11;F4r,,i )1 IIII&A•allP" Ii-ryP•I • rchdiocese of Liverpool Annual Report 31 December 2023 Charitable incorporated organisation Registered charity number.. 1199714 Ai'chdiocese of I". ' Liverpool Archdiocese of Liverpool Annual Report and accounts for the year ended 31 December 2023 Contents About Lhe Archdiocese Report of Ihe Trusiees 5-30 siatement of Trustees, Respon5ibililies 31 Independeni Audiior's ReporL 10 (he Trustees 32-36 Consolidaied Statement of Financial Activities 37 Charity Siatement of Financial Activities 39 Consolidaied Balance Sheei 41 Charity Balance Sheet 42 Consolidaied Cash Flow Statement 43 Notes and Accounting Policies 44-85 Archdiocese of Liverpool Abolit the Archdiocese About the Archdiocese of Liverpool The Archdiocese of Liverpool is the Me(ropolitan See for the Roman Caiholic Church in the Norih of England, providing pastoral care for the Roman Catholic cofflmunity in an area which includes Merseyside, parts of Lancashire, Cheshire, Greater Manchester, and Ihe Isle of Man. The Diocese of Liverpool was esiablished in 1850 stretching north to Lancascer and Ihe Lake Disirici, souih lo Widnes and WarrinLFton, 3nd including Ihe Isle of Man. In 1911, Liverpool w3s esiablished as a Metropolit3n See and became an archdiocese. In 1924 Ihe Diocese of Lancaster w6s established taking terriiory from the north of Ihe archdiocese with the River Ribble becominu the border beiween the Iwo. In the early years of Ihe diocese and archdiocese, there was an emphasis on building up Ihe expanding Caiholic community wilh 6 programme of school and church build ing. The seminary ac St Joseph's College was founded by Bishop O'Reilly 10 train Students to Ihe priesthood. Followi ng the famine of1847, the Catholic population of Liverpool grew substantially due to mass Irish immigration. Schools and churches were built for the new arrivals, and manii organised charitable efforts were put in place. Monsignor James Nugeni worked Cirelessly to provide for Ihe needs of the poor, building schools and orphanages for those in poveriy. How work is continued roday by the Society which bears his name - Nugent. The early Iwentieih century Was also a period of consolidation, developing and educating people in the Caiholic faith. This was during Ihe lime of Liverpool's longest serving Archbishop, Richard Downey, who had previously been a Inember of the Catholic Missionary Society. There was 3 long road 10 Liverpool's Caiholic Cathedral. The firsi design was by Edward Welby Pugin in 1883, but only Ihe L3dy Chapel was buili in Everion. In 1930, Archbishop Downey commissioned 3rchitect Sir Edwin Lutyens to build a new cathedral, and the foundation stone was laid on Sjune 1933. The design was colossal, but only Ihe crypi was built, completed after the Second World War. by which time Ihe cost of the caihedral had risen 10 an impossible £27 million. Adrian Gilbert Cott Was commissioned 10 produce a scaled-down version of the Lurgens desigii, bui Ihe projeci was ultimate5y abandoned. A i-chclioci)se ot Livei'pL)oI AboLiI' thi ALchLIiocL.%e n 1960, Archbisiiop Heenan launihed a competiiion to design 3 131hed(al, which IAias iAon by iir Frederic1< Gibberd. Building began In Ociol)er 1962 and Ihe Meii-opoliia n Caipiedral of Chrisi the lflOP of Liverpool arid Iiis il Isr811-tior, Ine teiiili ai-clibishijp ii,iill ia, uliiinate concrol oiler Ihe allocaiion of grani funding to individual schools and Ihese monies ar'e iiicllided as income in Ehe Siatemenl of Financial Activities. Expencliiure on school building projects was £17.28m 12022.. E'12.60MI and is i-eflected in expendiiure incoi-poi-aiiiig Ihe cominiiimenl of VASQA grant fLI nding and Ihe arclidiocesan 'lOOh conlribufion Lo Ihp cosi of inclividual projects. The archdiocesai-l conFribLiiion ian only bo achieved kviih the generous suppori of pai-lshioners 3nd paren[£ wiiho contribuie 10 Ihe anniJal Siliool lew] colleciion. The School Projects Fund benefiiied from £0.53M 12022.. £0 56MI of donaiion5 from parenis via arLhclioces3n scliools. School faciliiies are also supporlecl by (he governmeni Devolvecl Formula Capital IDFCI Allocation, which inclLicles a fixed lump SLllll per school IOQFeiher with ali 3mouni per pupil. Fuiicling can be used for loncy_ierim capiial invesEnienis such 85 building repairs, ICT up 1.ades and furnitLlI-e and eqLiipnieni up rades. Most sctriools in Ilie archdiocese opi to Pay iheir DFC allocations into an ai-chdiocesan ba i)l< accoLlI It wiihin wliich they are maiiiiained on a n individual basis uniil they are drawn down by Ihe school. At Ihe_ year eiid, the arclidioce5e vias holding £9.67fvl 12022. £11_34MI on behalf of schools. In 5epiember 2023, Ihe Departmen( for Eclucation IDfEI reqLiesiecl informaiion about Ilie exisiencp of reinforced aerated auioclaved concrete (RAqCI in schools across the country. RAAC was a che3p and populai l)Liildi ng maEerial used in the Collsli-uctioii of PLiblic buildiiigs from the 1950s to Ilie .1 9905.11 is less dLII-3ble than concrete ancl was iiieant to be i-eplacp.d aftei- 35 years. The govei-nment recogiiised Ihe sei-ious issue of the coniiiiiji ng use of Inariy buildings witlI RAAC and committed 10 Laking action 10 remove RA4C from Schools The revieiN of school buildings across the 3rchdiocese was Lindpi-iaken with SLippori fi-oiii exip.riial area f urveyoi"s aiicl the DfF, incluilincr inves(igaiion£ and opening up woi-l(s Lo confirm coiisii-ijction IMetliod5, cincl focLissing oli Ihose buili dui-ing (lie periocl when RA4C was Lised. No RAAC was found in archdiocesan schools. ThroLigh Ihe Scliools, Voluniary Con(ribi.Iiion Scheme, Ihe 8rchdiooese cali offer an enhaiiced level of support to scliools. Coniributions of £0.27M12022'. £0.27MI from archdiocesan scliools enabled Ihe EdLIC31ion Dei)aitnieni to suppori Ihe developmeiit of leadeisliip teaiT]s and aclv15e oli selection and appointment processes Ihi-OULTli effeciive indLicLioii in-seriiice ancl advanced prograinmes of training followin<7 appointment. 23 Ai-chdiocese of Livei'pool Report ot tlii Triislees For the year elided 31 Deceinber 2023 Property Parish churches and other properties are built in various architeciural styles, wilh some being lisied buildings, Main13ining and refurbishing these properties requires expertise across muliiple disciplines 10 ensure work is carried out with technical and financial proficiency. A comprehensive health and safety programme is in place, alongside measures 10 ensure statutory compliance for all archdiocesan properties. Properiy-relaied cosis remain Ihe most Significant area of parish expenditure, to(alling £8.30M in 202312022.. £6.34MI. Thi5 includes £3.71 M spent on repairs and mainienance12022'. £2.96MI. Financial oversight is exercised through the Fiiiance Commiicee, which reviews and recommends repair projects exceeding £5,000 to the trusiee£. Procuremeni processes ensure Ihat building projects provide good value for Inoney. The structured maintenance and repair programme ensures thai churches and Parish halls remain open and accessi ble, benefiting the commLinity not only spiritually buc also practically tlirough pasioral care and various parish-led activities. Employees The employees of the Archdiocese of Liverpool play 3 vital role in its mission and daily operaiions. Archdiocesan aciiviiies are communicated to staff through multiple channels, including email, Lhe intranet, and regular meeiings Ih3t address both general and specific matters. The Staff Associ3tion, representing all are35 of employment wiihin the archdiocese and its subsidiaries, ensures Ihat employee wellbeing remains a key priority in decision-making It sel'ves as a forum for discussing employment, heolth and safety, and social matters while also providing truslees and senior management wilh opportunitie5 lo consuli on proposed strategies, policies, and guidaiice. Employees are encouraged to share their ideas and raise any concerns. The archdiocese is commitied to inclusive employment practices, considering job applications from disabled persons based on their aptitudes and abiliiies. Support is provided foi- employees who become disabled during Lheir tenure, including opportunities for retention and retraining. Equal opportunities are also offered for training, career developmeni, and promotion. Annual pay adjustments are reviewed by Ihe trustees, with periodic evaluations of job roles and remuneration. Archdiocesan benchmarking is applied when creating new positions or filling significant vacancies to ensure fair and competitive compensation. 24 Archdiocese of Livei'pool Report of the TrLlStees For the year ended 31 Deceinber 2023 Grants The archdiocese is noi primarily a grant-maling for the priesthi)od in the year. 19 COMMITMENTS Gross Net of grant £000'5 At 31 December 2023 commirrnent5 to future expenditure were a5 follows.. School property Parochial and Dther property £Ol)O's 6,742 674 2,568 2,568 9,310 3,242 At 31 December 2022 commitments to future expenditure were as follow5.. School property Parochial and other property 5,113 511 2,245 1,746 7,358 2,257 The above commitments represeni commiited property expenditure that has been approved by the trustees on building projeLts ai the year end. 70 Arclidiocese ot Livei'pool Notes aiiLI Accoiuiting Policies Foi the Yeat. bided 31 DecÉmber 2023 20 PENSIONARRANGEMENTS 20.1 Personal Pension Scheme5 The archdiocese contributes, for eligible staff, to one of two qualifying pension Schemes which are fully compliènt wilh the requirements of 3uto-enrolment. The schemes are managed by an independent firm of pension administrators. The archdiocese has a policy Of matching employee contributions up to 696 of pensionable salary and each member has thèir own individL)al pension accouni within the scheme. The archdiocese is neither liable to finènce any funding shortfall nor entitled to benefit from any overfunding. 20.2 The Teachers, Penslon Scheme The Teacher5, Pension Scheme ITPS or schemel Is a stalutory, Ljnfunded, defined benefit occupational scheme, governed by Ihe Teachers, Pensions Regulations 2010 13s amended), and the Teachers, Pension Scheme Roglilarions 2014 la5 amendedl. These regulations apply to teachers in schools and other educational esrabli5hmer)rs, includ':ng academies, in England and Wales that are mainrained by local aLJthoriiies. In addition, teachers in many Independent and volunt8ry-aided Schools and teachers 3nd lecturers in some establishments of further and higher education may be eligible for Thembership. Membership is auromatic for full-time teachers and lecturers and, from l Januory 2007, auromatic too for reachers ond lecturers in part-time employmèni IDllowng appoinifflent or a change of contract. Teachers and lecturers c3n opt OLlt of the TPS. The Teacherg Penslon budgetlng and valuation account Although members may be employed by variou5 budies, their retirement and other pension benefits are set out in regulaiions made under the Superannuation Act119721 and Public Setvice Pensions Acl120131 and are paid by public fLJnds provided by Parliamenr. The TPS is an unfunded scheme and member5 contributo on a'pay as you go 'ba515 - coniributions from mernbers, along with Ihose made by ernployers, are credited to the Exchequer under arrangemen15 governed by the above Acis. The Teachers, Pensions Regulations 2010 require an annual account, the Teachers, Pension Budgeting and Va14Jation Account, 10 be kept of receipts and expendirure (including the cost of pension increase51. Frorn 1 April 2001, the Account has been crediied with a real rète Df return, which 1£ equivalent to assuming Ihat the balance in the Account is invested in notional invesiments that produce thai real rate of reiurn. Valuatlon of the Teacherg Penslon Scheme The12test valuation of the Teachers, Pension scheme has now taker) place, in line with direcrions issued by HM Treasury and using membership data as at 31 March 2019. A5 a result of this valuation TP5 employer5 Starred to pay an increased coTrtriburion rate of 23.68% from September 2019 Ithis includes the admin15tration levy of 0.8%). The limirEg of the implementation was to align its introduction with employers, budgei planning cycles. The employer's pension costs paid to TP5 in the period amounted 10 £33,78112022 134,9311. A copy of the va1u3tion report and supporting docufflentation is on the Teachers, Pensions web51te. Under the definitions set out in FRS 102, the TPS is a mulii-employer ponsion scheme. The trust has accounted for its conrribution5 to Ihe scheme 65 if it were a defined contribution scheme. The trust has set out above the information available on the scheme. Scheme Changes The arrangemenis for a reformed Teachers, Pension Scheme, in line w(h the recommendations made by Lord Hullon, in pariicular the introduction of a Career Average Revalued Earning5 ICAREI schetne, were implemented from l April 2015. 71 Archdiocese ()( Liveipool Notes aiiil ALCOLUltlllbT Policies Foi tlie Yeai Enoled 31 Deceiiiber 2023 The Teacherg Penslon Scheme Icontinued) In December 2018, Ihe Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, Introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore un13wFul. The Supreme Court, in a decision made in lune 2019, have rejerted the goverrbmenis application for permis510n to appeal the Courr of Appeal'5 ruling. The case will now be referred lo an Employment Tribunal for a decision regarding the remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination. Since then, claims have also been lodged against the main public service scheme5 including the TPS. The Deparirnent has cofÈceded Ih05e in line wilh the rest of the government. In July 2020 HM Treasury launched a 12- week public consultarion which WIIS provide evidence to 5UPPOrt the delivery of an appropriate remedy for the affected schemes, including TPS. A final remedy will be determined once the results of the consultation are establishod. In Oecember 2019, è further legal challenge wa5 made against the TPS relating to an identified equalitie5 issue whereby male Survivors of opposite-sex marriages and Cl￿71 partnerships are treated less favourably than 5uNivors in same-sex m8rriage5 and civil parinerships. The Secretary of State for Educaiion agreed not lo defend the case. In June 2020, the Eniploymenl Tribun31 recorded its findings in respect of rhe claimant. DfE is currentW working ID establish what changes are necessary to address this discrimination. 72 0 00 ArclidÉoce.se of Liverpool Notes aiid Accoiiiitiiig Policies For tlie Year Elided 31 DecL)Inbei- 2023 21 GROUP BODIES AND REiATED PARIYTRANSACtIONS (continued) sociated Church Clubs Limited (company number 027240311 historically coordinated the bulk puriha5e of stock for supply to archdIoce￿n parish centres and oiher metnbers of the scheme operated by the company. This activity has transferred to Archdioiesan Parish Centre5 Man3gemenr Company Limited (company number 034223321 and the direcror5 plan to disSo￿e Associated Church Clubs Limired Icornpany number 27240311. Meiropolitan Cathedral SeNiies Limiied (company nutnber 031150001 tnanages the commercial aspetts of rhe Meiropoli13n Cathedral including income goneration from its activities, building seriices and maintenance. Tuneside Limitedlcompany number 023162761 coordinates the building sepjices scheme for archdiocesan bLJildings obligations under the Consiruction Indusiry Scheme and commercial activities of the Conference Cenire. Cardinal Heen3n Sporrs Centre Limiied's Icompany number 038225161 principal 3Ctiwty 15 the operation of a sports cenrre wiihin the ground5 of Cardinal Heenan Roman Catholic High School, Lwerpool. Archdiocesan Parish Centres Management Company Limited (company number 034223321 manages the parish centres within the archdiocese. Archdiocesan Property Services Limited (company number 03142451 charity number 10550491 manages professional services in respect of maintenance, repair and refurbishment of archdiocesan properties. Archdiocese ol Livorpool Prifflary school Improvefflenl Trust Icomp3ny number 109124071 promote education standards in primary educaiion. Archdiocese of Liverpool Secondary School Improvemènt Trusi Icornpany number 109123981 promote education standards in secondary education. The cotnpanies limited by guarantee are wholly controlled by the charity. Al the companie5 are incorporated in the Uniied Kingdom. The operations of two iegi5tered charities which had common trustees were under rhe control of the charity and therefore their financial acrwity and posltions were consolidated in these 3CCOUnt5. Since a linking directive frorn the Charity CDmmis5ion in january 2023, the activities of these funds are now treated as parr of the Archdiocese of Liverpool charitywith a rransfer was made between group and charity to reflect the linking direction (Note 241. 75 Arclidiocese ()t Liveipool Notes aiid AccoiuitinLP I)olicies Foi. tlie Year Ended 31 December 2023 21 GROUP BODIESAND RELATED PARTyTPAN5A￿IONS (continued) The funds concorned are as follow5.. Apostleshlp of the Sea (Liverpool Archdiocesan Council) £OOO's Linked charities at 31 December 2023 Liverpool Archdiocesan Education Trust £OOO's Income from Collections and donations Investment income Total Income Expenditure on Charitable aitivities Total expenditure Net profit on investments Net Income Total assets Total liabilitles Total reserves 86 89 50 50 132 132 157 114 50 2,264 121 2,262 4,245 121 4,243 Apostleship of the Sea (Liverpool Archdlocesan Council) £OOO's Controlled charities at 31 December 2022 Llverpool Archdiocesan Education Trust £Ol)O's Income from Collections and donations Investment income Total Income Expenditure on Charitable activities Total expendlture Net gain on Investrnents Net Income 100 102 50 50 158 158 12831 13391 4,143 1141 4,129 50 Total assets Total liabilities Total reserves 2,214 121 2,212 76 Arclidiocese i)E Liveipc)ol Notes aiid AccoLintiiTrg Policieb For tlie Yeai- Elided 31 Deceiiiber 2023 21 GROUP BODIES AND RELATED PARIYTPANSAcfioNS (continued) The charitable purpose of the Apostleship of the Sea (Liverpool Archdiocesan Counci11 Icharity nufflber 1199714- 21 15 the spiritual and iemporal welfare of seafarers. Liverpool Archdiocesall Educaiion Trust Icharity number 1199714-31 acquires and holds property for ecsucaiion purposes. In accordar)ce with FRS 102, the relèted pafty transactions entered into by the charity are detailed below. All transactions thai ar05e were in Ihe normal course of activity. A balance of £164,17612022'. E164,1761 was owed to Associated Church Clubs Limited at the year end. The charity recharged salary COSES of £87,97712022: £112,230) to Archdiocesan Parish Centre5 Management Company Limited, a subsidioiy of the charity. A balance of £1,779,550 wa5 owed from the company at the year end.12022.' £1,725,358 owed from the companyl The charity recharged salary costs of £166,61312022,' £204,0941 to Archdiocesan Property Sepiices Limited, a subsidiary of rhe charity. A balance of £645,72112022.. £627,384) was owed from the company ar the year end. No salary costs were recharged by the charity in 2023 12022.. £Nil costs) 10 Metropolitan Cathedr31 Services Limited, a subsidiary of the charity. A balance of £1,566,05412022.. £696,352) was owed from Ihe company at the year end. The chèriry recharged salary costs of £67,061 12022.. £96,552) to Tuneside Limited, 3 subsidiary of the charity. A balance of £17,767,60412022'. E4,327,3181 was owed to the company at Ihe year end. A balance of £278,33712022'. £130,403) was owod from Archdiocese of Liverpool Pritnary School Improvement Trust at the year end. A balance of £346,16012022.. £50,025) was owed from Archdiocese of Lkverpool Secondary School Improvement Trust at the year end. Assoclated companles 96 holdlng In ordlnary shares Activity Inler-Dioces3n Fuel 14Aanagement Limited Fuel and power distribution Catholic N31ion31 Mutual Limited 1nsurance In the year £3,408,09512022 - £2,623,380) of fuel was purchased from Inter-oiocesan Fuel Management Limited by the group. 77 ArclidiocL'5e of Liverpool Notes £iiicI ALCOlllltllig Policies Foi the Yeai. Ended 31 Deceinber 2023 22 CONNECTED CHARITIES Chariries with common trustees with the archdiocese and associated subsidiary undertakings are as follows.. Charity Number 1187072 Nugent Care 2019 Christs and Notre Dame College, Liverpool The Friends of Liverpool Metropolitan Cathedral Caritas Social Artion 526463 513469 1101431 St Mary's College CrosbyTrusr Limited Catholic Trust for England and Wales St Cuihbert's College Usha The Catholic Children's Society IShrew£bury Diocesel Inc Caritas Diocese of Shrewsbury 1110311 1097482 527408 509793 1169317 Ushaw Trust 1197075 Leprosy Mission Isle of Man IOM 1251 The following cransactions occurred with these connected charities,. Individual parishes have collections throughout the year where donations are collected on behalf of the Nugent Care 2019 and paid directly to Ihe charity. The archdiocese made payments (oialling £179,27712022.. £165,805) to the Caiholic TTUSt for England and Wales in rospecr of activities undertaken 3t a national level in common with c)ther dioceses. No other transactions occurred with connected charities. 23 SCHOOL BUILDING PROJE￿5 The charity a5Si5ts archdiocesan voluntary aided sihools with the administration of funding for school building projects. Historically the archdiocese acted a5 the agent of school governing bodies in receiving funding from the Departmeni for Education (Dff l under the Locally Coordinated Voluntary-Aided Programme ILCVAPI, local authorities and other funding Sources and seitling and matching it with the corrtracrors, costs and professional fee5. Monie5 that coniinue to be received though these activiiies are nor reflected in Ihe Statement of Financial Aciiviries 35 the Iran53Ctions are those of the school governing bodies rather than the archdiocese. In April 2020 the Volunl8ry-Alded Schools Condition Allocarion (VA5CAI system was intrtyjuced and superseded the LCVAP. The change in funding gives the archdiocese ulrimate control over the application of grants lo specific schools, therefore the VASCA grant funding received and the relhred expendiiure are recognised in the Statement of Financial Ac(iiqties. Total grant income (o the School Projects Fund amoun(ed 10 £12.42M 12022.. £12.46MI. Total expenditure on school building projects during the year was £17.31 M12022.. £12.60MI. Balances due to individual archdiocesan schools in relation to devolved formula capital projecis amounted to £9.68M12022.' £11.34MI. 78 000 Ai'thdiocest of Liverpool Notes ntinued) Tangible Flxed Assets Investments Current Assets less Credltors £OOO's Total 2023 Charity £OOO's £000'5 £OOO's Restricted Funds Parochial 479 14.199 14,678 Curial 6,385 8,813 15,198 6,864 23,012 29.876 Designated Funds Parochial 11,429 111,3841 45 Curial 17,770 86,687 117.4131 87,044 17,770 98,116 128,7971 87,089 Unrestricted General Funds Parochial 37,450 49,066 7,653 94,169 Curlal 5,336 2,921 4,476 12.733 42,786 51,987 12.129 106,902 Total 60.556 156,967 223.867 83 Ardidiocese ol Livei'pool Nntes aiid Accoiuitinsy Policie£ Foi- tlie Yeai. Ended 31 Deceniber 2023 25 ANALYSIS OF NET ASSETS (contrnued) Tangible Flxed Assets Investment5 Current A55ets less Creditors £OOO's Total 2022 Charity 2022 £OOO's £OOO's £OOO's Restrlcted Funds Parochial 455 17,235 17,690 Curial 6,121 8,453 14,574 6,576 25,688 32,264 Deslgnated Fund5 Parochial 10,976 110,9311 45 Curial 3,866 92,198 113.0311 83.033 3,866 103,174 123.9621 83.078 Unrestricted General Fund5 Parochlal 12,371 66,237 71,251 89.859 Curial 469 7,415 2,537 10.421 12,840 73,652 13,788 100.280 Total 16,706 183.402 15,514 215,622 Arclidioce.ge ot Livei'pool Noteq and Accoiiiiting Policies For tlie Year Ended 31 December 2023 26 OPEMMNG LEhSES Throughout the archdiocese there are numerous low value operating leases prirnarily in relation ro equipfflent. The annual payments in relation lo these have noi been quantified but they are not deemed to be material to the financial statemenis. 27 CONMNGENT uA￿lL￿lEs The trustees are reviewing the strLJCture of the organ15aiion from è VAT perspective with initial findings indiiating that registration for VAT is probable. There remains potential that a future registration may be applied retrospectively bui a5 this likelihood and size of potenti31 liabiliiy cannot be fulw 35se55ed at this point, no provision ha5 been made within rhe financi31 slaretnents. 28 GUARANTEE An index-linked product amounting to £2.20NI12022-. £2.20MI is used as security againsr any potential liability in connection wirh a landfill site. The likelihood of this liability falling due on the charity 15 considered remote. 85