## **Faithful Companions of Jesus**
## **Trustees’ report and accounts**
## 31 December 2022
Charity Registration Number 239285 (England and Wales)
## **Contents**
## **Reports**
|Reference and administrative information|1|
|---|---|
|Trustees’ report|3|
|Independent auditor’s report|26|
|**Accounts**||
|Statement of financial activities|30|
|Balance sheet|31|
|Statement of cash flows|32|
|Principal accounting policies|34|
|Notes to the accounts|41|
Faithful Companions of Jesus
## **Reference and administrative information**
|**Trustees**|Sister Patricia Mary Binchy|
|---|---|
||Sister Mary Ruth Casey|
||Sister Mary Teresa Fitzpatrick|
||Sister Bonita Marie Moser|
||Sister Judith Ellen Routier|
|**General Superior (Chair of**|Sister Bonita Marie Moser|
|**Trustees)**||
|**General Bursar**|Sister Mary Fitzpatrick|
|**Principal office**|FCJ Generalate, Gumley House Convent|
||251 Twickenham Road|
||Isleworth|
||Middlesex|
||TW7 6DN|
|**Charity registration number**|239285|
|**Auditor**|Buzzacott LLP|
||130 Wood Street|
||London|
||EC2V 6DL|
|**Adviser**|David Clark FCA|
||1stFloor|
||Church House|
||61 College Road|
||Bromley|
||BR1 3QG|
|**Principal bankers**|The Royal Bank of Scotland plc|
||London City Office|
||PO Box 412|
||62/63 Threadneedle Street|
||London|
||EC2R 8LA|
Faithful Companions of Jesus **1**
## **Reference and administrative information**
|**Solicitors**|Stone King LLP|
|---|---|
||Upper Borough Court|
||Upper Borough Walls|
||Bath|
||BA1 1RG|
|**Investment managers**|UBS Wealth Management (UK) Limited|
||5 Broadgate|
||London|
||EC2M 2AN|
||CCLA Investment Management Limited|
||One Angel Lane|
||London|
||EC4R 3AB|
||BNP Paribas Fortis|
||Montagne du Parc 3|
||B-1000|
||Bruxelles|
Faithful Companions of Jesus **2**
**Trustees’ report** 31 December 2022
The trustees present the report and accounts of the Faithful Companions of Jesus (the “charity”) for the year ended 31 December 2022.
The accounts have been prepared in accordance with the accounting policies set out on pages 34 to 40 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 international Roman Catholic Apostolic Religious Congregation of women was founded in France by the Venerable Marie Madeleine d’Houët in 1820. The Congregation, named Faithful Companions of Jesus (FCJ), is referred to in this document as "the Society". The Generalate is located at Gumley House in Isleworth, West London. The assets of the Society in England and Wales have been held in a Charitable Trust (the charity) to support such charitable purposes as shall advance the religious and other charitable work of the members of the Society, whether their ministry is carried out in the United Kingdom or in one of the other sixteen countries where they labour, including Belgium, Ireland, Romania, South Sudan, Italy, the Philippines, Canada, and Indonesia.
The accounts which accompany this report are those of the Charitable Trust which has held the assets of the Society in England and Wales since it was registered on 2 February 1965 and which is registered with the Charity Commission, Charity Registration Number 239285. This Charitable Trust ceased to hold these assets when they were transferred to the Faithful Companions of Jesus CIO (the successor charity) in January 2023 in accordance with a legal deed of transfer.
## **Mission and objectives of the charity**
The charity has always been wholeheartedly dedicated to the mission of the Society and committed unreservedly to its charitable objectives which are twofold:
- To provide for the sisters, both active and retired, whether by supporting their daily needs, their ongoing formation, the care of the sick and elderly or by funding their apostolic ministry, be that in education, social or pastoral work; and
- To provide grants, donations and support to overseas missionary work and provinces, including support of educational institutions and other organisations which over time have assisted the charity achieve its objectives.
The 2019 General Chapter decree, entitled, ‘Widening the Circle of Love’, continues to be the blueprint which guides the General Superior in her leadership of the Society. Its themes remain so relevant in generating the charity’s response to the needs of humanity today, as can be gleaned from the quotations cited here below.
“ _We continue to widen our circle of love to embrace all people, especially those who experience exclusion, exploitation and injustice, in particular we offer our compassionate action to migrants, refugees and asylum seekers, trafficked persons, the economically vulnerable and vulnerable women and children. We will do this by continuing to use our financial resources and influence to alleviate the plight of suffering people and to effect change_ .”. GC 2019 Call 2
Faithful Companions of Jesus **3**
**Trustees’ report** 31 December 2022
## **Mission and objectives of the charity** (continued)
“ _Concerns around the care of our Common Home are of great urgency and we cannot delay addressing them. We judge them to be matters of deep justice_ ” . . .
“ _We want to help each other to reflect constantly on how our lifestyle decisions, small or large, affect the earth and the poorest peoples of the Earth_ ”. GC 2019 Call 3
## _**Support of members and their ministry and their apostolic, social, and pastoral work**_
Geopolitical issues have impacted the charity principally through inflation and prompted regular scrutiny of forecasts, particularly the forecasts of energy and food costs. Notwithstanding these global pressures, the charity has been able to fulfil its charitable objectives, resulting in a rather successful year all ‘round. With the pandemic in abeyance, the General Superior, assisted by one of her council members, was able to visit the sisters in their local communities, and thus fulfil one of her canonical duties. During 2022, the communities in Asia, Australia, Canada and the United States had the joy of welcoming Sister Bonita Marie Moser and/or one of her Assistants.
With travel restrictions at a minimum, the Society was able to gather an international group of sisters for a formation programme, ‘The School of the Heart’. The sisters gathered in London in August for a programme which is facilitated by two FCJ formators, Sisters Ruth Casey and Eileen Foley, and includes the 30 Days Spiritual Exercises of St. Ignatius. The long retreat was followed by two apostolic experiences of differing lengths - the sisters worked in a foodbank in north London for 10 days before Christmas, while their month-long experience after Christmas saw them join in the apostolic work of FCJ communities in England and Italy. The programme will finish in May 2023.
The charity supports two communities, Maryville, Limerick, Ireland and Kersal Hill, Salford, UK, where our sisters who are feeble and need extra support for their daily living are cared for in beautiful surroundings. Activities to help refresh mind and body are organised with a party to mark special occasions.
A major refurbishment project which will extend the capacity of the Salford facility was presented in last year’s report. Planning permission for this project was granted by Salford Council in June 2022. In August, following a tender process, J. Greenwood Limited. was appointed as the project main contractor. On site contract works began in October, and works have been progressing well. Regular on-site meetings are held involving our project manager Gerald Eve, contractor J. Greenwood, Local Leader, and Kersal Hill care home manager. It is envisaged that works will cost approximately £3.0m and last 15 months, with a projected completion date of December 2023.
Faithful Companions of Jesus **4**
**Trustees’ report** 31 December 2022
## **Mission and objectives of the charity** (continued)
## _**Support of members and their ministry and their apostolic, social, and pastoral work** (continued)_
During the year, the charity has actively supported the apostolic work of sisters engaged in a variety of ways, whether to help those in need, to participate in the evangelisation programmes of the local parish, or to offer massage to terminally ill patients at a hospice. In this 2022 report the work of three projects run by the sisters will be highlighted: St. Hugh’s, Wavertree, Liverpool; FCJ House, Somers Town, London; and Neighbours in Poplar, London.
The FCJ community at St. Hugh’s, Wavertree has developed extensive out-reach programmes over the years which bring people in need into the Centre and reach people on the margins. In recent years the sisters have given accommodation to asylum seekers in collaboration with Refugees at Home, a UK charity which connects those with a spare room in their home to refugees and asylum seekers in need of somewhere to stay. Since January 2022, the community has hosted a destitute female Asylum Seeker from the Gambia.
Sister Lynne writes: “ _We have been able, over the last year, to run a variety of ecological based projects. The litter pick events have been in collaboration with a local organisation (Litter Clear Volunteer) or with our Parish. We now have 20 litter pickers enabling us to continue to run these events. At our annual garden party, we give away house plants as a way of sharing nature’s beauty._
_The Monday Community Kitchen Project: This project has two areas of focus:_
- _To involve young people in mission in the local area, providing a place where they can volunteer, contribute to alleviating social needs, and encounter people of different cultures and backgrounds._
- _To provide a much-needed practical outreach to struggling families in the local area, providing food, clothing and household items._
_Among the group of weekly volunteers who run the project are 5 students from Bellerive FCJ Catholic College. Volunteers get the opportunity to engage with and learn about some of the_
_different aspects of food poverty. The people who come are largely women whose children are in one of two local primary schools. Approximately 40 families receive support each week. A large proportion of the people who come are Roma, while white British, Pakistani, and more recently Syrians form part of the regular group. Much of the funding for the food provision is provided by the FCJ Society, and we receive many donations of clothing, shoes and baby equipment from the staff and students at Bellerive FCJ Catholic College and also from the Parish of St Clare and St Hugh”._
Faithful Companions of Jesus **5**
**Trustees’ report** 31 December 2022
## **Mission and objectives of the charity** (continued)
## _**Support of members and their ministry and their apostolic, social, and pastoral work** (continued)_
FCJ House, Somers Town underwent a total refurbishment to create space in central London for people to meet, reflect and be nourished in their faith or inner life. In February 2020, just before the pandemic was declared, the community moved back into their home. Today, it is remarkable and amazing to see how this new venture has developed and established itself. The programme, sent annually to every parish in the diocese of Westminster and Southwark, offers both in-person and online options for prayer, reflection and dialogue.
An example of one evening reflection which took place in the evening of 15 February is the “Our Neighbours in Faith”. The Rev. Ruth Bottoms spoke on ‘Social Justice as the heartbeat of Methodism’. Although a cold and wet evening, many attended. A lively question and answer session ended this very interesting evening.
Monthly evening retreats online are offered on a variety of topics with an ever-increasing group of attendees. One such reflection was on Saints Patrick and Joseph.
Participants write or send text messages to Sisters Margarita Byron and Rita McLoughlin with their comments and messages of thanks. Here is a selection of comments:
“ _I do find a great deal of help and inspiration from these retreats, there_
_is a genuine spirituality at work and a good community spirit. I am much obliged to you_ ”.
“ _Big thanks for last night’s retreat. It was a brilliant time of reflection and some thoughtprovoking words and insights. I took a lot away from it. Thank you for all your hard work in putting it together and thanks to all involved_ ”.
“ _I enjoyed the evening very much and please pass on my thanks to everyone involved in the preparation of the event. I loved the balance between prayer, reflection and music. I joked with some friends over the weekend about the part of the evening that reflected on the difference if it was the three wise women who went to the stable! I found the entire evening most enjoyable_ ”.
Sister Ellen McCarthy fcJ facilitated evenings of reflection on the film: **It’s a Wonderful World.** The invitation stated: “Come in person to celebrate an old-fashioned Christmas”.
Faithful Companions of Jesus **6**
**Trustees’ report** 31 December 2022
## **Mission and objectives of the charity** (continued)
## _**Support of members and their ministry and their apostolic, social, and pastoral work** (continued)_
FCJ House welcomes a variety of groups who wish to use the facilities it offers. L’Arche, the Medaille Trust, Justice and Peace groups, Union of Catholic Mothers, FARA shops (support for Romania), Pax Christi, Diocesan leadership groups and JPIC Links are among those who had availed of these central London facilities. To quote one group’s comment: “ _A big thank you for all your help and support yesterday in making our day the success it was and for the warm welcome you gave to us all. Everyone commented on what a brilliant venue you have there and with such great facilities! Nothing was too much trouble for you_ ”.
In Poplar, East London, Sister Christine Frost fcJ has lived and worked for more than 30 years, where she has made a splendid contribution to the local communities. Her passion for justice has been recognised by both local and national bodies. In March 2022, as life was beginning to return to ‘normal’, she wrote a letter to the charity requesting funds to help with the 51[st] Summer Project of Neighbours in
Poplar (NiP). She wrote: _“I recently attended a School Governors’ meeting where the Head of English was commenting on the lack of creative experiences enjoyed by the children. ‘How can they perform well in creative writing’_ , she asked _, ‘if they have no experience or awareness of life outside their block of flats’?”_ Sister Christine continues, _“We need to hire coaches to get families to the seaside and also funding to support Estate Fundays - a donation of £500 will give 52 people a great day at the seaside or an Estate-based Funday._
_Last year your donations enabled us to hire over 20 coaches and provide 6 Estate Fundays. All donations are spent on the above as staff are separately covered”._
Here we see a group waiting for their coach. Once again, the charity was very happy to support Sister Christine’s ministry in 2022. Not only does supporting the sisters’ ministries fulfil our charitable objectives but it also assists us to live our GC 2019 Chapter Calls.
Faithful Companions of Jesus **7**
**Trustees’ report** 31 December 2022
**Mission and objectives of the charity** (continued)
## _**Grants, donations and support of overseas missionary work and provinces, including support of educational institutions**_
This section of the report will recount the support given by the charity to three overseas missions: Turin, Italy; Yogyakarta, Indonesia; Spanish Point, Republic of Ireland.
Easter 2022 brought immense joy to the community in Turin, not just the joy of Christ’s resurrection but also the joy of moving into their new home. The decision to downsize occasioned the conversion of a smaller building on the property to a home for the sisters. Sister Maria Teresa writes: “During the week before we moved into our beautiful new home the chapel was settled, the house curtains were put up and beds made. It was a real pleasure to move, the bright colours, the light, the comfort gave us much to be grateful for. I personally appreciate greatly what our Society has done for us”.
Faithful Companions of Jesus
**8**
**Trustees’ report** 31 December 2022
**Mission and objectives of the charity** (continued)
## _**Grants, donations and support of overseas missionary work and provinces, including support of educational institutions** (continued)_
In an effort to live more sustainably, solar panels were added to the roof. A new entrance from the street was required and added to the costs. The project ran over budget, in part because of the COVID-19 restrictions in Turin which disrupted the
building works for more than a year. Building materials, in short supply, were not able to meet demands resulting in price hikes and in difficulty procuring the necessary materials. Sister Bonita Marie Moser is very pleased with the sisters’ new home and looks forward to visiting the community in May 2023.
From December to the middle of February 2022, Soropadan community in Yogyakarta attended a series on the Laudato Si Action Platform run by Laudato Si Movement, Indonesia. There were twelve weekly webinars to help people deepen their understanding of Laudato Si and the Laudato Si Action Platform. It was such a blessing for the community to be able to attend these webinars and be part of a group that supported and encouraged each other to make small steps in responding to this urgent call of caring for the Earth.
Sister Irene writes: _“In our community lives, we have been doing simple actions recommended by the call. As we learned that using Eco Enzyme (EE) is one way of caring for the Earth, we began to use it in our daily life. EE is a versatile liquid produced from fermentation of organic waste such as fruit and vegetable pulp, sugar and water. EE could be used as disinfectant, fertilizer, purifier for polluted water, and any other functions for caring the earth as it is natural and free from chemicals. On 19 March 2022 we held a workshop on EE in our community house for the staff. We went further by promoting it to our neighbours. Sisters Irene and Hartini organized two EE workshops, one for 15 women from our Parish and another for 15 women from our village who are mostly Muslims. We were supported by EE volunteers in Yogyakarta. Because of these workshops we are building more connections and we are more enthusiastic in caring for our common home”._
Sister Meita writes: _“The social situation here in post-pandemic Yogyakarta is getting better since the lockdowns. People have started to work and gather. It has been refreshing for the community as well as for people with special needs and their families to be able to gather and meet with others._
Faithful Companions of Jesus **9**
**Trustees’ report** 31 December 2022
## **Mission and objectives of the charity** (continued)
## _**Grants, donations and support of overseas missionary work and provinces, including support of educational institutions** (continued)_
_Last month we were able to carry out activities for people with cerebral palsy (CP), whom we accompany, including their families. The work of assessments for people with CP and training for parents was delayed during the pandemic. We collaborated with the medical team from the Yakkum Rehabilitation Centre to facilitate the activities. Several volunteers (young people and mothers, Caritas Indonesia from our Diocese) were involved in carrying out this work._
_Assessment activities necessitated visiting from house to house, while training for parents resulting from the assessments was done at Sarasvita FCJ Center. As a result of this activity, apart from opening up their horizons, parents also became more acquainted with knowing the strengths of their children._
_The encounter made the activity more meaningful, gave joy and enthusiasm and strengthened the families because they listened_
_to each other, shared life experiences and their struggles in accompanying the children. We and the volunteers also felt the joy and gratitude that was shown on their faces. Hopefully parents can love, care for and nurture their children even better”._
In October 2022 the FCJ Sarasvita Centre celebrated its 6th anniversary. In the past year many programmes and retreats have been run. These covered Bible reflection, meditation, rosary prayer, befriending nature, and retreat for the soul to name but a few.
During 2022, the main hall was also used for other activities welcoming people from different parish groups, other denominations, other religions, children, youth and adults.
Following the pandemic, the need for emotional and spiritual support increased greatly. Sarasvita answered these needs by providing a sanctuary and running programmes that are really relevant for the improvement of people’s health, mentally and spiritually.
Faithful Companions of Jesus **10**
**Trustees’ report** 31 December 2022
**Mission and objectives of the charity** (continued)
_**Grants, donations and support of overseas missionary work and provinces, including support of educational institutions** (continued)_
Although basic education is free in Indonesia, many people are still finding it difficult to send
their children to school because there are other expenses needed (for books, projects, transportation, meal allowance etc.). The FCJ Communities in Yogyakarta and Ende have helped to pay for the education of 118 students (from poor families): 78 students (elementary school), 33 students (high school), and 7 students in higher education (college).
Ibricken Lodge, Spanish Point in Co. Clare on the wild Atlantic coast has long since been used as an FCJ holiday house and a wonderful setting for the sisters’ annual retreat. Conscious that the house was only used during the summer and on the occasional weekend during the remainder of the year, the decision was made to employ a director who would set up and run a programme throughout the year. Ms. Nóirín Lynch was engaged, and Ibricken Lodge became known as FCJ Spirituality House – Teach Spioradálta in September 2021. Nóirín Lynch writes:
“ _We established the FCJ Spirituality House – Teach Spioradálta in September 2021. For a variety of reasons, it was January 2023 before we held our first residential weekend. Our initial focus was to build a local network and create awareness of the FCJ house and its vision of companionship. Conscious of social isolation, we offered online morning meditation, Lectio Divina during Lent, movie nights, seasonal day retreats and coffee mornings across 2022. We are now well known with several local professional hosting evening events for us as volunteers. A few quotes from evening event conversations:_
_“We needed this space here for the community, we just didn’t know it ‘til you come._ ”
_“I can’t find my place in any church, but I don’t want to give up – thanks for this space to explore”._
_“I love the cup of tea in the window idea, I don’t need to explain myself”._
_While we have much to learn, all retreats so far were very positive experiences for attendees and staff. I am struck by the diversity of attendees (aging from approx. 45 – 85), distance travelled (from Donegal, Kerry, Mayo, Dublin and locally), and appreciation expressed. Up until January 2023, those who travelled a distance found accommodation locally. I have consciously priced sessions competitively to encourage full attendance, and thus have the word pass around. We have had 10 – 14 participants on average. A few quotes from reviews on the house/food:_
_“A wonderful session and was looked after beautifully”._
Faithful Companions of Jesus **11**
**Trustees’ report** 31 December 2022
**Mission and objectives of the charity** (continued)
_**Grants, donations and support of overseas missionary work and provinces, including support of educational institutions** (continued)_
_“The silent atmosphere was great. No fuss anywhere, Great simplicity”._
_“Thank you for the wonderful welcome, hospitality and for holding the space for us all”._
_We look forward to hearing how our dream for FCJ Spirituality House – Teach Spioradálta will bear fruit_ .”
The charity enters into collaborative relationships with other religious congregations and organisations to help it achieve its charitable objectives - organisations such as Solidarity with South Sudan, the Medaille Trust, the Society of the Sacred Heart, CAFOD and Asylum Seekers.
Since 2008, when women and men religious, representing the International Union of Superiors General (UISG), and Union of Superiors General (USG), respectively, responded to a request of the Sudanese Bishops’ Conference, the Society has been present in South Sudan. In the initial request the keyword was “solidarity”, and the focus was on South Sudan: hence the name of the project - Solidarity with South Sudan. Sisters Betty Ryan and Margaret Sheehan began teaching in the nascent teacher training college in Juba. Sister Margaret continues to work in the Teacher Training College in Yambio. Other members of the Society participate in the Board of Directors meetings held in Rome. In addition to its annual donation, the Society sent £10,000 for the Sustainable Agriculture Project, a newly devised project in response to Laudato Si’ 160, and the long term consequences of climate change which already mark the countryside in South Sudan.
Sustainable Agriculture Project **:** $2.500 helps 10 households to increase and enhance technical capacity of best agricultural methods, improve food security at household level with surplus for the markets, prevent malnutrition among children under 5 years, reduce post harvest loses and maintain natural resources through protection measures.
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**Trustees’ report** 31 December 2022
**Mission and objectives of the charity** (continued)
## _**Grants, donations and support of overseas missionary work and provinces, including support of educational institutions** (continued)_
During 2022, the charity continued to invest in capital projects for the upkeep of the safehouse used by Medaille Trust for the victims of modern slavery. The old kitchen and two other areas were refurbished to create three wonderfully equipped kitchens for use of the residents. Gutters, drainage and garden pathways were completely renovated. Work to weatherproof the roof on one of the cottages was completed. A few photos will demonstrate the extent of these works.
The Society’s long-term, on-the-ground involvement in schools has greatly reduced in recent years due to decreasing numbers of sisters who could work in our educational establishments. Nevertheless, the Society’s commitment to ensuring the continuation of Catholic education into the future is stronger than ever. To this end, General Leadership has worked with the Area Leaders to research possible plans for the future of our schools. Sister Brenda Wallace fcJ has worked tirelessly in collaboration with other religious congregations and professional advisers to set up the Gaudete Trust CIO, which, in time, will take over the administration and governance of the FCJ Schools in England. Over the years, charity funds have supported the FCJ schools in France and other countries where the Society is present. Early in 2023, on 27 January the Society began a two-year process to transfer the three schools in France to the education association of the Society of the Sacred Heart. A certain financial support will be needed to prepare for and to complete the transfer.
Faithful Companions of Jesus **13**
**Trustees’ report** 31 December 2022
## **Mission and objectives of the charity** (continued)
## _**Grants, donations and support of overseas missionary work and provinces, including support of educational institutions** (continued)_
During 2022, the Society donated considerable sums of money to UK charities to alleviate the plight of suffering people and to effect change, in line with the 2019 General Chapter Calls. CAFOD’s campaigns in Ukraine, Afghanistan and East Africa received substantial donations. During the year, when the effects of rising food prices was being felt in low-income families, a donation was given to the Society of St. Vincent de Paul to buy food vouchers for distribution. The Salvation Army, in their letter of thanks, assured us that the Society’s donation would help people dealing with grinding poverty.
## _**The Bicentenary Grants, Stage II**_
In January 2022 grants totalling Can $ 234,500 (£138,000) were approved and transferred, for Bicentenary Projects to Canada. The project recipients included Edmonton Catholic Schools – Aurora Living and Newman Certificate Course, Canadian Religious Conference - Office of Religious Congregations for Integral Ecology (ORCIE), and St Paul’s University Degree in Integral Ecology, and FCJ Christian Life Centre – Care of our Common Home.
Requests for the Stage II of the Bicentenary grants, launched in 2021, were received throughout 2022. Canada’s application was the first to be approved and paid out in January 2022.
The grant was requested for the Edmonton Catholic Schools, ORCIE Ottawa, St. Paul University School of Integral Theology Ottawa and the Christian Life Centre in Calgary.
Outlining the impact of the grant for the Edmonton Catholic Schools Sister Joanna writes: _“In union with God's ongoing work of creation, the grants are being used to support two programs: The Aurora program from the Star of the North Retreat Centre in St. Albert, and the Certificate in Catholic Studies from Newman Theological College, in Edmonton. Star of the North Retreat Centre launched its online and on-site signature, three-year program – Aurora Living: Word and Creation two years ago, with an emphasis to deepen one’s relationship with Sacred Word and story from Christian and_
_other wisdom traditions and to renew one’s relationship with Christ’s Spirit for the good of creation. With the assistance of the grant, we were able to enrol five highly committed and faith filled staff members in their three-year program. In September to November of last year, the group actively participated in the Psalms: Singing Both Joy and Lament module, and since January, in Wisdom: The Wells We Drink From._
_At the same time, our Certificate in Catholic Studies from Newman Theological College offers a comprehensive selection of courses on various aspects of the Catholic faith. All are offered online, so that participants can study from the comfort of their homes and work around their personal schedules”._
Sister Susan records how the grant has enabled the Office of Religious Congregations for Integral Ecology, Ottawa (ORCIE) to work for change in the structure of Canada’s economy.
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**Trustees’ report** 31 December 2022
## **Mission and objectives of the charity** (continued)
## _**The Bicentenary Grants, Stage II** (continued)_
Sister Susan writes _“Thanks to a dynamic team of 21 religious congregations pooling their energy, moral and financial support, the new Office of Religious Congregations for Integral Ecology in Ottawa has been making the case for thoughtful, planned changes to the structure of Canada’s economy. On behalf of sisters, priests and brothers, the Executive Director is researching, studying, and strategizing on how ORCIE can push an ecology-first agenda for all parties. The role of religious congregations as prophets for justice, peace and the integrity of creation is more important than ever. It is exciting to see how bringing Catholic social teachings and the message of Laudato Si forward to elected leaders is part of a values-based approach being increasingly recognized by the environmental movement as the most effective way forward to build climate justice policies. In 2022, ORCIE has been working closely with faith-based organizations and environmental coalitions, like the Climate Action Network, for the COP 27 on Climate in November in Egypt and the COP 15 on Biodiversity in December in Montreal_ ”.
Integral ecology was again the focus for the grant to the St. Paul University School of Integral Theology, Ottawa, (SPU). Responding to the global crisis call to action, SPU has been investing in the vision of Integral Ecology, as elaborated in Laudato Si. The University is committed to multi- and inter-disciplinary study and research. Moreover, with its experiential and transformative educational approach that connects theory with practice, the University is perfectly positioned to have a major impact on students’ intellectual and human development. There is an interesting account on the University website of how Women’s Religious Orders fund some of the University’s most progressive projects.
The Society in Canada is developing relationships with Ecological Retreat Centres all over Ontario, working towards establishing affinity partnerships that will enable our future Integral Ecology students to conduct their mandatory internships at those Centres.
The FCJ Christian Life Centre in Calgary engaged with the Dicastery for Promoting Integral Human Development during the Laudato Si’ Special Anniversary Year, to launch a new program and a public commitment for various institutions to begin a journey to total sustainability in the spirit of Laudato Si’. The Christian Life Centre addressed the Cry of the Poor and aims to become a Green Retreat Centre.
The FCJ Bicentenary Scholarships approved by the trustees in July 2022, will fully fund up to six courses for Masters’ and PhD students at the Centre for Catholic Studies (CCS), Durham University. This will help form the next generation of outstanding theologians and future educators, who will shape the future from the richness of Catholic tradition, helping secure the role of theology in schools and in wider public life. Particular consideration has been given to female applicants from the Northeast of England researching in two of the broad areas related to the following FCJ Chapter Calls, Compassionate Action and Care for Our Common Home.
The scholarships amounting to £400,000 over four years, will provide full tuition fees and a living allowance. They are available to UK and international students, male or female, parttime and/or full-time.
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**Trustees’ report** 31 December 2022
## **Principal activities, review of the year and developments**
The year 2022 has afforded the charity many opportunities to further the Society’s General Chapter Calls, in particular to alleviate the plight of suffering people and to effect change, be that directly through the work of the sisters or by collaborating with other charities and organisations. The principal activities of the year have been treated in detail in the narrative of this report, though perhaps it would be important to mention the projects, be they Society or collaborative projects, in which the greatest financial investment has been made during the year. Katherine House, once used to house the FCJ Spirituality Centre, is undergoing a total refurbishment to expand the capacity of the Kersal Hill accommodation for sisters who need a certain level of supported living. The project is progressing well and is expected to finish on schedule by March 2024.
In 2020, the Society, having met with Mr. Garry Smith the CEO of Medaille Trust, decided to enter into a closer collaboration with the charity in order to extend its outreach to victims of modern slavery on the margins of society. The Society property, used as a safehouse by the Trust, needed refurbishment. Plans were submitted and approved. When four trustees visited in June 2022, they were delighted to see the three new and well-equipped kitchens which had been installed, the garden footpaths resurfaced, drainage and gutters overhauled, as well as other minor improvements completed.
In June 2021, at the Consultative Meeting when the General Superior gathers her Assistants with the Area Leaders, Stage II of the Bicentenary Grants was discussed, and the following criteria were established.
- FCJ Centres – Spirituality, Refugees, Learning and Development;
- Chaplaincies in educational establishments with FCJ connections; and
- Bursaries for women studying courses relevant to our Chapter Calls 2019 e.g. ecospirituality.
Grant applications were submitted in 2022, approved and some paid. The remaining grants which have been approved will be paid by the Faithful Companions of Jesus CIO over the coming years.
As in previous years, the charity, in addition to supporting the sisters’ ministries, has given financial support to other charities and organisations which further the charity’s charitable objectives. Details of this support are outlined in the narrative above.
## **Governance issues**
The leitmotif running through the year 2022 was the preparation for the transfer of the assets and liabilities of the Faithful Companions of Jesus Charitable Trust to the Faithful Companions of Jesus CIO. On 31 March 2022, the new CIO was registered. 1 January 2023, was the target date for the transfer. During the second half of 2022, meetings were held with investment managers, bankers, staff and other significant parties to attend to the work of transferring to the CIO. By early December, the trustees were confident that all key matters had been dealt with and that the transfer would go smoothly in early January. The trustees express their gratitude to Stone King, legal advisors and Buzzacott, auditors for their accompaniment and professional advice throughout this process.
Faithful Companions of Jesus **16**
**Trustees’ report** 31 December 2022
## **Governance issues** (continued)
The Society is a member of Religious Life Safeguarding Service (RLSS) and contributes to the Common Fund. Trustees take very seriously their responsibility to work collaboratively for a safer Church and safeguarding is regularly on the agenda for trustees’ meetings. The sisters enrol for safeguarding training which is provided by RLSS. Disclosure and Barring Service (DBS) checks are up to date. The safeguarding lead ensures the sisters are up to date with latest developments and interacted regularly with the Area Leader.
The Society-wide risk assessment, discussed in 2022 at the Consultative meeting, was completed by year-end and reassured the trustees that risk is being well managed. The results will be presented to the Area Leaders at the Consultative meeting of 2023.
In the digital world in which we live, IT security is a high priority. The road-map provided by the IT provider for 2022 suggested that consideration be given to move from our servers to cloud-based data storage. Such a move will require training and the trustees will consider the implications of such a move.
## **Plans for the future**
The decision to set up the Faithful Companions of Jesus CIO was made on the basis that all the activities, assets and liabilities of the Faithful Companions of Jesus Charitable Trust would be transferred in total to the new entity. This Charitable Trust will therefore have no further plans for the future and will remain dormant.
## **Financial review**
## _**Results for the year**_
The ownership of temporal goods and the administration of the use of them are only a means to the end which the Society seeks – ‘the greater services and glory of God’ and the ‘greater universal good’ of God’s people.
A summary of the year’s results can be found on page 30 of the attached accounts.
Income for the year was £3,537,681 (2021 - £3,630,611). £1,293,523 (2021 - £1,208,398) was received from donations and legacies, which included £1,108,296 (2021 - £1,169,316) received from members’ salaries and pensions donations.
Other charitable income, which represents services provided in FCJ’s various communities, amounted to £31,339 (2021 - £17,103) and investment income amounted to £2,169,371 (2021 - £2,193,572).
Income from other sources amounted to £43,448 (2021 - £211,538).
Prior to the transfer to the CIO, expenditure totalled £4,781,467 (2021 - £3,032,581). £101,587,760 was transferred to the CIO on 31 December 2022, giving total expenditure for the year of £106,369,227. The cost of raising funds, comprising investment managers fees, totalled £288,370 (2021 - £297,949). Expenditure on support of members of their ministry and their apostolic, social, and pastoral work amounted to £2,098,852 (2021 - £1,819,258).
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**Trustees’ report** 31 December 2022
## **Financial review** (continued)
## _**Results for the year** (continued)_
Expenditure on grants, donations and support of overseas missionary work and provinces, including support of education institutions and other organisations amounted to £2,394,245 (2021 - £915,374) which included Bicentenary grants.
Net expenditure (excluding the transfer to the CIO) in 2022 before other gains, therefore, was £1,243,786 (2021 – net income of £598,030). Net other losses amounted to £9,979,531 (2021 – gains of £10,032,366) which included net losses on investments of £11,347,450 (2021 – net gains of £11,769,287) and net foreign exchange gains of £1,367,919 (2021 – net foreign exchange losses of £1,736,921). The net decrease in funds for the year before the transfer to the CIO was therefore £11,223,317 (2021 – net increase of £10,630,396).
## _**Reserves policy and financial position**_
For the most part, the resources of the Society have been built up due to the fact that in the past the majority of sisters held teaching positions and earned good salaries, all of which were covenanted to the charity. When a salary or stipend was received, this was donated to the charity because all sisters have made a vow of poverty. The income contributed largely to the sisters being able to purchase property for their apostolic works.
The trustees, who are also the trustees of the successor charity, 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 on-going commitment of its successor charity to support members of the Society, the level of free reserves of both the charity and the CIO should approximate to between 12- and 36-months’ expenditure. The trustees of both the charity and the CIO are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in incoming resources due to timing differences in income flows, adequate working capital to cover core costs, and will allow the charity or CIO to cope and respond to unforeseen emergencies.
In addition, the charity’s annual expenditure can vary significantly based on the quantum of donations and grants agreed by the trustees. Taking this into consideration the trustees consider the level of reserves to be an adequate but not excessive provision for the charity’s and the successor charity’s needs on the basis that over the years reliance on its investment income has increased and therefore maintaining a large enough capital base, particularly in times of low interest rates and unstable markets, is more important than ever.
The commitment to provide for the old age and care of members of the Society has profound implications for the finances of the charity and CIO. All members of the Society have taken vows of poverty which means that they have given all their rights to income and generally to assets in favour of the Society. Before transfer to the CIO, the balance sheet showed funds of £40,350,000 (2021 - £39,750,000) designated in respect to the charity’s on-going commitment to provide for the care of the Society’s members. The trustees estimate that a fund of at least this sum will be required to provide fully for the members across the world. The trustees of the CIO will continue to keep the position and the level of funding for this purpose under review.
Faithful Companions of Jesus **18**
**Trustees’ report** 31 December 2022
## **Investment performance**
The charity had three portfolios of listed investments, one with UBS Wealth Management (UK) Limited, one with BNP Paribas Fortis and the other with CCLA Investment Management Limited. Prior to the transfer to the CIO, these had a combined market value at 31 December 2022 of £92,650,113 (2021 - £99,992,818). In addition, cash held by investment managers amounted to £1,591,445 (2021 - £5,388,250).
During the year, the charity’s income from listed investments was £2,111,758 (2021 - £2,142,939) and losses on disposal and revaluation of investments were £11,347,450 (2021 – gains of £11,769,287). The resultant average income yield was 2.2% (2021 – 2.2%) and the capital yield was minus 11.8% (2021 – 12.1%). The charity’s income from bank deposit interest was £25,911 (2021 - £3,391).
## **Relevant policies**
## _**Protection of children and vulnerable adults**_
Like all other organisations who serve the community, the trustees recognise the absolute necessity of ensuring the protection and safety of all those whom the charity serves. They fully support work being done to make the Church and Society a safe environment for all. They are accountable to the newly established Catholic Standards Safeguarding Agency (CSSA) and are fully committed to implementing its standards and procedures. The Society has joined the Religious Life Safeguarding Service (RLSS) to which the trustees have pledged an annual contribution towards the common fund for the next two years. A safeguarding trustee is to be named. Sisters engaged in any ministry in Great Britain and Jersey, C.I. must obtain clearance from the Disclosure and Barring Service (DBS). As a further proof of their commitment, the trustees welcomed the fact that the Area Leader has engaged the professional help of a lay safeguarding lead who looks after the processing of all DBS forms both for the sisters and all employees. The lay delegate, working in partnership with the Area Leader and her Council, ensure that sisters and staff are kept informed about good practice in work and ministry.
## _**Public benefit**_
In formulating the charity’s aims and in planning the work of members of the Society, the trustees have had regard to the general guidance published by the Charity Commission on public benefit. The trustees are convinced that the social and pastoral work of the sisters has demonstrated that the contribution of the sisters in these areas has benefited the public. Also, in areas of retreat work and spirituality, they believe that sisters have influenced morals and attitudes of people and enhanced the spiritual well-being of those with whom the sisters have worked. The trustees, by giving donations to organisations and local projects also demonstrate public accountability. Above all, as the sisters increase in age, the care of their own sisters will be of public benefit for many years to come. Many of the sisters dealing with the public are involved in the relief of poverty, the advancement of religion and the advancement of education. The trustees also acknowledge the ‘unquantifiables’ in relation to ‘public benefit’ such as acts of kindness, hospitality and mutual support within and beyond the Society’s statutes and charism. Community members contributed approximately 500 hours per week in rendering these services, the equivalent of £60,000.
Faithful Companions of Jesus **19**
**Trustees’ report** 31 December 2022
## **Donations in support of other organisations**
When planning their budget at the beginning of the year, the trustees agree to set aside a certain amount of financial support for the organisations whose work is consistent with the objects of the charity. In line with the Chapter directives ‘Compassionate Action - Widening Our Circle of Love’, the charity supported CAFOD, the Salvation Army, the Vincent de Paul and UNICEF. As each new year dawns, there is never a dearth of deserving causes to support.
## **Investment policy**
The charity’s investment policy is shaped by Gospel values and guided by the Society’s goals set every six years at its General Chapter. Consequently, the trustees focus on green energy and renewables.
There are no restrictions on the charity’s power to invest. The charity’s investments were managed by professional investment managers during the year. The investment strategy is set by the trustees with advice from their investment managers. It takes into account the charity’s income requirements for the year, the risk profile and the investment managers’ 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 as advised by the trustees from time to time. The trustees also have an Ethical Policy which precludes investment in any company, which after reasonable enquiry, clearly generates significant profits from an activity which is contrary to the objectives of the Catholic Church.
The performance of the portfolio and the charity’s investment strategy were reviewed by the trustees whose representatives met with the investment managers every six months.
Conscious of how the future of the planet can be jeopardised by investing in fossil fuels the trustees have continued to engage with their investment managers requesting a shift to invest in companies which facilitate the transition from fossil fuels to renewables and cleaner energy.
The investment managers have been given instructions to ensure that the funds of the charity are:
- protected from inflationary pressures;
- used in a manner consistent with its aims and objectives as a Society;
- available to meet future commitments; and
- earning a reasonable rate of return.
Faithful Companions of Jesus **20**
**Trustees’ report** 31 December 2022
## **Fundraising policy**
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. The charity takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.
## **Governance, structure and management**
## _**Governance**_
The Society is governed by the General Superior, her three General Council members, provincial superiors and local superiors. The General Superior and her Council are elected at the General Chapter, a meeting of the representatives of all the areas of the Society.
The General Superior, Assistants and the General Bursar are trustees of the charity. The Trust Deed provides that new trustees can be appointed by the General Superior.
## _**Trustees**_
At present there are five trustees as follows:
The General Superior and her Council 4 The General Bursar 1
According to the Trust Deed the minimum number of trustees is four. The names of the trustees who served during the year are set out on the attached schedule of administrative and reference details on page 1. Since joining the Society, each of the trustees has been formed spiritually and professionally in preparation for their apostolic ministry. The current trustees have served in the fields of education, theological and spiritual training, human development, and pastoral development programmes, to name but a few. Their formation and education together with their many years of experience of leadership enables each of them to be responsible trustees of the charity.
Brief details of each of the trustees in office on 31 December 2022 are as follows:
Sister Bonita Marie Moser, General Superior, has attended a wide variety of formative webinars and workshops during the year and takes a special interest in investments and governance. She has also completed training in safeguarding.
Sister Patricia Binchy, General Assistant, has attended various webinars online, including on safeguarding and education/Catholic schools. She has completed training in safeguarding.
Sister Mary Fitzpatrick, General Bursar, has been a member of the executive committee of the Association of Provincial Bursars (APB) since October 2018. Among the formative webinars she attended during the year were, investment webinars including those hosted by CCLA and Sarasin, Buzzacott webinars on Governance, and attended the Association of Provincial Bursars Conference at High Leigh in October. She plans to attend a session in safeguarding training.
Faithful Companions of Jesus **21**
**Trustees’ report** 31 December 2022
## **Governance, structure and management** (continued)
## _**Trustees** (continued)_
Sister Mary Ruth Casey, General Assistant, has attended many formative webinars including The Essential Trustee and Immigration webinars hosted by Stone King, many webinars on Laudato Si’ Action Platform on ways to combat climate change in line with General Chapter Call to Care for our Common Home, and Towards a Safer Church. She has completed two sessions of safeguarding training.
Sister Judith Ellen Routier, General Assistant, has attended many formative webinars including those on Laudato Si’ Action Platform in ways to combat climate change in line with General Chapter Call to Care for our Common Home. She has completed a session in safeguarding training.
New trustees are appointed when and if it is necessary following the change of administration during General Chapter. General Chapters are held every six years. The next General Chapter will be held in 2025.
## _**Structure and management**_
Internationally the Society is constituted of four Areas whose superiors are appointed by the General Superior and her Assistants. The four Areas are the Area of Asia, the Area of Australia, the Area of the Americas, the Area of Europe.
Frequent meetings of the trustees are held at the Generalate which is located at Gumley House Convent, Isleworth, Middlesex. They review policies, developments in the charity, its risks, its activities and make decisions, based on reflection and appropriate advice. The trustees are aware of the need to seek advice and support from their professional advisers, including financial advisers, property consultants, investment managers and solicitors, when taking important decisions which will impact on the work, good name, or future viability of the charity.
The General Superior and her Assistants as well as Area Leaders normally carry out a programme of visitation of the countries where the sisters live and work, so the trustees have a good working knowledge of all the Society’s commitments and the situations in which the sisters minister in the different countries.
In August 2022, the General Superior began the programme of visitations which had been on hold since the pandemic. The communities in the Americas welcomed her with great warmth and were delighted to be able to gather again in person.
The General Superior and her Assistants consider that the trustees and the Head of Finance and Business Administration comprise the key management personnel of the charity in charge of directing and controlling, running, and operating the charity on a day-to-day basis. Staff salaries are reviewed annually and normally increased to reflect a cost-of-living adjustment, although in 2022 the rate of inflation was also taken into account. All trustees give of their time freely and no trustee received remuneration during the year.
Faithful Companions of Jesus **22**
**Trustees’ report** 31 December 2022
## **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 period 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 the accounts the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of 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);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the accounts comply with the Charities Act 2011, 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.
## **Governance and management of the charity**
In order to keep up to date with developments in charity law and good governance, the trustees have attended many formative seminars during the year to further their knowledge of what good governance of the charity entails. The subject matter covered in these seminars included, immigration, employment law, the legal entity appropriate for the Society’s institutions, divest/invest debate regarding investments. Trustees and Senior Management Staff attend the Catholic Charity Conference and the Association of Provincial Bursars’ Annual Conference.
The trustees, aided by the Area Leader, the Head of Finance and Business Administration and middle management govern and manage the charity in a practical and proactive manner.
Diminishment in the Society’s numbers continues to present the trustees with a number of strategic questions relating to operations and structure.
Faithful Companions of Jesus **23**
**Trustees’ report** 31 December 2022
## **Risk management**
The newly devised risk assessment instrument will give the trustees an immediate overall reading of risk scores across the charity and its successor charity (the CIO) and enable them to see how risk is managed on the ground in the local communities. The trustees make an annual review of the major risks and uncertainties faced by the charity and the CIO. This review is carried out in cooperation with middle management and Area Leaders. The risks reviewed concern governance and management of the charity, financial risks, operational risks, reputational risks as well as those risks which occur because of circumstances beyond the charity’s and the CIO’s control.
Furthermore, aware that the management of risks at the international level could impact on the charity’s and the CIO’s reserves, risk management in the wider Society is specifically addressed when the end of year returns are sent to the General Bursar in London. At times it is necessary to make follow-up enquiries with the leaders and bursars in particular areas.
## _**Financial risks**_
Aware that fraud and cyber-crime has escalated during the pandemic, the trustees review, and question policies and procedures used in the finance office. The General Bursar with the Head of Finance and Business Administration focus their attention on the Area finance offices.
The charity’s and the CIO’s investments are managed by reputable professional investment managers who have discretionary power. The portfolio review, during regular meetings with the trustees, examines whether the charity’s and the CIO’s investment policy is implemented properly and monitors its performance. Important topics discussed with the investment managers during the year centred on the meaning of an ethical fund and the divest/invest debate.
## _**Operational risks**_
Operational risks are best managed by the following:
- Adequate HR support and staff management. The 2020 review of the staff handbook will ensure compliance.
- Proper financial controls and authorisation procedures reviewed regularly.
- Well trained line-managers.
- Professional project management of refurbishment projects.
- Professional safeguarding training.
Risk is always on the agenda at the annual meeting with representatives with the insurance brokers.
The trustees concern for cyber security has been mentioned earlier in this report. The Area Leaders are more aware of the need to ensure that community and personal IT devices have adequate protection against cybercrime.
Faithful Companions of Jesus **24**
**Trustees’ report** 31 December 2022
## **Risk management** (continued)
## _**Operational risks** (continued)_
Members of the Society work with children and vulnerable adults and as a consequence the trustees recognise the absolute necessity of ensuring the protection and safety of all those served by the charity. All staff and volunteers who work in those areas are required to have clearance from the Disclosure and Barring Service (DBS).
## _**Reputational risks**_
In today’s climate of growing sensitivity, the risk of offending the other could arise simply by not understanding the purpose or values of religious life. Members of the Society and employees are made aware of how their actions and behaviour can impact the charity’s reputation. Moreover, reputational risks can arise from situations beyond the control of the trustees. Managing such risks is fraught with difficulty and requires constant vigilance.
## _Faithful Companions of Jesus - Risk Analysis 2022_
Key Code:
**Red = Major/Catastrophic Amber = Moderate Green = Minor**
|**Risk**|**Risk description**|**Risk score**|
|---|---|---|
|1|Declining numbers resulting in lack of skill set necessary to
manage the charity.||
|2|Property management-party wall issues, management of
significant refurbishment/constructionprojects||
|3|Reputational risks||
|4|Fraud,Cybercrime and Data breaches||
## **Employees and members of the Society**
The trustees wish to record their recognition and appreciation of the professionalism and dedication of the staff and the individual members of the Society who work for the charity. 2022 has, once again, seen staff work with serenity and good common sense. Such qualities enable the charity and its successor charity to pursue their mission in the service of the public, whatever the circumstances. Their commitment is very much appreciated.
Approved by the trustees and signed on their behalf by:
Bonita M Moser
Trustee
Date: 9 June 2023
Faithful Companions of Jesus **25**
**Independent auditor’s report** 31 December 2022
## **Independent auditor’s report to the trustees of Faithful Companions of Jesus**
## **Opinion**
We have audited the accounts of Faithful Companions of Jesus (the ‘charity’) for the year ended 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:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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.
## **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.
Faithful Companions of Jesus **26**
## **Independent auditor’s report** 31 December 2022
## **Other information** (continued)
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:
- the information given in the trustees’ report is inconsistent in any material respect with the accounts; or
- sufficient accounting records have not been kept; or
- the accounts are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **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.
## **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.
Faithful Companions of Jesus **27**
## **Independent auditor’s report** 31 December 2022
## **Auditor’s responsibilities for the audit of the accounts** (continued)
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:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the charity through discussions with the General Bursar and the Head of Finance and Business Administration and from our knowledge and experience of the charity sector;
- We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102); and
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of the General Bursar and the Head of Finance and Business Administration and review of minutes of trustees’ meetings.
We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:
- Making enquiries of the General Bursar and the Head of Finance and Buisness Administration as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested and reviewed journal entries to identify unusual transactions;
- Carried ot substantive testing of expenditure including the authorisation thereof;
- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
Faithful Companions of Jesus **28**
**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)_
- Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- Agreeing accounts disclosures to underlying supporting documentation;
- Reading the minutes of meetings of trustees; and
- Enquiring of as to actual and potential litigation and claims.
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.
## **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
21 July 2023
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Faithful Companions of Jesus **29**
## **Statement of financial activities** Year ended 31 December 2022
|Notes|Unrestricted funds|Unrestricted funds|
|---|---|---|
||**2022**
**£**|2021
£|
|**Income from:**
Donations and legacies
. Members’ salaries and pensions
. Legacies and other donations
Other charitable sources
Investment income and interest receivable
1
Gain on disposal of tangible fixed assets
2
Miscellaneous sources
**Total income**
**Expenditure on:**
Raising funds
. Investment management costs
. Other
Charitable activities
. Support of members and their ministry and their apostolic, social, and pastoral work
. Grants, donations and support of overseas missionary work and provinces, including support
of educational institutions and other organisations
4
.. Grant commitments
.. Grants written back
3
Transfer to Faithful Companions of Jesus CIO (Charity Registration Number 1198483)
23
**Total expenditure**
**Net (expenditure) income before other (losses) gains on investments and other gains**
**(losses)**
7
Net (losses) gains on investments (excluding those arising on foreign exchange)
10
Foreign exchange gains (losses) on investments
10
Foreign exchange losses on cash held by investment managers
10
Foreign exchange gains (losses) on cash at bank and in hand
**Net (expenditure) income and net movement in funds**
**Reconciliation of funds**
Total fund balances brought forward at 1 January 2022
**Total fund balances carried forward at 31 December 2022**|**1,108,296**
**185,227**
**31,339**
**2,169,371**
**4,750**
**38,698**|1,169,316
39,082
17,103
2,193,572
180,000
31,538|
||**3,537,681**|3,630,611|
||**287,978**
**392**
**2,098,852**
**2,394,245**
**—**|293,792
4,157
1,819,258
999,349
(83,975)|
||**4,781,467**
**101,587,760**|3,032,581
—|
||**106,369,227**|3,032,581|
||**(102,831,546)**|598,030|
||**(11,347,450)**
**1,367,143**
**—**
**776**|11,769,287
(1,635,011)
(100,556)
(1,354)|
||**(9,979,531)**|10,032,366|
||**(112,811,077)**
**112,811,077**|10,630,396
102,180,681|
||**—**|112,811,077|
There were no recognised gains and losses other than those included above.
All of the charity’s activities derived from continuing operations until 31 December 2022. With effect from midnight on 31 December 2022, the activities, transactions, assets and liabilities of the charity were transferred as a going concern to Faithful Companions of Jesus CIO (the successor charity), a Charitable Incorporated Organisation (CIO), Charity Registration No 1198483 (see note 23).
Faithful Companions of Jesus **30**
## **Balance sheet** 31 December 2022
|Notes|
**2022**
**£**|**2022**
**£**|2021
£|2021
£|
|---|---|---|---|---|
|**Fixed assets**
Tangible fixed assets
8
Programme related
investments
9
Listed investments
10
**Current assets**
Debtors
11
Cash at bank and in hand
**Current liabilities**
Creditors: amounts falling due
within one year
12
**Net current assets**
**Total assets less current**
**liabilities**
**Creditors**: amounts due after
more than one year
13
**Net assets**
**Net assets are represented**
**by:**
**Unrestricted funds**
General fund
Tangible fixed assets fund
14
Programme related
investment fund
15
Designated funds
. Retirement fund
16
. Building projects fund
16
. Development fund
16
**Total funds**|
**—**
**—**
**—**|**—**
**—**|5,717,285
1,495,963
106,002,410|113,215,658
4,087,124|
||
**—**
**—**||306,482
5,395,042||
||**—**
**—**||5,701,524
(1,614,400)||
||
**—**
**—**
**—**||39,750,000
2,840,060
11,534,553||
|||**—**
**—**||117,302,782
(4,491,705)|
|||**—**||112,811,077|
|||**—**
**—**
**—**
**—**||51,473,216
5,717,285
1,495,963
54,124,613|
||||||
|||**—**||112,811,077|
||||||
Faithful Companions of Jesus **31**
## **Statement of cash flows** Year ended 31 December 2022
|Note|**2022**
**£**|2021
£|
|---|---|---|
|**Cash flows from operating activities**
Net cash used in operating activities
A
**Cash flows from investing activities**
Investment income and interest received
Purchase of tangible fixed assets
Receipts from sales of tangible fixed assets
Enhancement expenditure on Programme Related
Investments
Purchase of investments
Proceeds from the disposal of investments
**Net cash (used in) provided by investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents transferred to Faithful**
**Companions of Jesus CIO (Charity Registration**
**Number 1198483)**
**Cash and cash equivalents at 1 January 2022**
B
**Change in cash and cash equivalents due to**
**exchange rate movements**
**Cash and cash equivalents at 31 December 2022**
B|**(2,538,022)**|(3,075,190)|
||**2,169,371**
**(388,633)**
**4,750**
**(310,427)**
**(25,194,964)**
**22,557,362**|2,168,383
(326,938)
—
—
(24,099,839)
28,719,912|
||**(1,162,541)**|6,461,518|
||**(3,700,563)**
**(7,219,847)**
**10,919,634**
**(776)**|3,386,328
—
7,635,216
(101,910)|
||**—**|10,919,634|
## **Notes to the statement of cash flows for the year to 31 December 2022**
## **A Reconciliation of net movement in funds to net cash used in by operating activities**
||**2022**
**£**|2021
£|
|---|---|---|
|**Net income for the year (as per the statement of**
**financial activities)**
**Adjustments for:**
Depreciation charge
Gains on disposal of fixed assets
Losses (gains) on listed investments
Gains on investment properties
Exchange rate movement
. On investments
. On cash held by investment managers
. On cash at bank and in hand
Transfer to Faithful Companions of Jesus CIO (Charity
Registration Number 1198483)
Investment income and interest receivable
Decrease in debtors
Increase (decrease) in creditors
**Net cash used in by operating activities**|**(112,811,077)**
**205,159**
**(4,750)**
**11,347,450**
**—**
**(1,367,143)**
**—**
**(776)**
**101,587,760**
**(2,169,371)**
**153,403**
**521,323**|10,630,396
212,037
—
(11,754,583)
(14,704)
1,635,011
100,556
1,354
—
(2,193,572)
12,854
(1,704,539)|
||**(2,538,022)**|(3,075,190)|
Faithful Companions of Jesus **32**
## **Statement of cash flows** Year ended 31 December 2022
## **B Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Cash at bank and in hand
Bank deposit accounts held within investments
Cash held by investment managers
Transferred to Faithful Companions of Jesus CIO (Charity
Registration Number 1198483)
**Total cash and cash equivalents**|**5,490,730**
**137,672**
**1,591,445**|5,395,042
136,342
5,388,250|
||**7,219,847**
**(7,219,847)**|10,919,634
—|
||**—**|10,919,634|
## **C Analysis of changes in net cash funds**
|**Analysis of changes in net cash funds**||||
|---|---|---|---|
||At 1
January
2022
£|
Cash flows
£|
**At 31**
**December**
**2022**
**£**|
|Net cash funds|10,919,634|
(10,919,634)|**—**|
Faithful Companions of Jesus **33**
**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. Comparative information is provided in respect to the year ended 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 and management to make significant judgements and estimates.
The items in the accounts where these judgements and estimates have been made include:
- the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge;
- the valuations attributed to investment properties;
- the assumptions adopted by the trustees in determining the value of any designations required from the charity’s general unrestricted funds;
- assessing the probability of the receipt of legacy income and estimating the amount to be received; and
- estimating the future income and expenditure flows and the charity’s financial position in order to assess the use of the going concern assumption in preparing the accounts.
## **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 and have included in their assessment the fact that with effect from midnight on 31 December 2022 the activities, assets and liabilities were transferred on a going concern basis to Faithful Companions of Jesus, a Charitable Incorporated Organisation (Charity Registration Number 1198483) (the successor charity).
Faithful Companions of Jesus **34**
**Principal accounting policies** 31 December 2022
## **Assessment of going concern** (continued)
On the basis that the activities of the charity will continue within Faithful Companions of Jesus CIO and that the assets and liabilities were transferred on a going concern basis, the trustees of the charity have concluded that it is appropriate for the accounts to be prepared on a going concern basis. The trustees are of the opinion that the charity and its successor charity will have sufficient resources to meet their liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. Given that the assets of the charity have been transferred to the CIO with effect from midnight on 31 December 2022, there are no material uncertainties that may affect the carrying value of the assets held by the charity. With regard to the next accounting period for the CIO i.e. the year ending 31 December 2023, the most significant areas that may affect the carrying value of the assets held by that charity are the level of investment return and the performance of the investment markets.
## **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 legacies, other charitable activity income, investment income, interest receivable, income from programme related investments, income from investment properties, rent receivable and income from other sources including the surplus on disposal of tangible fixed assets.
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.
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.
Faithful Companions of Jesus **35**
**Principal accounting policies** 31 December 2022
## **Income recognition** (continued)
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 been transferred to the charity.
Investment income is recognised once the dividend or equivalent has been declared and notification has been received of the amount 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 programme related investments comprises rental income from the property used by another registered charity for purposes consistent with the objects of the charity and is recognised when due under the arrangement with the entity. Income from all investments is accounted for only when the receipt of such income is probable, and the amount can be measured reliably.
A surplus in the disposal of tangible fixed assets is defined as the difference between the sale proceeds and the net book value of the asset at the time of disposal and after deducting any costs associated with the disposal. In the case of disposing of a freehold property, the surplus is recognised at the time when legal completion of the sale takes place.
## **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.
All expenditure is accounted for on an accruals basis. All expenses are allocated or to the applicable expenditure headings. The majority of expenditure is directly attributable and any apportionment between headings is negligible. The classification between activities is as follows:
- Expenditure on raising funds comprises investment management fees and costs associated with the maintenance of the charity’s investment properties.
- Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include:
Faithful Companions of Jesus **36**
## **Principal accounting policies** 31 December 2022
## **Expenditure recognition** (continued)
- Expenditure on the support of members of the Society and their ministry enables the members to carry out the charitable work of the Society in the areas of the advancement of the Roman Catholic faith, the provision of care of the elderly, the provision of formation and training and the support of the schools and education. Expenditure on supporting the apostolic work of the members includes costs associated with FCJ House Spirituality Centre, North London, the outreach from St. Hugh’s Centre, Wavertree, Liverpool, Neighbours in Poplar and support to other charitable organisations such as Medaille Trust and Solidarity with South Sudan.
Grants and donations payable which, in the main, relate to the support of the other parts of the worldwide Society’s and its overseas missions. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued for but are disclosed as financial commitments in the notes to the accounts.
Support costs, including governance costs are costs which cannot be attributed to a particular activity. They are apportioned between charitable activities using an estimate of the proportion of time spent working directly on each activity. Within each charitable activity, the support costs are further split in proportion to the direct costs.
All expenditure is stated inclusive of irrecoverable VAT.
## **Tangible fixed assets**
All assets costing more than £5,000 and which have an expected life exceeding one year are capitalised.
## _**Freehold land and buildings**_
Freehold land and buildings, and major improvements to buildings, are included in the accounts at cost.
Non-specialised buildings i.e. those designed as, and used wholly or mainly for, private residential accommodation are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value. Any depreciation thereon, therefore, would be immaterial.
Specialised buildings are defined as those comprising the charity’s large residential convents. With the exception of buildings under construction, depreciation is provided at 2% per annum on a straight line basis in order to write the buildings off over their estimated useful economic life to the charity. Buildings under construction are not depreciated.
The trustees are the legal owners of land and buildings used exclusively by schools founded by the Society, but which is now under separate control. Such assets are regarded as having a nil value for the purposes of the accounts since they cannot be disposed of in the open market or put to alternative use while such occupation continues.
Faithful Companions of Jesus **37**
## **Principal accounting policies** 31 December 2022
**Tangible fixed assets** (continued)
## _**Non-specialised leasehold buildings**_
Leasehold buildings, and major improvements to buildings, are included in the accounts at cost and are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value. Any depreciation thereon, therefore, would be immaterial.
## _**Fixtures, fittings, and equipment**_
Expenditure on the purchase and replacement of fixtures and fittings is capitalised and depreciated over ten years on a straight-line basis, in order to write off the cost of each asset over its estimated useful life.
Expenditure on the purchase and replacement of computer equipment is capitalised and depreciated over three years on a straight-line basis, in order to write off the cost of each asset over its estimated useful life.
## _**Motor vehicles**_
Motor vehicles are capitalised and depreciated over five years on a straight-line basis, in order to write off the cost of each vehicle over its estimated useful life.
## **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.
Investment properties (i.e. those not occupied by the charity, and which are rented out on commercial terms) are included in the accounts at their open market value. These properties are not depreciated.
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.
## **Programme related investments**
Programme related investments include land and buildings owned by the charity but used by another organisation for purposes consistent with the charity’s objectives. The assets are stated at deemed cost. Any loss arising from disposal or any loss arising from impairment is recognised as expenditure on charitable activities and is charged to the statement of financial activities. Any gain arising from disposal is credited to the statement of financial activities.
Faithful Companions of Jesus **38**
**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. Deposits for more than three months but less than one year have been disclosed as short-term deposits i.e. current asset investments. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.
## **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 structure**
Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor-imposed conditions.
Designated funds comprise monies set aside out of unrestricted funds for specific future purposes or projects.
The tangible fixed assets fund comprises the net book value of charity’s tangible fixed assets, the existence of which is fundamental to the charity being able to perform its charitable work and thereby achieve its charitable objectives. The value represented by such assets should not be regarded, therefore, as realisable.
The programme related investment fund represents the combined value of land and buildings owned by the charity but used by another organisation for purposes consistent with the charity’s objectives, together with the amount outstanding on loans granted to another organisation for purposes consistent with the charity’s objectives.
General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.
## **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.
## **Services provided by members of the Society**
For the purpose of these accounts, no value has been placed on administrative and other services provided by the members of the Society.
Faithful Companions of Jesus **39**
## **Principal accounting policies** 31 December 2022
## **Leased assets**
Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged on a straight-line basis over the lease term.
## **Pension costs**
The charity offers its employees membership of a group personal pension plan operated by The Royal London Mutual Insurance Society. Contributions to the scheme are debited to the statement of financial activities in the year in which they are payable to the plan. The assets of the plan are held independently by the Royal London Mutual Insurance Society and do not form part of the charity’s assets.
Faithful Companions of Jesus **40**
## **Notes to the accounts** Year ended 31 December 2022
## **1 Investment income and interest receivable**
|**Investment income and interest receivable**|||
|---|---|---|
||Unrestricted funds||
||**2022**|2021
£|
||**£**||
|Listed investments
. UK equities and utilised funds
. UK fixed interest
. Overseas equities
. Overseas fixed interest
. Alternative assets
Bank interest
Investment property income
Income from programme related investments|**1,533,476**
**42,574**
**172,247**
**216,900**
**146,561**|1,507,655
54,937
426,946
45,664
107,737|
||**2,111,758**
**25,911**
**2,902**
**28,800**|2,142,939
3,391
18,442
28,800|
||**2,169,371**|2,193,572|
## **2 Uplift receipt on land**
During 2021, in accordance with a Deed of Uplift dated 21 March 2018, the charity received £180,000 from Castle Homes SPV 4 Limited with respect to land in Broadstairs, Kent which was sold in March 2018.
## **3 Expenditure**
|**Expenditure**||||||
|---|---|---|---|---|---|
||**Direct staff**
**costs**
**(note 5)**
**£**|
**Other**
**direct**
**costs**
**£**|**Support**
**costs**
**£**|**2022**
**Total**
**funds**
**£**|2021
Total
funds
£|
|**Raising funds**
. Investment manager costs
. Other
**Charitable activities**
. Support of the members and their ministry
. Care of the elderly
. Formation and training programmes
. Sisters’ living and personal expenses
. Apostolic work
. Katherine House Spirituality Centre
. Other apostolic work of members
. Support to other charitable organisations
. Grants, donations, and support of
overseas work and provinces (note 4)
. Bicentenary grants
.. Grant commitments
. Overseas missions
. Generalate support of Provinces
.. Grant commitments
.. Grants written back (see below)
. Charitable donations to organisations|**—**
**—**|
**287,978**
**392**|**—**
**—**|**287,978**
**392**|293,792
4,157|
||**—**|
**288,370**|**—**|**288,370**|297,949|
||**474,123**
**—**
**41,326**
**—**
**—**
**—**|
**253,712**
**31,426**
**808,701**
**—**
**214,306**
**1,289**|**10,147**
**20,294**
**213,087**
**—**
**30,441**
**—**|**737,982**
**51,720**
**1,063,114**
**—**
**244,747**
**1,289**|641,836
43,879
903,249
23,883
206,411
—|
||**515,449**|**1,309,434**|**273,969**|**2,098,852**|1,819,258|
||**—**
**—**
**—**
**—**
**—**|**1,430,353**
**54,880**
**558,268**
**—**
**117,363**|**126,838**
**5,074**
**76,103**
**—**
**25,366**|**1,557,191**
**59,954**
**634,371**
**—**
**142,729**|275,712
19,804
554,734
(83,975)
149,099|
||**—**|**2,160,864**|**233,381**|**2,394,245**|915,374|
||**515,449**|**3,758,668**|**507,350**|**4,781,467**|3,032,581|
Faithful Companions of Jesus **41**
**Notes to the accounts** Year ended 31 December 2022
## **3 Expenditure** (continued)
The 2021 figures are analysed between fund below:
||_Direct staff_
_costs_
_(note 5)_
_£_|
_Other_
_direct_
_costs_
_£_|_Support_
_costs_
_£_|_2021_
_Total_
_funds_
_£_|
|---|---|---|---|---|
|_Raising funds_
_. Investment manager costs_
_. Other_
_Charitable activities_
_. Support of the members and their ministry_
_. Care of the elderly_
_. Formation and training programmes_
_. Sisters’ living and personal expenses_
_. Apostolic work_
_. Katherine House Spirituality Centre_
_. Other apostolic work of members_
_. Grants, donations, and support of_
_overseas work and provinces (note 4)_
_. Bicentenary grants_
_.. Grant commitments_
_.. Grants written bank (see below)_
_. Overseas missions_
_. Generalate support of Provinces_
_.. Grant commitments_
_.. Grants written back (see below)_
_. Charitable donations to organisations_
_. Charitable donations to individuals_|_—_
_—_|
_293,792_
_4,157_|_—_
_—_|_293,792_
_4,157_|
||_—_|
_297,949_|_—_|_297,949_|
||_426,370_
_—_
_—_
_1,899_
_—_|
_204,961_
_22,870_
_693,154_
_6,227_
_180,148_|_10,505_
_21,009_
_210,095_
_15,757_
_26,263_|_641,836_
_43,879_
_903,249_
_23,883_
_206,411_|
||_428,269_|_1,107,360_|_283,629_|_1,819,258_|
||_—_
_—_
_—_
_—_
_—_
_—_
_—_|
_144,403_
_—_
_14,551_
_475,948_
_(83,975)_
_122,837_
_—_|_131,309_
_—_
_5,253_
_78,786_
_—_
_26,262_
_—_|_275,712_
_—_
_19,804_
_554,734_
_(83,975)_
_149,099_
_—_|
||_—_|
_673,764_|_241,610_|_915,374_|
||_428,269_|_2,079,073_|_525,239_|_3,032,581_|
During the year to 31 December 2020, a grant was given to FCJ Philippines to assist them with a house renovation project. Following discussions with FCJ Philippines, it was agreed that there were no further payments to make, and the project was completed in 2021. The remaining balance totalling £83,975 would therefore not be paid over. As a consequence, the grant was written back to the development fund and netted off the 2021 expenditure above.
A further analysis of support costs is outlined below:
||**Staff**
**costs**
**£**|**Other**
**costs**
**£**|**2022**
**Total**
**£**|Staff
costs
£|Other
costs
£
—
146,481
66,237
17,700
61,960
4,284
296,662|2021
Total
£|
|---|---|---|---|---|---|---|
|Management and administration staff
(note 5)
Office costs
Professional and legal fees
Governance costs
Depreciation
Other costs|**197,035**
**—**
**—**
**—**
**—**
**—**|**—**
**124,639**
**109,980**
**12,240**
**50,621**
**12,835**|**197,035**
**124,639**
**109,980**
**12,240**
**50,621**
**12,835**|228,577
—
—
—
—
—||228,577
146,481
66,237
17,700
61,960
4,284|
||**197,035**|**310,315**|**507,350**|228,577||525,239|
The basis of apportionment of support costs is set out in the accounting policies.
Faithful Companions of Jesus **42**
**Notes to the accounts** Year ended 31 December 2022
## **4 Grants, donations, and support of overseas missionary work, including support of educational institutions and other organisations**
|**educational institutions and other organisations**|**educational institutions and other organisations**|||
|---|---|---|---|
|||Unrestricted funds||
|||**2022**
**£**|2021
£|
|||||
|**Support of schools, projects, and Bicentenary grants**
**Phase 1**
FCJ Education Trust
St Michel's School, Nantes
FCJ Secondary School FCJ, Bunclody County, Wexford
**Phase 2**
FCJ Area of the Americas
St Hugh's Centre (Scholarships and Development Coordinator)
Centre For Catholic Studies (Durham University)
FCJ Schools England & Jersey - Chaplaincy
An Tairseach FCJ Bursary
Mary Immaculate College Limerick - Bursary
FCJ Schools Ireland - Chaplaincy
FCJ Kamias, Quezon City (Scholarships)
**Overseas missions**
Argentina
Indonesia
Myanmar
The Philippines
Romania
South Sudan
**Generalate support of Provinces**
Europe
Asia
**Charitable donations to organisations of £1,000 and above**
Avaaz - Power the Amazon Rescue
CAFOD
Dementia UK
European Youth Portal – Solidarity Projects
Laudato Si Centre
Lithuanian Congregation
Marie Curie
Meadow House Hospice
Medecins Sans Frontieres
Middlesborough Diocesan Trust
Neighbours in Poplar
Salvation Army
Samaritans
Send a Cow
St Josephs Pastoral
St Vincent De Paul SVP
St Martin in the Fields
UNICEF
Water Aid
Women at the Well
World Food Programme (2022 - provision written back)
**Charitable donations to organisations of less than £1,000**||**50,000**
**1,515**
**—**
**—**
**137,000**
**400,000**
**500,000**
**17,651**
**88,433**
**212,239**
**23,515**|—
—
6,121
138,282
—
—
—
—
—
—
—|
|||**1,430,353**|144,403|
|||**—**
**10,000**
**1,689**
**11,477**
**1,714**
**30,000**|902
—
—
3,676
6,537
3,436|
|||**54,880**|14,551|
|||**536,152**
**22,116**|404,548
(12,575)|
|||**558,268**|391,973|
|||**—**
**40,000**
**5,000**
**—**
**—**
**10,000**
**—**
**—**
**10,000**
**—**
**—**
**10,000**
**—**
**—**
**—**
**5,000**
**5,000**
**10,000**
**—**
**—**
**(5,000)**|2,000
50,000
—
2,000
10,000
—
3,000
2,500
—
1,000
1,000
5,000
5,000
5,000
5,000
—
—
10,000
5,000
1,000
5,000|
|||**90,000**
**27,363**|112,500
10,337|
|||**2,160,864**|673,764|
Faithful Companions of Jesus **43**
**Notes to the accounts** Year ended 31 December 2022
## **5 Staff costs and remuneration of key management personnel** Staff costs during the year were:
|Wages and salaries
Social security costs
Pension contributions|**2022**
**£**
**619,496**
**52,694**
**40,294**
**712,484**|
|---|---|
The average numbers of persons (including key management personnel) employed by the charity during the year was as follows:
||**2022**
**Number**|2021
Number|
|---|---|---|
|Domestic and ancillary staff
Administration and clerical staff|**26**
**6**|23
6|
||**32**|29|
## _**Higher paid staff**_
The number of employees whose employee benefits (excluding employer pension and employer national insurance costs) fell within the following bands was:
||**2022**
**Number**|2021
Number|
|---|---|---|
|£80,001 - £90,000
£90,001 - £100,000|**—**
**1**|1
—|
The employer’s pension contributions in respect of this employee were £9,052 (2021 - £8,725).
## _**Key management personnel**_
The key management personnel of the charity who are in charge of directing and controlling, running, and operating the charity on a day-to-day basis comprise the trustees and the Head of Finance and Business Administration. The total amount of employee benefits (including taxable benefits and employer’s pension contributions and national insurance contributions) received by key management personnel for their services to the charity was £111,421 (2021 - £106,797) _._
## **6 Trustees’ remuneration and expenses**
The charity's trustees are all members of the Society and consequently their living and personal expenses, all of which are consistent with the amounts paid in respect to other members of the Society, are borne by the charity. The trustees received no remuneration for their services during the year (2021 - none) and no reimbursement of expenses in connection with their duties as trustees (2021 - none).
As members of the Society, none of the trustees 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 the trustees to the charity was £14,626 (2021 - £13,889).
Faithful Companions of Jesus **44**
**Notes to the accounts** Year ended 31 December 2022
## **7 Net (expenditure) income before (losses) gains on investments and other gains (losses)**
This is stated after charging (crediting):
||**2022**
**£**|2021
£
212,037
656,846
30,700
26,000
(8,300)|
|---|---|---|
|Depreciation of assets
Staff costs
Operating lease costs
Auditor’s remuneration:
Statutory audit services
. Current year
. Prioryear|**205,159**
**712,484**
**31,000**
**20,540**
**—**||
## **8 Tangible fixed assets**
Freehold land and buildings
||Specialised
£|Non-
specialised
£|Non-
specialised
long
leasehold
buildings
£|
Non-
specialised
short
leasehold
buildings
£|
Assets
under
course of
construction
£|
Fixtures,
fittings and
equipment
£|Motor
vehicles
£|**Total**
**funds**
**£**|
|---|---|---|---|---|---|---|---|---|
|**Cost**
At 1 January 2022
Additions
Disposals
Reclassification from
investment properties
(note 10)
Transfer of net assets
to CIO (note 23)
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for year
Disposals
Transfer of net assets
to CIO (note 23)
At 31 December 2022
**Net book values**
At 31 December 2022
At 31 December 2021|6,647,648
34,254
—
—
(6,681,902)|658,873
—
—
—
(658,873)|—
—
—
485,000
(485,000)|
75,015
—
—
—
(75,015)|—
550,411
—
—
(550,411)|
1,132,998
—
—
—
(1,132,998)|201,743
25,500
(76,291)
—
(150,952)|**8,716,277**
**610,165**
**(76,291)**
**485,000**
**(9,735,151)**|
||—|—|—|
—|—|
—|—|**—**|
||2,042,780
133,638
—
(2,176,418)|—
—
—
—|—
—
—
—|
—
—
—
—|—
—
—
—|
788,096
51,014
—
(839,110)|168,116
20,507
(76,291)
(112,332)|**2,998,992**
**205,159**
**(76,291)**
**(3,127,860)**|
||—|—|—|
—|—|
—|—|**—**|
||—|—|—|
—|—|
—|—|**—**|
||4,604,868|658,873|—|
75,015|—|
344,902|33,627|**5,717,285**|
At 31 December 2022, the trustees had authorised but not contracted for capital projects in respect to the refurbishment of freehold buildings with an estimated overall cost of £3,166,000 (2021 - £2,975,000). This commitment was transferred to the CIO as at midnight on 31 December 2022.
During the year, the property at 11 Pulteney Close, Isleworth with a carrying value of £485,000 was reclassified from investment properties as its use changed such that it was occupied by the charity in furtherance of its own objectives.
Faithful Companions of Jesus **45**
**Notes to the accounts** Year ended 31 December 2022
## **9 Programme related investments**
At the year-end, two of the charity’s properties were occupied by other organisations and used of purposes directly compatible with the charity’s charitable objectives.
||**2022**
**£**|2021
£|
|---|---|---|
|At 1 January 2022
Enhancement expenditure in year
Transfer of net assets to CIO (note 23)
**At 31 December 2022**|**1,495,963**
**316,692**|1,495,963
—|
||**1,812,655**
**(1,812,655)**|1,495,963
—|
||**—**|1,495,963|
The land and buildings above comprise two properties owned by the charity but used by other charitable organisations for purposes consistent with the objects of the charity. As explained under principal accounting policies, the above properties are included on the balance sheet at the value at which they were included in tangible fixed assets immediately prior to their reclassification as a programme related investment in 2018 and 2020.
## **10 Investments**
|**Investments**|||
|---|---|---|
||**2022**
**£**|
2021
£|
|Listed investments and cash held for re-investment (note a)
Bank deposit accounts
Investment properties (note b)
Transfer of net assets to CIO (note 23)|**94,241,558**
**137,672**
**—**|105,381,068
136,342
485,000|
||**94,379,230**
**(94,379,230)**|106,002,410
—|
||**—**|106,002,410|
The bank deposit accounts represent monies held by CCLA for the long term and considered part of the charity’s fixed asset investments.
## _**a. Listed investments and cash held for re-investment**_
|**_a. Listed investments and cash held for re-investment_**|||
|---|---|---|
||**2022**
**£**|2021
£|
|**Listed investments**
Market value at 1 January 2022
Additions at cost
Disposals at book value (see below)
Net unrealised (losses) gains
Exchange gains (losses)
Market value at 31 December 2022
**Cash held by investment managers for re-investment**
Transfer of net assets to CIO (note 23)
Cost of listed investments at 31 December 2022|**99,992,818**
**25,194,964**
**(24,637,662)**
**(9,267,150)**
**1,367,143**|94,493,319
24,099,839
(26,737,950)
9,772,621
(1,635,011)|
||**92,650,113**
**1,591,445**|99,992,818
5,388,250|
||**94,241,558**
**(94,241,558)**|105,381,068
—|
||**—**|105,381,068|
||**—**|82,144,904|
Faithful Companions of Jesus **46**
**Notes to the accounts** Year ended 31 December 2022
## **10 Investments** (continued)
## _**a. Listed investments and cash held for re-investment** (continued)_
Disposals at book value included above are made up of the following:
||**2022**
**£**|2021
£|
|---|---|---|
|Proceeds
Losses (gains)
Disposals at book value|**22,557,362**
**2,080,300**|28,719,912
(1,981,962)|
||**24,637,662**|26,737,950|
Listed investments held at 31 December 2022 prior to the transfer to Faithful Companions of Jesus CIO, comprised the following:
||**2022**
**£**|2021
£|
|---|---|---|
|UK equities and unitised funds
UK fixed interest
Overseas listed investments
Alternative assets|**44,674,353**
**7,242,160**
**36,431,852**
**4,301,748**|51,193,488
4,869,800
40,623,423
3,306,107|
||**92,650,113**|99,992,818|
At 31 December 2022 prior to the transfer to Faithful Companions of Jesus CIO, the charity held individual holdings greater than 5% of the total quoted investments as follows:
||**2022**
**£**|
**2022**
**%**|
|---|---|---|
|COIF Charities Ethical Investment Fund Income Units
COIF Charities Ethical Investment Fund Accumulation Units|**19,157,985**
**4,930,842**|**19**
**5**|
|**_b. Investment properties_**|**Total**
**2022**
**£**|Total
2021
£|
|At 1 January 2022
Reclassification to tangible fixed assets (note 8)
Unrealised gain on revaluation
At 31 December 2022|**485,000**
**(485,000)**
**—**|470,296
—
14,704
485,000|
||**—**||
Investment properties comprised land and buildings at 11 Pulteney Close, Isleworth. This property is included in the accounts at its market value at 31 December 2021 which is based on a February 2022 valuation determined by the trustees with professional assistance. The trustees do not believe there has been any material change in the value of the property since that date.
The historical cost of the investment property included above is £470,296 (2021 - £470,296).
During the year, this property was reclassified as a tangible fixed asset as its use changed such that it was occupied by the charity in furtherance of its own objectives.
Faithful Companions of Jesus **47**
## **Notes to the accounts** Year ended 31 December 2022
## **11 Debtors**
|**Debtors**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Prepayments*
Investment income receivable
Transfer of net assets to CIO (note 23)|**—**
**153,079**|134,940
171,542|
||**153,079**
**(153,079)**|306,482
—|
||**—**|306,482|
*Included within prepayments for 2021 above is £134,940 relating to initial costs such as feasibility studies and preliminary professional fees in respect to tangible fixed asset projects due to commence in 2022.
## **12 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Expense creditors
Other creditors
Monies administered by the charity on behalf of individual members of
Faithful Companions of Jesus
Social security and other taxes payable
Accruals and other creditors
Payments due in respect to property construction work
Grants payable
Transfer of net assets to CIO (note 23)|**1,671**
**32,738**
**483,737**
**6,236**
**114,139**
**227,797**
**1,977,560**|3,588
6,093
158,003
6,236
158,987
—
1,281,493|
||**2,843,878**
**(2,843,878)**|1,614,400
—|
||**—**|1,614,400|
Prior to transfer to Faithful Companions of Jesus CIO, included within grants payable above is £1,374,452 (2021 - £1,138,211) of Bicentenary grants. These grants were committed by the trustees during the year to 31 December 2019 as part of the celebrations of the bicentenary of the Society’s foundation.
## **13 Creditors: amounts falling due after more than one year**
|**Creditors: amounts falling due after more than one year**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Grants payable
Transfer of net assets to CIO (note 23)|**4,011,347**
**(4,011,347)**|4,491,705
—|
||**—**|4,491,705|
The above grants relate to amounts committed by the trustees during the year to 31 December 2019 as part of the celebrations of the bicentenary of the Society’s foundation. The payment of these grants has been delayed in part because of Covid-19 and both the direct and indirect impact of the pandemic on the projects to be financed. As a consequence, certain payments are now not expected to occur before the end of 2023.
Faithful Companions of Jesus **48**
## **Notes to the accounts** Year ended 31 December 2022
## **14 Tangible fixed assets fund**
||**2022**
**£**|2021
£|
|---|---|---|
|At 1 January 2022
Net movement in year
Transfer of net assets to CIO (note 23)
**At 31 December 2022**|**5,717,285**
**890,006**|5,797,324
(80,039)|
||**6,607,291**
**(6,607,291)**|5,717,285
—|
||**—**|5,717,285|
The tangible fixed assets fund represents the net book value of the charity's freehold and other tangible fixed assets. A decision was made to separate this fund from the general funds of the charity in recognition of the fact that the tangible fixed assets are essential to the dayto-day work of the charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.
## **15 Programme related investment fund**
|**Programme related investment fund**|||
|---|---|---|
||**2022**
**£**|2021
£|
|At 1 January 2022
Transfers
Transfer of net assets to CIO (note 23)
**At 31 December 2022**|**1,495,963**
**316,692**|1,495,963
—|
||**1,812,655**
**(1,812,655)**|1,495,963
—|
||**—**|1,495,963|
The programme related investment fund represented the value of the charity’s programme related investments. These investments comprise land and buildings owned by the charity but used by another charitable organisation with objectives consistent with those of the charity. The value of these programme related investments should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.
## **16 Designated funds**
The income funds of the charity included the following designated funds which had been set aside out of unrestricted funds by the trustees for specific purposes:
## _**Retirement Fund**_
A fund had been designated to provide for the charity's commitment to provide for the retirement and care in old age and sickness of its members. The trustees have estimated based on actuarial methods that a fund of some £40,350,000 will be required to make provision for the ongoing needs of members after taking account of their occupational rights. The trustees have designated a part of the investment portfolio equal to this amount for this purpose. Transfers are made to and from the fund to reflect further designations or withdrawals from the fund.
## _**Development Fund**_
The charity is committed to the development of the Society’s educational and other mission work around the world in addition to supporting the charity’s other projects. These works and projects include the Bicentenary grants referred to in the trustees’ report, the growth and continued formation of the Society and its work in Asia, developing world mission generally as well as specific ad hoc initiatives, including educational projects. In addition, the trustees will continue to invite and consider funding other strategic projects consistent with the charity’s goals of sustainable living.
Faithful Companions of Jesus **49**
**Notes to the accounts** Year ended 31 December 2022
## **16 Designated funds** (continued)
## _**Building projects fund**_
The charity is committed to two refurbishment projects on two of its properties with a total estimated value of £3,166,000.
## _**Analysis of movements**_
||**At**
**1 January**
**2022**|**Designated**
**(released)**
**£**|**Transfer to**
**Faithful**
**Companions**
**of Jesus CIO**
**£**|**At 31**
**December**
**2022**
**£**|
|---|---|---|---|---|
||
**£**||||
|Retirement fund
Development fund
Building projects fund|**39,750,000**
**11,534,553**
**2,840,060**|**600,000**
**(570,927)**
**2,840,060**|**(40,350,000)**
**(10,963,626)**
**(5,680,120)**|**—**
**—**
**—**|
||**54,124,613**|**2,869,133**|**(56,993,746)**|**—**|
||At
1 January
2021|Designated
(released)
£|At 31
December
2021
£|
|---|---|---|---|
||£|||
|Retirement fund
Development fund
Building projects fund|39,150,000
12,105,480
—|600,000
(570,927)*
2,840,060|39,750,000
11,534,553
2,840,060|
||51,255,480|2,869,133|54,124,613|
*During the year to 31 December 2020, a grant was given to FCJ Philippines to assist them with a house renovation project. Following discussions with FCJ Philippines, it was agreed that there were no further payments to make, and the project was completed in 2021. The remaining balance totalling £83,975 would therefore not be paid over. As a consequence, the grant was written back to the development fund and is included within the balance above.
## **17 Analysis of net assets between funds**
Fund balances at 31 December 2022 immediately prior to Transfer to Faithful Companions of Jesus CIO are represented by:
||**General**
**fund**
**£**|**Fixed**
**assets**
**fund**
**£**
**6,607,291**
**—**
**—**
**—**
**—**
**6,607,291**|
**Programme**
**related**
**investment**
**fund**
**£**
**—**
**1,812,655**
**—**
**—**
**—**
**1,812,655**|**Designated**
**funds**
**£**|**Total**
**2022**
**£**|
|---|---|---|---|---|---|
|Tangible fixed assets
Programme related investments
Investments
Net current (liabilities) assets
Creditors: falling due after more
than one year|**—**
**—**
**54,029,230**
**(13,843,815)**
**(4,011,347)**|||**—**
**—**
**40,350,000**
**16,643,746**
**—**|**6,607,291**
**1,812,655**
**94,379,230**
**2,799,931**
**(4,011,347)**|
||**36,174,068**|||**56,993,746**|**101,587,760**|
Faithful Companions of Jesus **50**
**Notes to the accounts** Year ended 31 December 2022
## **17 Analysis of net assets between funds** (continued)
||General
fund
£|Fixed
assets
fund
£|
Programme
related
investment
fund
£|Designated
funds
£|Total
2021
£|
|---|---|---|---|---|---|
|Tangible fixed assets
Programme related investments
Investments
Net current (liabilities) assets
Creditors: falling due after more
than one year|—
—
66,252,410
(10,287,489)
(4,491,705)|5,717,285
—
—
—
—|
—
1,495,963
—
—
—|—
—
39,750,000
14,374,613
—|5,717,285
1,495,963
106,002,410
4,087,124
(4,491,705)|
||51,473,216|5,717,285|
1,495,963|54,124,613|112,811,077|
The total unrealised gains as at 31 December 2022 immediately prior to the transfer constituted movements on revaluations of listed investments and are as follows:
||**2022**
**£**|2021
£|
|---|---|---|
|**Unrealised gains included above**
On listed investments
On investment properties
**Reconciliation of movements in unrealised gains**
Unrealised gains at 1 January 2022
Less: in respect of disposals in the year
Net (losses) gains arising on revaluation in the year
Exchange (losses) in the year
**Total unrealisedgains at 31 December 2022**|**3,903,785**
**—**|17,847,914
14,704|
||**3,903,785**|17,862,618|
||**17,862,618**
**(4,691,682)**
**(9,267,150)**
**—**|11,428,104
(3,191,668)
10,134,276
(508,094)|
||**3,903,785**|17,862,618|
## **18 Taxation**
The Faithful Companions of Jesus is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.
## **19 Ultimate control**
The charity, which is constituted as a trust, was controlled throughout the year by the Society of the Faithful Companions of Jesus by virtue of the fact that the members of the Society elect the General Superior and the General Council members at the General Chapter held every six years and the General Bursar is appointed by the Superior General. The Congregation does not hold any assets, incur liabilities, or enter into any transactions in its own right within England and Wales. Assets and liabilities in England and Wales are vested in the trustees of the charity, who undertake all transactions entered into in the course of the Society's charitable activities.
Faithful Companions of Jesus **51**
**Notes to the accounts** Year ended 31 December 2022
## **20 Related party transactions**
On 5 May 2021, one of the trustees of the charity was appointed as a trustee of The Medaille Trust. The Medaille Trust occupies a property which is owned by the charity and is included in programme related investments in these accounts at a value of £852,557 which represents cost less any impairment. No rental income is received from The Medaille Trust.
The trustees of the charity are also the trustees of Faithful Companions of Jesus CIO to which the charity transferred its activities, assets and liabilities with effect from midnight on 31 December 2022 (see note 23). There were no other transactions between the charity and the CIO.
With the exception of the transactions with trustees disclosed in note 6 to these accounts, there have been no other related party transactions requiring disclosure (2021 – none).
## **21 Capital commitments**
|**Capital commitments**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Authorised by the Trustees and contracted for
Authorised bythe Trustees but not contracted for|**3,166,000**
**—**|—
2,000,000|
The above commitments, immediately prior to transfer, are detailed in the Trustees' Report.
## **22 Lease commitments**
## _**Operating leases**_
At 31 December 2022, immediately prior to transfer, the charity had total future commitments under non-cancellable operating leases for buildings as follows:
||**2022**
**£**|2021
£|
|---|---|---|
|**Payable:**
Within one year
Between two and five years|**31,000**
**12,400**|31,100
43,400|
||**43,400**|74,500|
Faithful Companions of Jesus **52**
**Notes to the accounts** Year ended 31 December 2022
## **23 Transfer to Faithful Companions of Jesus CIO**
With effect from midnight on 31 December 2022, the activities, assets and liabilities of the charity were transferred to the Faithful Companions of Jesus CIO, Charity Registration No. 1198483 in accordance with a legal transfer of undertaking deed. The net assets at that date comprised:
||**2022**
**£**|
|---|---|
|Tangible fixed assets (note 8)
. Cost
. Depreciation
Programme related investments (note 9)
Investments (including cash held within investments of £1,729,117)
(note 10)
Debtors (note 11)
Cash at bank and in hand
Creditors: amounts falling due within one year (note 12)
Creditors: amounts falling due after more than one year (note 13)|**9,735,151**
**(3,127,860)**|
||**6,607,291**
**1,812,655**
**94,379,230**
**153,079**
**5,490,730**
**(2,843,878)**
**(4,011,347)**|
||**101,587,760**|
The funds of the charity which were transferred comprised the following:
||**2022**
**£**|
|---|---|
|General fund
Tangible fixed assets fund (note 14)
Programme related investment fund (note 15)
Designated funds (note 16)|**36,174,068**
**6,607,291**
**1,812,655**
**56,993,746**|
||**101,587,760**|
Faithful Companions of Jesus **53**