O.F.M. (Capuchin) GB Charitable Trust Annual Report 31 December 2019 Charity No: 2311431 Table of Contents 1. A Message from the Provincial 4 2. Trustees’ Report 6 - Who We Are 6 - Our Work in 2019 8 - Policies 24 - Financial Review, Plans and Risk Management 26 3. Independent Auditor’s Report 38 4. Accounts 42 - Group Statement of Financial Activities 42 - Group and Charity Balance Sheets 43 - Group Statement of Cash Flow 44 - Principal Accounting Policies 45 - Notes to the Accounts 51 The trustees present their statutory report together the charity’s trust deed, applicable laws, applicable with the consolidated accounts of the O.F.M. United Kingdom Accounting Standards (United (Capuchin) GB Charitable Trust (the “charity”) and its Kingdom Generally Accepted Accounting Practice), trading subsidiary, OFM Capuchin Trading Limited, the Charities Act 2011 and Accounting and Reporting for the year ended 31 December 2019. by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in The accounts have been prepared in accordance accordance with the Financial Reporting Standard with the accounting policies set out on pages 45 applicable in the United Kingdom and Republic of to 50 of the attached accounts and comply with Ireland (FRS 102). 2 Trustees Br James Boner OFM Cap Br Michael Hargan OFM Cap Br Martin Mikuskiewicz OFM Cap Br Charles Serignat OFM Cap Br Lucjan Zaniewski OFM Cap The trustees are incorporated under the Charities Act 2011 Table of Contents Provincial Minister and Provincial Bursar Br James Boner OFM Cap Provincial office Provincial Curia Franciscan Friary Carlton Road Erith Kent DA8 1DN Charity number 231143 Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers National Westminster Bank plc 121 High Street Oxford OX1 2BX National Westminster Bank plc 1st Floor 440 Strand London WC2R 0QS Principal investment managers Waverton Investment Management Limited 16 Babmaes Street London SW1Y 6AH Solicitors Laytons LLP 2 More London Riverside London SE1 2AP BLM LLP Plantation Place 30 Fenchurch Street London EC3M 3BL Farrar & Co LLP 66 Lincoln's Inn Fields Holborn London WC2A 3LH 3 A Message from the Provincial It seems that every year as I look back, there have been tragedies in our world, or sometimes the tragedy is that those in powerful positions have not taken responsibility to ensure a safe, just world for all of humanity. We as Capuchin Franciscans in this troubled world are called to do all we can to bring about a state of human fulfilment for those that we encounter. We can accomplish this through our good works and engagement with the macro- and micro-society. By addressing the ‘Public Academy’ via our involvement with Pope Francis’ call to holiness and care of creation in Laudato Si. We cannot address societal thinking nor bring about change alone: we are assisted by external organisations who demonstrate public benefit. This is a clarion call for us to care for creation and to hold to account those in positions of power. We as Capuchins in Great Britain and via our worldwide Order of over 11,000 friars can assist in bringing about a more equitable world. 4 The great majority become extinct for reasons related to human activity. Because of us, thousands of species will no longer give glory to God by their very existence, nor convey their message to us. “ We have no such right. Pope Francis, Laudato Si (33) As I write this the world is witnessing a pandemic caused by the COVID-19 virus. One striking feature is the ‘parochialism’ manifested at a national level to exclude and ban the ‘other’. There is virtually no news about those who continue to suffer from modern day slavery (40 million people are estimated to be trapped in modern slavery worldwide: 1 in 4 of them are children, almost three quarters (71%) are women and girls); deaths from war and famine; modern conflicts (Syria, Yemen, Mexico Drug wars and Afghanistan). Therefore, we as Capuchin Franciscans are called on to do all we can to assist those that we encounter and to influence those that will listen to our voice speaking for those that have no voice. I hope that in reading the following report and annual accounts it will become clear that though small in numbers in Great Britain we strive to do all that we can to defend and promote the work of God in the footsteps of our Holy Father, Saint Francis. 5 Who we are Foundation Friars Countries Aprox. Over 1,528 11,000 100 Internationally The Order of Friars Minor (Capuchin) (the accordance with the Order’s own Rules. The “Order”) is an international Roman Catholic Minister General’s headquarters are in Rome Religious Order of men, (the friars), founded where he is assisted by a General Council, in Italy in 1528. The Order has maintained its governing the Order worldwide. The Order is essential character throughout the centuries: divided into provinces of which the Province Friars live in communities, observing the of Great Britain is one. Gospel of Our Lord Jesus Christ. They live under vows of poverty, chastity, and obedience, in ofmcap.org 6 Houses Province of Great Britain The Province of Great Britain is made up of perpetually professed and temporary professed friars living and working in four houses (Chester, Erith, Oxford and Pantasaph), and occasionally in other locations. Responsibility for the Order in Great Britain rests with 4 the Provincial Minister and his Council. The Parishes are entrusted to the Order’s care by the Friars local Bishop. All monies collected by the Parish constitute the stable patrimony of the Parish and, in accordance with Canon (Church) law, cannot be used for any other purpose. Therefore, such monies are shown as restricted funds in the attached accounts. All material expenditure in connection with the Parishes, including that for 23 property repairs, is paid directly from Parish funds. The accounts accompanying this report are those of Vows a charitable trust on which the assets of the Order in Great Britain are held. The charity is registered with the Charity Commission (registration number 231143). It is governed by a Scheme of the Charity Commission dated 21 April 2015 as amended by a scheme dated 23 September 2016. Chastity, Poverty and Obedience capgb.org 7 Our work in 2019 Introduction The Province of Capuchin Friars Minor recognises the need to continually adapt to the ever-changing world we are living in - both in this country and in Europe. The rise and influence of secularisation, paired with the diminishing vocations to religious orders, means the Order must adopt a radical approach in responding to these issues. The number of friars is decreasing, meaning that it is becoming ever more difficult to maintain the ministries that the Order has carried out until now. This changing context has resulted in our need to review whether we can adequately manage the four friaries. In 2016, these considerations led to a ‘Review of Presences and Ministries’, which concluded with an assembly of the friars in September of the same year. Prior to the Provincial Chapter of 2017 - our most recent gathering of the provinces first authority - and the decision to cease ministry of the Pantasaph retreat centre, the trustees began their own analysis of the present and future direction of the Province. The Provincial and Council embarked on a review of our presences and, with the help of an external consultant, are looking carefully at our impact on those that we serve both now and in the future. In September 2019, an assembly of the friars was held where our trustees, with the help of facilitators, drew up a plan for the province. In order to fully appreciate and understand the views of all of the friars, interviews took place with each friar to assist the province and ensure that the plan was founded on a common consensus, providing a new way forward. Following this, the Provincial and Council approved work streams in the following areas: Fraternal Collaboration; Lawrence of Brindisi Initiative; Justice Peace and Care of Creation (JPC); Induction Programme; and Safeguarding. These work streams will be ongoing throughout 2020 culminating in presentations with recommendations 8 made at our forthcoming Provincial Chapter in September 2020. Ongoing formation continues to remain at the heart of our life, assisting us to continue to evaluate our place in society and how best to serve the Church whilst remaining faithful to our charism. There is a special commission set up to animate the brothers organising assemblies and retreats. The paragraphs that follow outline briefly the charity’s achievements during the year 2019 in each of its main activities. Caring for members of the Order The Order’s success is based on the lifelong devotion and commitment of its friars. The Order has both a moral and legal obligation to provide care for its members for as long as it is required. Friars do not have resources of their own; they have all devoted their lives to serving their community. The trustees are kept informed about the demographic projections for the Province, which enables them to make medium to long-term plans. The importance of the wellbeing of the friars and those that we minister to is assessed by the trustees on a regular basis. Currently, the average age of the friars is 68.5. As the age profile of the community rises, so too will the need to provide care for them - the cost of which will also increase. This will place a substantial burden on the charity’s finances – both in terms of increased costs but also because certain income sources will reduce as members become more elderly.