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2020-12-31-accounts

Charity Registration No. 249881

THE ORDER OF FRIARS MINOR CONVENTUAL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE ORDER OF FRIARS MINOR CONVENTUAL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rev W Martin - Custos Rev R Doyle - Bursar Rev C I Budau (Appointed 16 August 2023) Rev G Hanley (Appointed 16 August 2023) Rev C Edwards (Appointed 16 August 2023) Definitors Rev G Toman (Resigned September 2021) Rev C Edwards Rev K Hanley (Appointed 19 January 2022) Charity number 249881 Principal address Greyfriars St Patrick's Friary 26 Cornwall Road London SE1 8TW Auditor BWM Suite 5.1 12 Tithebarn Street Liverpool L2 2DT Bankers National Westminster Bank Plc P.O. Box 7929 91 Westminster Bridge Road SE1 7ZB Solicitors Pothecary Witham Weld 70 St George's Square London SW1V 3RD Investment advisors Charles Stanley & Company Limited 55 Bishopsgate London EC2N 3AS Davy Global Fund Management Limited Dashwood House London EC2M 1QS

THE ORDER OF FRIARS MINOR CONVENTUAL

CONTENTS

Page
Trustees' report 1 - 7
Statement of trustees' responsibilities 8
Independent auditor's report 9 - 11
Statement of financial activities 12 - 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 38

THE ORDER OF FRIARS MINOR CONVENTUAL

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their annual report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 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 UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Introduction

The Order of Friars Minor was founded by St Francis of Assisi in 1209. It has maintained its essential character through the centuries. Friars live in communities, observing the Gospel of Our Lord Jesus Christ, under vows of poverty, celibate chastity and obedience, in accordance with the ‘Rule of 1223’ written by the Founder. The Minister General’s headquarters are in Rome where he is assisted by a General Definitory (or Council), governing the Order Worldwide. The Order is divided into provinces and custodies of which the Provincial Custody of Great Britain and Ireland (“English Province”) is one.

The Provincial Custody of Great Britain and Ireland is known as The Order of Friars Minor Conventual under the patronage of Blessed Agnellus of Pisa. ( Ordinis Fratrum Minorum Conventualium, Beati Agnelli a Pisis). In public documents the Provincial Custody is known by the title Order of Friars Minor Conventual (OFM Conv.).

Objectives and activities

The principle object of the charity is concerned with the training of postulates, novices and student friars of The Order of Friars Minor Conventual and the advancement of the religious and other charitable works carried out by or under the direction of The Order. All of its activities are charitable and in accordance with the Trust Deed.

There have been no changes in the objectives since the last annual report.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit and in particular to its supplementary public benefit guidance on the advancement of religion. The majority of the Friars are working in parishes that are part of other charities and so achieve the public benefit requirement indirectly.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

THE ORDER OF FRIARS MINOR CONVENTUAL

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance

(a) The previous-year

Achievements and performance
(a) The previous-year		 Achievements and performance
(a) The previous-year
Goals for 2020
Evaluation of 2020
To care for members of the Order enabling them to
continue to provide service to the public for as long as
they are able in all the areas listed above.

Ongoing.
As the age profile of the community increases so too
does the need to provide increasing and increasingly
expensive care for the sick and elderly Friars. Further
investment in this area is required to meet future
needs.
To stabilise the Formation Programme and its location. Achieved .
The location of our Programme has been established
at Oxford and a five year lease has been agreed upon
with the owners of the property that we are currently
renting. The lease expires in 2025
To evaluate the financial operations, record-keeping
and physical structures of the charity, standardising
the
processes
of
evaluation,
preservation
and
maintenance.


Ongoing.
In consultation with various professional services
needs have been ascertained. A need to have a more
timely submission of financial reports has been
identified. To facilitate this process it will be proposed
that the individual friaries will need to submit their
reports by the end of February each year
To re-evaluate the fund-raising activities of the charity. Achieved and Ongoing.
The Trustees have engaged professional assistance
and invested in various funds and equities, creating
low risk portfolios. The objective is to secure an
annual return which would contribute to the running
costs of the Custody
Continue to seek out educational opportunities and
programs that will best prepare members to offer
updated service in the various areas in which the
Charity is involved


Achieved and Ongoing.
A strong academic program has been secured in
Oxford as well as seeking out programs of higher
learning, i.e. collaboration with Durham University. A
student friar from abroad is also currently studying at
Oxford.

(b) The five-year and long-term plan

At the ordinary Custodial Chapter of 2017 the Friars reviewed the state of the ministries and life of the Friars was discussed, examining the past and looking forward for the next five years A five year plan was drawn up with the friars intending to place a greater emphasis on:

  1. Fraternal Life

  2. Formation of the Friars

  3. Ministries

  4. Finances

  5. Ministry Advancement

This plan has been superseded by a new revised 4-year plan which was voted upon at our Chapter meeting in 2022. and which is considered the same as the long-term plan suggested by the Charities Regulatory Authority. The plan will evaluated mid-term as requested. The text of the plan is as follows:

THE ORDER OF FRIARS MINOR CONVENTUAL

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

At the foundation of Franciscan spirituality is the classical Threefold Way of purgation, illumination, and unity. Our Seraphic Father, Saint Francis, wrote of following in the footprints of Jesus Christ through being “inwardly cleansed, interiorly enlightened, and enflamed by the fire of the Holy Spirit.” Together as one brotherhood, we, the members of the Provincial Custody of Blessed Agnellus of Pisa, will pursue this threefold Franciscan spiritual way throughout the course of this quadrennium. Together, we will sort, vision, and build the common elements of our life: organizational, spiritual, and fraternal . The elements contained within this Four-Year Plan are presented as each being part of a set of concrete steps toward becoming a Province.

The ongoing impact of the Covid pandemic on the charity

The pandemic has had a significant impact on the running of the charity over the past number of years. Our charity has experienced a significant reduction in the collections taken up at our churches, in some instances by as much as a 50%. Many of the volunteers who used to work in our parishes have also stopped coming resulting in an increased work load for the friars. Some of these volunteers used to help our elderly friars with the finances. The result has been a delay in the compiling and the submission of some of the friary financial reports. Due to restrictions in travel the bursar was unable to visit all the friaries during the year which also contributed to this delay. Our investment portfolio has been adversely affect with the large sell off in stocks which occurred at the start of the pandemic. The stock market bounced back in 2021 but has been under downward pressure since, due to inflation trigged by the financial policies pursued during the pandemic.

Investment performance

The Trustees have considered the most appropriate policy for investing funds and have found that specialised fixed asset investments and equities best meet their requirement to generate both income and capital growth. The rates of return on our various investments for 2020 were as follows: Fixed assets - 3.30%, Charles Stanley Portfolio - 2.34% dividend yield, 1.2% capital decrease, Davy Portfolio - 10.31% capital increase. Therefore the return on investments for the Charles Stanley portfolio under-performed expectations, while the portfolio recently established with Davy in 2019, has out-performed expectations. The trustees will continue to compare the performance of each portfolio in 2021 and seek advice on adjustments if necessary. The fixed assets investment return of 3.3% was considered to be a good rate of return in light of the current economic conditions.

THE ORDER OF FRIARS MINOR CONVENTUAL

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Financial review

The results for the year and the charity’s financial position at the end of the year are shown in the attached financial statements.

There is a deficit of £312,511 (2019: deficit £117,041) before investment gains of £142,431 (2019: £249,076) and legacies of £nil (2019: £1,000).

As at 31 December 2020, the charity had reserves of £6,344,812 (2019: £6,575,643). Included within these reserves are £30,140 (2019: £37,413) of restricted funds (see note 23) and £4,524,495 (2019: £4,358,595) of designated funds (see note 24). Included within unrestricted funds are fixed assets totalling £1,510,167 (2019: £2,422,692). These funds can only be realised upon sale of these assets. The charity had a surplus on free reserves of £220,949 as at 31 December 2020 (2019: deficit of £299,890).

Reserves policy

The charity aims to maintain sufficient unrestricted funds (free reserves) to permit it to continue for a three to six month period should income cease which would permit the Trustees to put The Order’s affairs in to a safe situation.

Risk Management

The Trustees are satisfied that systems are in place to mitigate exposure to risks. However, the Trustees continue on an ongoing basis to assess the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity both for Curial operations and for the individual ministries.

Safeguarding of Children and Vulnerable Adults

The Order of Friars Minor Conventual in Great Britain and Ireland is committed to upholding a duty of care towards minors and vulnerable adults and to safeguarding the rights and dignity of all people without prejudice. Furthermore, the Friars will implement the procedures and guidelines established by both Civil and Ecclesial authorities in the respective jurisdictions. They also follow the handbook “Policies for Ministry with Minors and Vulnerable Adults” which has been mandated for all English language jurisdictions of the Conventual Franciscan Order. In the past year, a qualified safeguarding officer, who is not a member of the Order has been employed to assist us.

Plans for future periods

Plans for the future

It is the aim of the charity to continue to undertake the work necessary to train future postulates and novices in the Franciscan way of life in order that The Order of Friars Minor Conventual may continue.

Structure, governance and management

Governance

The charity was established by a charitable trust deed dated 12 October 1966 as amended by the Scheme on the 6 March 1970 and the Scheme on the 28 September 2000.

The Provincial Custody is administered by a governing body, known as the Definitory, consisting of a Provincial Custos, and four other friars, elected by all the members at their quadrennial chapter. Three of the Definitors (or members of the Definitory) are also the trustees of the charity.

The Definitory assigns friars to the various friaries and parishes served by the Franciscans and appoints officers needed for the administration of the whole Province. Each friary has a Guardian, elected at the quadrennial chapter, who has responsibility for the friars in his community. The running of each friary is discussed regularly by the whole community.

As all trustees are members of the Order they have a detailed knowledge of the work of the charity and of its structure.

THE ORDER OF FRIARS MINOR CONVENTUAL

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees who served during the year and up to the date of signature of the financial statements were: Rev C Budău - Chair (Custos) (Resigned 16 August 2023) Rev J Pawley (Resigned 31 July 2021) Rev W Martin - Custos Rev R Doyle - Bursar Rev D Dawidowski (Resigned 16 August 2023) Rev C I Budau (Appointed 16 August 2023) Rev G Hanley (Appointed 16 August 2023) Rev C Edwards (Appointed 16 August 2023)

Brief biographical details on each of the trustees who served during the year is given below:

Reverend Ciprian Budău OFM Conv

Father Ciprian Budău has been a member of the Order since 2001. After his initial formation he has been involved in pastoral ministry in Ireland (Fairview and Wexford). He was the Guardian of the Friary in Wexford and has been a Definitor since 2013. He was elected as the Provincial Custos at the Chapter meetings in September 2017. He resigned as trustee on 16 August 2023.

Reverend Jesmond Pawley OFM Conv

Father Jesmond Pawley has been a member of the Order since 1983. After having completed his initial formation and his philosophic-theological studies he continued to matriculate towards a degree in Canon Law. He presently serves as the Ecclesiastical Judge in the Archdiocese of Southwark and has been a Definitor since 2013, when he was also elected to be the Vicar-Custos of the Jurisdiction. He was re-elected as a Definitor at the Chapter meetings in September 2017. He resigned as trustee on 31 July 2021.

Reverend Wayne Martin OFM Conv

Father Wayne Martin is the Prefect of Formation in Oxford. He was appointed as a Trustee in September 2018and took over as Custos when Father Ciprian Budău resigned.

Reverend Rory Doyle OFM Conv

Father Rory Doyle has been a member of the Order since 2013. After his initial formation he has been involved in pastoral ministry in Fairview (Dublin). He is presently the Guardian of the Friary in London and also the Parish Priest there. He was appointed as Bursar in September 2017.

Reverend Dariusz Dawidowski OFM Conv

Father Dariusz Dawidowski is currently the Guardian of the Friary of St. Clare's in Blackley, Manchester and is also the Parish Priest. He was appointed as a Definitor at the Chapter meetings in September 2017. He resigned as trustee on 16 August 2023.

THE ORDER OF FRIARS MINOR CONVENTUAL

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure and management

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet bi-monthly to review developments with regard to the charity and its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including property consultants, investment managers, solicitors and accountants. The day to day management of the charity’s activities, and the implementation of policies, is delegated to the appropriate members of the Order (Guardians of Friaries or Directors of Apostolates). Several members of the Charity are involved with activities of other Charities and thus report to the governing bodies of those institutions (e.g., Friars ministering in parishes which are associated to Roman Catholic Dioceses).

Financial decisions are overseen by the trustees.

As of 31 December 2020, the Custody of Great Britain and Ireland comprises of 34 Friars in Solemn Profession, 9 of whom reside in the Republic of Ireland, 24 in Britain and 1 in Italy. In addition, there are 2 Temporarily Professed Student-Friars and 1 friar from another community looking to join our Order. Canonically established Friaries can be found in Liverpool, London, Oxford, and two in the Greater Manchester area (Blackley and Barton). In addition Friars work and reside in Walsingham, Rye (East Sussex), and Cambridge. The friaries in Ireland are in Dublin and Wexford.

The Blackley (Manchester), Liverpool, London, and Rye exercise parochial responsibilities in collaboration with the bishops of the dioceses concerned. Barton (Manchester) is the centre of the printing apostolate and shrine church; Oxford is the main formation house, caring for those men in formation, and the two Friars living in Cambridge and Canterbury are involved in the education ministries. The friars in Walsingham help out at the national shrine under the supervision of the rector of the Shrine, who is appointed by the local Bishop.

Each canonically-established community has a local Guardian elected at the quadrennial General Assembly (Custodial Chapter) of the Friars. The local Guardian is responsible for both the needs and the care of the friars in his community according to the mandate received at the quadrennial General Assembly and as moderated by the Provincial Custos and his Definitory (the Trustees).

Working with other organisations

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

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

The trustees meet at regular intervals during the year to consider the management of the charity.

Serious Incident Report

An investigation which began in 2015 into a complaint against a member of the Order led to charges by the Criminal Prosecution Service in 2016 against that individual. This was reported to the Charity Commission and all information that they requested for their file was accurately and promptly provided by the Chair of the Trustees. In September 2018, a court hearing took place and a custodial sentence was handed down to the individual in question. A civil law claim was brought against the Order by the victim in December 2018 and this claim has since been settled in March 2020, without the need for formal legal proceedings.

Since the year end, the charity is in receipt of another claim arising from an historical incident and solicitors are currently handling the case.

THE ORDER OF FRIARS MINOR CONVENTUAL

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees' report was approved by the Board of Trustees.

.............................. Rev W Martin - Custos Trustee 29/4/2024 Date: .............................................

.............................. Rev R Doyle - Bursar Trustee

THE ORDER OF FRIARS MINOR CONVENTUAL

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees are responsible for preparing the Trustees' Report and the financial statements 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 financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 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.

THE ORDER OF FRIARS MINOR CONVENTUAL

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE ORDER OF FRIARS MINOR CONVENTUAL

Opinion

We have audited the financial statements of The Order of Friars Minor Conventual (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements 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 financial statements 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

THE ORDER OF FRIARS MINOR CONVENTUAL

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE ORDER OF FRIARS MINOR CONVENTUAL

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, 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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements 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 financial statements.

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

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

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

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

THE ORDER OF FRIARS MINOR CONVENTUAL

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE ORDER OF FRIARS MINOR CONVENTUAL

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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements 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 UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. 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.

1 May 2024

BWM

.........................

Chartered Accountants Statutory Auditor

Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

BWM is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE ORDER OF FRIARS MINOR CONVENTUAL

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Current financial year

Unrestricted Unrestricted
Restricted Endowment
funds
funds
funds
funds
general
designated
2020
2020
2020
2020
Notes
£
£
£
£
Income and endowments from:
Donations and legacies
3
33,103
27,759
-
-
Charitable activities
4
233,194
-
9,717
-
Investments
5
63,087
83,441
-
2,089
Other income
6
5,334
-
395
-
Total income and
endowments
334,718
111,200
10,112
2,089
Expenditure on:
Raising funds
7
57,168
18,235
-
575
Charitable activities
8
655,624
21,643
17,385
-
Total expenditure
712,792
39,878
17,385
575
Net gains/(losses) on
investments
13
9,654
132,063
-
714
Net (expenditure)/income
(368,420)
203,385
(7,273)
2,228
Other recognised gains and losses
Other gains or losses
14
(25,047)
(35,704)
-
-
Net movement in funds
(393,467)
167,681
(7,273)
2,228
Fund balances at 1
January 2020
2,122,802
4,358,595
37,413
56,833
Fund balances at 31
December 2020
1,729,335
4,526,276
30,140
59,061		 Total
2020
£
60,862
242,911
148,617
5,729
458,119
75,978
694,652
770,630
142,431
(170,080)
(60,751)
(230,831)
6,575,643
6,344,812		 Total
2019
£
63,452
222,957
187,082
49,702
523,193
81,659
558,575
640,234
249,076
132,035
(98,332)
33,703
6,541,940
6,575,643

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE ORDER OF FRIARS MINOR CONVENTUAL

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year
Unrestricted Unrestricted
Restricted Endowment
funds
funds
funds
funds
general
designated
2019
2019
2019
2019
Notes
£
£
£
£
Income and endowments from:
Donations and legacies
3
32,510
30,942
-
-
Charitable activities
4
210,916
-
12,041
-
Investments
5
78,793
105,559
-
2,730
Other income
6
33,162
-
16,540
-
Total income and endowments
355,381
136,501
28,581
2,730
Expenditure on:
Raising funds
7
68,964
12,015
-
680
Charitable activities
8
471,328
67,561
19,686
-
Total expenditure
540,292
79,576
19,686
680
Net gains/(losses) on investments
13
117,813
122,545
-
8,718
Net (expenditure)/income
(67,098)
179,470
8,895
10,768
Other recognised gains and losses
Other gains or losses
14
(41,236)
(57,096)
-
-
Net movement in funds
(108,334)
122,374
8,895
10,768
Fund balances at 1 January 2019
2,231,136
4,236,221
28,518
46,065
Fund balances at 31 December
2019
2,122,802
4,358,595
37,413
56,833		 Total
2019
£
63,452
222,957
187,082
49,702
523,193
81,659
558,575
640,234
249,076
132,035
(98,332)
33,703
6,541,940
6,575,643

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE ORDER OF FRIARS MINOR CONVENTUAL

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
15
Investments
16
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within
one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
20
Net assets
Capital funds
Endowment funds
22
Income funds
Restricted funds
23
Unrestricted funds
Designated funds
24
General unrestricted funds		 2020
£
£
164,114
5,884,468
6,048,582
1,808
455,329
457,137
(35,907)
421,230
6,469,812
(125,000)
6,344,812
59,061
30,140
4,524,495
1,731,116
6,255,611
6,344,812		 2019
£
£
153,835
6,148,237
6,302,072
21,911
416,049
437,960
(164,389)
273,571
6,575,643
-
6,575,643
56,833
37,413
4,358,595
2,122,802
6,481,397
6,575,643		 2019
£
£
153,835
6,148,237
6,302,072
21,911
416,049
437,960
(164,389)
273,571
6,575,643
-
6,575,643
56,833
37,413
4,358,595
2,122,802
6,481,397
6,575,643
6,302,072
273,571
6,575,643
-
6,575,643
56,833
37,413
6,481,397
6,575,643

29/4/2024 The financial statements were approved by the Trustees on ......................... .............................. .............................. Rev W Martin - Custos Rev R Doyle - Bursar Trustee Trustee

THE ORDER OF FRIARS MINOR CONVENTUAL

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash absorbed by operations
29
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Purchase of investments
Proceeds from disposal of investments
Investment income received
Cash reclassified from investment portfolio
Net cash generated from/(used in)
investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
2019
£
£
£
£
(496,178)
(527,982)
(19,362)
(3,237)
-
900
(414,939)
(1,603,028)
263,006
20,075
148,617
187,082
146,836
-
124,158
(1,398,208)
-
-
(372,020)
(1,926,190)
3,093,797
5,019,987
2,721,777
3,093,797

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Order of Friars Minor Conventual is a charity governed by its trust deed dated 12 October 1966 as amended by the Scheme on the 6 March 1970 and the Scheme on the 28 September 2000. The principal office is Greyfriars, 26 Cornwall Road, London, SE1 8TW.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's trust deed, the Charities Act 2011 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 UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Permanent Endowment fund are investments held in perpetuity.

Investment income, gains and losses are allocated to the appropriate fund.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.4 Income

All income is included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Grants are recognised in the statement of financial activities when the conditions for receipt have been complied with.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit 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.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of resources.

Costs of raising funds are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The costs of activities in furtherance of the charity's objects comprise expenditure on the charity's primary charitable purposes. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

All expenditure is inclusive of irrecoverable VAT.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold/leasehold property Not depreciated Fixtures, fittings & equipment 20% per annum straight line Computers 20% per annum straight line Motor vehicles 20% per annum straight line

Freehold land is not depreciated.

The freehold/leasehold property is included at cost. These assets are not being depreciated because the depreciation charge is considered to be immaterial to the accounts because of the length of the useful lives of the assets and their residual values.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Historic assets

Works of art, treasures and plate are not capitalised in these accounts as they are considered historic, have very long lives and are worth preserving indefinitely. The trustees consider that it would be prejudicial to the safe custody of these assets to disclose details of their value and usage in these accounts.

School property

Land and buildings legally owned by the charity and occupied rent free by the Catholic voluntary aided schools, which are separate charities and publicly funded, are valued at nil for the purpose of these accounts. The trustees consider that no meaningful value can be attributed to these assets since they are not used directly by the charity, do not generate any income, and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues.

1.7 Fixed asset investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.14 Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. Recovery is made of tax deducted from income and from receipts under Gift Aid. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There were considered to be no critical accounting estimates or judgements applied in the preparation of these financial statements.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

Unrestricted Unrestricted
funds
funds
general
designated
2020
2020
£
£
Donations and gifts
33,103
27,759
Legacies receivable
-
-
33,103
27,759		 Total
Unrestricted Unrestricted
funds
funds
general
designated
2020
2019
2019
£
£
£
60,862
31,510
30,942
-
1,000
-
60,862
32,510
30,942		 Total
2019
£
62,452
1,000
63,452

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Training of
postulates,
novices and
student friars
Religious and
other
charitable
work
2020
2020
£
£
Performance related
grants
-
39,929
Income from charitable
activities
15,175
187,807
15,175
227,736
Analysis by fund
Unrestricted funds -
general
15,175
218,019
Restricted funds
-
9,717
15,175
227,736		 Total
2020
Training of
postulates,
novices and
student friars
Religious and
other
charitable
work
2019
2019
£
£
£
39,929
-
35,696
202,982
4,120
183,141
242,911
4,120
218,837
233,194
4,120
206,796
9,717
-
12,041
242,911
4,120
218,837		 Total
2019
£
35,696
187,261
222,957
210,916
12,041
222,957

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5 Investments

Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2020
2020
2020
£
£
£
Income from listed investments
62,730
83,275
2,089
Interest receivable
357
166
-
63,087
83,441
2,089		 Total
Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2020
2019
2019
2019
£
£
£
£
148,094
77,290
105,447
2,730
523
1,503
112
-
148,617
78,793
105,559
2,730		 Total
2019
£
185,467
1,615
187,082

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Other income

Unrestricted
Restricted
funds
funds
general
2020
2020
£
£
Net (loss)/gain on
disposal of tangible fixed
assets
-
-
Other income
5,334
395
5,334
395		 Total
Unrestricted
Restricted
funds
funds
general
2020
2019
2019
£
£
£
-
900
-
5,729
32,262
16,540
5,729
33,162
16,540		 Total
2019
£
900
48,802
49,702

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Raising funds

Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2020
2020
2020
£
£
£
Trading costs - magazine
Other trading activities
39,372
-
-
Staff costs
10,024
-
-
Trading costs - magazine
49,396
-
-
Investment management
7,772
18,235
575
57,168
18,235
575		 Total
Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2020
2019
2019
2019
£
£
£
£
39,372
52,233
-
-
10,024
10,005
-
-
49,396
62,238
-
-
26,582
6,726
12,015
680
75,978
68,964
12,015
680		 Total
2019
£
52,233
10,005
62,238
19,421
81,659

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Charitable activities

Training of
postulates,
novices and
student
friars
Religious
and other
charitable
work
2020
2020
£
£
Depreciation and
impairment
-
9,083
Formation
69,664
-
Support of members
80,379
269,466
Missions and donations
94
1,053
Apostolic/Ministerial costs
1,915
10,189
Province travel
-
-
Masses transferred
3,569
13,212
155,621
303,003
Share of support costs (see
note 9)
-
55,216
Share of governance costs
(see note 9)
3,183
177,629
158,804
535,848
Analysis by fund
Unrestricted funds -
general
141,481
514,143
Unrestricted funds -
designated
13,754
7,889
Restricted funds
3,569
13,816
158,804
535,848		 Total
2020
Training of
postulates,
novices and
student
friars
Religious
and other
charitable
work
2019
2019
£
£
£
9,083
-
6,816
69,664
106,918
-
349,845
123,750
233,206
1,147
524
1,392
12,104
4,497
3,118
-
675
-
16,781
10,925
8,125
458,624
247,289
252,657
55,216
12,858
10,765
180,812
4,107
30,899
694,652
264,254
294,321
655,624
190,920
280,408
21,643
62,409
5,152
17,385
10,925
8,761
694,652
264,254
294,321		 Total
2019
£
6,816
106,918
356,956
1,916
7,615
675
19,050
499,946
23,623
35,006
558,575
471,328
67,561
19,686
558,575

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Support costs

Medical insurance (USA)
Province travel
Pension costs (USA)
Audit fees
Accountancy
Legal and professional
Bank charges unrestricted
Bank charges restricted
Bank charges designated
Fines and claims
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
-
3,929
-
51,287
-
-
6,365
-
7,316
-
24,266
-
2,174
-
604
-
87
-
140,000
55,216
180,812
55,216
180,812		 2020
£
-
3,929
51,287
6,365
7,316
24,266
2,174
604
87
140,000
236,028
236,028		 Support
costs
Governance
costs
£
£
12,858
-
10,655
-
110
-
-
6,180
-
9,442
-
15,341
-
3,326
-
636
-
81
-
-
23,623
35,006
23,623
35,006		 2019
Basis of allocation
£
12,858
100% allocated to training of postulates,
novices and student friars
10,655
100% allocated to religious and other charitable
work
110
100% allocated to religious and other charitable
work
6,180
Governance
9,442
Governance
15,341
Governance
3,326
Governance
636
Governance
81
Governance
-
Governance
58,629
58,629

Governance costs includes payments to the auditors of £6,365 for audit fees (2019 - £6,180).

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Auditor's remuneration

The analysis of auditor's remuneration is as follows:

The analysis of auditor's remuneration is as follows:
Fees payable to the charity's auditor for the audit of the charity's annual
accounts
Non-audit services
Accountancy fees		 2020
£
6,365
7,316		 2019
£
6,180
9,442

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

12 Employees

The average monthly number of employees during the year was:

2020 2019
Number Number
Friary workers 1 1
Employment costs 2020 2019
£ £
Wages and salaries 9,781 9,656
Social security costs 137 127
Other pension costs 106 222
10,024 10,005

There were no employees whose annual remuneration was more than £60,000.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13 Net gains/(losses) on investments

Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2020
2020
2020
£
£
£
Revaluation of investments
13,124
74,312
971
Gain/(loss) on sale of investments
(3,470)
57,751
(257)
9,654
132,063
714		 Total Unrestricted Unrestricted Endowment
funds
funds
funds
general
designated
2020
2019
2019
2019
£
£
£
£
88,407
115,086
119,709
8,516
54,024
2,727
2,836
202
142,431
117,813
122,545
8,718		 Total
2019
£
243,311
5,765
249,076

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14
Other gains or losses
Unrestricted Unrestricted
Total
Unrestricted
Unrestricted
funds
funds
funds
funds
general
designated
general
designated
2020
2020
2020
2019
2019
£
£
£
£
£
Foreign exchange losses
/ (gains)
25,047
35,704
60,751
41,236
57,096
15
Tangible fixed assets
Freehold/lease
hold property
Fixtures,
fittings &
equipment
Computers Motor vehicles
£
£
£
£
Cost
At 1 January 2020
141,292
16,445
7,798
36,233
Additions
-
-
-
19,362
At 31 December 2020
141,292
16,445
7,798
55,595
Depreciation and impairment
At 1 January 2020
-
13,518
4,188
30,226
Depreciation charged in the year
-
1,220
988
6,876
At 31 December 2020
-
14,738
5,176
37,102
Carrying amount
At 31 December 2020
141,292
1,707
2,622
18,493
At 31 December 2019
141,292
2,927
3,609
6,007		 Total
2019
£
98,332
Total
£
201,768
19,362
221,130
47,932
9,084
57,016
164,114
153,835

The freehold/leasehold property is included at cost. These assets are not being depreciated because the depreciation charge is considered to be immaterial to the accounts because of the length of the useful lives of the assets and their residual values.

There are properties on two sites which are owned by the charity but are not included in the accounts as there is no cost attaching to them, and the trustees consider that the costs of their valuation exceed the benefit of the information as both are used for the ongoing purposes of the charity.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16 Fixed asset investments

Listed
investments
Legacy Fund
(USA)
Restricted
Education
Fund (USA)
£
£
£
Cost or valuation
At 1 January 2020
3,470,489
1,039,232
1,463,713
Additions
414,939
-
-
Valuation changes
88,409
-
-
Net movement in cash
(146,836)
(174,110)
(156,122)
Disposals
(208,981)
-
-
At 31 December 2020
3,618,020
865,122
1,307,591
Carrying amount
At 31 December 2020
3,618,020
865,122
1,307,591
At 31 December 2019
3,470,489
1,039,232
1,463,713
17
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at fair value
Carrying amount of financial liabilities
Measured at amortised cost
18
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
19
Creditors: amounts falling due within one year
Other creditors
Accruals		 Cash in
portfolio
£
174,803
-
-
(81,068)
-
93,735
93,735
174,803
2020
£
2,723,585
3,618,020
160,907
2020
£
1,808
-
1,808
2020
£
7,192
28,715
35,907		 Total
£
6,148,237
414,939
88,409
(558,136)
(208,981)
5,884,468
5,884,468
6,148,237
2019
£
3,095,822
3,470,489
164,389
2019
£
2,025
19,886
21,911
2019
£
132,592
31,797
164,389

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
2020 2019
£ £
Other creditors 125,000 -

21 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £106 (2019 - £222). In addition to this there were pension costs paid on behalf of the friars from the USA totalling £51,287 (2019 - £110).

There were no outstanding amounts due for repayment as at 31 December 2020 (2019: £nil).

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22 Endowment funds

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity. Any capital gains or losses arising on the assets form part of the fund.

Balance at
1 January 2019
£
Permanent endowments
The Richard Blundell Education Fund
46,065
46,065		 Movement in funds
Income
Expenditure
Net gains/
(losses)
Balance at
1 January 2020
£
£
£
£
2,730
(680)
8,718
56,833
2,730
(680)
8,718
56,833		 Movement in funds
Income
Expenditure
Net gains/
(losses)
Balance at
31 December
2020
£
£
£
£
2,089
(575)
714
59,061
2,089
(575)
714
59,061		 Movement in funds
Income
Expenditure
Net gains/
(losses)
Balance at
31 December
2020
£
£
£
£
2,089
(575)
714
59,061
2,089
(575)
714
59,061
59,061

The Richard Blundell Education Fund

This endowment fund has been set up to support the charity's students. Only the annual earnings on the principal will be used. The principal amounts to £30,000 (2019 - £30,000).

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

23 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Income Expenditure Balance at Income Expenditure Balance at
1 January 2019 1 January 2020 31 December
2020
£ £ £ £ £ £ £
Mass Fund 28,518 28,581 (19,686) 37,413 10,112 (17,385) 30,140

The Mass Fund

Mass offerings represent donations made to the charity for the purpose of Mass being said for the intention. On the Mass being said, the donations are released to general funds.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

24 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2019
£
Sick Club Fund
43,203
Education Fund
1,939,938
Missions fund
3,080
Educational buildings fund
2,250,000
4,236,221		 Movement in funds
Income
Expenditure
Net gains/
(losses)
£
£
£
2,636
(5,152)
-
82,481
(62,410)
-
-
-
-
51,384
(12,014)
122,545
136,501
(79,576)
122,545		 Foreign
exchange
movement
Balance at
1 January 2020
£
£
-
40,687
(57,096)
1,902,913
-
3,080
-
2,411,915
(57,096)
4,358,595		 Movement in funds
Income
Expenditure
Foreign
exchange
movement
Balance at
31 December
2020
£
£
£
£
1,461
(87)
-
42,061
74,974
(57,259)
-
1,920,628
-
-
-
3,080
29,374
(18,235)
135,672
2,558,726
105,809
(75,581)
135,672
4,524,495		 Movement in funds
Income
Expenditure
Foreign
exchange
movement
Balance at
31 December
2020
£
£
£
£
1,461
(87)
-
42,061
74,974
(57,259)
-
1,920,628
-
-
-
3,080
29,374
(18,235)
135,672
2,558,726
105,809
(75,581)
135,672
4,524,495
4,524,495

The Sick Club Fund

The purpose of this fund is to ensure that the Order has sufficient resources to care for its elderly and sick Friars.

Education Fund

One of the principal objects of the charity is the training of new postulates, novices and student-friars so that they might better advance the religious and charitable works of the Order. With the rising costs of education and formation, the Trustees established an Education Fund, restricting the principal so that only the interest (dividends) of the investments may be used. This fund began in Ireland where the Friars also minister; given that the majority of Formation Expenses occur in the UK and given the interest rate in Ireland is very low, the Trustees of the Irish Charity of the Friars transferred the initial principal to a US account for better interest, and transferred, as a donation, all of the funds under the auspices of the UK Charity.

Missions Fund

The Missions Fund is money collected for the foreign missions that The Order are involved in. This is transferred to Rome when the funds are considered large enough to send.

Educational buildings fund

The money received from the closure and sale of the Franciscan International Study Centre has been set aside for the use of formation housing when the decision to purchase another building is made.

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

25
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
Endowment
funds
2020
2020
2020
2020
£
£
£
£
Fund balances at 31
December 2020 are
represented by:
Tangible assets
164,114
-
-
-
Investments
1,346,053
4,479,354
-
59,061
Current assets/(liabilities)
345,949
45,141
30,140
-
Long term liabilities
(125,000)
-
-
-
1,731,116
4,524,495
30,140
59,061		 Total Unrestricted
funds
Designated
funds
Restricted
funds
Endowment
funds
2020
2019
2019
2019
2019
£
£
£
£
£
164,114
153,835
-
-
-
5,884,468
2,268,857
3,822,547
-
56,833
421,230
(299,890)
536,048
37,413
-
(125,000)
-
-
-
-
6,344,812
2,122,802
4,358,595
37,413
56,833		 Total
2019
£
153,835
6,148,237
273,571
-
6,575,643

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

26 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2020
£
60,000
210,000
270,000		 2019
£
30,000
-
30,000

27 Events after the reporting date

The Order of Friars Minor Conventual is in receipt of a claim arising from an historical incident and solicitors are currently handling the case.

28 Related party transactions

Included within investments is £2,172,713 (2019: £2,502,944) held within a larger investment portfolio by Our Lady of the Angels Province in the USA on behalf of the Order. Our Lady of the Angels Province is part of the worldwide men's religious Order of the Friars of Minor Conventuals or commonly referred to as Franciscan Friars, of which The Order of Friars Minor Conventual is a custody of.

During the year the Order received £83,196 (2019: £92,298) which relates to their share of the investment income received on the whole portfolio held by Our Lady of the Angels Province. They also received £26,323 (2019: £28,306) as donations into the account held by Our Lady of the Angels Province and expenses totalling £64,931 (2019: £62,249) were paid on their behalf. The foreign exchange losses on these funds totalled £55,602 (2019: losses £98,332).

29 Cash generated from operations
Cash generated from operations 2020 2019
£ £
(Deficit)/surplus for the year (170,080) 132,035
Adjustments for:
Investment income recognised in statement of financial activities (148,617) (187,082)
Foreign exchange differences (60,751) (98,332)
Gain on disposal of tangible fixed assets - (900)
Gain on disposal of investments (54,024) (5,765)
Fair value gains and losses on investments (88,407) (243,311)
Depreciation and impairment of tangible fixed assets 9,083 6,816
Movements in working capital:
Decrease/(increase) in debtors 20,100 (12,482)
(Decrease) in creditors (3,482) (118,961)
Cash absorbed by operations (496,178) (527,982)

THE ORDER OF FRIARS MINOR CONVENTUAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

30 Analysis of cash and cash equivalents

Cash at bank and in hand
Cash held within investment portfolio
Total cash and cash equivalents		 2020
£
455,329
2,266,448
2,721,777		 2019
£
416,049
2,677,748
3,093,797