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2023-06-30-accounts

THE COMMUNITY OF ST FRANCIS (European Province) Registered Charity No: 286615 FINAL ACCOUNTS FOR THE YEAR TO 30th JUNE 2023 TRUSTEES’ REPORT ....................................................... Pages 1-3 FINAL ACCOUNTS Independent Examiner’s Report ......................................... Page 4 BALANCE SHEET as at 30th June 2023 .................................. Page 5 STATEMENT OF FINANCIAL ACTIVITIES Income & Expenditure Accounts for the Year Ended 30th June 2023 ...................................... Page 6 STATEMENT OF CASH FLOW for the Year Ended 30 June 2023 ......................................... Page 7 Notes to the Accounts .............................................Pages 8-11

ANNUAL REPORT OF THE TRUSTEES

The Community of St Francis (The Sisters of the First Order of the Society of St Francis)

Registered Charity, Number 286615

1. Address: 2 Yukon Way, Leicester LE1 2AF

2. Trustees. Provincial Officers: Sr Beverley CSF (ex-officio- elected) and appointed by the Minister Provincial: Provincial Secretary (ex officio): Sr Maureen CSF Novice Guardian, (ex officio): Sr Maureen CSF Provincial Bursar, (ex officio): Sr Christine James CSF Chapter Members (see Structural Change below): Sr Gina CSF, Sr Joyce CSF, Sr Liz CSF Also Minister General (ex officio- elected): Sr Sue CSF

Custodian Trustees:

The Official Custodian for Charities

3. Appointment of Trustees

The Trustees are members of the Chapter and are appointed as follows:

The Minister Provincial is elected by the professed members of the Community. The period of office is five years, and reelection is possible for one further term of five years. The Minister Provincial appoints the Provincial Secretary, the Provincial Bursar and the Novice Guardian, all with the approval of the Chapter members. The other Chapter members were elected by all sisters in profession. The period of office is three years. Since February 2022, we realised that because of age and infirmity, the number of sisters willing and able to become Chapter members had decreased to a situation where an election would be a pointless exercise. After consultation with the wider community at the Sisters’ Meeting in November, it was decided to suspend the Statutes in relation to Chapter elections and that the Chapter would continue with its present membership, reviewed annually until February 2025. The Minister General is elected by the life professed members of the Community in the European Province and the Province of the Americas. The period of office is six years which may be followed by a further period of four years.

4. The Governing Instrument is "The Constitution of the Society of St Francis", which is read in conjunction with: "The Principles of the First Order of The Society of St Francis" (1996); "The Constitution of the First Order of the Society of St Francis"(2019); and "The Statutes of the European Province of the First Order of the Society of St Francis" (2021). The Community of St Francis is an Unincorporated Association.

5. The Object of the Community

The object ......of the First Order is to build up a body of ... women who, accepting Christ as their Lord and Master, will seek to follow him in the way of renunciation and sacrifice as an act of witness and for the loving service of his brothers and sisters in the world. (The Principles of the First Order of The Society of St Francis)

6. Agents:

Bankers: The Co-operative Bank, PO Box 250, Skelmersdale WN6 6WT and NatWest, 2 Hendford, Yeovil BA20 1TN Independent Examiner: CAPlus, Units 1 & 2 North West, 41 Talbot Street, Nottingham NG1 5GL.

7. Review of the year

We now have 14 Sisters* in the UK our ages range from late 50’s to early 90’s living in houses in London and Leicester, 5 sisters living singly, two sisters in residential care homes and one sister on leave of absence. 13 Sisters in Life Profession and 1 novice.

Our life continues to be interwoven within a framework of daily prayer and worship and most of our ministry is not quantifiable in monetary terms. This regular life of prayer is the basis of our Franciscan life and service.

We have sold the properties in Darlington and Metheringham with the two sisters there moving to join the household at Southwark.

Sisters are variously engaged in ministry according to their gifts and skills and seizing the moment as the Holy Spirit provides opportunities.

Leicester

Two sisters continue to live in St Matthew’s, Estate9 which is a small estate of mostly social housing just outside the city centre. It is an ethnically diverse area. One sister, the Provincial Bursar, is also a trustee of St Matthew’s Big Local, a community organisation on the ground floor of the building, she has also been elected to the House of Bishops Advisory Council for Religious Communities and continues as treasurer for Anglican Religious Communities. Beverley continues in her role of Minister Provincial for the Province, while also volunteering on the estate for a homeless charity and continues to see

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people for spiritual direction. She has also been elected to represent Religious Communities on the General Synod. Both sisters are more heavily involved in the Parish during an interregnum.

In Birmingham, two sisters live singly in sheltered accommodation, continuing to be a Franciscan praying presence and offering friendship where they live and worship and taking part in the church communities of which they are a part.

Southwark

Two new members of the household has meant a period of readjustment for all four Sisters. The postulant was admitted as a novice in February. One sister continues as a befriender supporting the mental and well-being ministry at the Blackfriars Settlement and listens to those who come for council and prayer. She also continues to assist at the church art group, and attends an art group for the over 50’s. Sue continues as Minister General for the Community, she staffed a Religious Life stall at the Lambeth Conference and continues to conduct group retreats and sees people for spiritual direction. One sister is Novice Guardian and General and Provincial Secretary, and while adjusting to living in London has found a local parish to worship at and begun volunteering with an English conversation group there and working at the church garden. She continues seeing people for spiritual direction. The postulant was admitted as a novice in February which was a great joy, and she continues to learn the rhythm of religious life, with the pattern of prayer, work and study. She has worked part time for Al-Anon Family groups and is exploring volunteering elsewhere. All four sisters undertake the ministry of hospitality with people coming for day meetings and staying residentially. Guests stay for short and longer periods, for various reasons and circumstances, two Ukrainian refugee families came for a mini holiday, the five children were aged 3 months to 11 years. The house was a good base for the family to see the sights of London.

Nearby, a sister in her mid-eighties continues to live in sheltered accommodation. She celebrated her Golden Jubilee of Profession in January, which was a great opportunity to celebrate with Franciscan sisters and brothers, members of other religious communities and friends new and old from the housing complex, Southwark Cathedral and wider afield. She has shed a number of community tasks and responsibilities among which was the role of Secretary for Liturgy but continues doing some spiritual accompaniment and compiling an intercessory paper for the franciscan magazine.

Other sisters

One sister continues to work full time as Rector of the Upper Soar Benefice in Leicestershire, being responsible for five parishes. She is the only ministerial resource, and finding volunteers to help in key roles is a struggle. Two of the parishes who have already achieved bronze status now have a team of Eco Ambassadors which has enabled the work to continue and also one of the schools now regularly goes on a ‘bug hunt’ in the rewilded area in one of the churches. There has also been an eco-themed Advent Service - The Greening of Advent. She has continued to draw the churches together for a Benefice Sunday worship and introduced two new Celtic style non-communion services. There is a significant number of Funeral. Services around ‘All Souls Day’ and “Light up a Life” services in Advent have drawn many people who would not normally attend church.

One elderly sister continues to live in residential care in Aberaeron while another sister lives out her vocation as a solitary in Lancashire.

Korea

The three sisters in South Korea continue to be self-financing. They are engaged in ministry in two local dioceses and in the Anglican Church nationally, building on their individual current ministries – sewing church vestments, member of 0 Equality Committee of the Anglican Church in Korea, work with deprived children, running Enneagram courses, and parish ministry in Daejeon, and ordained leadership of the church in Gumi. They also are engaged in Interfaith Peace pilgrimages in Seoul.

We are smaller in number and of course are getting older. But we continue in our Franciscan calling and seek to live out this way of life to the best of our ability and with hope. We are dispersed geographically but seek to keep connected personally with the annual Sisters meeting, and with Chapter meetings and community celebrations and other events. We also stay connected by phone, WhatsApp, email and Zoom.

The international character of our Community still significantly shapes us and the ministry we are able to offer in diverse circumstances.

More examples of our work and ministry can be found in the franciscan magazine, published three times a year, and on our website: www.franciscans.org.uk and Facebook pages: TheCommunityAndSocietyOfStFrancisEuropeanProvince Each of these is produced jointly with our First Order brothers in the European Province of The Society of St Francis.

*Addendum: Since writing this report the other sister in residential care in East London has died, reducing the number of sisters in the UK to 13

8. Future Plans

Many of our works and ministries will continue for so long as we are capable but changing in response to the needs around us. A group of sisters, the ones likely to be affected by any house purchase, continues to meet to further the process of finding a property and location more suited to our future needs.

8. Public Benefit

The Trustees have had regard to the guidance issued by the Charity Commission on public benefit. In all houses, we encourage those who we help, by way of offering accommodation, counselling or spiritual direction, to

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make a contribution to the community according to their means, and offer realistic guidelines, but we do not refuse our services if this is not forthcoming. Sisters also volunteer in various capacities, with a number of charities, and local community organisations.

9. Finance

The Community in the European Province administers its funds through the various addresses and centres of work in the United Kingdom. These, through the Provincial Fund which acts as a pool, help to finance the Province as a whole, whenever they are able to generate a net surplus within a given year. The Province reciprocates in meeting local needs, as agreed through annual budgeting and dialogue. The Chapter annually authorises both Provincial and House budgets at its Pentecost Meeting and the Provincial Budget is reviewed at the other meeting. Unbudgeted necessary expenditure of over £500 is authorised by the Minister Provincial and ratified at the next Chapter Meeting. The aim of this system is to allow for a degree of local discretion in financial policy making while maintaining an interdependence and mutual accountability between our sisters as a whole.

Each address of the Community administers an account locally for the support of the sisters living and working from it, and to assist its mission there. These accounts receive donations, part-time salaries and other cash receipts. Each address is an integral part of the Community.

The Provincial Fund co-ordinates the work and mission of the Community in the Province, receiving any full-time salaries and the pensions of its members as well as Legacies and other Capital Receipts.

The proceeds from the sale of the properties have been placed in the designated building fund and we are actively investigating our future location. Keeping in mind the move to net zero emissions, we have increased the vehicle fund with a view to replacing our current vehicles with electric or hybrid ones as the need arises.

10. Policy on Reserves

From the Constitution of the First Order of the Society of St Francis: The Sisters desire to have no security resting on earthly possessions but to be wholly dependent upon God, relying on faith and prayer. The First Order itself shall not normally hold any land, building or capital in its own name but shall, when possible, place all property of which it may have the use into the hands of others. (Constitution of the First Order, 35:1, 2.) Thus, the Community is not restricted in its investment powers, except where legally required - notably under the terms of the Trustee Investment Act 1961. However, it is not in the spirit of the Community in its interpretation of the Gospel of Christ after the way of St Francis to invest in any material or financial asset for security of Capital or Income. It is expected that investments recorded in the Accounts will relate to designated funds, established by the Chapter for specific purposes.

11. Risk

The Chapter Members, in their duties as Trustees, consider regularly the major risks which may affect the Community, and decisions and recommendations for discussion and action are reported to the wider community.

Together with the Brothers of the Society of St Francis, the Community has developed policies and guidelines to ensure that vulnerable people, including children, are safeguarded and that spiritual direction, counselling and other pastoral work are carried out to a professional standard. These are reviewed on a regular basis.

The Trustees are satisfied that the funds are being managed on a low-risk basis and are monitoring the situation with a long term overview.

The community is fortunate in that a large proportion of our income is from pensions with one sister in employment. We recognise that, over time, the income from pensions will decrease but long-term planning has enabled us to maximise the possible state pensions for most sisters in their sixties and early seventies.

12. Other information not recorded in the Accounts

The Community wishes to acknowledge the blessing of great generosity from those who support us, not solely by money but also in time given to practical help and by their prayers. Such acts of generosity are largely local and personal and are, consequently, not quantifiable within the formal structure of an Annual Report, but the Community here records its gratitude.

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Independent Examiner's Report to the Trustees of The Community of St Francis (European Province)

I report to the Trustees on my examination of the accounts of the Community of St Francis (the charity) for the year ended 30 June 2023.

Respective responsibilities of Trustees and examiner

As the Trustees of the charity you are responsible for the preparation of the accounts. The charity’s Trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Act”)

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that in any material respect:

  1. the accounting records were not kept in accordance with section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.

I have no concerns come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed _______ John O’Brien MSc, FCCA, FCIE Employee of Community Accounting Plus

Date __31/01/24_______

Units 1 & 2 North West, 41 Talbot Street, Nottingham, NG1 5GL.

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BALANCE SHEET as at 30 June 2023

Notes
FIXED ASSETS
Tangible fixed assets
(7)
Investments
(8)
CURRENT ASSETS
Stocks
Debtors and prepayments
Deposit Funds
Cash at bank and in hand
CURRENT LIABILITIES
Accruals
Other Creditors
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted
Designated Funds
(9)
General Funds		 June 30, 2023
Consolidated
Provincial & House Funds
£
13,320
457,367
470,687
1,307,156
133,569
1,440,725
(672)
(2,059)
1,437,994
1,908,681
1,566,115
342,566
1,908,681		 June 30, 2022
Consolidated
Provincial &
House Funds
£
424,494
448,060
872,554
72
6
543,778
121,349
665,205
(642)
(91)
664,472
1,537,026
1,141,333
395,693
1,537,026

Approved by the Trustees on 23 January 2024 and signed on their behalf by Sr Beverley CSF Minister Provincial

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STATEMENT OF FINANCIAL ACTIVITIES

Provincial & House Funds Consolidated for the year ended 30 June 2023

INCOME & EXPENDITURE
Notes
Income from:
Legacies
Grants and donations
Srs' Pensions/Allowances
Sisters' Salaries
Ministry
Contributions from Guests
Donated services and facilities
Sales/Industries
Interest
Profit on disposal of fixed assets
Total
Expenditure on:
Gen. Maintenance of Houses
(2)
On Behalf of Sisters
(3)
Travel & Vehicle Maintenance
(4)
Training & Education
Administration
(5)
Overseas Travel
Depreciation
Gifts
(6)
Contributions to FODF
Contributions to SSF
Removal Expenses
Shop purchases
Stock written off
Legal and professional fees
Total
Gains and losses on investment assets
Net income/(expenditure)
Transfers between Funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Total
Total
General
Fund
Desig'd
Funds
30 Jun
2023
30 Jun
2022
£
£
£
£
4,892
4,892
23,409
23,409
24,878
109,521
109,521
102,331
31,439
31,439
34,481
5,555
5,555
6,546
13,962
13,962
11,704
8,400
8,400
8,400
148
148
206
17,232
10,236
27,468
8,812
333,752
333,752
660
214,558
343,988
558,546
198,018
101,900
101,900
99,052
27,491
27,491
27,389
7,438
7,438
7,999
871
1,384
2,255
2,314
12,995
12,995
10,578
4,720
4,720
219
4,441
4,441
9,924
8,124
8,124
8,809
10,000
10,000
10,000
2,000
2,000
3,000
1,487
1,487
1,371
3
3
72
72
13,272
13,272
190,373
5,825
196,198
180,655
9,307
9,307
(11,183)
24,185
347,470
371,655
6,180
(77,312)
77,312
(53,127)
424,782
371,655
6,180
395,693
1,141,333
1,537,026
1,530,846
342,566
1,566,115
1,908,681
1,537,026

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Statement of Cash Flows for the Year Ended 30 June 2023

Cash flows from operating activities
Net income for the year
Net cash income
Adjustments in cash flows from non cash items
Interest received
Depreciation
(Gains)/losses on investments
Loss(profit) on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash gained in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash gained in investing activities
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)
Total cash and cash equivalents		 2023
2022
£
£
371,655
6,180
(27,468)
(8,812)
4,441
9,924
(9,307)
11,183
(333,752)
(660)
72
10
6
1,744
1,998
(878)
7,645
18,691
(10,015)
(2,651)
750,500
756
27,468
8,812
767,953
6,917
775,598
25,608
665,127 639,519
1,440,725 665,127
133,569 121,349
1,307,156 543,778
1,440,725 665,127

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30th JUNE 2023

a) Basis of accounting

b) Cost Allocation

Financial Activities are analysed into classifications to suit the Community's circumstances in accordance with paragraph 4.6 of SORP (FRS 102). Support and governance costs are integral to overall expenditure.

c) Recognition of income

These are included in the Statement of Financial Activities (SoFA) when:

the charity becomes entitled to the resources;

it is more likely than not that the Trustees will receive the resources; and

the monetary value can be measured with sufficient reliability.

This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.

d) Expenditure and Liabilities

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e) Assets

Tangible fixed assets for use by charity Expenditure on improvements to property, additions to major vehicles and major items of fixtures and equipment over £1,000 and which can be used for more than one year have been capitalised and are being depreciated on a straight line basis as follows:

Freehold buildings - over 50 years Fixtures and equipment - over 5 years Improvements to property - over 5 years Computer equipment - over 3 years.

The depreciation for motor vehicles is by a reducing balance basis of 25% per annum in order to reflect our current practice of purchasing good second-hand vehicles and retaining them for a longer period. A full year's depreciation is charged in the year of purchase. Smaller items are charged to income and expenditure immediately.

Analysis of Expenditure
2
General maintenance of houses
Rent, rates & Council Tax
Insurance
Household
Repairs & maintenance
Heat & light
Food
Chapel
Garden
3
On behalf of Sisters
Personal, inc. therapy & conferences
Care home fees
Funeral expenses & plans
Books & Papers
4
Travel & vehicle maintenance
Travel
Vehicle running & maintenance
5
Administration
Office & general expenses incl Chapters
Communications
Independent Examination		 Total
2023
46,407
8,561
5,594
4,759
13,206
17,843
1,351
4,179
101,900
15,744
8,284
3,463
27,491
516
6,922
7,438
7,840
4,408
747
12,995		 Total
2022
45,870
11,236
5,948
2,344
15,415
16,208
703
1,328
99,052
17,339
8,083
(1,262)
3,229
27,389
1,184
6,815
7,999
4,864
5,042
672
10,578

9

6
Gifts
Gifts – organisations
Gifts – individuals
7
Fixed Assets
Cost or valuation
Balance bt forward
Additions
Disposals
Balance cd. forward
Depreciation
Balance bt forward
Charge for the year
Eliminated on disposal
Balance cd forward
Net book value at 30 June 2023
Net book value at 30 June 2022
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Investments
Market value brought forward
Addition
Disposal at opening market value
(Decrease) / Increase in market value
Market value carried forward

Freehold Land
& Buildings
Property &
Improv'ts
463,268
50,612
(463,268)
(50,612)

7,784
340
8,124
Motor Vehicle
Fixtures &
Equipment
28,824
558
10,015
(6,900)

8,234
575
8,809
Computers
Total
1,214
544,476
10,015
(520,780)
53,631
47,382
(53,631)
(47,382)		 31,939
558
17,197
558
4,441
(3,019)		 1,214
33,711
1,214
119,982
4,441
(104,032)
18,619
558		 1,214
20,391
13,320 13,320
409,637
3,230		 11,627 424,494
2023
448,060
9,307
457,367		 2022
459,243
(11,183)
448,060

The investments comprise deposits with CCLA Investment Management and M & G Charifund. They have historical cost values of £123,572 and £50,039 respectively. They are designated for the Development Fund and the Building Fund (see Note 9).

9 Designated Funds

Fund Name
Development Fund
Building Fund
Vehicle Fund
Training Fund
Total Funds		 Fund Balances
brought
forward
Income
Expenditure
Transfers
Gains and
Losses
Fund Balances
carried
forward
496,998
9,385
(8,007)
9,032
507,408
592,708
332,133
60,271
275
985,387
41,627
2,257
(4,441)
23,877
63,320
10,000
213
(1,384)
1,171
10,000
1,141,333
343,988
(5,825)
77,312
9,307
1,566,115

Development Fund - established to provide income or capital support for development Building Fund - funds for house purchase and building improvements Vehicle Fund - established to provide income or capital support for the costs of vehicle replacement Training Fund - established to provide support for the costs of training sisters and General Chapters

10 Analysis of Net Assets between Funds (consolidated)

Designated Funds
Development Fund
Building Fund
Vehicle Fund
Training Fund
General Fund		 Tangible
Fixed
Assets
Investm'ts
Net Current
Assets
Total
£
£
£
£
277,252
230,156
507,408
180,115
805,272
985,387
13,320
50,000
63,320
10,000
10,000
13,320
457,367
1,095,428
1,566,115
342,566
342,566
13,320
457,367
1,437,994
1,908,9681

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11 Trustees' Benefits

The Charity provides for the essential needs of all members of the Community. As Sisters of the Community, the Trustees’ living and personal expenses during the year were borne by the charity but they received no remuneration or reimbursement for expenses in connection with their duties as Trustees.

12 Carrying amount of financial assets 2023 2022
Equity instruments measured at fair value through income & expenditure 457,367 448,060
13 Related party transactions
There were no related party transactions in the period.

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