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2022-12-31-accounts

CONGREGATION OF JOSEPHITES

ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2022

Charity Number: 312071

CONGREGATION OF JOSEPHITES FOR THE YEAR ENDED 31ST DECEMBER 2022

INDEX Page
Trustees and Advisors 1 - 2
Trustees' Report 3 - 17
Report of the Independent Auditors 18 - 20
Balance Sheet 21
Statement of Financial Activities 22
Statement of cash flows 23
Accounting Policies 24 - 26
Notes to the Accounts 27 - 34

CONGREGATION OF JOSEPHITES TRUSTEES AND ADVISORS FOR THE YEAR ENDED 31ST DECEMBER 2022

TRUSTEES

Rev M Ashcroft (Chairman) Rev W M Muir Rev M Powell Mr J McCormick Mr Andrew McCormick

REGIONAL ASSISTANT FOR ENGLAND

Rev M Ashcroft

TRUST BURSAR

Rev M Powell

PRINCIPAL OFFICE

St George's College Weybridge Road Addlestone Surrey KT152QS

CONTACTS

Rev Martin Ashcroft The Josephite Community St George's College Weybridge Road Addlestone Surrey KTl52QS

WEBSITE

www.josephite.community

CHARITY REGISTRATION NUMBER

312071

GOVERNING INSTRUMENT

Trust Deed dated 8 April 2008. Certificate of incorporation dated 28 June 1993

AUDITORS

Haysmacintyre LLP 10 Queen Street Place, London, EC4R 1AG

SOLICITORS

Stone King 13 Queen Square Bath BA12HJ

BANKERS

CAF Bank Limited 25 Kings Hill Avenue Kings Hill, West Malling, Kent ME19 4JQ 

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CONGREGATION OF JOSEPHITES TRUSTEES AND ADVISORS FOR THE YEAR ENDED 31ST DECEMBER 2022 (continued)

INVESTMENT MANAGERS

Barclays Wealth Management Ltd 1 Churchill Place London El45HP

Sarasin Investment Funds Ltd Juxon House 100 St Paul's Churchyard London EC4M 8BU 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022

The Trustees present their report with the accounts of the Congregation of Josephites for the year ended 31 December 2022.

INTRODUCTION

The Congregation of Josephites is an international Roman Catholic religious congregation supporting 120 Priests and Brothers worldwide. It was founded in Flanders in 1817 where its Generalate is officially located and it is divided into three distinct regions across the world: Europe, USA, and Africa.

The accounts accompanying this report are the accounts of the charitable trust in which the assets of the Congregation in England are held.

In 2022, the Trust bank account was moved from Nat West Bank to CAF Bank Ltd.

MISSION

The English Region of the Congregation of Josephites aims to support such charitable purposes which advance the Roman Catholic religion and religious education and other charitable works carried on by members of the Congregation and to care for those members throughout their lives who have committed themselves to the Congregation. These ministries of the members of the Congregation, all of which benefit members of the general public, fall into the following main areas:

Roman Catholic Education

One member of the Congregation is involved in work at St. George's College. The Trust also supports the Roman Catholic educational work of Josephites in the Democratic Republic of Congo, Gabon, and Cameroon.

Social and Pastoral work

Members of the Congregation are involved in various forms of social or pastoral work including parish ministry, and community-based programmes.

Overseas Missionary work

The Charity helps to support Josephites working in formation or education in the Democratic Republic of the Congo, Gabon and Cameroon.

Caring for members of the Congregation

Members of the Congregation need care and support in their old age. 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

GOVERNANCE, STRUCTURE AND MANAGEMENT

In terms of Canon Law, the Congregation is governed at an international level by the Superior General and his General Council in Belgium. Fr Martin Ashcroft is currently designated as Regional Assistant for England. The Regional Superior of Europe is required to visit each Community at least once a year, and throughout the year there is a system of accountability operational throughout the Region to ensure that the Regional Superior is aware of the progress and development of the ministries carried out by the members of the Region. This visit did not happen in 2022 as the Regional Superior’s mandate expired and the proposed restructuring of the European Region is still work in progress. A Canonical Visitation by the Superior General is made to the European Region at least once every three years.

In terms of Civil Law, the Charity is governed by a trust deed dated 8th April 2008 and is a registered Charity - Charity Registration No. 312071 (The Charity). The Trustees are proposed by, and appointed with the approval of, the Superior General of the Congregation of the Josephites for an indeterminate period and elect their own officers.

As three Trustees are members of the Congregation, they have a detailed knowledge of the work of the Charity and its structure. The three Josephite Trustees living in England have attended NSPCC courses on Safeguarding for Trustees. Any new Trustee will obtain a full briefing of their responsibilities and the Charity's position.

The names of the Trustees who served during the year are set out as a part of the reference and administrative details on page I of this annual report and accounts and brief biographical details on each Trustee is given below:

Fr. William Muir is a qualified teacher with degrees from Newcastle and Heythrop. He also has experience with university chaplaincy and parish work and was until July 2016 a director of CAST, the multi–Academy Trust of the Plymouth diocese. He is a former Governor of St George's College, Weybridge. On leaving Plymouth Diocese he looked after the parish of Hersham in the Diocese of Arundel & Brighton. More recently until his retirement from full time ministry in September 2021, he was responsible for the parish of St Erconwald’s in Walton-on-Thames in the Diocese of Arundel & Brighton. Currently he is available for supply work in the Diocese of Arundel & Brighton. He is a current Governor of Cardinal Newman School in Hersham and is studying for an MA in Philosophy. He is the Trustee responsible for Safeguarding compliance.

Fr Martin Ashcroft is a qualified teacher with degrees in Theology, Religious Studies and Chaplaincy Studies. He was for eighteen years Headmaster of St George's College Junior School. He currently works at St George's College as the Lead Chaplain. He is a regional Chaplain of the Hosanna House and Children's Pilgrimage Trust, and a member of the Council for Religious in the Roman Catholic Diocese of Arundel & Brighton. He also exercises his priestly ministry at a local Care Home. He is the Chair of the Trustees for the Congregation of Josephites in England. 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

Br Michael Powell has taught in all of the Trust's schools. He has researched the history and ethos of Josephite schools, publishing his PhD thesis in 2003. He acts as Secretary to the Trustees of the Charity and is Secretary to the European Regional Council. He is also a Trustee of St Joseph's African Aid and of the Burgon Society. He serves as Project Director for St Joseph's African Aid. In July 2016 he was elected to the Josephite General Council and appointed Secretary of the Council. He was re-elected in 2022. Since 10 December 2018 he has been the Trust Bursar.

Mr John McCormick has held numerous roles in the banking world at main Board Director level: Bank of Montreal, National Bank of Greece, RBS Group Asia Pacific among others. John is also an international executive business coach and mentor for C Suite leadership in the UK, Ireland, and Middle East. He brings to the Trustees a wealth of expertise in financial and governance matters. https://www.linkedin.com/in/johnmccormickirl/

Mr Andrew McCormick , CFA was educated at St George’s College, Weybridge, holds an MChem Chemistry from the University of Durham, an MSc Management from Imperial College Business School and is a CFA Charterholder. He is currently the Global Head of Operational Risk at Janus Henderson Investors, a global Investment and Asset Management Firm. He previously held several roles as a management consultant at Accenture, a large consulting and outsourcing services firm.

The Trustees are actively seeking new Trustees, who will be lay persons or members of other Religious Congregations, in order to add to the skills pool of the existing 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 & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity at the year end and of incoming resources and application of resources of the charity each year. In preparing those financial statements, the Trustees are required to: 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

The Trustees are responsible for keeping proper accounting records that disclose with accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and other provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STRUCTURE AND MANAGEMENT REPORTING

The Trustees are ultimately responsible for the policies, activities, and assets of the Charity. They meet quarterly to review developments with regard to the Charity or its activities and make any important decisions. When necessary, the Trustees seek advice and support from the Charity's professional advisers including property consultants, investment managers, solicitors, and accountants. The day-to-day management of the Charity's activities and the implementation of policies is delegated to the appropriate members of the Congregation.

The English Community comprises six members. Two members live in Stanwell Moor, one lives in Addlestone, one at St Augustine's Care Home, one is currently serving a custodial sentence at HMP High Down who will leave the Congregation upon his release from prison, and two members live in the Weybridge Community at St George's College. During 2022, Fr Jude McHugo who was living at St Augustine’s Care Home in Addlestone died on 15 April 2022 of natural causes.

The Regional Assistant is responsible for both the needs and the care of the confreres in England and liaises regularly with the trustees for appropriate funds. Each year the Trustees prepare a budget for the following financial year and discuss developments, future plans and strategy .

WORKING WITH OTHER ORGANISATIONS

The Charity works closely with several other charities which work in the field of education or parish care. In some instances, the Trust receives remuneration for services given by members of the Congregation. Examples of the organisations for which members have worked and with which the charity has cooperated during the year are as follows: 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

RISK MANAGEMENT

In line with the requirement for Trustees to undertake a risk assessment exercise and report on the same in their annual report, the Trustees have looked at the risks the Charity currently faces in Britain and have reviewed the measures already in place or needing to be put in place to deal with them.

The Trustees have identified five main areas where risks may occur:

Governance and management:

Possible risks to the Trust that were identified were: a lack of strategic direction on the part of the Trustees; poor skills match in the light of the needs of the Congregation; and the inappropriate use of resources.

Mitigation: The Trustees are very aware of the need for strategic direction. Several Trustees are involved in the management of the Josephites at different levels and can view the management of the English Trust within a wider context. Some are Trustees of other organisations and h ave been on courses for Trustees. New documentation concerning the duties of Trustees is shared with the whole Board whenever it appears. We believe that the skills represented on the current Board are a match for our current circumstances. We are open to the possibility of more non-Josephite Trustees in the future and greatly value the advice of our current lay advisor and recently appointed lay Trustee. Use of resources is frequently under review by the Trustees.

Risks at the operational level:

The financial failure of St George's College; the Congregation's members engaging in inappropriate activities; poor maintenance of buildings and poor health and safety management that could result in significant claims against the Trustees for negligence.

Mitigation: The Trustees are confident that the robust procedures in place at St George's Weybridge, and the oversight of the Governors, are sufficient to mitigate against any failure, poor maintenance and poor health and safety. St George's Weybridge had sufficient reserves to protect it from the impact of the disruptions caused by COVID 19. The College and Junior School both maintain a full number of pupils on roll. For mitigation against inappropriate activities see below. 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

Financial risks:

Poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies.

Mitigation: The Trustees receive a broad finance update at each Trust Meeting and in conjunction with the Trust Bursar, they exercise oversight of the Trust’s finances. There is an annual professional audit. The annual budget is subject to the approval of the whole Board. Investment matters are carefully considered with the input of our two financially well qualified lay Trustees.

Risk of reputational damage:

Could arise through bad publicity because of inappropriate behaviour on the part of the Congregation's members or of members of St George's Weybridge.

Mitigation: This is a risk which cannot be 100% mitigated as it covers the possible actions of individuals rather than the institution. However, all Josephites resident at St George's College, and all members of staff at the College, have signed the College's Child Protection Policy. They have also attended in-service child protection training. Since August 2017 all Josephites throughout the world have been required to sign a common policy for Child Protection and Vulnerable Adult Protection. During 2022 Patrick McDermott, the Designated Safeguarding Lead for the Josephites in England stepped down from this role due to his other newly acquired work commitments for the Diocese of Leeds. The Congregation has subsequently become a full member of the Religious Life Safeguarding Service. A comprehensive safeguarding plan has been put in place for the Josephites living in England. Fr William Muir is the nominated Trustee responsible for the oversight of the safeguarding plan.

Legislational damage:

The risk of legislation that could be hostile to the Trust's mission or to that of St George's Weybridge.

Mitigation: The Trustees make every effort to keep abreast of legislation which might affect our mission. At present the Trustees are not aware of any pending hostile legislation. The Trustees are confident that the Governors of St George's Weybridge are making the same efforts.

Having assessed the major risks to which the Charity is exposed, the Trustees believe that by monitoring the composition and skills mix of the Board of Trustees and financial reserve levels; by ensuring that controls exist over key financial and maintenance systems and by examining the operational and business risks faced by the Charity, they have established effective systems to mitigate those risks. 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES

Activities and specific objectives

As stated above under "Mission", the activities of the Charity can be divided into four principal areas: Roman Catholic education, social and pastoral work of the members, overseas missionary work and caring for members of the Congregation. Each of these is considered in turn below:

1. Roman Catholic Education:

The non-financial, moral support of St. George's Weybridge is one of the main works of the Charity. St George’s Weybridge is the educational legacy of the Josephites 150+ years in England.

The Charity also supports Roman Catholic Education undertaken by African Josephites in the Democratic Republic of Congo and Cameroon.

The Charity owns the freehold land and buildings of St. George's College, founded by the Congregation of Josephites in 1869. St. George's College is now a separate Independent School administered by a Board of Governors and registered as a separate Charitable Company limited by guarantee.

The school property is leased by the Charity on a 99-year lease to St George’s Weybridge. Negotiations are ongoing for the possible sale of the freehold to St George's Weybridge.

Only one Josephite, who is also a Josephite Trustee, works in and for the College.

The reputation of St George's College continues to remain high and flourish and the demand for places is very strong despite the present financial situation. The combined pupil numbers on roll in 2022 at the College (1036) and the Junior School (617) was a record. The schools are the largest Independent Co-Educational Roman Catholic Day Schools in the country.

The Governing Body of St George’s Weybridge established the Josephite Ethos Committee on 19 September 2019 which is charged with overseeing the active continuance of the underpinning Roman Catholic and Josephite Ethos at St George’s It meets at least 3 times per year and its members comprise Governors, Josephites and Staff. It reports to the full Governing Body. Two Josephite Trustees are members of the Josephite Ethos Committee.

The Josephite Ethos Committee has a dynamic agenda, and it is actively moving forward with several actions to ensure relevant knowledge and materials from the Josephite Congregation are made available to the school, as well as to reduce reliance on actual Josephite presence and further embed a culture of ‘living’ the Josephite Educational Ethos throughout all staff and pupils. 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

In a recent Independent Schools' Inspectorate Report it was stated that "the College fully achieves its aim of offering a complete Catholic education imbued with the spirit of the Josephite tradition by developing ethical, spiritual and moral values, inspiring a love of learning, fulfilling aspiration and potential in an atmosphere of mutual respect and compassion."

2. Social and Pastoral work:

The following are examples of the social and pastoral work undertaken by individual members of the charity

The aims of the Trustees in this area include enabling all members of the Charity to carry out meaningful social and pastoral work within the local and wider community after assessing their skills and the needs of the local Church. Wherever possible the policy is to ensure that the charity receives remuneration for the work of its members by way of salary or stipend.

3. Overseas and missionary work:

The Charity has been financially supporting the education and formation of our Josephite students for priestly and secular studies in the Democratic Republic of Congo as well as giving general financial support on an "as needed" basis. One Trustee is the project manager for "St Joseph's African Aid." 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

Caring for members of the Congregation:

In common with many religious congregations in Great Britain, the age profile of the members of the Congregation is increasing as existing members grow older and the number of the new vocations becomes minimal. The age profile of the English members of the European Region is shown below:

Date of Birth Age as at 31stDecember of
the currentyear(2022)
Fr Jude 24thApril 1932 Died 15 April 2022
Fr Robert 13thMay 1940 82
Fr William 14thMay 1945 77
Br Patrick 10thFebruary 1949 73
Fr Martin 10thMay 1951 71
Br Michael 4thApril 1951 71
Fr Nicholas 22ndNovember 1955 67

The charity has an obligation to provide care for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to the work of education, pastoral work in the local community as parish priests or work with our overseas missions. As the age profile of the English members of the European Region increases so too does the need to provide increasing and expensive care for the members. Therefore, the Trustees are giving consideration to the impact of this on the work of individual members of the Charity, the property requirements of the Charity and the financial implications. The Charity has designated funds for retirement and property and details of these funds are set out in the accounts.

During the Financial Year Fr Jude McHugo (until 15 April 2022) had been in a Care Home at a cost of £4,000+ a month.

PUBLIC BENEFIT

The Trustees recognise the duty imposed upon them by Section 17 of the Charities Act 2011 and also the requirement to have due regard to the general guidance provided by the Charity Commission in connection with Public Benefit.

The Trustees, according to their Trust Deed of 8th April 2004 shall advance the religious and other such charitable work of the Congregation as the Trustees with the approval of the Superior shall from time to time think fit.

The Trustees will be guided by Constitutions of the Josephites which state: (5-1) "Apart from the instruction end education of young people, the aim of the Institute includes the whole priestly ministry, especially apostolic work in missionary countries, and in regions which are short of priests." 

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CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

PUBLIC BENEFIT (continued)

Public Benefit is derived from:

PROTECTION OF CHILDREN AND VULNERABLE ADULTS

Along with all other organisations who serve the community, the Trustees recognise the absolute necessity of ensuring the protection and safety of all those the Charity serves. This means that all members who are in any kind of ministry in Great Britain must obtain DBS clearance. The Trustees are committed to implementing all policies and procedures of the Catholic Safeguarding Advisory Service (CSAS).

One Trustee has been appointed safeguarding co-ordinator.

GRANTS, DONATIONS AND SUPPORT OF MISSIONARY WORK AND MINISTRY

Grants, donations, and other payments in support of missionary work and ministry are decided on by the Trustees in consultation with other members of the Congregation as appropriate. In the main, the Charity supports the work of the Congregation in the Democratic Republic of the Congo.

Whilst the Trustees give occasional financial support to United Kingdom organisations whose work is within the objects of the Charity, the Charity does not regard itself as a grant making entity and applications for grants and donations are not invited.

The following donations were made during 2022.

African Region £52,626

This grant was given to support the Congregation’s work in the Democratic Republic of the Congo. 

12

CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

ACHIEVEMENTS AND PERFORMANCE

Review of activities:

1. Social and Pastoral work:

Throughout the year, members continued to carry out various forms of social and pastoral work in order to fulfil their individual ministries. This work enables the Charity to benefit a significant number of people.

2. Overseas Missionary work:

The Trustees continue to contribute occasionally to the Josephite Endowment Fund in Belgium - from which the interest money is distributed on a quarterly basis for the day-today expenses of Josephites in the Democratic Republic of Congo and Cameroon. However, no contribution was made during the current financial year as the financial return and interest is proving uncertain and inadequate. The Trustees also contribute, when requested to a fund for the educational fees of young Josephites in training in Africa. A budget figure of £18,000 p.a. is set aside for this.

3. Care of members of the Charity:

Throughout the year, the Charity continued to assist members of the Congregation in their charitable and religious work.

A policy for the future care of our members is in place for England and this is continually reviewed by the Trustees.

INVESTMENT POLICY AND PERFORMANCE

The Trustees have established an ethical investment policy and have communicated this to their Fund Managers. The policy states that "no investments are to be made in companies which are predominantly involved in the production of armaments, tobacco or abortion products".

The quarterly reports of the investment managers compare performance with a number of relevant indices and comment thereon.

The Trustees have established an ethical investment policy and have communicated this to their Fund Managers. The policy states that "no investments are to be made in companies which are predominantly involved in the production of armaments, tobacco or abortion products".

The quarterly reports of the investment managers compare performance with a number of relevant indices and comment thereon.

Returns : The total return was 11.2% on the charity’s investments, Barclays Charity Fund returned 12.03% (net) versus 10.23% (net) return from Sarasin Partners Charitable endowment. 

13

CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

INVESTMENT POLICY AND PERFORMANCE (continued)

The Trustees have established an ethical investment policy and have communicated this to their Fund Managers. The policy states that "no investments are to be made in companies which are predominantly involved in the production of armaments, tobacco or abortion products".

2022 Investment Fund Manager Performance and Analysis on behalf of Congrega�on of Josephites (CoJ)

Barclays Wealth

[excerpt from year end 2022 Barclays Wealth fund report]

Fund Performance

2022 Q4 – EQUITIES AND BONDS REBOUND AS INFLATION MAY HAVE PEAKED

2022 2021 2020 2019 3yr 5yr Income Summary
(p.a.) (p.a.)
Fund -7.8 12.4 1.6 17.6 1.7 3.5 12m distribution yield 3.0%
ARC Steady Growth* -9.5 12.3 3.5 15.6 1.7 3.0 Next distribution 0.68p
Relative 1.7 0.1 -1.9 2.0 0.0 0.5 Distribution date 31-Jan

Fig 2: Charity Fund performance to 31 December 2022

Past performance of investments is not a reliable indicator of their future performance. The value of investments and any income can fall.

For a description of the ARC Index and discrete 5-year performance of indices, see page 11. 

14

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Fig 3: Barclays Charity Fund performance against ARC

Past performance of investments is not a reliable indicator of their future performance. The value of investments and any income can fall.

Appendix – Historical Performance

Discrete 5-year performance of gilts and equities across regions

Market 2022 2021 2020 2019 2018
Gilts (£) -25.1 -5.3 8.9 7.1 0.5
UK(£) 7.2 19.6 -13.2 16.4 -8.8
USA ($) -19.9 26.5 20.7 30.9 -5.0
Europe ex UK (€) -12.6 24.4 1.7 27.1 -10.9
Emerging Markets (£) -10.0 -1.6 14.7 13.9 -9.3

Past performance is not a reliable indicator of future performance. The value of investments and any income can fall.

Index Source: Bloomberg. Indices used: Bloomberg Barclays Sterling Gilts, MSCI USA Net Total Return, MSCI UK Net Total Return, MSCI Europe ex UK Net Total Return, MSCI Emerging Markets Net Total Return (GBP). All returns include income reinvested and are in local currency apart from MSCI Emerging Markets which is in £.

Discrete 5-year performance for the Barclays Charity Fund

2022 2021 2020 2019 2018
Portfolio (net) -7.8% 12.4% 1.6% 17.6% -4.1%
ARC Steady Growth* -9.5% 12.3% 3.5% 15.6% -4.9%
Relative 1.7% 0.1% -1.9% 2.0% 0.8%

Past performance is not a reliable indicator of future performance. The value of investments and any income can fall.

Discrete 5-year performance for the S&P 500 Index

2022 2021 2020 2019 2018
S&P 500 -18.1% 28.7% 18.4% 31.5% -4.4%

Past performance is not a reliable indicator of future performance. The value of investments and any income can fall. Index

Source: Bloomberg. All returns include income reinvested and are in $

ARC Further information

The Manager compares the performance of the Trust against the ARC Sterling Steady Growth ACI (the “Index”), one of the ARC Charity Indices. The Trust is not constrained to, or managed in line with, the Index and it is relevant only for the purposes of comparing the Trust’s performance.

ARC Charity Indices are specifically designed to be used by charity trustees and advisers in assessing the performance of discretionary charity portfolios. The Manager compares performance of the Trust with the Index to help investors understand how it has performed versus an appropriate peer group. The Index is used because portfolios included in it have comparable risk characteristics. The Index is compiled by taking the performance of each portfolio submitted by the data contributors where the historic volatility of that portfolio has been in the range of 60–80% of that experienced by UK equity markets. 

16

Sarasins

[excerpt from year end 2022 Sarasin Fund report]

Performance & Activity

Your portfolio produced a positive return of +3.9% net of all fees and charges for the quarter, in line with the benchmark return of +3.8%. For calendar year 2022, this means the portfolio fell by -9.9% which was behind the benchmark return of -6.9%. The reasons for the underperformance have been well-rehearsed throughout the year and were primarily because of the lack of commodities (oil & gas) exposure, particularly in UK equities where they account for a large proportion of the market. Over 3 and 5 years, your portfolio remains comfortably ahead of the peer group, as measured by the ARC Steady Growth index.

During the quarter we took advantage of sharply higher UK bond yields following the Kwarteng budget to add back some corporate bond exposure in early October. We also added to equities early in the quarter as we felt that market sentiment had become overly pessimistic. Both of these tactical decisions turned out to be welltimed after carrying large amounts of cash throughout the year.

Within the equity allocation it is pleasing to see that that the quality, thematic credentials of the companies in your portfolio have started to be rewarded. There is no doubt that 2022 was a difficult year for thematic stock selection but the confidence and consistency in our process was validated in the final quarter.

Outlook

Recession risks to corporate earnings in the first half of 2023 place markets at an inflection point with the bull and bear cases finely poised. However, we would like to see a reduction in analysts’ earnings estimates to create a more realistic base for market expectations.

On the negative side of the ledger, labour markets remain tight, which could yet result in higher inflation for longer. This is a legitimate concern as the global economy moves into recession, raising the unwelcome possibility of stagflation. Elsewhere, a change of strategy from the Bank of Japan shortly before Christmas over its long-term management of interest rates is posing an additional challenge for investors, given its potential to encourage a substantial repatriation of capital back into yen-denominated assets. Finally, the war in Ukraine is an ongoing disaster for a host of humanitarian and economic reasons, with no immediate or obvious end in sight.

On the positive side, a number of important leading indicators unquestionably improved during the quarter. First and foremost, US CPI numbers are at last rolling over, with the latest update at 6.5% from a high of 9.1% in the summer, demonstrating that Federal Reserve policies are beginning to have an impact. This was echoed by last week’s European inflation numbers, all of which serve to remind us that year on year price comparisons are easing, in some cases quite dramatically (e.g. oil, gas, freight, and industrial commodities, all of which are well below their recent peaks). Furthermore, global supply chain dynamics have improved significantly in the second half of 2022 and are virtually back to pre-COVID levels. Last but not least, China is defying its own rhetoric by promoting a range of reopening measures to boost the domestic economy, which has been severely hit by their zero-COVID regime. The consequences of ballooning infection rates are well documented, but overall, we still feel that the renewed focus on economic growth will be positive for China, Asian markets and ultimately for the global economy.

China reopening combined with the prospect of lower US interest rates by year end and possibly a weaker Dollar, should all be positive for emerging market equities after several years in the doldrums. We expect this to be an area of increasing focus for us in 2023. In the meantime, as commented in previous reports, we remain confident in the quality, resilience and long-term credentials of the companies already held in your portfolio. 

17

SUMMARY

PORTFOLIO VALUE AS AT 31ST DECEMBER 2022: £1,633,449

Capital Benchmark Estimated Income Estimated Income
Asset Allocation £ % % £ %
Fixed Income 197,899 12.1 15.0
Equities 1,108,249 67.8 70.0
Property 75,053 4.6 5.0
Alternative Investments 214,629 13.1 10.0
Liquid Assets 37,620 2.3 -
Total 1,633,449 100.0 100.0 - -
Geographic Allocation - Portfolio Currency Allocation - Portfolio
Investment Performance Portfolio Benchmark
Quarter to 31 December 2022 3.8% 3.8%
Calendar Year 2022 -9.9% -6.9%
Calendar Year 2021 10.2% 13.7%
Calendar Year 2020 9.5% 6.8%
Calendar Year 2019 19.6% 18.5%

Portfolio benchmark (from 1-Jul-21): ICE BofAML Sterling Corporate (7.5%), ICE BofAML UK Gilts All Stocks (7.5%), MSCI AC World ex UK (Local Currency) (GBP) (10%), MSCI AC World ex UK (Net Total Return) (40%), MSCI All Balanced Property Funds - One Quarter Lagged (5%), MSCI UK IMI (Net Return) GBP (20%), 2% per annum above SONIA (alternative assets) (10%).

Performance is calculated 'net' of Sarasin's investment management fees, using Bid prices. This takes into account receipts to and withdrawals from the portfolio during the period, and their dates. Prices are sourced from Bloomberg.

The report 'looks-through' to the underlying investments within the Sarasin funds in order to show the portfolio's overall allocation.

Where a portfolio holds Sarasin Unit Trusts or OEIC Funds, we use a close of business unit price to enable more accurate performance comparison with the portfolio benchmark. 

18

PERFORMANCE SUMMARY

1 Year 3 Years 5 Years
Performance to 31-Dec-22 Annualised Annualised
Portfolio -9.9% 2.8% 4.5%
Inflation (UK CPI + 4% - CONJO-1V) 15.1% 9.5% 8.0%
Portfolio Benchmark -6.9% 4.1% 4.9%
Peer Group -9.5% 1.7% 3.0%
Volatility
Portfolio 11.3% 11.3% 9.9%
Portfolio Benchmark 11.8% 11.5% 10.1%
Income Portfolio
0.0%

Cumulative Performance Compared to the ARC Peer Groups

Source: Sarasin & Partners, RIMES, Bloomberg and ARC

Portfolio benchmark (from 1-Jul-21): ICE BofAML Sterling Corporate (7.5%), ICE BofAML UK Gilts All Stocks (7.5%), MSCI AC World ex UK (Local Currency) (GBP) (10%), MSCI AC World ex UK (Net Total Return) (40%), MSCI All Balanced Property Funds - One Quarter Lagged (5%), MSCI UK IMI (Net Return) GBP (20%), 2% per annum above SONIA (alternative assets) (10%).

The peer group performance data used is the ARC Steady Growth Charity Index (further details within the Glossary) which could include an ARC estimate for the most recent period.

Performance is calculated 'net' of Sarasin's investment management fees, using Bid prices. This takes into account receipts to and withdrawals from the portfolio during the period, and their dates. Prices are sourced from Bloomberg.

All volatility figures measure the standard deviation of the monthly returns over the period and are annualised for periods over 1 year. This is not the only method of calculating volatility and other methods may produce different results. 

19

CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31ST DECEMBER 2022

FINANCIAL REVIEW

A summary of the year’s results can be found in the Statement of Financial Activities. Income in the year has increased from £546,592 to £612,727 due to higher donations. Expenditure has reduced from £490,730 to £423,969 due to lower community expenses and charges from St George’s College. The Trust made a surplus before investment gains and losses of £188,757 (2021 – gain of £55,862) resulting in net loss of £192,126 (2021 – net income of £441,525). Total funds at the year-end, all of which are unrestricted, amount to £6,482,777 (2021 - £6,674,901).

Residences at St George's College, Stanwell Moor and in Addlestone contain members who need to be supported by the Trust in their work for the Josephite Congregation. The Trust continues to retain Haysmacintyre LLP as the Trust's auditors.

RESERVES POLICY

The Charity has designated funds for specific purposes:

A key commitment of the charity is the need to provide for the care of members of the Congregation in sickness and old age and this has profound implications for the finances of the charity. Whilst the individual Josephite members have a simple vow of poverty, they may continue to have the use and usufruct of their personal property, with the knowledge of the relevant Superior. Where members earn a salary, stipend or pension this is paid into the charity. There is now little such income with most members being past retirement age although two members are still earning a salary. In most cases, members have devoted the whole of their working lives to the Congregation and are dependent upon it for all their temporal needs. Although members invariably continue to perform charitable work long past normal retirement age, if they are healthy enough to do so, the work is often not remunerative, and the Congregation must provide for their upkeep and in some cases nursing care. The Trustees estimate that the level of free assets required for the purposes of providing long term support for members is a sum in the region of £ 1.7m.

A designated Property Fund has also been established, representing the net book value of the charity's property used for the charity's work. These properties cannot be realised without undermining its work and so the trustees feel it is appropriate to reflect the investment in property in this way.

It is the Congregation’s intent to update the calculation of the reserves by engaging a professional actuary. It is envisaged this will be a 2023 action.

The charity held general funds of £2,552,150 at 31 December 2022 which represent several years’ expenditure. The Trustees consider this to be a reasonable but not excessive level of reserves required for the charity’s ongoing requirements. Actual reserves are likely to be in excess of the charity’s target level of reserves by reference to financial risk and the need to provide for the care and wellbeing of the members of the congregation and the actuarial review to be undertaken in 2023 may require more funds to be designated. 

20

CONGREGATION OF JOSEPHITES TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

FUTURE PLANS

The Trustees do not anticipate any significant change to the Charity or its activities over the next two to five years. It is their intention to continue to meet the following objectives:

FUND RAISING

The Charity does not fundraise from the public and there have been no fundraising complaints in the year.

ADVISERS, VOLUNTEERS AND MEMBERS OF THE CONGREGATION

The Trustees wish to record their recognition of the professionalism and commitment of all their advisors, volunteers, and individual members of the Congregation. Their dedication and positive approach are very much appreciated.

The Trustees are actively seeking to recruit new Trustees who would be either lay people or members of other Religious Congregations.

AUDITORS

A resolution proposing the re-appointment of Haysmacintyre LLP as auditors to the Charity has been accepted at a meeting of the Trustees.

The financial statements were approved and authorised for issue by the Board of and were signed below on its behalf by the Congregation for the Josephites (CoJ) Trustees authorised signatories on 24 October 2023.

----------------------------------------Rev Martin Ashcroft John McCormick Chairman of CoJ Trustees Trustee 

21

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF CONGREGATION OF JOSEPHITES

Opinion

We have audited the financial statements of The Congregation of Josephites for the year ended 31 December 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 

22

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF CONGREGATION OF JOSEPHITES (continued)

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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 6, 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.

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:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Canon law, employment law and health and safety regulations, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Canon Law, 

23

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF CONGREGATION OF JOSEPHITES (continued)

the Charities Act 2011, The Statement of Recommended Practice for Charities (SORP 2015), FRS102 and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

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 regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP Statutory Auditors

10 Queen Street Place London EC4R 1AG

Date:

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

The notes on pages 24 to 34 form part of these accounts. 

24

CONGREGATION OF JOSEPHITES BALANCE SHEET AS AT 31 DECEMBER 2022

2022 2021
Notes £ £ £
£
FIXED ASSETS
Tangible Fixed Assets 1 2,182,647 2,268,180
Investments 2 3,267,598 3,590,528
Life assurance policies 3 175,017 188,528
--------------------- ---------------------
5,625,262 6,047,236
CURRENT ASSETS
Debtors 4 50,548 40,016
Cash at bank and in hand 826,697 608,589
--------------------- ---------------------
877,245 648,605
CREDITORS: amounts falling due
within one year 6 (19,730) (20,940)
------------------- -------------------
NET CURRENT ASSETS 857,515 627,665
--------------------- ---------------------
£6,482,777 £6,674,901
=========== ===========
UNRESTRICTED FUNDS
Designated Funds 9 3,930,627 4,009,583
General Funds 2,552,150 2,665,318
--------------------- ---------------------
£6,482,777 £6,674,901
=========== ===========

The financial statements were approved and authorised for issue by the Board of Trustees for the Congregation of Josephites on 24 October 2023 and were signed below on its behalf by:

Rev Martin Ashcroft

Chairman of Trustees for the Congregation of Josephites

John McCormick

Trustee for the Congregation of Josephites 

25

CONGREGATION OF JOSEPHITES STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022

2022 2021
Notes £ £
INCOME FROM:
Donations and legacies
Donations and legacies 63,089 846
DSS Pensions and salaries 41,830 45,832
Community income 33,209 32,730
Other trading activities
Rent from College 5 425,833 425,000
Investments 2 48,766 42,184
----------------- -----------------
TOTAL INCOME 612,727 546,592
----------------- -----------------
EXPENDITURE ON:
Raising funds
Investment management charges 2,650 7,669
Charitable activity
Support of CJ Members and their ministries 368,692 433,655
Donations 52,627 49,406
----------------- -----------------
TOTAL EXPENDITURE 6 423,969 490,730
----------------- -----------------
NET INCOME BEFORE GAINS AND LOSSES 188,758 55,862
Net (losses)/gains on investments and life assurance policies
- Unrealised 2/3 (367,371) 327,857
- Realised (13,511) 57,806
------------------ ------------------
NET (EXPENDITURE)/INCOME (192,124) 441,525
RECONCILIATION OF FUNDS:
Total funds brought forward 6,674,901 6,233,376
--------------------- ---------------------
Total funds carried forward £6,482,777 £6,674,901
========== ==========

All income and expenditure in the period are derived from continuing activities.

The comparative Statement of Financial Activities can be found in note 14 to these financial statements. All income and expenditure in the previous year was unrestricted.

The notes on pages 24 to 34 form part of these accounts. 

26

CONGREGATION OF JOSEPHITES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2022

2022 2021
£ £
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating activities (see below) (207,392) (315,174)
------------------ ------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends, interest and rent from investments 474,599 467,184
Purchases of investments (44,738) (31,812)
Purchase of fixed assets (4,658) (41,070)
Proceeds from sale of investments 745 337
Movement in cash held for reinvestment (448) (690)
------------------ ------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 425,500 393,949
------------------ ------------------
CASH FLOWS FROM FINANCING ACTIVITIES - -
------------------ ------------------
Change in cash and cash equivalents in the year 218,108 78,775
CASH AND CASH EQUIVALENTS
At the beginning of the year 608,589 529,814
----------------- -----------------
At the end of the year £826,697 £608,589
======== ========

RECONCILIATION OF NET INCOME TO NET CASH INFLOWS FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the statement of financial (192,124) 441,525
activities)
Depreciation charge 90,191 88,582
Losses/(gains) on investments 380,882 (385,663)
Loss on disposal of fixed assets - 5,125
Dividends, interest, and rents from investments (474,599) (467,184)
(Increase)/decrease in debtors (10,532) 5,607
(Decrease) in creditors (1,210) (3,166)
--------------------- --------------------
Net cash used in operating activities £ (207,392) £ (315,174)
========== ==========

The charity has no net debt. 

27

CONGREGATION OF JOSEPHITES ACCOUNTING FOR THE YEAR ENDED 31ST DECEMBER 2022

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

a) Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019) and the Charities Act 2011. The charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Critical accounting estimates and areas of judgement

Preparation of the accounts requires the Trustees to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include estimating the economic useful life of tangible fixed assets.

c) Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 December 2023, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Trustees’ Report for more information)

d) Income recognition

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Salaries and pensions are received under deeds of covenant and are stated inclusive of income tax but net of any deductions for social security payments and contributions to occupational pension schemes if relevant.

Legacies and donations are recognised when receivable or when the charity becomes legally entitled to them. Receipts of property, investments or other gifts in kind are included at market value.

In accordance with the Charities SORP FRS102, volunteer time is not recognised.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. 

28

CONGREGATION OF JOSEPHITES ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

e) Expenditure recognition and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

f) Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

g) Tangible Fixed Assets

The freehold estate at Woburn Park, Addlestone, was purchased by the Congregation in the 1880's. The cost and subsequent additions were written off as incurred. At 31 July 1997 the Trustees estimated the current value of the estate required to be shown in the balance sheet. Subsequent additions or improvements are capitalised at cost.

Improvements to freehold property and purchase of fixtures and fittings costing more than £2,500 are capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property 2% on cost or valuation Equipment and fixtures 20% on cost Motor vehicles 25% on written down value

h) Investments

Quoted investments are valued at their fair value on the balance sheet date. Increases and decreases in market value are reflected in Statement of Financial Activities. 

29

CONGREGATION OF JOSEPHITES ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

i) Life Assurance Policies

The assurance policies are written on the lives of some of the members of the Congregation and have been valued at surrender values at the balance sheet date.

j) Financial Instruments

The charity only holds financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

k) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

l) Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Deposits for more than three months and up to one year have been disclosed as shortterm deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 

30

CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2022

1. TANGIBLE FIXED ASSETS Freehold Equipment
Land and And Motor
Buildings Fixtures Vehicles Total
£ £ £ £
COST/VALUATION
As at 1 January 2022 3,947,764 56,716 51,904 4,056,384
Additions 4,658 - - 4,658
-------------------- --------------- ---------------- --------------------
As at 31 December 2022 3,952,422 56,716 51,904 4,061,042
-------------------- --------------- ---------------- --------------------
ACCUMULATED DEPRECIATION
As at 1 January 2022 1,724,241 51,662 12,301 1,788,204
Charge for the year 78,955 1,335 9,901 90,191
-------------------- --------------- ---------------- ---------------------
As at 31 December 2022 1,803,196 52,997 22,202 1,878,395
------------------- --------------- ---------------- ---------------------
NET BOOK VALUE
At 31 December 2022 £2,149,226 £3,719 £29,702 £2,182,647
=========== ======== ======== ===========
At 31 December 2021 £2,223,523 £5,054 £39,603 £2,268,180
=========== ======== ======== ===========
2. INVESTMENTS 2022 2021
£ £
Listed Investments:
Market value at 1 January 2022 3,586,564 3,228,077
Additions 44,738 30,967
Disposals (745) (337)
Realised and unrealised (losses)/gains during the year (367,371) 327,857
---------------------- ----------------------
Market Value at 31 December 2022 3,263,186 3,586,564
Cash held for investment 4,412 3,964
-------------------- --------------------
Total £3,267,598 £3,590,528
=========== =========== 
31

CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

2. INVESTMENTS (continued) 2022 2021
£ £
Represented by:
Investments listed on a recognised stock exchange or valued by reference thereto:
Equities 3,263,186 3,586,564
--------------------- ---------------------
3,263,186 3,586,564
Cash 4,412 3,964
---------------------- ----------------------
£3,567,598 £3,590,528
=========== ===========
INVESTMENT INCOME 2022 2021
£ £
Bank deposit interest 464 32
Dividends and Interest on listed investments 48,302 42,152
---------------- ----------------
£48,766 £42,184
======== ========
3. LIFE ASSURANCE POLICIES 2022 2021
£ £
Valuation at 1 January 2022 188,528 129,877
Additions in year - 845
Disposals - -
Unrealised (losses)/gains accruing during the year (13,511) 57,806
------------------- -------------------
Valuation at 31st December 2022 £175,017 £188,528
========= =========
Cost £99,730 £99,730
========= =========
4. DEBTORS 2022 2021
£ £
Other debtors 50,548 40,016
------------------ ------------------
£50,548 £40,016
========= ========= 
32

CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

5. CREDITORS: Amounts falling due within one CREDITORS: Amounts falling due within one year 2022 2021
£ £
Accruals and deferred income £19,730 £20,940
======== ========
6. EXPENDITURE – 2022 2022 2021
Staff Other Depreciation
Total		 Total
£ £ £ £ £
Charitable activity
Community expenses - 121,725 - 121,725 163,570
Premises and equipment - 33,029 90,191 123,220 116,020
Support costs (see below) - 10,941 - 10,941 12,008
St George’s College costs (Note 10) - 82,217 - 82,217 128,383
Governance of the charity - 30,589 - 30,589 13,674
--------------- ----------------- ---------------- ----------------- -----------------
- 278,501 90,191 368,692 433,655
Donations (note 7) - 52,627 - 52,627 49,406
--------------- ----------------- ---------------- ------------------ ------------------
- 331,128 90,191 421,319 483,061
Raising funds
Investment management charges - 2,650 - 2,650 7,669
--------------- ----------------- ---------------- ------------------ ------------------
Total expenditure £- £333,778 £90,191 £423,969 £490,730
======= ======== ======== ========= =========
EXPENDITURE - 2021 2021
Staff Other Deprecia- Total
tion
£ £ £ £
Charitable activity
Community expenses - 163,570 - 163,570
Premises and equipment - 27,437 88,583 116,020
Support costs )see below) - 12,008 - 12,008
St George’s College costs (Note 13) - 128,383 - 128,383
Governance of the charity - 13,674 - 13,674
--------------- ----------------- ---------------- -----------------
- 345,072 88,583 433,655
Mission donations (Note 7) - 49,406 - 49,406
--------------- ----------------- ---------------- ------------------
- 394,478 88,583 483,061
Raising funds
Investment management charges - 7,669 - 7,669
--------------- ----------------- ---------------- ------------------
Total expenditure £- £402,147 £88,583 £490,730
======= ======== ======== =========

Support costs consist of various administration costs in each community and have been allocated to the charity’s core activity. 

33

CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

6. EXPENDITURE (continued) 2022 2021
£ £
Expenditure includes the following:
Governance of the charity
Auditors’ remuneration
- Audit 7,000 6,000
- Other 3,000 3,000
Other costs 20,589 4,674
---------------- ----------------
£30,589 £13,674
======== ========
Depreciation
- Property 78,955 78,955
- Equipment and Fixtures 1,335 791
- Motor vehicles 9,901 8,836
--------------- ---------------
90,191 88,582
Loss on disposal of fixed assets - 5,125
--------------- ---------------
£90,191 £93,707
======== ========

The trustees of the Charity are also members of the Congregation. The Charity provides for the essential needs of all members of the Congregation within the Province. The living costs of the five trustees are therefore borne by the Charity.

No staff costs were incurred in the year (2021: Nil)

7. CHARITABLE DONATIONS 2022 2021
£ £
Josephites Generalate Congo Missions 52,627 34,896
Bursary Donations - 14,510
---------------- ----------------
£52,627 £49,406
======== ========

8. DESIGNATED FUNDS

a) The Trustees have designated funds out of the unrestricted funds for specific purposes as follows: -

Retirement Fund

A fund has been designated to provide for the Charity’s commitment to provide for the retirement and care in old age and sickness of the Congregation’s members. Transfers from general funds are credited to this fund. A review of the Congregation’s membership carried out at 31 July 1997 indicated that a 

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CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

fund in the region of £1,700,000 would be required to finance the Charity’s commitment to provide care for its elderly members after taking account of their occupational pension rights.

Property Fund

In order to fulfil its charitable objectives, the Congregation has a number of properties. These properties, although they are unrestricted assets, cannot be realised without undermining the Charity’s work and the trustees therefore feel that it is appropriate to reflect the investment in property assets by means of a designated fund. The property fund, so far as unrestricted funds are available, corresponds to the net book value of land and buildings in these accounts.

Congo Mission Fund

The trustees have designated a generous donation received in 2007 for projects based at Weybridge.

Balance at Balance at
1st Income Expenditure Transfers 31st
January December
2022 2022
b) Analysis of Movements – £ £ £ £ £
2022
Retirement Fund 1,700,000 - - - 1,700,000
Property Fund 2,223,523 - (78,956) - 2,144,567
Congo Mission Fund 86,060 - - - 86,060
--------------------- ---------------- ---------------- ----------------- ---------------------
£4,009,583 £- £ (78,956) £- £3,930,627
=========== ======== ========= ========= ===========
c) Analysis of Movements –
2021 Balance at Balance at
1st Income Expenditure Transfers 31st
January December
2021 2021
Retirement Fund 1,700,000 - - - 1,700,000
Property Fund 2,302,479 - (78,956) - 2,223,523
Congo Mission Fund 86,060 - - - 86,060
--------------------- ---------------- ---------------- ----------------- ---------------------
£4,088,539 £- £ (78,956) £- £4,009,583
=========== ======== ========= ========= =========== 
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CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

9. ANALYSIS OF NET
ASSETS BY FUND – 2022 General
Fund Retirement Property Mission Total
£ £ £ £ £
Fund balances at 31 Dec
2022 are represented by:
Tangible fixed assets 38,079 - 2,144,568 - 2,182,647
Investments - 3,267,598 - - 3,267,598
Life assurance policies - 175,017 - - 175,017
Current assets 2,533,800 (1,742,615) - 86,060 877,245
Current liabilities (19,730) - - - (19,730)
--------------------- --------------------- --------------------- --------------------- ---------------------
Total Net Assets: £2,552,149 £1,700,000 £2,144,568 £86,060 £6,482,777
========== ========== =========== =========== ===========
ANALYSIS OF NET
ASSETS BY FUND - 2021 General
Fund Retirement Property Mission Total
£ £ £ £ £
Fund balances at 31 Dec
2021 are represented by:
Tangible fixed assets 44,657 - 2,223,523 - 2,268,180
Investments - 3,590,528 - - 3,590,528
Life assurance policies - 188,528 - - 188,528
Current assets 2,641,601 (2,079,056) - 86,060 648,605
Current liabilities (20,940) - - - (20,940)
--------------------- --------------------- --------------------- --------------------- ---------------------
Total Net Assets: £2,665,318 £1,700,000 £2,223,523 £86,060 £6,674,901
========== ========== =========== =========== ===========

10. TRANSACTIONS WITH CONNECTED CHARITIES

St. George’s College Weybridge (a company Limited by guarantee) is a connected Charity. The following listing gives details of the Trust’s transactions with the St. George’s College Weybridge: -

2022 2021
£ £
Rent receivable 425,833 425,000
Expenses charged 82,217 124,009
======== ========
As at 31 December 2022 the following balances were in existence: - £ £
Other amounts receivable 46,960 36,429
======== ======== 
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CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

11. RELATED PARTY TRANSACTIONS

Neither the Trustees nor any person connected with them have received any remuneration.

The Trustees of the Charity are also members of the congregation and as such have taken vows of poverty under which they have renounced all personal rights to income and capital. The charity provides for the essential needs of all members of the congregation. The living costs of the Trustees are therefore borne by the Charity. The only other related party transactions are as disclosed in notes 1, 6 and 13.

12. NOTE OF HISTORICAL COST SURPLUSES 2022 2021
£ £
Reported (deficit)/surplus - net movement in funds (192,126) 441,525
Unrealised (gains)/losses on investments and life
assurance policies 380,883 (385,663)
----------------- -----------------
Historical cost surplus for the year £188,757 £55,862
======== ======== 
37

CONGREGATION OF JOSEPHITES NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022

13. STATEMENT OF FINANCIAL ACTIVITIES 2021

(All funds are unrestricted)

STATEMENT OF FINANCIAL ACTIVITIES 2021
(All funds are unrestricted)
2021
£
INCOME FROM:
Donations and legacies
Mission donations -
Sundry income and donations 846
DSS Pensions and salaries 45,832
Community income 32,730
Other trading activities
Rent from College 425,000
Investments 42,184
-----------------
TOTAL INCOME 546,592
-----------------
EXPENDITURE ON:
Raising funds
Investment management charges 7,669
Charitable activity
Support of CJ Members and their ministries 433,655
Mission donations 49,406
-----------------
TOTAL EXPENDITURE 490,730
-----------------
NET INCOME BEFORE GAINS 55,862
Net gains on investments and life assurance policies
- Unrealised 327,857
- Realised 57,806
------------------
NET INCOME 441,525
RECONCILIATION OF FUNDS:
Total funds brought forward 6,233,376
---------------------
Total funds carried forward £6,674,901
========== 
38