Charlty Reglstration Mo. 249881 THE ORDER OF FRIARS MINOR CONVENTUAL ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 THE GREYFRIAIIS C•pr4J THE ORDER OF FRIARS MINOR CONVENTUAL LEGALAND ADMINISTRATIVE INFORMATION Tru¥ts•* Rev W Mar*'n- Custos Rev R Doyle- Bursar Rev G Hanley Rev C Edwards (Appointed 16 August 20231 IAppotnt8d 16 August 20231 Dgllnltor¥ Rev C Edward5 Rev G Hanley (Appointed 19 January 20221 Charfty numb•r 249881 Prlneipal addr9$8 Greyfriats St Patrid('s Friary 26 Comwall Road London SE1 8TVV Audltor Mitchell char￿sworth IAuditl Limited Suites C,D,E & F 14th Flooi, The Plaza Liverpool L3 90J Bankers National Weslrninster Bank Pk P.0. Box 7929 91 Wtr51minstèr Bridge Road SE17ZB Soll¢itorg Pothecary Wtharn IAbid 70 St G8orge's Square London SW1V 3RD Inve$tment •dvisorn Charles Stanley & Company Lirnited 55 Bishopsgale London EC2N 3AS Davy Global Fund Managem8nl Limited Dashwood House London EC2M 1QS THE ORDER OF FRIARS MINOR CONVENTUAL CONTENTS Page Trustees, reptsrt Stat8ment of trustees, responsibililies Independent audito¢s report 8-10 Sta￿frnt of fi'nancial acts'vities Balance sheet 13 Statement of cash flows 14 Notes to the finanrial statements 15-37 THE ORDER OF FRIARS MINOR CONVENTUAL TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The trusts8s prgsent their annual report and financial statem8nts for tr￿ ygar ended 31 De￿Mtser 2022. The financial 5tat8mants ha￿ been prèpared In accor(lance wth thè accounJng policies stt out in note 1 to the financial statements and comply with th8 charity's goveming document. the Chariti85 Act 2011 and "Accounting and Reporting by Charpties. Staternent of RecommendeLY Practi￿ applicable to charits'es praparing their a¢counts in accordan￿ with the Financial Reporttng Standard applicable in the UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. Introductlon The Order of Friars Minor was founded by St Francis of A5S15i in 1209 It has maintsined rts essential character through Ihe ¢enturie5. Friars liv8 in cornmunities. observing t1￿ Gospèl of Our Lord Jesus Christ. under vows ol poverty, tslibate chaslity and obedience. in accordan￿ with the 'Rule of 1223. written by the Founder. The Minister General's headouatlers are in Rome where he Is 85SlStecl by a General D&finrtory lor Council). goveming the Order Workywide The Order is dM(Jed into provinces and custodies of which the Provincial Custody of G¥eat Britain and Irgland I"English Provinc8°1 is one. The Provincial Cuslo(ty of Great Britsin and Ireland Is known as The Order of Friars Minor ConventU81 under the patronage of Blessed Agnellus of Pisa. (Ordinis Fr&trum Minofuffl Conventualium, 8eati Agnelli a Asis). In public documents the Prowncial Cu5tL¥Jy is known by the tille Or¢Jer of Friars Minor Conventual IOFM Conv l. ObJactive8 and o¢tJvlties The prinapl8 object of Ihe chanty is concerned with the training ol postul8ks, novices and student fn'ars of The Order of Friars Minor Conventual and the advancem6nt of the rdigious and other chantab￿ works camed out by or under the directw of The Ordèi. All ol its 8ctiwties are charrtable and in accordan￿ with the Trust DeeLY. There been no changes in thg objectives sineè the last annual reporL In setting objectiV8s and planning for activth"ès. the Trustees have given due consideration to general guidancè pub115hed by the Charity Cornmission relab.ng to public benefit and in particular to it5 supplementary public bentsfft guidan￿ on the advantement of religion. The rnajority of the Fwiars are working in panshes that are part of other charitses and so achievo ts public b8n8fft requirement inclirectly. The trustees have paid du8 regard to gtwdancè issued by the Chanty Commissign in ￿¢Jding what aCtiv￿e$ thè charity should undgrtak6. THE ORDER OF FRIARS MINOR CONVENTUAL TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2022 A¢hlevèments and performance lal The prnviou8*•ar Goals for2022 Evaluation of 2022 o care for rnembers of the OrdBr enabling them t continue to promde servic8 to the public fo¥ 8$ long a hey arg able in all the areas listod above. Ongoing. the age profile of the community Increas8s so t es the need to provKJ8 increasing and incteasingl xwnsive car8 for the sick and elderly Fnars. Furthe inveslment in this a￿a 15 requirod to me&t future needs. chiaved . he locatH)n of our Prograrnme has been established xtord aThJ a five year lease has been agreed upon with he owners of the property that W8 are currently ￿￿tIng he lease ex ires In 2025 ngoing. consutstion with various professional servicos nae¢Ys ave bè8n aS￿rtaIned. An urgent n*ed to have a mo imely subrnission of finana81 report5 has been identified. o this end a layper50n has bBen hired iecently120241 elp the Buisar with the day to day runniry of the ustody o stabilise the Fomiats'on Prograrnme and its location o evaluate th& financial operation5, reior¢J-keeping nd physical structu￿$ of the d)arity. standardising e pro￿sseS of evaluation. preservation an aintenanc•. o re-evaluate the fund_raising activltvas ol th8 charity. ehieved and OngThng. e Trustoes have engaged professional assistance and invested In various fvnds antj equIt￿S, cieating ltsw ris ortfo1105. These Investmènts Secu￿ an annual retur hich contributè to the runnin Costs of the Cuslcd chi8ved and Ongoing. strong academic piogram has been Secu￿ in Oxfor s well a5 seeking out programs of higher leaming, i 6. ollaboration with Durham University. A student friar from broad is also ojrrentl stud at Oxford. onb'nue to $8ek out educational opportunities and rograms that will best prepare m8rnbers to offe updated Servi￿ in the various areas in which th harity 1$ involved (bl Th• newtour-yeai and lon9-tgrrn plan At the ordinary Custodial Chapter of 2017 the Friars reviewed the state ol thè ministri65 and life of the Friars was discussed, èxamining the past 8n¢J looking fotward for thè next fiv9 years. A 5-yeai Fd8n was drawn up wth the friars intending to place a grtrater emphasis on." Fratem31 Life 2. Fomiation of the Friars 3. MITTriStries 4 Finances 5. Ministry Advancement This plan ha5 been supersed8d by a nèw revtsed 4year 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 Charitps R8gulatory Authorty. The pian will ovaluated rnid-terrn as requ9Sted. Th8 text of the plan 15 as folknws. At the foundation ol Franryscan spirrtuality is tho dassical Thr8efoPJ Way of purgation, illuminsthon. and unity. Our Seraphic Father. Saiftt Francis. wrote ol following in thè foo¢srints of Jesus Christ thiough being 'inwaidly Cleansed interiorty enlightened, and enflamed by the fire ol the Holy Spirit" Together as one brot￿rhoOd. we, the members of the Provincial Cu8tody of Blessed Agnellus of Pisa, will pursue this thrèefold Francis¢an spiritual way throughout the course ol th15 quadrennium. Togethor, we will 80rt, Vl8ion, and bulld the common elements ol our li￿". oryanlzatlonal. $plrltual, and fratem#l The elements contained within this Four-year Plan ar@ presonted as each L)oing part of a set of ¢oTTruet& 518PS toward becominy a Provin￿. THE ORDER OF FRIARS MINOR CONVENTUAL TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2022 SORT ORGANIZATIONAL Establish roulwte polides, procedures, and protocols focusing on matlers ol, finances, communication, and Saf￿uard1Tr9. VISION ORGANIZATIONAL Thè Custos. 8nd his Defmilory. wlll make regular fratèmal. V￿h5 to heal the frfars BUILD ORGANIZATIONAL Through a $lrategic ¥eview ol human. financial. and mlnislèttal resources, lakè concrete sleps toward becoming a province SPIRITUAL Galhei for monthly Frlary Chaptei, including a wel planned S￿161￿al portlon. SPIRITUAL Plan comrTh)ri Ketrèals and regional Days of Recolleclion. SPIRITUAL Commil to each lrfary devewng and Obse￿ing, a seven4ay horariLrm FRATERNAL Foster a posilive Felationsh wlth the mother provlTrce. FRATERNAL Ce￿brate l￿-annUal Fegion gath￿ing5, with a maior celebralion on the 10th Sept. 2024 FRATERNAL Creatè coordinated slrategies fw". vocation promotion. mentorship In ministry, and conlfnuwsg fomiation. Thè ongolng Impact of thè Covld pandemic on tho eharlty The pandefflic has had a 5vJnificant ifflpact on the running ot the charity over th8 past number of years which was sts"Il being fplt in 2022 Our chanty has experienced a significant redvctson In the colle¢b"ons tsken up at our churches. in somè instances by as much as a 50¥0. Many of the volunteers who used to work in our parishes have also stopped coming resulting In an In¢￿ased work load for the friars. Some of these volunlee¥s used to help our eldedy triars wrth the finances The result has been a delay in the compiling and the submission of some of the fnary finanual reports. Due to restrictions in travel the bursar was unab18 to visit all the fnaries during the year which a150 contributed to this delay. Our Investment porttolio has been adversely effected wth the laige sell off In stock5 which o(xurred at the start ol the pandemic. The 5todi market bounr£d bad( in 2021 bul continued to decrease again for rnuch of 2022. The inflat￿n tngged by the financial policios pursuèd during the pandernic sts"Il effects the Cost of Imng for the fn.ats wth very high utility bi115 being of partscular ¢one6rn. Investment p•rforn)aneo The Trustees have considered Ihe most appropriate policy for inv8sb.rg funds and hav8 found that spocialised fixed asset investments and equities best meet their r6yuiremant to gènerate both income an(J capita19rowth. Th6 rates ol ￿tUrn on our various investments for 2022 were as follows. Fixed assets - 3.04/0. Chados Stsnley Portfolro . 3% dividend yield. 11.7% capital dec￿#se. Davy Portrolio 10,10kn capital decrease. Therefor& the retuin on Inve5tment5 for the Charfes Stsnley wrtrolio und8r-pertonMed expectstions, while portfolio established with Davy In 2019, ha$ also un¢Jer-P8rfonned expectations. The trustèes will continue to ¢ompar8 the performance ol each portfolio in 2023 and seèk advice on adjustments Il ne￿Ssary. The fixed ass8ts investment ￿lu{￿ of 3.0% was considered to be a reasonable rats of r￿rn Ipaht of the curront economic condits"ons. Flnan¢lal roview The results for the yea¥ and th8 charity's finanaal posthn at the end of the year a￿ St￿￿n in Ihe attached financ4al statements. There is a defiut of £111,776 12021. deficit £295.8181 b8fore investsllent 10959s of £444.954 12021. investm&nt gains £394.77918nd legacies of £8.64812021'. £233.9311. As at 31 December 2022, the charity had reserv65 01 £6,423,628 12021.. £6.701,9241. Inclu¢Jed within these reserves are £51.888 12021.. £30,683) of ie5tncted funds (see note 231 and £4.856.645 12021". £4,905.7631 Df designatecl funds Iseo note 241. Indtsded within unr8stricted funds are fixed assets lotalling £1.415.989 12021.. £1,660,6691. These fvnds can only be realis8d up)n sale of these assets. The chanty had a surplus on free r88erve5 of£38.258 as at 31 De￿mber 202212￿1." sU￿lUS of £s￿.6351. THE ORDER OF FRIARS MINOR CONVENTUAL TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Res•r¥￿ poll¢y The charity aims lo maintain sufficient unrestricted funds (tree res•rve51 to permit it to continue for a three to six month period should incorne ￿ase which would permit Ihe Trust6e5 to put The Order's affairs in to a safe srtuats"on, however this is not cutrenly being achieved. Rl$k Managoment rh8 Trustees ar8 Sa￿'sfied that systems are in pla￿ to mitigate exposu￿ to risks. How*v8r. th8 TnJstees conty'nue on 8n ongoing basis to a5ses5 the rnajor risks to which the charty is exposed. In particular those related to the operations and finances of the charity both for Curial operab'ons and for ihe indiviolual ministri?s, Safeguarding of Chlldr•n and Vuln•rabl8 Adults The Order of Friars Minor Conventual in Great Britain and I￿land is cornrnitted to upholding a duty of ear8 towards rninors and vulnerable adults and to safè%uarding tho rights and dignty of all peO￿e wthout prejudic8. Furthermor6, the Friars will imp16m8nl the procedures and guidelines estab115hed by both Civil and Ecclesial authorit￿$ in the spèctive jurisdictions They also fdlow the handbook "PolicJ8s for Ministry wilh Min0￿ and Vulner8ble Adults" which has been mandated lor all English language iunsdictions of the Conv8ntual Franuscan Order. In thè pa3t year. a quallfiéd safeguarding officEr. who is not a m•mb8r of Ihe Order has been employed to assist us. Plan$ lor luturg p¥rlod8 It is the aim of thè tharity to co￿nUe to undèrtake the wortf necessary to tiain luture posbjlates and novi￿9 in the Franciscan way of life in order Ihat Th• Order of Friars Minor Conventual may contr'nue. Stru¢￿1•, govemance and management Gov8rnanc¢ Th8 tharity was 8Stabli$hed by a charitable trust deed dated 12 October 19e6 85 amended by lh8 Scheme on tha 6 March 1970 and the Scheme on the 28 September 2000. Tha Prowncial Custody is administèrèd ty a gtsveming body. known as the D8finitory. consisfjThJ of a Prownoal Custos. and four other triars, elected by all the rnernb&rs at th8ir qua(Irennial thapter. Th￿e of the Definitor5 lor members ol th8 Definiloryl are also the trustse5 of charity. The Definrtory asstgns friars to the vanous friaries aThJ parishes served by the Frano5cans and appoints officers needed lor the administration of the whole Provin￿. Each friary has a Guardian, electsd at the quadi8nnial chaptef. who has responsibility for the lriars in his community. The running of aach fnary is discusseoj ￿guladY by the w￿)1• community. As all trustees are mernbers ol thg Order thay have a detailed knowledge of the WO￿ of the charty and of it5 5tructur&. The trustees who served during the year and up to the date of $ignatur8 of the financial statements wera". R8v C Bltdau - Chair Icustosl IResigned 16August 20231 Rev W Martin- Custos Rev R Doyl8- Bursar Rev D Dawidowski Rev C l Budau Rev G Hanley Rev C Edwards (Resigned 16August 20231 (Appointed 16August 2023 and r8signeLJ 14 October 20241 (Appointed 16 August 20231 (Appointed 16 August 20231 THE ORDER OF FRIARS MINOR CONVENTUAL TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Brief biographical detaiLs on each of the trustsès who served dunry year is given below.. Rovgr&nd Clpdan Budau OFM Conv Fathei Cipnan 8udau ha5 been a rnember of the Ordèr Sin￿ 2001. After his initial forrnation he has been involved in pastoral ministry In Ireland (Fairview and Wexfor¢l. H$ was the Guarclian of the Friary in Wexford an)5t, U￿ng the effective interest rate method. Trade creditors are obligth.ons to pay for goods or seNices that have b8en acquire(l in the ordinary cours& of operations from suppliers. Amounts payab￿ are dassilied as current liabilfb"e5 if payrnent is due wrthin one yèar or less. If not, they are p￿s￿nted as non-current liabilities. Trade creditors are recognised Initially at transactvjn pn￿ and stsbsequenvy measured at arnorbse(I cost using the elleCt￿ interest mathod. D•r•cognthon of Ilnan¢lal li4bllftffes Financial liabilities a￿ derecognised when tho charitys contractual obligabons expire or arè discharged or cance118d. 1.11 Provlslon8 Provisions are reeognisÈd when the chanty has 8 legal or constructive present obligation as a result of 8 past event, It is probable that the eharity will be ￿qUired to settle that cèligation and a reliable estirnate Ggn b& made of the amount of the oblig8ty'0n. The amount recogni5ed as a provision 1$ the best estimate of the consKler8tion required to settkd the present obligation al the reporting end dat8. taking into account the risks and Un￿rtainti9$ stsrrounding the obligatson here Ihe 8ffect of the lirne value of rnoney is mattsrial, the amount expecbJ to be required to Settle the obligab.on Is recognised at present value. ￿￿n a provision is measured at present value, the unwinding or the discount is rècognised as a fin8ft￿ cost in net incomell•xpenditur61 in the period in which it an5e5. 1.12 Employee b•nefils The cost ol any unused holiday entiuement Is reCOgn￿ed in the perH)d in which the employee's services are re￿iVed. Temiination bènofits aig reo)gnised Imrnedialety as an èxpense when th• th8rity is demonstrably eomrniited to terrninat8 the employment of an èmployee or to provide terminat'Dn b8nefits. THE ORDER OF FRIARS MINOR CONVENTUAL NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEAIBER 2022 Aceounling poliele8 (Cgntlnu8dl 1.13 Rgurgrngnt bgn¢llts Paytnent5 to d8fin8d contribution retir8rnent benefit schernes are charged a5 an expen88 as they fall du8. 1.14 Foreign exchange Monetary assets and liabilrties denorninated in foreign currenrie5 a￿ translated into slerting at rale5 of exchange ruling at the balan￿ sheet date. Transactions in forei9n currenciès afe translatsd into stèrling at thè ratè rullng on the date of the transacts'on. Exchange gains and losses are recognised in the Statsment of Financial Acb'vitkqs. 1.15 Taxation The charity benefits from various exemth.ons from taxatson afforded by tsx legislab.cffi and is not liable to corporats'on lax on incorne or gains falling within those exempts"ons. Recovery Is made ol tax deducle¢J from In￿Me and from re￿iptS under Gift Aid. The chanty is not able to ￿¢0Ver Value Added Tax. Expenditure is r8corded in thts accounts inclusive of VAT. Crilical accounting estimate• and jud9ements In the applicatfon ol the charity's accounting policies, the trustees are required to make judgements. estimateg and as5umptlOn5 about the carrying arnount of a5S8ts and liabilities that are not ￿8￿llY apparent fvorn other sources. Thè estitnate5 and associated a55urnpts"on8 are based on historical expe￿n￿ and other factors that are considered to be relevant. Actual resulis may differ frorn Ihe5e estirnates. The e8timates and underlyiro assumpty'ons are revwd on an or*Joing basis. Revisions to aceounting esbmaies are recognised in the ￿rI1)I in which the estimale is revised where the revision affects only that period, or in the period of the revision and fvlu￿ pericmys where the rev15ion affects both curr8nt and futut periods. There were considered to be nts cnts"c81 accounting ests"mates or judgements ap￿led In the preparatr'on of financial stotgments. 19. Zl rw THE ORDER OF FRIARS MINOR CONVENTUAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2022 Charitabl• *ctlvlUe# Trainin9 01 R•llgk*u8an poBtulJtes. O¢hèr ovleos at)d ¢harttabl• 6tuden¢lilarB 2Q22 Total 2022 Tiairilnp of Religlou$ and po$tulates, other novicos and chawithble studeTrt I￿a work 2021 2021 Toial 2921 2022 Perfomiance related grants Income Irom charitabl& activib8S 37,884 37,864 141,073 141.073 g.650 158,211 167,861 13.615 179,308 192,923 9,650 196,075 205,725 13.615 320,381 333,996 Analysi8 by un￿StrICted funds. general Restricted funds 6.000 3,650 172.924 23,151 178.924 26,801 307.757 12.624 316.757 17,239 4,615 9,650 196,075 205.725 13,615 320.381 333,996 -21 z¥ THE ORDER OF FRIARS MINOR CONVENTUAL NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Oth•r Incom8 Unr•¥trlctsd Unresthcted fvnds funds general general 2022 2021 Net Ilos$Vg8in on disposal of tangible fixed as58ts other income 250 29.712 1.350 55,082 29.962 56,432 -23- 5 ￿ 7> P THE ORDER OF FRIARS MINOR CONVENTUAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Charltablè activlti Tralning of R￿IgIouS postulates. and other novl¢es and charltab S￿dent V￿rk frlar8 2022 Total Tralnlng of Rollglou$ 2022 po$tulates. ond other novrce8 and charitsble Student work friars 2021 Total 2021 2022 2021 Depreaabon and irnpairment Fomiab'on Support of marnbers Missions and donations Aposloliclministèrial costs Masses transferred 6,401 6.401 63,705 361,892 5.207 23,318 23,135 9,444 9.444 69.831 474.184 1,646 2,911 16,1 83.705 89,759 2,896 775 7.395 69,837 101.912 272, 133 2.311 22.543 15.740 372,272 1,646 2.126 13,186 78S 2,970 164.530 319,128 483,658 175,504 398.674 574.178 Share of s¢Jpport cL)sts Isee note 91 Share ofgovemance costs (see note gi 8.784 8.784 1.527 1,527 4.183 56.310 60,493 3.669 263,087 266,756 168.713 384.222 552.935 179.173 663.288 842.461 Analysls by fund Unrestricted funds- 98neral Unrestncted fvnd8- designated Rastricted fun¢s 161.318 345.310 506.628 176.203 649.449 825,652 35,796 3.116 35.796 10.511 7.395 113 13,728 113 16,6 2,970 168,713 384.222 552,935 179.173 663.288 842,461 -25- 888888 C C E E C c c o o o o o o (J ¢9 ty 2 i ii£p I Oa> ij > ry¢Do ryotr 2>2 0 05 C vo Lnro00 ¢D O élpw co(00 )￿0 IlE- O (Dtl)O )(0 ￿J0 THE ORDER OF FRIARS MINOR CONVENTUAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 26 Op•rallng l•a8• cornmltments At the 16porting end (Jate the charity had outstanding commitrrents for future minimum16ase payments under non