2021-03-31-accounts

The Focolare Trust

Annual Report and Financial Statements

31 March 2021

Charity Registration Number (England & Wales) 279072 Charity Registration Number (Scotland) SC039844

Contents

Reports
Reference and administrative information	1
Trustees’ report	3
Independent auditor’s report	26
Financial statements
Statement of financial activities	31
Balance sheet	32
Statement of cash flows	33
Principal accounting policies	34
Notes to the financial statements	39

The Focolare Trust

Reference and administrative information

Trustees	Marie Christine Fournier
	Paola Grazia
	Claudia Melis
	Elizabeth Taite
	Patricia Whitney
	The trustees are incorporated under the
	Charities Act 2011
Administrative address	67 Church Road
	Roby
	Liverpool
	L36 9TN
Charity registration numbers	279072 (England & Wales)
	SC039844 (Scotland)
Auditor	Buzzacott LLP
	130 Wood Street
	London
	EC2V 6DL
Bankers	Barclays Bank plc
	7 St John’s Hill
	Clapham Junction
	London
	SW11 1TR
	National Westminster Bank plc
	145 Clapham High Street
	London
	SW4 7SZ
	Santander UK plc
	3rdFloor Santander House
	100 Ludgate Hill
	London
	EC4M 7RE

The Focolare Trust 1

Reference and administrative information

Bankers (continued) Shawbrook Bank Lutea House, Warley Business Park The Drive Great Warley Brentwood CM13 3BE Solicitors Carter Lemon Camerons LLP 10 Aldersgate Street London EC1A 4HJ HRJ Foreman Laws 10 Parkway Welwyn Garden City AL8 6HG

The Focolare Trust 2

Trustees’ report 31 March 2021

The trustees present their report together with the financial statements of the Focolare Trust for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out on pages 34 to 38 of the attached financial statements and comply with the charity’s trust deed, applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) 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), effective from accounting periods commencing 1 January 2015 or later.

Governance, structure and management

The Focolare Movement is an international organisation which began in Italy in 1943 and is active in all five continents. It is an ecclesial movement and its specific aim is to contribute to establishing unity in all areas and spheres of life, working to fulfil the words of the Gospel, “May they all be one” (Jn 17:21).

The Focolare’s International Headquarters and General Council are in Rome. The movement is divided into a number of individual ‘zones’ (geographical areas) which are closely linked to the international centre. Since 2015, the Focolare Movement in Britain is part of the ‘zone’ of Western Europe which has its area headquarters in Brussels.

The accounts accompanying this report are the accounts of the charitable trust on which the assets of the women’s section of the Focolare Movement in Britain are held. The Focolare Trust is governed by a trust deed dated 11 October 1979 and is registered with the Charity Commission, Charity Registration No 279072 and with OSCR No SC039844.

Governance

In Britain, the Women’s Section of the Focolare Movement is made up of 25 members who live in community and who are at the heart of a much wider movement made up of about 1,000 close members and approximately 11,000 who are more loosely associated.

The Trustees are responsible for the charity’s assets, its development plans and activities. They collaborate with the ‘Core Group’, an advisory body of 23 people drawn from a wide range of Focolare membership, meeting regularly every month.

The Trustees are also in regular communication regarding specific issues with those responsible for the houses and the key activities of the Movement with whom they meet regularly.

The Focolare Trust 3

Trustees’ report 31 March 2021

Governance, structure and management (continued)

Trustees

Under the terms of the trust deed, new trustees are appointed by the existing trustees. The minimum and maximum number of trustees is three and six respectively, and the following were in office during the year:

Trustees Marie Christine Fournier Paola Grazia Claudia Melis Appointed 5 November 2021 Elizabeth Taite Patricia Whitney Elisa Zuin Resigned September 2020

The trustees oversee all the developments of the Focolare in this country and its links with the Movement internationally. They also keep up to date with changes in trustees’ responsibilities and charity law. They attend courses which are relevant to their role, and always seek professional advice when necessary.

Elisa Zuin resigned from her role as Trustee in September 2020, as she was asked to move to the International Centre in Rome.

Key management personnel

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

All trustees are members of the Movement; their living and personal expenses are borne by the charity but they receive no remuneration or reimbursement of expenses in connection with their duties as trustees.

Statement of trustees’ responsibilities

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 and in Scotland 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 income and expenditure of the charity for that period.

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

• ♦ select suitable accounting policies and then apply them consistently;

The Focolare Trust 4

Trustees’ report 31 March 2021

Governance, structure and management (continued)

Statement of trustees’ responsibilities (continued)

• ♦ observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102);

• ♦ make judgments 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 financial statements; and

• ♦ prepare the financial statements 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 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, applicable Charity (Accounts and Reports) Regulations, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity’s trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Working with other organisations

The Focolare Trust works together with Mariapolis Limited, a charity administered by the men’s section of the Focolare Movement. One or more residential meetings are jointly organized each year and there is ongoing collaboration in the organisation of youth projects both nationally and internationally.

The Focolare Trust and Mariapolis Limited work together for the ‘New City’ publishing house, the production of our monthly magazine, supporting the Focolare Centre for Unity, as well as planning all the activities of the Movement in this country.

The Focolare Trust 5

Trustees’ report 31 March 2021

Governance, structure and management (continued)

Covid-19 impact

The Covid-19 pandemic has been certainly the main area of concern for the Focolare Movement. It has, and will continue to have, an impact on the charity’s activities, especially on the activities of the Centre for Unity. Despite this impact, the financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Financial Impact

The charity finances have been affected by the pandemic especially in relation to the Centre for Unity’s activities (see the Risk Management section below).

The majority of members are key workers or have been able to continue working from home and their salaries have been unchanged. Only a few of the members were furloughed; therefore the income levels from their salaries were reduced for a limited period.

To respond to the global needs of the community members, each house agreed to reduce their monthly budget for living expenses from April 2020 and shared the surplus generated with the Centro Foco Fund. This included savings related to reduced travel and holidays.

Donations have continued to be received towards the different projects.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity and its finances. The Trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational risks faced by the charity on a regular basis, they continue to maintain effective systems to mitigate those risks.

In 2020-21 the Centre for Unity activities were considerably reduced. At the same time, some activities continued (see Centre for Unity section of this report). We benefitted from the Government’s Coronavirus Job Retention Scheme. Having considered that the bookings were minimal and uncertain in the long term, the Trustees have taken the difficult decision initially to make two of its staff redundant. However one redundancy was not implemented, and the contract was changed to flexible furlough. In September 2021 it seems clear, though, that this second redundancy still needs to be implemented. The staff, however, have accepted to return to work in a sessional capacity when needed. The manager, by her own request, is now working on reduced hours and a reduced salary. After 8 years in her role, she has stated she will retire from the post in January 2022.

The Focolare Trust 6

Trustees’ report 31 March 2021

Governance, structure and management (continued)

Risk management (continued)

Two of the Focolare community members who had key roles in the team moved to other houses in September 2020, one to Liverpool the other to Rome. As a result, the active team is greatly reduced. The Trustees are actively looking for a suitable replacement for the manager and an assistant.

Our volunteers have been active in encouraging donations to subsidise to the loss of income coming from bookings, for example, the roof works have been totally covered by donations. Income and expenditure continue to be subject to three monthly reviews in order to assess the financial sustainability of the Centre.

During 2020-21, we continued to be aware of the age profile of many of the members living in our houses. We have continued to be engaged in a process of discussion and discernment with Focolare members both in this country and in Western Europe as to how best to prepare for the future. We continue to work towards meeting a double need: to maintain the spirit and consequent activities of the Focolare; to make decisions regarding human resources and accommodation now that will help ensure the wellbeing of members in the future.

Our governance structures are under continuous review. The ‘Core group’ – comprising representatives of each Focolare house, as well as members of different ages, professional backgrounds, expertise, and from Focolare groups in other parts of the country – continues to be a robust and effective consultative body and is demonstrating to be a valuable tool to widening participation, ensuring sustainability and enabling succession-planning.

Safeguarding

The new safeguarding team comprises of two Safeguarding Officers (Lucy Williams, from June 2020 to April 2021, and Paul Gateshill) and other three members (Anja Primbs, Claudia Melis and Nicholas Innocent).

During 2020 the team has reviewed the Focolare Safeguarding Policy, which was published in January 2021 on the Focolare GB website ( www.focolare.org/gb/safeguarding ) and will be reviewed on an annual basis. The policy follows the guidelines issued by Catholic Safeguarding Advisory Service (CSAS), with whom we have an umbrella agreement; but has been adapted to Focolare structure and particular circumstances, for example, the ecumenical nature of the Movement. The team began reviewing the Good Practice Guidelines drawing on expertise from a number of up to date sources, e.g. NSPCC, the Government Care, Support Statutory Guidance, Statutory Guidance for the Early Years Foundation Stage, the Diocese of Oxford, the National Youth Agency (NYA) and other youth organisations.

The Focolare Trust 7

Trustees’ report 31 March 2021

Governance, structure and management (continued)

Safeguarding (continued)

The Focolare Community in Scotland is also committed to follow the RC Bishops’ Conference’s safeguarding manual ‘In God’s Image’ and actively participate in safeguarding training and network events organised by Glasgow RC Archdiocese’s Safeguarding Office.

With the new format of hosting youth events online in time of the pandemic, the safeguarding team focussed on reviewing digital safeguarding procedures (‘Appropriate Use of Media’), which are now published on the website as a separate document. The team has supported youth workers with advice during this year and continues to carry out safe recruitment checks for new volunteers.

In April 2021 Jane Evans took over from Lucy Williams in the Safeguarding Officer role.

The team has identified volunteer training and safeguarding vulnerable adults as areas to be enhanced – these are the team’s objectives for 2022.

Safeguarding is a standing item during Core Group meetings and a representative of the safeguarding team is a member of the Group. This is to put into action Focolare’s commitment to integrate safeguarding into everyday life, initiatives, events and communication.

Activities, specific objectives and relevant policies

Principal aims

The general objects of the Trust are such charitable purposes connected with the advancement of the Christian religion, the prevention or relief of poverty and education.

In particular, the Movement works towards fostering dialogue and establishing unity at all levels. Focolare activities are all directed towards this end.

Unity through dialogue

The Movement began within the framework of the Roman Catholic Church but since 1960 a strong characteristic has been its ecumenical dialogue between Christians of many traditions.

More recently, dialogue with members of other faiths and people with no formal faith who share the aim of building a united world has increased. In this country these dialogues are fostered and encouraged particularly through the Focolare Centre for Unity at Welwyn Garden City.

Unity through promoting social justice

The Focolare Movement in this country is also committed to fostering greater equality among peoples and nations. To this end each year it supports Focolare projects in the global South and those affected by natural disasters, as well as supporting people in need in Britain.

The Focolare Trust 8

Trustees’ report 31 March 2021

Activities, specific objectives and relevant policies (continued)

Objectives and priorities

During the year 2020-21, the Trustees, Core Group and those responsible for the Focolare houses identified the following specific areas upon which to concentrate much of the work of the movement in keeping with our general aims:

• a) To continue supporting Focolare consecrated members in Great Britain, as well as our Focolare International Centres in Rome.

• b) To be actively engaged in the elections and discernment process for the Focolare International General Assembly, planned for September 2020, then postponed to January 2021.

• c) To continue prioritising our work with young people.

• d) To continue working for ecumenical and interreligious dialogue locally and abroad.

• e) To support people who most suffered the effects of the Covid-19 pandemic, both in Britain and abroad.

• f) To invest in communications and in new creative ways to continue pursuing Focolare aims and activities during the pandemic.

• g) To continue reviewing our governance structure and sustainability, investing at the same time in greater accompaniment of Focolare communities, families and individual members. In particular to monitor the Centre for Unity sustainability.

• h) To continue supporting AMU (Action for a United World) and AFNonlus (New Families Action) projects for international solidarity.

Public benefit

In accordance with Charity Commission guidance, the trustees have had regard to public benefit and the activities and achievements described below seek to demonstrate the public benefit of Focolare Trust in relation to its specific objectives to foster dialogue and unity.

Grant making policy

The Trust’s grant making policy and procedures depend on decisions made in consultation with the members responsible for the Movement in Britain, our regional headquarters in Brussels, with the General Council in Rome and with those responsible for each local house. Priority is given to furthering Focolare projects. Financial support is sometimes given to close relatives of community members who are in need: e.g. widowed mothers or young families. This help is given sensitively and it corresponds to individual needs.

With regards to objectives for overseas donations, grants are made in consultation with the International Centre in Rome to give support in places of great need; and in particular through the charitable arms AMU and AFNonlus– see below, point h).

The Focolare Trust 9

Trustees’ report 31 March 2021

Achievements and performance

Review of activities

a) Supporting Focolare consecrated members in Great Britain and Focolare International Centres

In the year to 31 March 2021, the charity supported 25 consecrated members in Great Britain. These members are at the heart of our activities and events, be it with young people in particular but also in furthering our ecumenical and interfaith work at all levels.

The charity also gave a substantial contribution of £377,918 to the Focolare International Centre in Rome for the work of the Movement in poorer and developing countries. On behalf of the International Centre, we continue to hold funds in a separate deposit account (Centro Foco fund), which are drawn down when needed in response to needs as outlined above.

b) Focolare General Assembly

From 24 January to 7 February 2021 the General Assembly of the Focolare Movement took place on-line, engaging 359 representatives from all over the world. Christopher Evans, CoE, participated to the Assembly from GB.

Prior to the Assembly, local communities in GB, adults and young people were involved in sending proposals, questions and contributions which were collected in a preparatory document. They also participated in a survey to sound out the priorities in terms of topics which the Assembly should have focussed on.

The Assembly ended with a final document which invites the members of the Movement in all the world to make themselves close to “those who don’t matter or those who live in under-privileged situations”.

“Listening to the cry of humanity, of creation and of the new generations” are the orientations that have been developed by the General Assembly for the next 6 years, with the aims of seeking out to “those who suffer, those who are excluded, beginning from those whom we ourselves have made suffer or have excluded” and “to be in dialogue with everyone, to have a preference for those whom we perceive as being more different from us”.

There was also a call to all the adherents of the Focolare to a commitment to live simply and to collaborate with other agencies working for the same goals. A priority was also identified in supporting families and young people.

Margaret Karram, from the Holy Land, was elected President of the Focolare Movement and Jesus Moran was re-elected Co-President.

The Focolare Trust 10

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

c) Working with young people (continued)

It has been a very challenging year for youth work, many events were cancelled and not all young people who are in contact with Focolare found themselves at ease with online meetings.

At the same time, following the desire to support our young people who are scattered across GB and keep them connected, an appeal was launched for new volunteers and 11 new youth workers came forward. Thanks to their dedication and their support, 7 small groups (units) of teenage girls were set up. They include 5-12 girls of the same age and from the different nations and have been meeting online, on average every fortnight, since May 2020. The families of those girls who have participated in the meetings have expressed very positive feedback and encouraged the youth workers to go ahead.

“Thanks a lot for organising the meetings with the girls. It brings many good things in my daughter’s life” A parent

Run4Unity-In Time for Peace and Dare to Care

Young people together with adults are participating in the United World Project ( www.unitedworldproject.org/en/ ) and its six-year campaign ‘Pathways for a United World’, providing a space and tools for being creative and taking actions in the local communities, as well as feeling part of a global network.

In May 2020 for ‘United World Week’ (UWW) the young people hosted an online event, ‘Run4Unity – in Time for Peace’, linking up with young people from Serbia, Slovakia, Hungary and Italy.

Every day at midday they also linked with adults for a short moment of prayer or reflection and the end of the week was celebrated by an online concert.

The week started with Run4Unity, an international relay, where across the world at different latitudes, sporting events, acts of solidarity and experiences of active citizenship got under way for 1 hour. Throughout the week we had daily sharing and reflections including poetry by Maya Angelou, excerpts from Chiara Lubich and discussion of teachings of Mohandas Gandhi. This gave a focus each day on how we could live to build a more united world.

On the final day GB’s UWW celebrations were rounded off with a concert. Alongside my co-presenter Mhairi Claire, I had the opportunity to present the evening’s entertainment. Across the country, through innovative use of video conferencing technology, we were welcomed into each other’s homes to enjoy a few minutes of musical sharing.

At a time when we were all perhaps more physically distant from each other than ever, there was a tangible sense of unity.”

Martin

The Focolare Trust 11

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

c) Working with young people (continued)

Run4Unity-In Time for Peace and Dare to Care (continued)

On 20 September 2020 the young people of the Focolare had an online event on Zoom (‘Wings of Peace’) to celebrate International Day for Peace.

They discussed resources and propositions from the ‘Living peace’ project ( www.livingpeaceinternational.org/en/ ) and chose to do some fundraising to help those in need in Lebanon, in the light of the explosions in Beirut, and in Yemen because of the ongoing humanitarian crisis there.

They walked, ran and cycled over 500 miles among them in two weeks and split their funds between AMU’s emergency project in Lebanon and Tearfund’s Yemen Crisis Appeal.

They also made small origami and sent them to the young people in Lebanon, through Focolare contacts, as a sign of unity with them.

“During the big lockdown from March I didn’t have much to do so I regularly went for a walk around my local area to keep myself healthy and to help clear my mind.

But since I have started university remotely I struggled to find the time to get out so this challenge gave me the motivation needed to find time in my day to get out for a walk making me feel better when going back to my work and helping the team get closer to the target.

We made it to the end of our challenge and completed a total of 542 miles over two weeks and have raised over £1,600 for our chosen charities.”

Niamh, 19

‘Dare To Care’ has been the slogan for this very challenging year, trying to put ‘care’ at the roots of daily lives and activities.

Young children have also participated in the Dare To Care campaign, with initiatives to look after the elderly in their local area. In Yorkshire for example they made some cards which were delivered to a care home.

“I wanted to make these cards because I thought of all the elderly people stuck at home who have nothing to do so maybe I could make the cards so they won’t be too bored. Our brains also need some exercise. I have made 10 cards so far. I might make some more for my neighbours.”

Gaia, 8

Working together

Critical points remain outreach and how to engage with those young people who do not like online events. However, with the possibility of meeting outside and the gradual ease of restrictions new hopes and aspirations for our youth work arise, especially since when youth workers have started working more collaboratively.

The Focolare Trust 12

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

c) Working with young people (continued)

Working together (continued)

In 2020 a new voluntary role was created for a Youth Coordinator (Chris Ronayne) to facilitate communication and working together among youth workers of the different age groups. This has strengthened unity among youth workers and opened new opportunity to share joys and challenges and to smooth young people’s transition across age groups.

d) Ecumenism and Interfaith Dialogue

Ecumenism

Over the last few years a short service of ‘Prayers for Unity’ was held in the chapel at the Focolare Centre for Unity. This took place every Monday evening before the Anglican Eucharist and the Catholic Mass. These ecumenical prayers were a moment of unity before we split into two groups.

The prayers for unity moved online during the pandemic. Using a simple formula we hosted the event and invited others to lead the prayers each week, including bishops from different Churches, priests, religious, lay people, families etc. Some know the Focolare well and others are new.

It started as an experiment with just 20-30 members of the local community joining in. However, the news spread by word of mouth. Zoom enabled the event to move from local to global – from Anglican/Roman Catholic to multi-denominational within a few months.

Now there are between 60-100 links each week involving not just England, Scotland, Wales and Ireland but also USA, Russia, Finland, Sweden, Belgium, Holland, France and Italy. The Churches represented include: Russian Orthodox, Finnish Orthodox, Swedish Lutheran, United Reformed, United Church of Christ, Moravian, Methodist, Baptist, Salvation Army, Evangelical, Roman Catholic, Church of Scotland and Anglican.

“I feel happy and truly blessed to be part of this big family of the Focolare.

I have felt so welcomed, sometimes in the middle of the week I find myself smiling at the thought of meeting up again for the Monday prayers. As I am in Finland the only way I can join in this event is online and I really hope the prayers will continue even after the lockdown and pandemic have ended.” Iraiida, Finland “Six o’clock on a Monday is now a very special time of the week.

The variety of styles, themes and topics has been a great enrichment, and it has been a real experience of learning, and receiving gifts from each other. You never know what you’re going to get, but you always know you’re going to get God.”

Martin and Kirsty, UK

The Focolare Trust 13

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

d) Ecumenism and Interfaith Dialogue (continued)

Ecumenism (continued)

The annual Church Leaders’ meeting also moved online. These were some of the messages of feedback:

“I really enjoyed the meeting. It was a coming together of minds, experiences and concerns as we seek the way ahead.”

Canon John McLuckie, Scottish Episcopal Church

“Once again, thank you for all that you do to enable us to fulfil our mission together as Church Leaders.”

Archbishop Bernard Longley, RC Church

“It was a joy!”

Canon Aled Edwards, Church in Wales

“Good to be with friends from across Britain and around the world for our annual Focolare Church Leaders’ meeting, this year, like so many things, looking a little different. The joyous fellowship, however, is just as I remember and have always experienced.”

Archbishop Angaelos, Coptic Orthodox Church

The Focolare Trust 14

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

d) Ecumenism and Interfaith Dialogue (continued)

Interfaith

The Interfaith Study Group (Muslim-Christian group meeting every 6 weeks and exploring each time a topic from the perspective of the different traditions) has also continued online; whereas a new Dialogue Group was formed during this year.

The Dialogue Group is interested in all kinds of dialogue, but initially focussed on interreligious dialogue, reflecting the way the group came about.

A programme of Zoom events was held monthly exploring different faith traditions, and one session was on Humanism.

“I think that by providing opportunities like this dialogue on-line meetings, Focolare is doing something really worthwhile. It is helping to create a network of fraternal relationships among people.”

Christina

e) Supporting people who suffered because of Covid-19 pandemic

A special appeal was launched in April 2020 to all our members and volunteers to consider financial support for people in need in GB and, through our Focolare family, abroad. For this purpose, a Covid Emergency Fund and relevant committee were created to look at managing the donations which were received thank to the great generosity of many. The committee comprises five members, including a trustee of the Focolare Trust and the secretary of Mariapolis Ltd, and during lockdown met weekly. They liaised with the Focolare International Covid Committee in Rome, as well as the Western European Covid Committee in Brussels.

Throughout the year, 5 families were given financial support in GB, one of which on a regular basis, and we supported 2 individuals living abroad connected to our Focolare family in GB. The remnant of the contributions were sent to the International Fund.

Report from the Covid Emergency International Fund (28 June 2021)

The amount received so far at the International Centre is £776,908 and this has made it possible to intervene in situations of total emergency covering approximately 57% of the requests received to date, which correspond to £1,367,605. Part of the resources that have not been allocated will be used for requests currently under evaluation or for new emergencies that are expected to arise due to the continuing pandemic that is affecting entire populations.

The Focolare Trust 15

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

e) Supporting people who suffered because of Covid-19 pandemic (continued)

Report from the Covid Emergency International Fund (continued) The different recipients of this worldwide communion of goods were:

• Families and people in serious difficulty due to the loss of their jobs, homes or having contracted Covid-19

• Vulnerable people who have been able to find new ways to self-sustain

• Conference centres’ facilities of the Movement, to minimize layoffs and support their basic functioning and, consequently, the use of the premises for the spread of the ideal of a united world

• Activities in the little towns of the Movement where no work was available and it was not possible to welcome visitors or guests, supporting the permanent inhabitants and some participants in temporary schools, who were blocked for months due to the lockdown

• Social projects in favour of the poorest or of children

• Scholarships for some young people who were thus able to finish their studies and continue to build their future

Ecuador, Peru, Bolivia, Cameroon, Democratic Republic of Congo, Ivory Coast, Benin, Syria, Lebanon, India

Zambia, South Africa, Paraguay, Syria

Mariapolis Centres in Tanzania, Uganda, Angola, Colombia, Brazil, American Southern Cone (Argentina, Chile, Paraguay, Uruguay)

Mariapolis Lia in Argentina, Mariapolis Piero in Kenya, Loppiano in Italy, Montet in Switzerland

American Southern Cone, Mexico, Guatemala, Central African Republic, India

Venezuela

f) Communications

Since the first lockdown, it was clear that the need to tackle isolation had to take the priority. The Focolare Communication Team started a ‘GB Newsletter’ on 1 April 2020, sent via email, to share the experiences of solidarity and building family of our members, instilling hope and keeping people connected, especially those who struggled with technology. 15 Newsletters were sent between April and December 2020, then monthly in 2021.

A monthly online event, the ‘GB Link Up’, also started in May 2020 and continued until March 2021, a get together of all Focolare members, volunteers and communities and aiming to reach the furthest and the lonely.

The Focolare Trust 16

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

f) Communications (continued)

As all Focolare events moved to the virtual space, the Communication Team supported members arranging Zoom meetings and a network of a dozen technical helpers was formed to assist 60 people who had difficulties with technology prior the Mariapolis online event which was held in July 2021, with around 550 attendees.

Through these efforts, a new wider family dimension is being experienced, across GB, going beyond local and national boundaries and often the meetings opened out to people from other countries.

16 months on, having experienced continued uncertainties and Zoom fatigue, our members have great desire to meet in person. At the same time, virtual platforms remain the main space for activities and working groups. The Mariapolis 2021 will be happening online again, on the first weekend of October.

“We are all part of a family and for many the pandemic has heightened the importance of relationships, care and connection which the family intrinsically expresses.”

Rosaleen and Phil

g) Accompaniment of Focolare communities and families, Focolare Centre for Unity

From January 2021, the Focolare ‘New Families’ in GB launched a course (‘Love creates a family’) of monthly Zoom meetings looking at the different aspects of Love and how these can be lived practically in our lives together as families - whether it is how we work, share, communicate, reach out to others and find a balance. The course was open to all who were interested in its topics.

A separate online training course was held from February 2021 to June 2021 for those who accompany people individually and in various Focolare groups.

Focolare Centre for Unity

From April 2020 to March 2021 the Focolare Centre for Unity had a very different year due to Covid restrictions and national lockdowns.

Although for the vast amount of this time period there were no groups using the Centre for conferences, some activities continued.

• A number of Police Misconduct Hearings were held, legitimately even during the lockdown, as the Justice System was not closed. Adjustments had to be made to enable social distancing, hand sanitising, provision and wearing of face coverings.

The Focolare Trust 17

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

g) Accompaniment of Focolare communities and families, Focolare Centre for Unity (continued)

Focolare Centre for Unity (continued)

• We were approached by Public Health Hertfordshire to use the Centre as a Covid testing station. This was facilitated from January 2021 to the end of March 2021, usually 3 12-hour days a week. This allowed us to be an active part of the community during the most difficult moment. An unexpected spin-off was that many of the 200 people who passed through the premises each day, had no previous knowledge of the Centre for Unity. The name spread organically throughout the area and we received very positive feedback on the beauty of the building and the facilities.

• We were very happy to be able to be a collection point for clothes for refugees in the Spring 2021. This was another opportunity, with minimal contact, to help those in need and get to know local residents.

• A local Thai lady who had a takeaway business from a Community Centre lost her workspace when the Community Centre closed. We were happy for her to use the Centre for Unity kitchen for 2 months before she went to Thailand to see her very ill father. She used the opportunity of being in a large kitchen to coach young apprentices.

In March 2021 we were approached by a home carers company asking if we could be used as their PPE collection point and we have continued

this once a fortnight.

The Focolare Trust 18

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

g) Accompaniment of Focolare communities and families, Focolare Centre for Unity (continued)

Focolare Centre for Unity (continued)

• At various points throughout the pandemic we have been able to provide self-isolation facilities for Focolare member who have travelled from overseas or who had been in contact with positive cases.

• From March 2021 we have been able to accommodate 2 evening meetings per week for vulnerable youth, organised by the County Council.

• A small room has also been used by a psychotherapist for consultations.

Building works

The subsidence in the chapel and bedroom above was stabilised and full redecoration completed.

A funding appeal was made to help with the cost of replacing the roof over the dining room, there had been a long history of leaks. The appeal resulted in covering the whole cost.

Focolare Houses

Following the decisions made in March 2020 (see previous report), this year has seen a number of radical changes in the location of the Focolare houses.

The women’s house in London (62 Kings Avenue) was sold in March 2021; whilst the pieda-terre near Birmingham has become a permanent house, with 3 members moving to Darlaston in November 2020.

The project to dedicate one of the houses in Welwyn Garden City to support members from abroad wishing to study English or having a respite in Britain has also been suspended. Visiting members may continue to come and will be welcomed in one of the houses in GB.

The property in Lemsford, close to Welwyn Garden City, was sold in February 2021 to purchase a house at n.18 Parkfields, adjacent to the existing property at n.16 Parkfields. Some of the benefits included downsizing, accessibility to public transport, shops and services, in line with long term plans concerning the aging of our members and future returns of British members from abroad.

The desire to travel the road ahead together, with everyone in each of the local communities affected in these changes, has brought about many important conversations which continue and enlighten the future steps.

The Focolare Trust 19

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

h) Initiatives of International Solidarity

Lebanon

Following the explosion and after the first emergency interventions, AMU launched a project to support around 50 families in restoring destroyed homes, activities and assets. To identify the needs, questionnaires were distributed in each family unit so that they could sum up the estimated damage.

The interventions on site are coordinated by Humanité Nouvelle in collaboration with other Lebanese associations and communities (Parrainages Liban, IRAP, Muslim communities and the Apostolic Council of the Laity).

In GB James Buchanan cycled over 100 miles towards AMU’s and CAFOD’s Lebanon emergency appeals. Following his example, the young people of the Focolare also started their fundraising run for Lebanon.

Yemen

The young people decided to split their fund between Lebanon and a project tackling the humanitarian crisis in Yemen. The Tearfund Yemen appeal was chosen as the recipient: “We have been helping protect people from diseases such as cholera, as well as providing safe water, food, and seeds and tools to enable people to grow their own vegetables” (from the Tearfund website: www.tearfund.org/campaigns/yemen-appeal ).

Syria

In Syria, after years of war and difficult conditions due to international sanctions, public services are practically non-existent, first of all school services. Children cannot follow well the lessons in overcrowded classes and with few teachers and at home they cannot study well. To face exams they all need very expensive remedial and advanced

courses. Damascus After-School offers these services, as well as leisure activities, at low prices to be a support to the most humble families who want to give their children a good education. In June the intensive courses begin and then in September the children choose the subjects in which they have the most difficulty and for which they need to be accompanied by the teachers and operators of the centre.

The Focolare Trust 20

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

h) Initiatives of International Solidarity

Syria (continued)

At the July 2021 final secondary school exams 36 students out of 45 were successful, achieving good results. For the others, who still need to improve in different subjects, there will be a chance to re-sit the exam in August. (from: www.amu-it.eu/siria-i-ragazzi-didamasco-si-sono-diplomati/ )

"The best thing this year is that we were together... you guys helped us and supported us so much, and you were like brothers to us. Thank you for everything. I think without you guys, we wouldn't have gotten to where we are today. I love you guys with all my heart."

Malak, one of the young people of the After-School Centre

Pakistan, a message from The Nest, Community Centre (August 2020)

“The Nest was never officially closed during lockdown: three times a week we met with all the staff to see the situation and figure out how and where we needed to help the students and their families the most. So we personally followed up with each child.

The mother of one boy, Sameer, had a serious heart problem, and his father lost his job. He is the oldest of four siblings, and he went to collect paper and then buy food for his family. So we were able to help them with medicine.

Like all over the world, schools here in Pakistan were supposed to continue online. But - since our kids didn't have that option - our teachers wrote down the homework on paper. They would then send photocopies of it to the various homes.

When the kids finished their homework, their parents would bring it back to school. On lockdown days for some older students, we bought cell phones so they could do their lessons online.

The Focolare Trust 21

Trustees’ report 31 March 2021

Achievements and performance (continued)

Review of activities (continued)

h) Initiatives of International Solidarity

Pakistan, a message from The Nest, Community Centre (continued)

It was felt that some of the families were under a lot of tension because of the lack of work. Where it was most needed, we intervened financially so that they could survive.

We also started calling our students to school to feed them and help them get back to school. In fact they were falling behind in their studies while we continue to pay their fees in a big way. Privately the school gives the possibility, with three teachers, to have small groups come every day. Some children said that Nest is like a mother to them, and the parents are very happy that the children have this opportunity for a clean and healthy atmosphere.

In addition to the pandemic tragedy from which we still haven't emerged, there was another misfortune in Karachi: a heavy monsoon rain that lasted two weeks in a row. It hadn't rained this much in years, and the city wasn't organized to deal with it. The monsoon destroyed a large part of the city of Karachi. Our people, who were already living in shacks or under bridges, lost everything! Some nights they didn't even know where to sleep. So we tried to help them in various ways.

After the heavy rains, skin diseases broke out and we helped the kids get treatment. When we went to visit the families, it was a frightening thing to see how they had lived and are living in the tragedy. However, we are with them to support them and they are very grateful to God and Nest” - Poulien Samsoom.

Focolare activities in Scotland 2020-21

House extension

The extension outside the house has been completed. The meeting room outside (which was previously a garage) has now been connected to the main house and a bigger bathroom has also been built on the ground floor, more suitable for people with disabilities.

Outreach

‘Encounters’ were lived:

• On a daily contact through WhatsApp group messages of mutual encouragement, both with the members of the Focolare, groups in our local parishes and with Muslim friends, mainly from the Ahl Al Bait Society;

• Through regular telephone calls, letters, video messages of support, sent to people who were anxious, grieving or lonely;

The Focolare Trust 22

Trustees’ report 31 March 2021

Achievements and performance (continued)

Focolare activities in Scotland 2020-21 (continued)

Outreach (continued)

• Through monthly Zoom calls with the wider community of the Focolare as well as people who wanted to get to know the spirituality of the Focolare and members of the Ahl Al Bait community. Since these events happened online, also other members of Muslim communities outside Scotland were able to take part in these moments together, where “we experienced mutual understanding and friendship, thus bringing ahead unity”.

"This was the year where the pandemic prevented us from having any direct contact with anybody outside our household. Like everybody else, our ‘outreach’ was lived online, mostly on Zoom. It was very impressive to experience how nevertheless we felt united with all the people we had been in close face-to-face contact before.”

Mil, Glasgow

Youth work

During this year we met weekly, fortnightly or monthly on Zoom with those children and young people that were happy to meet online. This age group found it particularly hard to switch to online meetings (harder than most of the older generation). We also needed to ensure that these Zoom calls were conducted in ways that followed the newly developed guidelines of safeguarding children and young adults.

Future plans 2020-21

Following discussions with the Core Group and people responsible for the Focolare houses, the Trustees confirmed the following specific objectives for the coming year in keeping with our general aims:

• To continue supporting Focolare consecrated members in Great Britain, as well as our Focolare International Centres in Rome.

• To continue prioritising our work with young people.

• To continue accompanying Focolare communities, families and individual members and continue working for ecumenical and interreligious dialogue locally and abroad.

• To join the campaign ‘Dare to Care’ (United World Project for the year 2021-22), strive to reach more sustainable practices in terms of ecology and work with other agencies promoting care for ‘our common home’.

• To continue supporting the Centre for Unity and monitoring the sustainability of the Centre.

• To continue supporting people affected by the Covid-19 pandemic, both in GB and abroad, and AMU and AFN onlus projects for international solidarity.

The Focolare Trust 23

Trustees’ report 31 March 2021

Financial Review

Results for the year

A summary of the year’s results can be found on page 31 of the attached financial statements.

For the year to 31 March 2021, the income of the charity amounted to £2,294,252 (2020 - £763,481), including £666,905 (2020 - £602,001) from voluntary income, £21,483 (2020 - £146,172) from charitable activities, interest receivable of £7,163 (2020 - £11,456) and £1,574,953 (2020 - £1,350) from the disposal of tangible fixed assets.

Total expenditure in the year was £898,808 (2020 - £1,085,885) including £509,900 (2020 - £578,968) for donations and grants payments; £30,849 (2020 - £165,262) for provision of retreats, conferences and publications; £3,661 (2020 - £4,808) for interfaith and youth projects; and £254,398 (2020 - £336,847) for the support of the members of the Movement.

Net investment losses in the year were £179 (2020 –£33). The net movement in funds for the year was an increase of £1,395,265 (2020 – a decrease of £322,437).

Reserves policy and financial position

The trustees have examined the requirement for the free reserves (i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed). In particular, at the current time, the reserves need to be sufficient to enable the charity to operate in the exceptional circumstances created by the Covid-19 pandemic.

The trustees consider that, given the nature of the charity’s work, the level of free reserves should be approximately between three and six months’ ongoing expenditure. The trustees are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in income, adequate working capital to cover core costs, and will allow the charity to cope and respond to unforeseen emergencies.

The balance sheet shows total reserves of £7,730,604 (2020 - £6,335,339). Of this, £4,391,433 (2020 - £5,026,561) is represented by tangible fixed assets used to support the work of the Movement. Such assets are of fundamental importance to the charity; without these assets the charity would be unable to fulfil its charitable aims and objectives. The value of such assets, therefore, would not be easily realisable, if needed to meet future contingencies. To emphasise this point, the net book value of these assets has been set aside, by the trustees, in a tangible fixed assets fund. Other designated funds stood at £3,179,573 (2020 - £1,142,279) (see note 16).

Free reserves available to support the work of the members in the future are those shown on the balance sheet under the general fund and, at 31 March 2021 equate to £159,399 (2020 - £159,610). The level of free reserves at 31 March 2021 equates to approximately 2months’ of ongoing expenditure which is slightly below the desired reserves level as noted above.

The Focolare Trust 24

Trustees’ report 31 March 2021

Financial Review (continued)

The charity’s assets

Acquisitions and disposals of tangible fixed assets during the year are recorded in note 10 to the financial statements.

Employees and members of the Society

The Trustees wish to record their gratitude to all their staff, volunteers, members and supporters of the Movement, especially in this difficult year. Their total dedication, generosity and creativity has been invaluable and deeply appreciated. As we navigate through uncertainties and change, their enthusiasm continues to inspire us and pushes us forward in working together for unity.

Approved by the trustees and signed on their behalf by:

Trustee Date: 15/12/2021

The Focolare Trust 25

Independent auditor’s report 31 March 2021

Independent auditor’s report to the trustees of The Focolare Trust

Opinion

We have audited the financial statements of The Focolare Trust (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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:

• ♦ give a true and fair view of the state of the charity’s affairs as at 31 March 2021 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

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.

The Focolare Trust 26

Independent auditor’s report 31 March 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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 financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

• ♦ the information given in the trustees’ annual report is inconsistent in any material respect with the financial statements; or

• ♦ sufficient and proper accounting records have not been kept; or

• ♦ the financial statements 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 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

The Focolare Trust 27

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements

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:

• ♦ 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 management, and from our commercial knowledge and experience of the sector;

• ♦ The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit;

• ♦ We obtained an understanding of the legal and regulatory frameworks applicable to the charity and the sector in which it operates. We determined that the following laws and regulations were most significant: 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), the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and safeguarding regulations.

• ♦ We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, inspecting legal correspondence and reviewing trustee meeting minutes and reports from regulatory bodies.

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

• ♦ making enquiries of management and those charged with governance 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.

The Focolare Trust 28

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued) 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 journal entries to identify unusual transactions;

• ♦ tested the authorisation of expenditure as part of our substantive testing thereon;

• ♦ assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and

• ♦ used data analytics to identify any significant or unusual transactions and identify the rationale for them.

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 financial statement disclosures to underlying supporting documentation;

• ♦ reading the minutes of trustee meetings;

• ♦ enquiring of management and those charged with governance as to actual and potential litigation and claims; and

• ♦ reviewing any available correspondence with the Charity Commission and other regulators.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The Focolare Trust 29

Independent auditor’s report 31 March 2021

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act and in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 17 December 2021

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

The Focolare Trust 30

Statement of financial activities Year to 31 March 2021

Notes	Unrestricted funds £	Restricted funds £	Total funds 2021 £	Unrestricted funds £	Restricted funds £	Total funds 2020 £
Income from: Donations and legacies 1 Investments Charitable activities . Retreat and conference centre fees Other income . Surplus on disposal of tangible fixed assets . Miscellaneous income 2 Total income Expenditure on: Charitable activities . Donations and grants payable 3 . Provision of retreats, conferences and publications 4 . Interfaith and youth projects 5 . Support of members of the Movement 6 Total expenditure Net income (expenditure) before recognised investment gains and losses Losses on investments 11 Net income (expenditure) and net movement in funds 7 Reconciliation of funds: Balances brought forward at 1 April Balances carried forward at 31 March	617,877 7,163 21,483 1,574,953 23,748	49,028 — — — —	666,905 7,163 21,483 1,574,953 23,748	575,106 11,456 146,172 1,350 2,502	26,895 — — — —	602,001 11,456 146,172 1,350 2,502
	2,245,224	49,028	2,294,252	736,586	26,895	763,481
	472,266 112,790 3,636 254,398	37,634 18,059 25 —	509,900 130,849 3,661 254,398	559,590 160,226 4,432 336,847	19,378 5,036 376 —	578,968 165,262 4,808 336,847
	843,090	55,718	898,808	1,061,095	24,790	1,085,885
	1,402,134 (179)	(6,690) —	1,395,444 (179)	(324,509) (33)	2,105 —	(322,404) (33)
	1,401,955 6,328,450	(6,690) 6,889	1,395,265 6,335,339	(324,542) 6,652,992	2,105 4,784	(322,437) 6,657,776
	7,730,405	199	7,735,604	6,328,450	6,889	6,335,339

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

The charity has no recognised gains and losses other than those shown above.

The Focolare Trust 31

Balance sheet 31 March 2021

Notes	2021 £	2021 £	2020 £	2020 £
Fixed assets Tangible assets 10 Investments 11 Current assets Debtors 12 Cash at bank and in hand Total current assets Liabilities Creditors: amounts falling due within one year 13 Net current assets Net assets The funds of the charity Restricted funds 14 Unrestricted funds . General fund . Tangible fixed assets fund 15 . Designated funds 16 Total funds	18,763 3,370,853	4,391,433 5,836	23,650 1,320,773	5,026,561 6,015
		4,397,269 3,333,335		5,032,576 1,302,763
	3,389,616 (56,281)		1,344,423 (41,660)
		7,730,604		6,335,339
		199 159,399 4,391,433 3,179,573		6,889 159,610 5,026,561 1,142,279
		7,730,604		6,335,339

Approved by trustees and signed on their behalf by:

Trustee

Approved by the trustees on: 15/12/2021

The Focolare Trust 32

Statement of cash flows 31 March 2021

Notes	2021 £	2020 £
Cash flows from operating activities: Net cash used in operating activities A Cash flows from investing activities: Investment income Proceeds from the disposal of tangible fixed assets Purchase of tangible fixed assets Net cash provided by (used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 April B Cash and cash equivalents at 31 March B	(101,084)	(294,644)
	7,163 2,829,525 (685,524)	11,456 1,350 (37,553)
	2,151,164	(24,747)
	2,050,080 1,320,773	(319,391) 1,640,164
	3,370,853	1,320,773

Notes to the statement of cash flows for the year to 31 March:

A Reconciliation of net movement in funds to net cash flows used in operating activities

	2021 £	2020 £
Net movement in funds (as per the statement of financial activities) Adjustments for: Depreciation charge Losses (gains) on investments Investment income Surplus on disposal of tangible fixed assets Decrease (increase) in debtors Increase (decrease) in creditors Net cash used in by operating activities	1,395,265 66,080 179 (7,163) (1,574,953) 4,887 14,621	(322,437) 67,299 33 (11,456) (1,350) (14,743) (11,990)
	(101,084)	(294,644)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
	2021 £	2020 £
Cash at bank and in hand Total cash and cash equivalents	3,370,853	1,320,773
	3,370,853	1,320,773

The Focolare Trust 33

Principal accounting policies 31 March 2021

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

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021.

The financial statements 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 financial statements.

The financial statements 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 (FRS 102) (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 financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

• ♦ estimating the useful economic life of tangible fixed assets; and

• ♦ determining the value of designated funds needed at the year end in particular in respect to the assumptions made in determining the value of the retirement fund.

Assessment of going concern

The trustees have given consideration to the ongoing impact of the Covid-19 pandemic and concluded that there is no immediate significant threat to the charity’s finances.

In 2020-21 the Centre for Unity activities were considerably reduced and continue to be reduced in 2021. The Trustees have taken the difficult decision to implement the second redundancy as mentioned in the previous annual report. The staff have accepted to return to work in a sessional capacity when needed. The level of reserves and income and expenditure of the Centre for Unity continue to be subject to three monthly reviews in order to assess the financial sustainability of the Centre.

The Focolare Trust 34

Principal accounting policies 31 March 2021

Assessment of going concern (continued)

The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements and are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due and therefore to be able to continue as a going concern.

Basis of consolidation

Consolidated financial statements have not been prepared as the subsidiary company remained dormant throughout the year.

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, investment income, income from retreat and conference centre fees, income from events and workshops and other income including the surplus on the disposal of tangible fixed assets.

Donations, including salaries and pensions of individual members of the Movement 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.

Income from retreat and conference centre fees and from events and workshops is usually recognised in the period to which it relates or the period in which the event or workshop took place.

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.

Expenditure recognition

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

The Focolare Trust 35

Principal accounting policies 31 March 2021

Expenditure recognition (continued)

Expenditure comprises the costs of the charity’s primary charitable purposes as described in the trustees’ report. Such costs include:

• ♦ Donations and grants payable - these 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 receive the grant and has satisfied all related conditions.

• ♦ Provision of retreats, conferences and publications, including expenditure on the Movement’s retreat and conference centre in Welwyn Garden City.

• ♦ Interfaith and youth projects, including expenditure on the Gen Verde project and other interfaith and youth projects.

• ♦ Expenditure on the support of the members of the Movement which enables the members to carry out the charitable work of the Trust in the areas of the advancement of Christianity, the advancement of education and the relief of poverty, including all support and governance costs associated with the administration of the charity.

All expenditure is stated inclusive of irrecoverable VAT.

Tangible fixed assets

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

Tangible fixed assets are depreciated at the following annual rates in order to write them off over their estimated useful lives:

• ♦ Furniture and equipment – 10% to 20% per annum based on cost

• ♦ Computer equipment – 25% per annum based on cost

• ♦ Motor vehicles – 25% per annum based on cost

• ♦ Freehold land and buildings

These are included on the balance sheet at cost.

• Residential

No depreciation is provided on freehold buildings used as private residential accommodation. The value and condition of the buildings are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value.

• Conference centre

• Freehold land and buildings used for the provision of the conference centre are depreciated at a rate of 2% per annum on a straight-line basis in order to write the properties off over their estimated useful life.

The Focolare Trust 36

Principal accounting policies 31 March 2021

Investments

Investment in the subsidiary company is included in the balance sheet at cost.

Listed investments are included in the financial statements at their market value at the balance sheet date. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise.

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.

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.

Fund accounting

Restricted funds comprise moneys raised for and their use restricted to a specific purpose or contributions subject to donor imposed conditions.

The charity’s unrestricted funds comprise a number of funds which are available for application towards the charity’s objectives. Within unrestricted funds, the trustees have designated certain amounts for specific purposes and have identified those non-liquid funds represented by tangible fixed assets. Details of these funds are given in notes 15 and 16 to the financial statements.

Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Listed investments are a basic financial instrument as detailed above. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost

The Focolare Trust 37

Principal accounting policies 31 March 2021

Leased assets

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

Services provided by members of the Movement

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

The Focolare Trust 38

Notes to the financial statements 31 March 2021

1 Donations and legacies

Donations and legacies
	Unrestricted funds £	Restricted funds £	Total funds 2021 £
Salaries and pensions of individual religious received under deed of covenant General donations Legacies 2021 Total funds	460,945 50,426 106,506	— 49,028 —	460,945 99,454 106,506
	617,877	49,028	666,905

Salaries include amounts totalling £43,464 (2020 - £29,163) from trustees; general donations include £nil from trustees (2020 - £9,550).

	Unrestricted funds £	Restricted funds £	Total funds 2020 £
Salaries and pensions of individual religious received under deed of covenant General donations Legacies 2020 Total funds	501,178 70,489 3,439	— 26,895 —	501,178 97,384 3,439
	575,106	26,895	602,001

2 Miscellaneous income

Miscellaneous income
	Unrestricted funds £	Restricted funds £	Total funds 2021 £
Coronavirus Job Retention Scheme grant Sundry income 2021 Total funds	22,452 1,296	— —	22,452 1,296
	23,748	—	23,748
	Unrestricted funds £	Restricted funds £	Total funds 2020 £
Sundry income 2020 Total funds	2,502	—	2,502
	2,502	—	2,502

The Focolare Trust 39

Notes to the financial statements 31 March 2021

3 Donations and grants payable

The charity makes grants to both individuals and institutions in accordance with its grant making policy set out in the trustees’ report.

Several donations have been sent via the Movement’s centre in Rome for the work of the Movement in various countries including some specific projects for those in need, especially in Syria, Africa and Lebanon, as well as grants to support those in need as a consequence of the Covid-19 pandemic.

The donations and grants payable during the year were for the following purposes:

	Unrestricted funds £	Restricted funds £	Total funds 2021 £
Contributions to the Global Mission Grants to international projects Covid-19 emergency grants Grants to individuals Other grants 2021 Total funds	377,918 6,651 — 83,763 3,934	— 20,481 10,157 — 6,996	377,918 27,132 10,157 83,763 10,930
	472,266	37,634	509,900

During the year, grants were paid to 14 individuals (2020 – 9).

	Unrestricted funds £	Restricted funds £	Total funds 2020 £
Contributions to the Global Mission Grants to international projects Grants to individuals Other grants 2020 Total funds	470,842 6,023 78,559 4,166	— 7,384 — 11,994	470,842 13,407 78,559 16,160
	559,590	19,378	578,968

4 Provision of retreats, conferences and publications

	Unrestricted funds £	Restricted funds £	Total funds 2021 £
Retreat and conference centre costs . Premises . Centre for Unity running costs . Staff costs (note 8) . Office sundries Other costs and publications 2021 Total funds	86,389 1,994 22,216 1,093 1,098	12,600 — 5,459 — —	98,989 1,994 27,675 1,093 1,098
	112,790	18,059	130,849

The Focolare Trust 40

Notes to the financial statements 31 March 2021

4 Provision of retreats, conferences and publications (continued)

Retreat and conference centre costs . Premises . Centre for Unity running costs . Staff costs (note 8) . Office sundries Other costs and publications 2020 Total funds	Unrestricted funds £ 98,141 16,262 43,239 1,048 1,536 160,226	Restricted funds £ — 5,036 — — — 5,036	Total funds 2020 £
			98,141 21,298 43,239 1,048 1,536
			165,262

5 Interfaith and youth projects

Interfaith and youth projects
	Unrestricted funds £	Restricted funds £	Total funds 2021 £
Birmingham project 2021 Total funds	3,636	25	3,661
	3,636	25	3,661
	Unrestricted funds £	Restricted funds £	Total funds 2020 £
Birmingham project 2020 Total funds	4,432	376	4,808
	4,432	376	4,808

6 Support of members of the Movement

Support of members of the Movement
	Unrestricted funds £	Restricted funds £	Total funds 2021 £
Direct costs . Premises . Members’ living expenses . Education, training and spiritual renewal Support and governance costs . Legal and professional fees . Central administration 2021 Total funds	93,356 135,134 7,626 18,277 5	— — — — —	93,356 135,134 7,626 18,277 5
	254,398	—	254,398

The Focolare Trust 41

Notes to the financial statements 31 March 2021

6 Support of members of the Movement (continued)

Support of members of the Movement(continued)
	Unrestricted funds £	Restricted funds £	Total funds 2020 £
Direct costs . Premises . Members’ living expenses . Education, training and spiritual renewal Support and governance costs . Legal and professional fees . Central administration 2020 Total funds	89,116 220,597 10,948 15,543 643	— — — — —	89,116 220,597 10,948 15,543 643
	336,847	—	336,847

7 Net movement in funds

This is stated after charging:

	Total 2021 £	Total 2020 £
Auditor’s remuneration (including VAT) . Statutory audit services . Other services Depreciation(note 10)	7,750 7,750 66,080	7,750 7,750 67,299
Staff costs and trustees’ remuneration	Total 2021 £	Total 2020 £
Wages and salaries Social security costs Pension contributions Temporary staff costs Total staff cost	27,059 230 386 —	34,381 1,386 822 6,650
	27,675	43,239

8 Staff costs and trustees’ remuneration

The charity employed an average of three staff members during the year (2020 – four) on a part-time basis.

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

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

The Focolare Trust 42

Notes to the financial statements 31 March 2021

9 Taxation

The Focolare Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

10 Tangible fixed assets

11		Freeholdland	and buildings	Furniture and equipment £	Computer equipment £	Computer equipment £	Motor vehicles £	Total £ 6,005,273 685,524 (1,268,456) 5,422,341 978,712 66,080 (13,884) 1,030,908 4,391,433 5,026,561 2020 £
		Residential £	Conference centre £
	Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for year Disposals At 31 March 2021 Net book values At 31 March 2021 At 31 March 2020	3,568,998 678,972 (1,254,572)	2,045,925 6,552 —	268,734 — —	10,295 — —		111,321 — (13,884)
		2,993,398	2,052,477	268,734	10,295		97,437
		— — —	667,311 40,984 —	228,371 8,712 —	10,295 — —		72,735 16,384 (13,884)
		—	708,295	237,083	10,295		75,235
		2,993,398	1,344,182	31,651		—	22,202
		3,568,998	1,378,614	40,363		—	38,586
	Investments						2021 £ 2 5,834 5,836
	Investment in subsidiary company Listed investments							2 6,013
								6,015

The charity has a wholly-owned subsidiary company, Focolare Projects Limited, which was incorporated in England and Wales on 16 April 1992 (Company number 02707840). The company remained dormant during the year and was dissolved on 6 April 2021.

The total reserves of the company at 31 March 2021 were £2 (2020 – £2).

Listed investments	2021 £ 6,013 (179) 5,834 3,886	2020 £
Market value Unrealised investment (losses) gains Market value		6,046 (33)
		6,013
Cost of listed investments		3,886

The Focolare Trust 43

Notes to the financial statements 31 March 2021

12 Debtors

Debtors
	2021 £	2020 £
Accrued income and prepayments Other debtors	15,399 3,364	23,650 —
	18,763	23,650
Creditors: amounts falling due within one year	2021 £	2020 £
Loans payable Accruals and other creditors	18,800 37,481	26,000 15,660
	56,281	41,660

13 Creditors: amounts falling due within one year

All loans are interest free and repayable on demand. £11,800 (2020 - £19,000) of the loans payable relates to amounts borrowed in 2007 to purchase the property at Cloisters.

14 Restricted funds

The income funds of the charity include the following restricted funds to be applied for specific purposes:

	At 1 April 2020 £	Income £	Expenditure £	At 1 April 2021 £
Interfaith & Youth Projects Centre for Unity Overseas Project Covid-19 emergency fund Other	— — 6,889 — —	25 18,059 13,592 10,356 6,996	(25) (18,059) (20,481) (10,157) (6,996)	— — — 199 —
	6,889	49,028	(55,718)	199

	At 1 April 2019 £	Income £	Expenditure £	At 1 April 2020 £
Interfaith & Youth Projects Centre for Unity Overseas Project Other	— — 4,784 —	376 5,036 9,489 11,994	(376) (5,036) (7,384) (11,994)	— — 6,889 —
	4,784	26,895	(24,790)	6,889

The Focolare Trust 44

Notes to the financial statements 31 March 2021

15 Tangible fixed assets fund

Tangible fixed assets fund
	Total £
At 1 April 2020 Net movements in year At 31 March 2021(see note 10)	5,026,561 (635,128)
	4,391,433
	Total £
At 1 April 2019 Net movements in year At 31 March 2020(see note 10)	5,056,307 (29,746)
	5,026,561

The tangible fixed assets fund represents the net book value of the charity’s fixed assets. A decision was made to separate this fund from the general fund and other designated funds of the charity in recognition of the fact that the tangible fixed assets are essential to the day to day work of the charity. The fund value, therefore, cannot be realised with ease or without jeopardising the ongoing work of the charity.

16 Designated funds

Designated funds
	At 1 April 2020 £	New designations £	Utilised/ transferred £	At 31 March 2021 £
Property repair fund . The Focolare Centre for Unity . Other Properties Western Europe property repair fund Property replacement fund The Focolare Centre for Unity fund Retirement fund Centro Foco fund	81,068 96,057 — — 38,414 412,400 514,340	— 149,000 1,400,000 600,000 — — 275,105	(15,166) (29,000) — — (8,645) (74,000) (260,000)	65,902 216,057 1,400,000 600,000 29,769 338,400 529,445
	1,142,279	2,424,105	(386,811)	3,179,573

	At 1 April 2019 £	New designations £	Utilised/ transferred £	At 31 March 2020 £
Property repair fund . The Focolare Centre for Unity . Other Properties The Focolare Centre for Unity fund Retirement fund Centro Foco fund	84,968 113,557 7,006 433,400 408,151	— — 31,408 — 239,324	(3,900) (17,500) — (21,000) (133,135)	81,068 96,057 38,414 412,400 514,340
	1,047,082	270,732	(175,535)	1,142,279

The Focolare Trust 45

Notes to the financial statements 31 March 2021

16 Designated funds (continued)

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:

• ♦ Property repair fund

• This fund consists of monies set aside for the purpose of financing large scale repairs to the charity’s residential freehold properties and the Centre for Unity.

• ♦ Western Europe property repair fund This fund consists of monies set aside for the purpose of financing large scale repairs to the Focolare Movement’s properties across Western Europe.

• ♦ Property replacement fund This fund consists of monies set aside for the purpose of replacing residential properties which were sold in 2020/21.

• ♦ The Focolare Centre for Unity fund This represents the general fund balance attributable to the Centre which has been separately designated by the trustees for transparency.

• ♦ Retirement fund

This fund consists of funds that the trustees have designated to provide for members of the Movement in their retirement, calculated using actuarial principles as the members will not be entitled to a full pension.

♦ Centro Foco fund

• This fund consists of monies that the trustees have designated for future donation to the Movement’s centre in Rome, in support of Focolare communities on a worldwide scale.

17 Analysis of net assets between funds

	General fund £	Tangible fixed assets fund (note 15) £	Other designated funds (note 16) £	Restricted funds (note 14) £	Total 2021 £
Fund balances at 31 March 2021 Are represented by: Tangible fixed assets (note 10) Fixed assets investments (note 11) Net current assets Total net assets	— 5,836 153,563	4,391,433 — —	— — 3,179,573	— — 199	4,391,433 5,836 3,333,335
	159,399	4,391,433	3,179,573	199	7,730,604

The Focolare Trust 46

Notes to the financial statements 31 March 2021

17 Analysis of net assets between funds (continued)

	General fund £	Tangible fixed assets fund (note 15) £	Other designated funds (note 16) £	Restricted funds (note 14) £	Total 2020 £
Fund balances at 31 March 2020 Are represented by: Tangible fixed assets (note 10) Fixed assets investments (note 11) Net current assets Total net assets	— 6,015 153,595	5,026,561 — —	— — 1,142,279	— — 6,889	5,026,561 6,015 1,302,763
	159,610	5,026,561	1,142,279	6,889	6,335,339

The Focolare Trust 47