year.

£2,000,000 (2021 – £1,750,000) represents the retirement reserve designed to provide income for members in their retirement. The value of the fund has been calculated using actuarial principles. Given the increasing age profile of some of the members and the lack of new vocations, this sum will provide only modest resources to look after the members, many of whom will need increasing, and increasingly expensive, residential and nursing care.

Free reserves available to support the members and their work generally in the future are shown on the balance sheet as general funds and amount to £1,040,890 (2021 – £1,326,408).

The trustees have examined the requirement for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work and the ongoing commitment to care for the members, a level of free reserves of at least two to three years’ expenditure is acceptable in order to provide for contingencies and unevenness in future outcome.

Missionaries of Saint Francis De Sales 7

Trustees’ report Year to 31 December 2022

Financial review (continued)

At the date of the balance sheet, the level of free reserves was £1,040,890 (2021 – £1,326,408), which equates to over four years’ operating expenditure. Free reserves, therefore, are in excess of the above policy. However, given the current macroeconomic and geopolitical climate and the potential impact on world stock markets and inflation, the trustees are of the view that holding excess reserves at the present time is prudent. They believe the reserve levels are adequate but not excessive.

Future plans

The trustees plan to strengthen the presence of the charity in the Catholic Dioceses where it is already active - Northampton, Clifton, Plymouth, where members are already involved in various forms of pastoral ministry. Seven new members arrived from India in 2022 and will support the present work of the Missionaries in the Diocese of Birmingham, Northampton and Westminster.

In the short term, the future plan is to extend the priestly work of the Missionaries in the Archdiocese of Birmingham. Following suitable introduction to local customs and culture, two of the members who arrived from India and joined the Province will be involved in pastoral ministry within the Archdiocese.

This policy will hopefully continue in the medium term. The intention of the trustees is to involve more members from the other Indian provinces of the Fransalian Fathers so as to revitalise, diversify and expand its activities in keeping with the set objectives of the charity. With that in view they will be in contact with another two Catholic Dioceses during 2023.

The charity will be associated with the Safeguarding Project of the Conference of Religious in the country during 2023. The plan is to take a more positive role in Safeguarding in the Church of England and Wales.

Governance, structure and management

Governance

In terms of Canon law, the Congregation is governed in the universal church by the Superior General and his General Council in Rome. They are elected every six years at a General Chapter or meeting of representatives of all provinces of the Congregation.

The English mission is governed at present by the Administrator and his Council, who are nominated by the Superior General. Members of the Council are chosen for their personal qualities, their understanding and experience of the ministries of the Fathers throughout England and to secure a good skills mix among them.

The members of the English mission together form an apostolic community.

Whilst they do not all live under one roof, they meet regularly for retreats, in-service and fellowship.

The Provincial is required to visit each member at least once a year.

Missionaries of Saint Francis De Sales 8

Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Governance (continued)

Throughout the year a structure of contact persons facilitates communication and accountability among all the members of the mission and ensures that the Provincial and his Council are aware of the progress and development of the ministries carried out by the members of the mission.

A visitation by the Superior General is made to the English mission once every three years.

In terms of Civil law, the charity is governed by a trust deed dated 23 August 1965 and is a registered charity (Charity Registration Number 234926).

The trustees of the charity are the members of the Council. As all trustees are members of the Congregation 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 meet with the Congregation’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.

All trustees are members of the Congregation of the Missionaries of Saint Francis De Sales (Fransalian Fathers) and as such their living and personal costs are borne by the charity. However, they receive no remuneration or expenses for their services as trustees.

The names of the trustees who served during the year and up to the date these accounts were signed and approved are set out as part of the reference and administrative details on page 1 of this annual report and accounts.

Key management personnel

The trustees consider that they are the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

All trustees are members of the Congregation and whilst their living and personal expenses are borne by the charity, they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or key management.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity.

They meet quarterly 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 Congregation.

Missionaries of Saint Francis De Sales 9

Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Structure and management reporting (continued)

Within the English Province at present there are seventeen members of the Congregation. Twelve of these are from other Provinces and are here on ‘loan’ or for studies but fulfilling pastoral ministry at the same time. They live wherever their mission and work require them to be. Because the members are by calling, 'missionaries', their character and lifestyle is 'apostolic' rather than conventual. That means they go to the mission field, they tend to live alone or in twos, rather than in a monastery, and they take responsibility for remaining in communion and contact with one another. Two older members are living in nursing homes.

Members are involved in the pastoral care of four parishes in the Diocese of Plymouth; three parishes in the Diocese of Clifton; five parishes in the Diocese of Northampton; the administrative house of the Fransalians is in the Diocese of Leeds.

The trustees receive regular reports from the parishes and dioceses to enable them to fulfil their responsibilities and take important decisions with regard to the various ministries and future planning.

Working with other organisations

The charity works closely with a number of other charities and public bodies which work in the field of church life and ministry, mission, ecumenism, education, and psychological and spiritual well-being. In all cases, working together with other charities and public bodies enhances communication and understanding thus enabling services to the people we serve to be provided more efficiently and effectively and avoiding duplication of effort. Examples of the organisations for which members have worked and with which the charity has cooperated during the year are as follows:

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 and 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 key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

Missionaries of Saint Francis De Sales 10

Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Risk management (continued)

Missionaries of Saint Francis De Sales 11

Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Risk management (continued)

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.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees’ report and 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 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 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 applicable Charity (Accounts and Reports) Regulations and the provisions of the 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.

Missionaries of Saint Francis De Sales 12

Trustees’ report Year to 31 December 2022

Employees, volunteers and members of the congregation

The trustees wish to record their recognition of the professionalism and commitment of all their volunteers and the individual members of the Congregation. Their dedication and positive approach are very much appreciated.

Signed on behalf of the trustees:

Terry McGrath

Trustee Approved on: 24 October 2023

Missionaries of Saint Francis De Sales 13

Independent auditor’s report 31 December 2022

Independent auditor’s report to the trustees of Missionaries of Saint Francis De Sales

Opinion

We have audited the accounts of Missionaries of Saint Francis De Sales (the charity) for the year to 31 December 2022, which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the 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.

Missionaries of Saint Francis De Sales 14

Independent auditor’s report 31 December 2022

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 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.

Missionaries of Saint Francis De Sales 15

Independent auditor’s report 31 December 2022

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 .

How the audit was considered capable of detecting irregularities including fraud

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:

Missionaries of Saint Francis De Sales 16

Independent auditor’s report 31 December 2022

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

How the audit was considered capable of detecting irregularities including fraud (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:

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.

We did not identify any irregularities, including fraud.

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.

Missionaries of Saint Francis De Sales 17

Independent auditor’s report 31 December 2022

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. 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

25th October 2023

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

Missionaries of Saint Francis De Sales 18

Statement of financial activities Year to 31 December 2022

Notes Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
£
Income from:
Donations
1
Investments
2
Total income
Expenditure on:
Raising funds
. Investment property fees
Charitable activities
. Support of members of the
Congregation and their ministry
. Donations in support of
miscellaneous charitable activities
Total expenditure
Net income (expenditure) before
net investment (losses) gains
Net (losses) gains on listed
investments
9
Net gains on investment properties
9
Net (expenditure) income and net
movement in funds
5
Reconciliation of funds
Balances at 1 January 2022
Balances at 31 December 2022		 262,406
89,387		 —
—		 262,406
89,387		 465,209
79,127		 138,954
—		 604,163
79,127
351,793 — 351,793 544,336 138,954 683,290
13,489
247,770
7,232		 —
6,396
—		 13,489
254,166
7,232		 10,046
140,703
5,289		 —
—
—		 10,046
140,703
5,289
268,491 6,396 274,887 156,038 — 156,038
83,302
(117,840)
—		 (6,396)
—
—		 76,906
(117,840)
—		 527,252
83,889
165,000		 —
—
—		 527,252
83,889
165,000
(34,538)
3,649,719		 (6,396)
138,954		 (40,934)
3,788,673		 637,187
3,012,532		 138,954
—		 776,141
3,012,532
3,615,181 132,558 3,747,739 3,649,719 138,954 3,788,673

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

A separate statement of recognised gains and losses is not required as all gains and losses are included in the above statement of financial activities.

Missionaries of Saint Francis De Sales 19

Balance Sheet 31 December 2022

Notes 2022
£		 2022
£		 2021
£		 2021
£
Fixed assets
Tangible assets
8
Investments
9
Current assets
Debtors – accrued investment
income
Cash at bank and in hand
Creditors: amounts falling due
within one year
10
Net current assets
Total net assets
The funds of the charity
Unrestricted funds
. Tangible fixed assets fund
11
. Designated funds
12
. General funds
Restricted funds
13		 1,968
738,649
740,617
(19,000)		 574,291
2,451,831		 —
356,741
356,741
(11,050)		 573,311
2,869,671
3,026,122
721,617		 3,442,982
345,691
3,747,739 3,788,673
574,291
2,000,000
1,040,890		 573,311
1,750,000
1,326,408
3,615,181
132,558		 3,649,719
138,954
3,747,739 3,788,673

Approved by the trustees and signed on their behalf by:

Terry McGrath

Trustee

Approved by the trustees on: 24 October 2023

Missionaries of Saint Francis De Sales 20

Statement of cash flows Year to 31 December 2022

Notes
2022
£		 2021
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Investment income – listed investments and interest
Purchase of tangible fixed assets
Proceeds from the disposal of listed investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at 1 January 2022
Cash and cash equivalents at 31 December 2022
B
15,437		 111,302
87,419
(20,948)
300,000		 79,127
(9,500)
—
366,471 69,627
381,908
—
356,741		 180,929
(2,324)
178,136

738,649		 356,741

Notes to the statement of cash flows for the year to 31 December 2022.

A Reconciliation of net movement in funds to net cash provided by operating activities

2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation
Loss on disposal of tangible fixed assets
Donation received in kind (note 1)
Losses (gains) on listed investments
Gains on investment properties
Investment income
Foreign exchange losses
Increase in debtors
Increase in creditors
Net cashprovided by (used in) operating activities		 (40,934)
9,744
10,224
—
117,840
—
(89,387)
—
(1,968)
9,918		 776,141
8,203
—
(350,000)
(83,889)
(165,000)
(79,127)
2,324
—
2,650
15,437 111,302
Analysis of changes in cash and cash equivalents
At 1
January
2022
£
Cash flows
£
Total cash and cash equivalents:Cash at
bank and in hand
356,741
381,908
Exchange
losses
£

—
At 31
December
2022
£
Total cash and cash equivalents:Cash at
bank and in hand
356,741
381,908
738,649

B Analysis of changes in cash and cash equivalents

No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).

Missionaries of Saint Francis De Sales 21

Principal accounting policies 31 December 2022

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

Basis of preparation

These accounts have been prepared for the year to 31 December 2022 with comparative information provided for the year to 31 December 2021.

The accounts have been prepared under the historical cost convention with items 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 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), 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 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.

Missionaries of Saint Francis De Sales 22

Principal accounting policies 31 December 2022

Assessment of going concern (continued)

In the aftermath of the Covid-19 pandemic and given the current macroeconomic and geopolitical climate the trustees will keep all income and expenditure under review. Whilst there will undoubtedly be challenges ahead, the trustees do not expect concerns to arise over the charity’s financial position. Therefore, the trustees 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 2023, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information).

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 and investment income i.e. dividends, rental income and interest receivable.

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.

Donations received in kind (including the donation of land and buildings) are recognised at their fair value at the date of the gift, which in the case of assets is deemed to be open market value on the date of transfer of the asset.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Income derived from the letting of the charity’s investment properties is recognised in the period to which the tenancy relates.

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 to the bank.

Missionaries of Saint Francis De Sales 23

Principal accounting policies 31 December 2022

Expenditure recognition

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.

The costs of raising funds include direct costs and overheads associated with managing investment property and listed investments.

All expenditure is accounted for on an accruals basis. All expenses are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

Governance costs comprise the costs directly attributable to the management of the charity’s assets, organisational procedures and the necessary legal procedures for compliance with statutory requirements.

Expenditure is attributable directly to specific activities and does not include any element of apportionment.

All expenditure is stated inclusive of irrecoverable VAT.

Tangible fixed assets

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

Missionaries of Saint Francis De Sales 24

Principal accounting policies 31 December 2022

Tangible fixed assets (continued)

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.

Properties held for investment are included in the accounts at the estimated current market value of the relevant property. The valuations are determined by the trustees after consultation with their professional property advisers. 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.

Missionaries of Saint Francis De Sales 25

Principal accounting policies 31 December 2022

Debtors

Debtors are recognised at their 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.

Fund accounting

The unrestricted funds of the charity are all 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, the trustees have designated amounts for specific purposes. Details of these are provided in notes 11 and 12.

Restricted funds are to be used for specified purposes as laid down by the donor. Details of such funds are provided in note 13.

Services provided by members of the Congregation

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

Missionaries of Saint Francis De Sales 26

Notes to the accounts 31 December 2022

1 Income from: Donations

Income from: Donations
Pastoral offerings, stipends and general donations
Salaries and pensions of individual religious received under deed of
covenant
Donations from The Dympna Centre (Charity Registration Number
296650):
. Cash
. Freehold land and buildings		 2022
Total
funds
£		 2021
Total
funds
£
135,784
126,622
—
—		 72,738
42,471
138,954
350,000
262,406 604,163

On 18 October 2021, the Trustees of The Dympna Centre (Charity Registration Number 296650) legally transferred its assets, including property and cash, as a gift to the Missionaries of Saint Francis De Sales as both charities share common aims and objectives, namely the promotion of the Catholic faith.

This arrangement was formalised by the solicitors of both charities and the appropriate deeds from the Land Registry marked the transfer of ownership. When the property was donated, it was stated that it should be used as the residential property for one member of the Congregation for as long as he wishes, and that when the member no longer had need of the property, it is entirely at the disposal of the Missionaries of Saint Francis de Sales. The property was recognised at its fair value at the date of the gift, which was deemed to be open market value as at that date.

It was also stated that the cash balance of £138,954 should be used for any repair and upkeep to the property. The cash donation has been treated in these accounts as a restricted asset (see note 14). When the member no longer has need of the property, it will also be at the disposal of the Missionaries of Saint Francis De Sales.

2 Income from: Investments

Income from: Investments
2022
Total
funds
£		 2021
Total
funds
£
Income from listed investments
Bank interest
Rent receivable		 27,111
1,686
60,590		 28,185
14
50,928
89,387 79,127

Missionaries of Saint Francis De Sales 27

Notes to the accounts 31 December 2022

3 Expenditure on: Support of members of the Congregation and their ministry

2022
Total
funds
£		 2021
Total
funds
£
Premises costs
Members’ living and ministry expenses
Education, training and spiritual renewal
Governance costs (note 4)		 17,536
224,217
1,870
10,543		 10,344
121,759
3,408
5,192
254,166 140,703

4 Governance costs

Governance costs
2022
Total
funds
£		 2021
Total
funds
£
Independent auditor’s fees
Bank charges		 10,200
343		 5,160
32
10,543 5,192

5 Net (expenditure) income and net movement in funds

This is stated after charging:

2022
£
10,200
9,744
3,396
—		 2021
£
Independent auditor’s fees
Depreciation on tangible fixed assets
Operating lease payments – motor vehicles
Foreign exchange losses		 5,160
8,203
6,065
2,324

6 Staff costs and trustees’ remuneration

The charity does not employ any staff. No employee earned £60,000 per annum or more (including taxable benefits) during the year (2021 – none).

As members of the Congregation, the trustees’ living expenses during the year were borne by the charity but they received no remuneration or reimbursement of expenses in connection with their duties as trustees (2021 – £nil).

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. The total remuneration (including taxable benefits but excluding employer’s pension and national insurance contributions) of the key management personnel for the year was £nil (2021 – £nil).

Missionaries of Saint Francis De Sales 28

Notes to the accounts 31 December 2022

6 Staff costs and trustees’ remuneration (continued)

As members of the Congregation, none of the trustees have resources of their own as all of their earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant.

7 Taxation

Missionaries of Saint Francis de Sales is a registered charity and, therefore, is not liable to income or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

8 Tangible fixed assets

Tangible fixed assets
Freehold
land and
buildings
£		 Motor
vehicles
£		 Total
£
Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
Eliminated on disposal
At 31 December 2022
Net book values
At 31 December 2022
At 31 December 2021		 540,500
—
—		 74,968
20,948
(18,000)		 615,468
20,948
(18,000)
540,500 77,916 618,416
—
—
—		 42,157
9,744
(7,776)		 42,157
9,744
(7,776)
— 44,125 44,125
540,500 33,791 574,291
540,500 32,811 573,311

On 18 October 2021, the Trustees of The Dympna Centre (Charity Registration Number 296650) legally transferred its assets, including property and cash, as a gift to the Missionaries of Saint Francis De Sales as both charities share common aims and objectives, namely the promotion of the Catholic faith. This arrangement was formalised by the solicitors of both charities and the appropriate deeds from the Land Registry marked the transfer of ownership. When the property was donated, it was stated that it should be used as the residential property for one member of the Congregation for as long as he wishes, and that when the member no longer had need of the property, it is entirely at the disposal of the Missionaries of Saint Francis de Sales. The property was recognised at fair value at the date of the gift, which is deemed to be open market value as at that date.

There were no capital commitments at the end of the year (2021 – none).

Missionaries of Saint Francis De Sales 29

Notes to the accounts 31 December 2022

9 Investments

Fixed asset investments comprised:

2022
£		 2021
£
Freehold investment properties
Listed investments		 1,840,000
611,831		 1,840,000
1,029,671
2,451,831 2,869,671

Movements on each category of investments are summarised below:

Freehold investment properties 2022
£		 2021
£
Market value at 1 January
Gains on revaluation
Market value at 31 December		 1,840,000
—		 1,675,000
165,000
1,840,000 1,840,000

The fair values of the investment properties have been considered by the trustees, after consultation with professional advisers and property experts. The trustees are of the view that there has been no material movement in the fair value of the properties during the year (2021 - increase in valuation of £165,000).

Listed investments 2022
£		 2021
£
Listed investments
Market value at 1 January
Market value removed on disposal
Unrealised (losses) gains
Market value at 31 December		 1,029,671
(325,810)
(92,030)		 945,782
—
83,889
611,831 1,029,671

All listed investments were dealt on a recognised stock exchange.

Listed investments held at 31 December comprised the following:

2022
£		 2021
£
Equity based common investment funds
UK equities		 544,906
56,925		 959,741
69,930
611,831 1,029,671

The historical cost of listed investments at 31 December 2022 was £511,829 (31 December 2021: £626,067).

Missionaries of Saint Francis De Sales 30

Notes to the accounts 31 December 2022

9 Investments (continued)

At 31 December 2022, the listed investment portfolio included the following investments deemed to have a material value:

2022
Value of
holding
£		 2022
Percentage
of the
market
value
of portfolio
%
BlackRock Catholic Charities & Growth Fund A Income
Avivaplc 8.34% Cumulative Irredeemable Preference Shares		 544,906
56,925		 90.7
9.3

10 Creditors – amounts falling due within one year

Creditors – amounts falling due within one year
2022
£		 2021
£
Accruals 19,000 11,050

11 Tangible fixed assets fund

Tangible fixed assets fund
2022
£		 2021
£
At 1 January 2022
Net movement in the year
At 31 December 2022		 573,311
980		 222,014
351,297
574,291 573,311

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. The fund recognises the fact that such assets are required for the day-to-day work of the charity and are not available for other purposes or as a general reserve.

12 Designated funds

The unrestricted funds of the charity include the following fund designated for a specific purpose:

2022
£		 2021
£
Retirement fund
At 1 January 2022
Designated during the year
At 31 December 2022		 1,750,000
250,000		 1,750,000
—
2,000,000 1,750,000

The retirement reserve has been calculated using actuarial principles and consists of monies set aside by the trustees to assist in providing for the members of the Congregation in their retirement.

Missionaries of Saint Francis De Sales 31

Notes to the accounts 31 December 2022

13 Restricted funds

Restricted funds
2022
£		 2021
£
At 1 January 2022
Income
Expenditure
At 31 December 2022		 138,954
—
**(6,396) **		 —
138,954
—
132,558 138,954

The restricted fund above represents the cash donated by The Dympna Centre (Charity Registration Number 296650). The Dympna Centre legally transferred its assets, including property and cash, as a gift to the Missionaries of Saint Francis De Sales as both charities share common aims and objectives, namely the promotion of the Catholic faith.

When the cash balance of £138,954 was transferred, it was stated that it should be used for any repair and upkeep to the property transferred by the charity, which is to be used as the main residence for one member of the Congregation. When the member no longer has need of the property, it is entirely at the disposal of the Missionaries of Saint Francis De Sales, along with the remaining cash balance.

14 Analysis of net assets between funds

Fund balances at 31 December
2022 are represented by:
Tangible fixed assets
Fixed asset investments
Net current assets
Total net assets		 General
fund
£
—
451,831
589,059
1,040,890		 Tangible
fixed assets
fund
£
574,291
—
—
574,291		 Designated
fund
£

—
2,000,000
—
2,000,000		 Restricted
fund
£		 Total
funds
£
—
—
132,558
574,291
2,451,831

721,617
132,558 3,747,739
Fund balances at 31 December
2021 are represented by:
Tangible fixed assets
Fixed asset investments
Net current assets
Total net assets		 General
fund
£
—
1,119,671
206,737
1,326,408		 Tangible
fixed assets
fund
£

573,311

—

—

573,311		 Designated
fund
£

—

1,750,000

—

1,750,000		 Restricted
fund
£

—

—

138,954

138,954		 Total
funds
£

573,311
2,869,671

345,691
3,788,673

Missionaries of Saint Francis De Sales 32

Notes to the accounts 31 December 2022

14 Analysis of net assets between funds (continued)

The total unrealised gains as at 31 December 2022 constitutes movements on revaluation and are as follows:

2022
£		 2021
£
Unrealised gains included above:
On investment properties
On listed investments
Total unrealised gains at 31 December 2022
Reconciliation of movements in unrealised gains
Unrealised gains at 1 January 2022
Gains arising on revaluation of investment properties
Disposal of listed investments
(Losses) gains arising on revaluation of listed investments
Total unrealisedgains at 31 December 2022		 905,850
100,002		 905,850
403,604
1,005,852 1,309,454
1,309,454
—
(211,572)
(92,030)		 1,060,565
165,000
—
83,889
1,005,852 1,309,454

15 Operating lease commitments

At 31 December 2022 the charity had total commitments under non-cancellable operating leases as follows:

Charity Motor vehicles Motor vehicles
2022
£		 2021
£
Operating lease commitments:
Within one year
Within two to five years		 11,213
—		 4,068
10,690
11,213 14,758

16 Transactions with trustees and related parties

The charity's trustees are also members of the English Province of the Congregation of the Missionaries of Saint Francis De Sales and, consequently, their living and personal expenses, all of which are consistent with amounts paid in respect to other members of the Congregation, are borne by the charity. No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees (2021 – £nil).

As members of the Congregation, none of the trustees who are members of the English Province of the Congregation have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by these four trustees to the charity was £54,555 (2021 – £35,116).

There were no other related party transactions during the year (2021 – none).

Missionaries of Saint Francis De Sales 33

Notes to the accounts 31 December 2022

17 Ultimate control

The charity, which is constituted as a trust, was controlled throughout the period by the Missionaries of Saint Francis de Sales by virtue of the fact that the trustees are governed by the Superior General and his General Council in Rome. The Congregation in England and Wales does not hold any assets, incur liabilities or enter into transactions in its own right. Assets and liabilities of the Congregation in England and Wales are vested in the trustees of the charity, who undertake all transactions entered into in the course of the Congregation’s charitable activities in England and Wales.

18 Post balance sheet event

On 31 March 2023, the charity acquired an investment property in Harrogate, North Yorkshire for a purchase price of £290,000.

Missionaries of Saint Francis De Sales 34