## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
**Registered Charity Number: 232709**
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
|**CONTENTS**|**PAGE**|
|---|---|
|**Report of the Trustees**|**1 - 17**|
|**Statement of Trustees' Responsibilities**|**18**|
|**Independent Auditor's Report to the Trustees**|**19 - 21**|
|**Consolidated Statement of Financial Activities**|**22 - 23**|
|**Charity Statement of Financial Activities**|**24 - 25**|
|**Consolidated Balance Sheet**|**26**|
|**Charity Balance Sheet**|**27**|
|**Consolidated Cash Flow Statement**|**28**|
|**Notes and Accounting Policies**|**29 - 68**|
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **MISSION STATEMENT**
**Taking to heart the last words of the Lord Jesus, we will go into the world to proclaim the Good News to the whole of creation.**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Trust Corporation**
Liverpool Roman Catholic Archdiocesan Trustees Incorporated ('The trustees')
## **Trustees of the Trust Corporation**
Most Rev M P McMahon OP (Chairman) Mr J Cowdall KSG (Died 10 January 2020) Rev Mgr J Devine OBE Mr G Easton (Appointed 5 November 2020) Rev Canon M Fitzsimons Dr M Goddard (Appointed 26 October 2021) Rev P Gregory (Resigned 5 November 2020) Mr I Hollows (Appointed 5 November 2020) Rev P Inch Mr S Keyes (Appointed 5 November 2020) Mrs C Lawrence (Appointed 5 November 2020) Rev Canon S Maloney (Resigned 5 November 2020) Rt Rev T Neylon Rev M Nunes Rev Provost A O’Brien Mrs C O’Brien (Appointed 5 November 2020) Rev Canon A Prescott (Appointed 27 May 2021) Rev G Timney OSB (Resigned 5 November 2020) Rt Rev T Williams
## **Episcopal Vicar for Finance**
Rev Mgr John Devine OBE
**Chief Operating Officer**
Mr M Miller
## **Principal Address**
St Margaret Clitherow Centre Croxteth Drive Liverpool L17 1AA
## **Registered Charity Number:** 232709
## **Auditors**
BDO LLP 5 Temple Square Temple Street Liverpool L2 5RH
## **Bankers**
HSBC Bank plc 99-101 Lord Street Liverpool L2 4SW
## **Investment Managers**
BlackRock Investment Management (UK) Ltd 33 King William Street London EC4R 9AS
Rathbone Investment Management Ltd Port of Liverpool Building Pier Head Liverpool L3 1NW
1
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Constitution**
The Liverpool Roman Catholic Archdiocesan Trust (more commonly referred to as the Archdiocese of Liverpool) is a registered charity (No 232709), the governing instrument of which is a trust deed dated 18 March 1963. Its trustees are the members of Liverpool Roman Catholic Archdiocesan Trustees Incorporated, a body incorporated by order of the Charity Commissioners under the Charitable Trustees Incorporation Act 1872. The trustees of the corporate body are listed on page 1.
## **Organisational structure and decision making**
The Catholic Church has a worldwide nature and identity and could be compared with a gathering together of family, with a common purpose and faith in Jesus Christ. Canon law (the law of the Church) establishes the rights and responsibilities of each member of this community. Church law applies universally and locally. The worldwide Church community, centred on Christ, under the Word of God and in communion with the Pope in Rome, is governed by canon law. Under canon law the Archbishop of Liverpool is responsible for the activities of the archdiocese, a geographical area in part of the north-west of England, which is a portion of the worldwide Church, making up the pilgrim People of God. He is assisted in archdiocesan executive matters by two auxiliary bishops, a vicar general and several episcopal vicars with delegated responsibilities for strategic oversight in specific matters of the life of the Church. The appointments of vicar general and episcopal vicars are made by the archbishop.
The affairs of the charity are governed by the trustees. The trustees are ultimately responsible for the administration and assets of the charity. The board of trustees, chaired by the archbishop, meets regularly to provide strategic direction and decision-making on key issues.
The pastoral oversight of the charity is conducted by the archbishop in regular consultation with the Archbishop’s Council. This body assists the archbishop in all decisions affecting the life of the archdiocese.
The archdiocese consists of 13 deaneries, each made up of groups of parishes in each local area, in total containing 173 places of worship, extending from the Mersey to the Ribble, encompassing parts of Merseyside, Lancashire, Cheshire, Greater Manchester and the Isle of Man.
The purpose of each deanery is to provide for the pastoral, sacramental and community needs of its people. All priests and deacons are accountable to the archbishop. Parish priests are obliged by canon law to act in the person of the parish. They also act as the agents of the trustees of the archdiocese, who are responsible for the administration of the archdiocesan trust, which includes parish assets. It is a further requirement of canon law that every parish should have a finance committee to assist the parish priest in the financial administration of the parish. This committee enjoys consultative status with the parish priest and its constitution has been approved by the trustees.
Some Church policies are developed at a national level by the Catholic Bishops' Conference of England and Wales. The archdiocese is represented on this body by its bishops. The policies may be adopted by the trustees after considering the impact on the activities of the archdiocese.
2
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Corporate governance**
The trustees welcomed the introduction of the Charity Governance Code in 2017 and continue to review best practice as they aim to improve governance. They have made several steps forward in improving both governance and effectiveness as follows:
## **Organisational purpose**
The trustees regularly review the charity's purposes and consider how it delivers public benefit as described on page 10 of this report. The trustees are satisfied that the charitable purposes of the organisation have been achieved.
## **Leadership**
During the year, the Chief Operating Officer continued the review of priorities, governance, structures, and processes. The charity is in transition to new governance arrangements which include clarity of oversight of committees and subsidiary undertakings.
The new governance arrangements include the regular review of the purposes of committees and subsidiaries, and constructive challenge to the Chief Operating Officer and archdiocesan officers. The ethos and culture of the charity supports its activities.
New policy committees are being established to be able to carry out detailed policy work on behalf of the trustees and Archbishop’s Council and to make decisions on matters delegated to them.
The Archdiocesan Education Committee will oversee the work of the Education Department and the development of education policy and practice consistent with the Catholic faith. The Pastoral Development Committee will oversee the work of the Pastoral Development Department in relation to pastoral provision for better delivery of archdiocesan mission objectives and, as far as possible, will align pastoral considerations with deployment of lay and ordained ministries.
An Audit Subcommittee will advise the trustees alongside the reconstituted Finance Committee. Subcommittees of the Finance Committee - the Investment Panel, Building Projects Committee, and the boards of the subsidiary companies - will continue to advise the trustees through the Finance Committee.
Each of the committees will be chaired by the relevant episcopal vicar with further trustee representation on the individual body. While several specialists are co-opted to the existing committees, a recruitment process for lay people with relevant experience, interested in serving as members, was completed in 2020. The committees meet on a regular basis and their findings are recommended to the trustees or operate under trustee-delegated authority.
## **Integrity**
The transition to new governance arrangements includes the implementation of policies and procedures which support key outcomes in maintaining the reputation of the charity and how it is perceived by other people, partnerships, and the public. Key themes in the implementation of policies and procedures include the expected standards of probity and behaviour, the requirements to operate responsibly and ethically in line with the mission of the archdiocese, and compliance with relevant guidance, whether mandatory or non-mandatory. The requirement for the declaration of actual or potential conflicts of interest is included within the new governance arrangements.
## **Decision-making, risk and control**
The archdiocese reviews the arrangements for matters reserved to the trustee board and those that are delegated to archdiocesan officers, individual trustees, and committees. Progress has been made towards the implementation of a revised scheme of delegation with clear boundaries. Compliance will be monitored and reported regularly to the Audit Subcommittee.
The revised governance arrangements include the regular review of committee terms of reference. The monitoring of organisational performance is a key component of the new governance arrangements and the implementation of key strategies with associated budgets is in progress. The development of
3
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Corporate governance** _(continued)_
reporting includes the monitoring and management of financial and non-financial risks including departmental, subsidiary, and archdiocesan risks. There is an effective process in place for the appointment and review of auditors.
## **Board effectiveness**
The arrangements for the cycle of board meetings were reviewed as part of the new governance arrangements together with the information needed for trustees to fulfil their duties. The mix of skills, knowledge and experience is kept under review and a recruitment process was completed recently. Plans are in place to appoint members to the committees that support the new governance arrangements.
## **Diversity**
The trustees understand their responsibilities regarding diversity and value the benefits of a diverse trustee body. They aim to remove obstacles to attracting a diverse pool of candidates.
## **Openness and accountability**
The charity is working towards the development of a transparent, well-publicised, effective, and timely process for making and handling complaints, with the aim of ensuring that internal and external complaints are handled constructively, impartially, and correctly. The review of a strategy for regular and effective communication with key stakeholders is a priority for the organisation and includes consideration of how best to communicate with these stakeholders.
## **Trustee recruitment and appointment**
By right of office, the archbishop chairs the board of trustees. The power of appointing new or additional trustees is vested in the archbishop. Lay members of the Church have also been appointed as trustees to serve in addition to the clergy members. A recruitment process for additional lay trustees was undertaken in 2019 and the archbishop has completed the appointment process of individuals with experience or skills sets in the areas of finance, legal, property, HR, communications, education and safeguarding.
The induction process for any newly appointed trustee is tailored to the requirements of the individual and includes an initial meeting with the archbishop. The new trustee receives copies of Charity Commission guidance, the minutes of the most recent trustees' meetings and a copy of the most recent statutory accounts. Ongoing training is provided for all trustees.
## **Related parties**
Various essential functions of the archdiocese are provided through subsidiaries. These include the management of the Metropolitan Cathedral, the management of parish centres, the building services scheme for archdiocesan buildings and the promotion of education standards to archdiocesan schools.
The boards of trustees of two charities are identical to that of the archdiocese. To reflect the level of reserves under the control of the trustees, the financial performance and position of these two charities are included in the consolidated accounts of the archdiocese.
The charitable objectives of The Apostleship of the Sea (Liverpool Archdiocesan Council) (charity number 224664) are the spiritual and temporal welfare of seafarers. The apostleship aims to achieve its objectives by working in ecumenical partnership with The Mersey Mission to Seafarers in the dayto-day operation of Liverpool Seafarers Centre. Through the facilities and service provided from the Seafarers Centre, the apostleship provides practical and pastoral care to seafarers. The charity had £4.13M of reserves in December 2020 (2019: £4.31M).
Liverpool Archdiocesan Education Trust (charity number 505264) aims to promote the charitable purposes of the archdiocese by facilitating the acquisition and holding of property for education purposes. Reserves of the charity amounted to £2.11M in December 2020 (2019: £2.10M).
4
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **COVID–19**
The global pandemic has had a catastrophic impact on the charitable activities and finances of the archdiocese and its subsidiaries. For three months between mid-March and mid-June 2020, all churches were closed to the public. Chaplaincy-led activities, central services and other programmes had to adapt their activities to be provided remotely or online, or they had to close temporarily. Many of the churches in the archdiocese were able to utilise the live streaming of Mass during the times when the buildings were closed for public worship. Other parishes celebrated Mass in the grounds of the church as government restrictions and weather permitted.
Every effort was undertaken to ensure that other essential elements of archdiocesan activity continued during the year. Clergy and lay chaplains continued to work in hospitals throughout the pandemic and employees of the archdiocesan cemeteries continued to offer a dignified service in the facilitation of burials during the pandemic.
For the period when public worship was not possible, Sunday collections could not be taken. Many generous parishioners continued to donate regularly with a significant increase in donations by other means. Information on donation by standing order and direct bank transfer was communicated to parishioners and an online giving facility was incorporated in the archdiocesan website, enabling parishes to receive one-off and ongoing donations from their parishioners and the wider public. A textgiving service was also introduced and remains a popular method of donation to parishes.
During the year the archdiocese utilised discretionary funds to contribute to the work of foodbanks in Liverpool and Wigan through direct donations and provided the use of buildings in other areas. Contributions were also made to fundraising initiatives for the provision of PPE, and the conference centre was used to provide COVID-19 testing facilities to the public.
COVID-19 secure measures were implemented at archdiocesan places of worship, parishes, the cathedral, and Liverpool Archdiocesan Office for the cautious reopening following the easing of government restrictions in July 2020 and enhanced further for reopening in December 2020 following the second national lockdown. All parish centres were closed for large periods of the year and following the second national lockdown many centres remained closed until May 2021.
The archdiocese made use of the Coronavirus Job Retention Scheme to assist with meeting the employment costs of staff who were unable to work from home. While large numbers of employees were able to work remotely, many, including most parish centre staff, were placed on furlough. In the latter part of the year, many employees returned to work under the flexible furlough arrangements, affording security of earnings, particularly for those working variable hours. Successful applications were made by the Metropolitan Cathedral to the National Lottery Heritage Recovery Fund for pandemic support, which generated welcome cash flows in 2020 and 2021.
## **Risk management**
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the trust and are satisfied that systems are in place to mitigate exposure to the major risks.
While the average weekly Mass attendance of 14,148 for 2020 reflects the impact of Covid restrictions, the underlying trend continued to be down, with a decline from the 85,357 reported in 2000. Usually calculated from the average of the Mass attendance each Sunday in October as submitted by each parish priest to the chancellor of the archdiocese. The average age of parish congregations is generally increasing, and the proportion of younger people is reducing. A key aspect of outreach to young people continues to be the work carried out by Catholic schools and the Animate youth ministry team across the archdiocese and beyond, who are based at Lowe House in St Helens.
The impact of the declining number of active parishioners and total clergy is being addressed through the recommendations of Synod 2020 that have been incorporated into the pastoral plan that was published in Advent 2021. The Synod was originally scheduled for the summer of 2020 but was deferred until June 2021.
5
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Risk management** _(continued)_
The vocations director appointed by the archbishop runs events around the archdiocese to help develop vocations to the priesthood and religious life for those people yet to decide whether to embark on ministerial formation.
The health and safety of all individuals that encounter the Church through the many churches and other properties of the archdiocese receives particular attention. A key aspect of the ongoing parish health and safety risk assessment process is risk identification, and through several techniques and processes the trustees aim to take all appropriate steps to mitigate the likely impact of risks identified. Guidance was issued to parishes to ensure that the reopening of churches, initially for private prayer and subsequently for public worship, met the social distancing and hygiene requirements. The provision of personal protective equipment was facilitated centrally and distributed to parishes as required.
Regulation compliance processes are acted upon for subjects such as asbestos, confined spaces, water hygiene, fire safety and first aid. Quinquennial reporting, three-monthly parish building inspections and parish health and safety risk assessments are undertaken. A culture of reporting of accidents to a designated health and safety coordinator is being improved and visits to all accident sites following serious incidents are undertaken. Systems are in place to ensure that all notifiable incidents are reported to the appropriate authorities and regular newsletters are sent to all parishes. Monthly reports covering health and safety are reviewed by the Finance Committee. The minutes of these meetings are reported to the trustees.
## **Objectives and activities**
The objects of the charity as declared in the governing document are:
- the advancement of the Roman Catholic religion
- the advancement of education
- the relief of poverty
- the cure or alleviation of sickness or disease
## **Achievements and performance**
In 2005 Archbishop Kelly presented to the archdiocese the Leaving Safe Harbours programme. This enabled priests and people, parishes, and deaneries (pastoral areas) to work together in new ways.
As part of the implementation of the programme, parishes were grouped into 20 pastoral areas for planning purposes and parishes then developed sacramental and pastoral provision, with local reviews of resources, buildings, and finances. Development proposals also included the repair, refurbishment, or closure of churches within a pastoral area.
In 2017 Archbishop McMahon, having become aware of the most recent pastoral challenges in the archdiocese, decided to call an archdiocesan Synod. This enabled the whole archdiocese to be involved in charting the way forward, and its outcomes for the goals, structures, styles, and methods of evangelisation in the archdiocesan community are being incorporated into the charity’s review of its charitable purposes. The members of the Synod were chosen by the parishes and pastoral areas from around the archdiocese. Additional Synod members represented religious congregations, retired priests, seminarians, and others who make up the archdiocesan community.
Archbishop McMahon called the Synod for the archdiocese to facilitate what the International Theological Commission calls a grace filled event in which the People of God together with the bishop meet to address the pastoral challenges of the time.
6
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Achievements and performance** _(continued)_
Following the announcement of the four Synod themes in 2019, further listening and reflection took place with the opportunity for Synod members and their communities to reflect on each theme in turn and to develop them into practical proposals for action. The four themes were:
- All are called and gifted by God
- Sharing the mission of Jesus
- How we pray together
- Building community, nurturing belonging
Due to the implications of the pandemic, the period of listening and reflection was extended to conclude in March 2021 and included extra time for reflection on the experience of being Church during this extraordinary period. After hearing the preferences of Synod members for the proposals a set of 19 recommendations covering all areas were formalised. A Synod book, ‘Together on the Road’ was produced to help people discern how they would vote on the recommendations and a week of prayer was held in advance of the Synod.
The Synod met in June 2021 via Zoom to vote on the proposals and to celebrate the Synod process. Archbishop McMahon opened the day and members heard from Cardinal Mario Grech of the Office of the Synod of Bishops, and Archbishop Claudio Gugerotti, Apostolic Nuncio to Great Britain.
In response to what was heard through the Synod process the Pastoral Plan was published on the first Sunday of Advent 2021. The plan comprises three sections:
- Christ at the centre – our theological underpinnings
- Four signposts to the future
- Six areas of development:
1. Becoming a Church that accompanies people through life
2. Becoming a Church that honours the vocation of all the baptised
3. Becoming a Church where synodality is embedded
4. Becoming a Church that reviews its organisational structures and administers its property to serve its mission
5. Becoming a Church where young people and young adults flourish
6. Becoming a Church that cares for its priests
The pastoral plan is to serve as the charter for implementing the work of Synod 2020 with a detailed consideration of the six areas of development that will evolve and be worked on in future years.
## **Financial review**
The net movement in funds of the group from parochial and curial activities is summarised below.
|Net outgoing resources
Unrealised (loss) / gain on investments
Revaluation of investment properties
Net movement|**2020**
**£000's**
**(7,615)**
**(6,315)**
**2,917**
**(11,013)**|2019
£000s
(3,309)
15,185
4,141|
|---|---|---|
|||16,017|
7
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Financial review** _(continued)_
Commercial trading operations and charitable activities have been adversely impacted in many areas of the charity’s mission. The impact has been mitigated by deploying additional support for alternative methods of giving, such as online donations, and by encouraging donors to set up standing orders. The overall drop in income was accompanied by a reduction in operational expenditure in all areas of the charity, easing the pressure on reserves.
Accelerated by the financial impact of the pandemic, the trustees undertook a restructuring of central services that was initiated in December 2020.To better align services with archdiocesan need, several new employment roles were created but a reduction in staff numbers was experienced in early 2021 though a redundancy process.
## **Voluntary income**
While the pandemic has had a negative impact on Mass attendance, parishioners continue to generously support their parishes. Long term initiatives such as the centrally coordinated 'Responsible Giving Campaign' have contributed to the core strength of parish finances. Implemented by small teams of volunteer parishioners, the campaign highlights the rising level of running costs faced by parishes and encourages parishioners to increase their individual level of giving. Separately there have been coordinated gift aid campaigns to boost donations further. Parishes where a responsible giving campaign has been undertaken have experienced sustained increases in giving while other parishes report falling offertories. The coordination of such parish campaigns occurring once every five years, interspersed with gift aid campaigns, continues to maintain the effectiveness of donation levels whilst trying to avoid 'fundraising fatigue' for parishioners.
Parishioners responded to parish need by increasing the number and value of standing order donations made directly to parishes. They also used the online and text giving platforms to maintain their levels of support for their parishes. Offertory income amounted to £3.91M (2019: £5.78M) but, given the restrictions on public worship in 2020, this represents considerable generosity on the part of parishioners.
The value of legacies received by the archdiocese was £0.46M in 2020 (2019: £0.30M). The Priests' Training Fund, George Andrew Fund, the cathedral, and individual parishes each continue to benefit from the generosity of parishioners through collection income and bequests. Legacies were reported in 25 individual parishes in 2020 (2019: 19).
The pandemic affected the ability of parishes and their parishioners to maintain the levels of support for appeals and special collections during the year. £0.60M was received in 2020 (2019: £1.30M) and various external charities, including CAFOD and Nugent, benefited from the income generated in parishes.
## **Fundraising activities**
The activities of the parish centres are consolidated within Archdiocesan Parish Centres Management Company Limited (APCMC). Every parish centre was closed from March 2020 with a phased reopening of some from July until October when every site was again affected by government restrictions. While a number reopened in May 2021, the trustees decided that 20 parish centres would cease to trade commercially. The decision to end the licensed trade in those 20 parish centres necessitated a redundancy consultation in 2021 that resulted in the redundancy of 85 parish centre staff. All the parish centre buildings continue to be a valuable resource to parishes and the wider community, with the activities of the company enabling the funding of these costly sites on behalf of the parishes.
In 2021, APCMC obtained a £1.7M loan under the government-backed Coronavirus Business Interruption Scheme to mitigate the negative cash flow impact of the closure of parish centres arising from lockdown restrictions. The amount, calculated as the estimated net income lost by the company during the lock down restrictions is secured against cash balances of APCMC and has no interest cost implications to the company or the archdiocese for the first year of the loan. The trustees anticipate that the loan will be repaid in 2022 before any interest becomes chargeable to the organisation.
8
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Fundraising activities** _(continued)_
Following a review of operations, the commercial activities of the Conference Centre at LACE have been streamlined. The building remains in use for archdiocesan and external groups, without dedicated conferencing and hospitality support.
Archdiocesan building projects are managed by Tuneside Limited and Archdiocesan Property Services Limited, and the activities of the subsidiaries have considerable influence in ensuring that building projects are managed in a cost-efficient manner to the benefit of the parishes and schools.
## **Investment policy and performance**
The trust deed authorises the trustees to invest general funds of the charity in any lawful manner.
The investment objectives of the trustees have been amended to reflect a total returns policy rather than one that focuses on the maintenance of capital values with a dedicated cash income target. The investment return is achieved by investing in a portfolio of equities, fixed-income stocks, commercial property, and cash.
The investment portfolio is managed on a discretionary basis within the parameters of a general ethical investment policy restricting the investment managers from investing in any area that would be incompatible with the objectives of the trust. The policy states that no investments are to be made in companies which generate more than 10% of their turnover from military activity, the production of anything which threatens the sanctity of life, or the production of pornography. An enhanced policy is being developed which reflects the trustees’ attitude to sustainable and socially responsible investing, ensuring that environmental and ethical considerations remain a key driver of archdiocesan investment strategy. The investment managers use the services of bodies such as the Investor Responsibility Research Service in endeavouring to ensure compliance with archdiocesan policy.
The Investment Panel has authority delegated from the trustees to set performance targets and to assess the actual performance of the investment managers against benchmarks, with advice from a specialist firm of investment advisers.
The archdiocesan investment portfolio is split into two separate portfolios managed by different investment managers. Following a commercial decision by Martin Currie Investment Management Limited to withdraw from the charitable investment sector, in 2020 the trustees transferred the management of that element of the portfolio to Rathbone Investment Management Limited.
Representatives of the investment managers meet periodically with the Investment Panel, who assess their relative performance and against benchmarks. Following adverse performance against the agreed benchmarks and a full investment manager review in 2021, BlackRock Investment Management (UK) Limited were notified of the trustees’ intention to transfer management of that element of the portfolio to Tilney Smith & Williamson. It is anticipated that this will be completed in early 2022.
Investment income generated by the investment managers of the unitised portfolio was £3.62M (2019: £4.68M) and met the targets required by the archdiocese. In the volatile investment market of 2020, the charity reported an unrealised loss on investments of £6.32M (2019: Gain £15.18M). The losses experienced in 2020 were recovered in full in 2021.
All archdiocesan bank accounts are included within the offset banking system. After daily consideration of commitments and spending patterns, archdiocesan personnel evaluate the cash requirements, the balance being placed in a variety of cash deposits with institutions approved by the trustees.
The investment objective in respect of cash management is to maximise income from cash balances whilst maintaining sufficient available funds to meet the daily operating requirements and to facilitate the timely payment of liabilities.
9
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Investment policy and performance** _(continued)_
The low rates of interest available on cash balances continue to present a challenge to the archdiocese. Income derived from cash management activities reduced to £0.04M (2019: £0.13M), with the average rate of return deteriorating in the year.
## **Investment properties**
The archdiocese sold several assets that were no longer being used as functional church properties and reported a realised gain on the disposal of properties of £0.02M (2019: £0.28M). The trustees have retained several properties no longer required for functional purposes to generate a rental income for individual parishes. A cyclical valuation programme is operated by the trustees and the revaluations created an unrealised gain of £2.92M in 2019 (2019: £4.14M).
## **Charitable activities and public benefit**
The charity aims to satisfy its objects through four main areas of charitable activity:
- To support pastoral work in parishes and local communities
- To provide support to the clergy in training, ministry and retirement
- To support and direct lifelong Christian education in parishes and schools
- To preserve and invest in the property infrastructure of the archdiocese and parishes, facilitating worship and enabling the charitable work of the Church to take place
In considering the charitable activities of the archdiocese, the trustees have had regard to the charity Commission guidance on public benefit. Success is measured in several ways. The archbishop has oversight of the whole archdiocese, achieved through visitations to parishes and schools and through the wider knowledge and reviews below of the various activities of the organisation.
## **Pastoral work**
Despite the pandemic and subject to varying levels of lockdown restrictions, the celebration of Mass in parishes within the archdiocese was attended by an average weekly congregation of 14,148 in 2020 and contributed to the spiritual well-being of society and the public in general. The adaptiveness of parishes and the cathedral in the facilitation of online streaming of regular and special services ensured that the archdiocese continued to have a positive impact.
Many activities coordinated through parishes of the archdiocese are focused on the needs of the vulnerable, both at home and abroad, and significant collections are undertaken on behalf of charities such as Nugent, CAFOD and natural disaster appeals. The pastoral work of the archdiocese extends through chaplaincy provision offering spiritual support to those in universities, hospitals, and prisons within the geographical area of operation. A regular and extensive provision of pastoral visiting to the sick at home and in nursing homes is undertaken by clergy and trained lay people.
While most pastoral work is undertaken locally at the parish level, several centrally funded departments and initiatives facilitate and encourage work in the local community.
The archdiocesan Department of Education through the Christian education section focuses on formation and ethos in our Catholic schools by means of staff training courses, professional catechetical and liturgical support, and statutory religious education inspections.
Parish work with young people is complemented by the activities of the Animate youth ministry team based at Lowe House in St Helens. A team of residential youth workers under the direction of the archdiocesan youth chaplain serves in parishes and schools, engaging with over 10,000 young people each year by undertaking preparation for sacraments, youth events, pilgrimages, and school missions. This interaction informs young people not only about religion but also about basic values which contribute to the common good of society.
10
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Pastoral work** _(continued)_
For four decades Liverpool priests have volunteered to serve in Latin America, standing alongside the poor and deprived, supported by the people of the archdiocese. LAMP was established in 1979 to undertake this missionary work and attend to the needs of individuals within the parishes administered by archdiocesan priests operating in Latin America. Investment income derived from restricted investments and legacies currently support the daily activities and pastoral work of the priests, with emphasis on catechesis and the support of medical aid, as well as some of the property needs in their parishes.
## **Clergy support**
At the local level, priests are actively involved in directing, coordinating and undertaking the mission of the Church and delivering the strategy of the archdiocese. Clergy are also responsible for the celebration of Masses as well as baptisms, marriages, funerals, and the provision of the sacraments generally. The priests and deacons of the archdiocese provide welfare to the sick, dying and their relatives though visiting and the administration of the sacraments.
Priests do not retire but can stand down from the full responsibilities of office at 75 years old, or earlier if their health requires. As the anticipated number of such ‘retired’ priests increases beyond the present number, the requirements on the George Andrew Fund to provide for the living needs of retired priests will increase and the fund value will diminish. The George Andrew Fund levy based on parish donations and income contributes to supporting priests during illness and after leaving office.
Properties in several locations within the archdiocese have been converted and refurbished to increase the level and variety of accommodation available to retired priests. An annual parish collection, 'Provision for Priests in Retirement' continues to be generously supported by parishioners. The proceeds of the annual collection will help to meet the future costs of converting and maintaining such properties and are held separately from those of the George Andrew Fund.
The archdiocese has six students preparing for the priesthood and the proceeds of an annual parish collection, legacies and specific donations to the Priests' Training Fund provide for the cost of education of students for the priesthood and for continuing formation.
## **Education**
In partnership with the trustees of religious orders, the archdiocese provides a network of schools across a very wide and disparate geographical area embracing eight local education authorities and the Isle of Man.
The Education Department ensures that there is in its schools, at both primary and secondary levels, a place available for every baptised Catholic child. Successive external reports give testament to the enduring quality of the network of schools, which continue to place as much emphasis on personal, spiritual, and moral formation as on academic progress. In celebrating the uniqueness of the individual and fostering independence alongside responsibility to others, the archdiocesan schools strive to offer mutual support for the common good in the wider society.
Through the School Projects Fund, the archdiocese approved 157 individual capital and repair projects to the value of £11.98M in the year (2019: 205 projects, £21.18M). Lockdown restrictions and supply chain issues in respect of raw materials has affected the volume of work undertaken and the costs of individual projects in 2020. The archdiocese contributes up to 10% of the cost of each school building project undertaken and the level of contribution can only be achieved with the support of parishioners and parents who contribute to the annual school levy collection. The School Projects Fund benefited from £0.54M (2019: £0.54M) of donations from parents via archdiocesan schools but in acknowledgement of the pandemic impact on parish and parishioners’ finances no contribution was sought from this source in 2020 (2019: £0.25M).
11
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Education** _(continued)_
Maintaining the policy direction established in recent years, capital investment in schools and colleges continued to focus on improving building condition. This year around 92% of the school capital funding accessed by archdiocesan schools was targeted at maintaining and improving the fabric of school buildings.
2020 saw the continuation of significant investment targeted on the improvement in the condition of Catholic high school buildings in the Sefton and Wigan local authority areas. This long-term strategy aims to provide support in Catholic high schools in each of the two target areas to deliver a significant improvement in the overall quality of the school buildings. The year saw completion of the investment in Christ the King high school in Southport and focus will now move on to Savio Salesian College in Bootle. In Wigan, St John Fisher school will be the first recipient of investment. Dialogue also commenced with the Department for Education about the potential replacement of an accommodation block at St John Fisher, the construction type of which is a government priority for replacement.
St Cuthbert’s primary school in Liverpool ended the year by moving into their new-build school on the existing site. External spaces across the school site have also been extended and remodelled.
During the year the significant investment in Great Crosby school was completed, expanding the accommodation to increase the number of children in the associated parishes who can obtain a place at the school. The large project to redevelop and remodel a new secure entrance at St Michael’s primary school in Widnes was approved, as was condition work at St Mary’s high school in Leyland to bring back into use previously mothballed accommodation, a demonstration of the growth of the school. The redevelopment of St Leo’s school in Whiston, creating a single-site building, also reached a conclusion, as did the project to single-site St Mary’s in Blackbrook, the latter concluding with the demolition of the old, poor quality, and now redundant accommodation.
Progress has been made on the phased redevelopment projects at St Marie’s, Kirkby, and Ursuline in Crosby, with other significant projects to improve accommodation undertaken at several schools including Holy Spirit in Ford, St Paul of the Cross in Warrington, and Our Lady and St Swithin primary school in Liverpool.
An element of funding of school building projects is paid directly to schools using a formulaic allocation known as devolved formula capital (DFC). Most schools in the archdiocese opt to pay their DFC allocations into an archdiocesan bank account within which they are maintained on an individual basis until they are drawn down by the school. At the year end, the archdiocese was holding £7.58M (2019: £8.19M) on behalf of schools.
Through the Schools' Voluntary Contribution Scheme, the archdiocese can offer an enhanced level of support to schools. Contributions of £0.30M in 2020 (2019: £0.30M) from archdiocesan schools enabled the Education Department to support the development of leadership teams and advise on selection and appointment processes through effective induction, in-service and advanced programmes of training following appointment. In 2020 a significant number of new appointments made by governing bodies were undertaken with the support of archdiocesan officers.
## **Property**
Establishment costs remain the most significant area of expenditure for parishes, with £5.70M (2019: £6.56M) incurred in property running costs, which included repairs and maintenance costs of £2.98M in 2020 (2019: £3.50M).Throughout the uncertainty of 2020, the trustees ensured that only urgent and necessary repair and maintenance work was undertaken. Some other elements of expenditure have been lower in 2020 and savings have been experienced in areas such as light and heat that have mitigated some of the impact of income lost in the year.
Effective control exercised through the Finance Committee, which considers and recommends to the trustees repair projects costing in excess of £5,000, and the efforts of the in-house surveying team in obtaining value for money has ensured that building projects remained good value for money with trustee consideration and approval.
12
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Property** _(continued)_
The management of the maintenance and repair programme ensures that churches and parish halls are open to the whole community to benefit not only spiritually but also practically from the provision of pastoral care and the many activities provided by our parishes to the wider community.
## **Employees**
The employees of the Archdiocese of Liverpool make an immense contribution to the life of the archdiocese. Information about the archdiocesan activities is communicated to employees in several ways including email and intranet and regular meetings are held with staff on general and specific matters. A staff association with representation from all areas of employment within the archdiocese and its subsidiaries has been formed.
The Staff Association exists to enhance the contribution made by employees and to ensure that the wellbeing of staff is a priority consideration by the trustees and management in their decision-making. The association is a forum where staff can consider employment, health and safety and social matters. It also offers the trustees and senior management the opportunity to consult over proposed strategies, policies, and guidance. Staff are encouraged to voice their ideas as well as any concerns.
It is the policy of the archdiocese to consider job applications from disabled persons, having due regard to their aptitudes and abilities, and to provide opportunities for the retention and retraining of employees who become disabled during their employment. Equal opportunities are also given for the training, career development and promotion of disabled persons.
Annual pay changes are considered by the trustees, and job roles and remuneration are reviewed periodically. Archdiocesan benchmarking is employed when new roles are created or when significant roles become vacant.
## **Grants**
The archdiocese is not primarily a grant-making charity. A small number of discretionary grants were made by the trustees to contribute towards the costs of initiatives run by other charities where their objects correlated with those of the archdiocese. Further information on this can be found in note 19 to the accounts.
## **Reserves policy**
On 31 December 2020 the reserves were:
|Restricted funds
Unrestricted funds: - general
- designated|**2020**
**£000's**
**16,516**
**91,617**
**84,146**
**192,279**|2019
£000's
16,922
96,742
89,628|
|---|---|---|
|||203,292|
Restricted funds represent unexpended balances from collections, donations, legacies, and grants restricted by donors to specific purposes including the Priests' Training Fund and Foundation Mass capital. Balances on specific building projects at the Metropolitan Cathedral represent amounts of grantaid and other financial support invested in the fabric of the building. A breakdown of amounts restricted is given and the purpose of the restrictions is explained further in note 16.
13
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Reserves policy** _(continued)_
Designated funds have been set aside by the trustees for several purposes including school projects, central funds, the George Andrew Fund, and the Metropolitan Cathedral.
To ensure that the reserves of the George Andrew and 2021 funds are enough to support priests in retirement, periodic actuarial reviews are undertaken. The outcome of the most recent review was confirmation that the level of reserves held was adequate to meet the likely future costs of retirement. At December 2020 reserves of these two funds amounted to £15.33M (2019: £16.17M). Reflecting the long-term nature of the support provided by these two designated funds, the level of reserves that would otherwise be classified as freely available is more than the general target set for other funds of the archdiocese.
The central funds of the archdiocese which have been designated to meet the costs of central archdiocesan initiatives and support costs were £47.72M in December 2020 (2019: £51.40M). The assets of the funds are primarily investment property and holdings in the unitised investment portfolio. The income generated from these investments contributes to the costs of centrally coordinated charitable activities and the support and governance cost obligations of the charity. The level of reserves held ensures that parishes are not required to contribute to central costs by way of an annual levy.
Although collectively our parishes are financially secure, those parishes without sufficient reserves rely on or benefit from the generosity of fellow parishes through the Assessment Fund and offset banking system.
Parishes make voluntary contributions to the Assessment Fund based on income. The Assessment Fund committee, which is made up of parish priests, considers written applications for support from parishes and distributes grants to those parishes in need. In focusing on parishes with negative reserves, the committee has contributed to an improvement in reserves in many parishes.
The level of aggregated reserves held for general parish purposes is broadly consistent with that of the rest of the archdiocese. The collective reserves of parishes have exceeded the target set by the trustees. Around 35% of parishes are managing their activities without any freely available reserves representing an increased from 32% in 2019. Reserves in another 33 parishes are below the overall target of 36 months (2019: 40 parishes).
Despite the significant increase in transactions arising from daily sweep activities, the offset banking system continues to ensure that those parishes with limited resources are spared the additional cost of interest charges on bank overdrafts and builds on the Church's values of solidarity with the poor and the common good.
The level of freely available reserves is ordinarily determined as the amount of total unrestricted (including designated) funds less fixed assets as these assets could not be realised without undermining the work of the archdiocese. Typically, this reserve figure is expressed in terms of monthly expenditure. Under this definition, the level of reserves freely available to spend on any or all of the charity's purposes amounted to approximately 51 months' expenditure (2019: 45 months).
Taking into consideration the specific demands in respect of the George Andrew and 2021 funds, the trustees consider any meaningful target for reserves to meet general expenditure should exclude these funds. At December 2020, 45 months of expenditure were available (2019: 39 months).
The level of net current assets held by the archdiocese amounted to £6.13M (2019: £11.00M) and represents 2.73 months (2019: 3.93 months) of expenditure at December 2020. This demonstrates the continued need for careful financial planning in future years. Anticipating negative cashflows arising from the pandemic, the trustees advised the investment managers that a potential drawdown of capital may have been required to meet the organisation’s ongoing activity in the short to medium term. Such a drawdown has not been required and the archdiocese has consequently benefitted from the growth in the value of investments held within the portfolio.
14
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Reserves policy** _(continued)_
While aiming to maintain working capital or net current assets of between 4 to 6 months’ expenditure, the trustees consider that an overall level of reserves equating to 51 months' expenditure is sufficient to enable the charity to fulfil all of its obligations and commitments. While investment volatility has contributed to a change in the levels of reserves, as returns on cash management remain limited, it is felt the excess of reserves over 36 months is acceptable in the short to medium term. The trustees' expectations in respect of the desired levels of reserves in the longer term remain realistic.
## **Going concern**
The trustees have given consideration to the basis of preparing the financial statements in the context of the challenging times affecting the charitable sector and most recently considered the impact of COVID-19. Forecasts have been prepared and reviewed for the forthcoming year, including a sensitivity analysis including the estimate impact of COVID-19 under a reverse stress test scenario. Having done so, the trustees consider that the going concern basis remains appropriate. Further information in this respect is disclosed in the accounting policies.
## **Plans for future periods**
The proposals for action that emerged from the Synod as presented in the pastoral plan released at the start of Advent 2021 will drive the strategic direction of the archdiocese.
In becoming a Church that accompanies people through life, the Synod identified the key priority for the archdiocese is that it should look outwards and evangelise. The pastoral plan commits the archdiocese to the idea of ‘accompaniment’ as the paradigm within which the organisation operates. The trustees envisage this as impacting on every aspect of archdiocesan life with an aim to walk alongside all people in the joys and hopes, griefs and anxieties of the lives.
To become a Church that honours the vocation of all the baptised, the archdiocese is to be bold and creative in celebrating the call of Christ and in supporting people to respond. The trustees recognise the need to foster the gifts and callings of all the baptised, and to consider new models of leadership that engage directly with the realities of life today, building up collaboration and embedding synodality.
Becoming a Church where synodality is embedded and heeding the call of Pope Francis that the synodal model is the way of the Church in its third millennium, a new advisory body will replace the Archbishop’s Council as the consultative body that meets regularly with the archbishop. Its membership will include lay people, as well as clergy. An archdiocesan synodal council will also be given the responsibility of monitoring the implementation of the pastoral plan.
To become a Church that renews its organisational structures and administers its property to serve its mission, the archdiocese has reorganised the 18 pastoral areas into 13 deaneries with a more stabilised and institutional grouping of various parishes.
In becoming a Church where young people and young adults flourish, the trustees intend to appoint a full-time youth adviser to create a networked youth ministry that brings together present and future provision across the archdiocese. The archdiocese will develop a Youth Council to bring concrete proposals to the agreed archdiocesan structures and increase support for Catholic life in schools by exploring a central archdiocesan chaplaincy structure.
Becoming a Church that cares for its priests, the archdiocese anticipates that the families of parishes created by the pastoral plan will encourage greater mutual support for archdiocesan priests. The archdiocese recognises that it is essential that the priests play an active role in developing plans in this regard and shall establish an externally facilitated process to explore with the priests of the archdiocese what needs to be developed to effectively support their flourishing in the human, spiritual, liturgical, theological, intellectual, and pastoral aspects of their lives.
15
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Plans for future periods** _(continued)_
Capital investment in schools and colleges will continue to focus on maintaining and improving building condition. Education Department officers will also continue to work closely and productively with central government to advocate for our schools on matters of education capital policy and with local authority colleagues to ensure that there continue to be sufficient places across the archdiocese to meet overall Catholic demand. The new year will see a movement to a new system of capital administration by the Department for Education, with school condition allocations aggregated to diocese level in a single allocation, along with greater flexibility at local level to move funding between financial years. This development will support a more efficient and responsive programme delivery.
Demand remains very high for places in archdiocesan schools but there is a very high level of assurance that all Catholic children can obtain a place at a local Catholic school. Work will continue to consider admission numbers that maintain the offer of sufficient places to Catholic families, whilst also delivering strong and sustainable schools. Where expansion or closures need to be considered officers will work closely with local and national government colleagues, and within the statutory school organisation frameworks, to take appropriate action.
Capital developments in the coming year will include the commencement of a whole-school conditionled redevelopment of St Paul’s and St Timothy’s school. Significant capital work is also programmed for several other schools including St John Fisher, Widnes, St Gregory’s, Chorley, and St Augustine’s and St Cuthbert’s high schools in St Helens. Work will progress to replace poor quality mobile accommodation with new-build classrooms at St Aidan’s in Wigan and further work will be undertaken on the development plan to address condition and suitability at St Oswald’s in Liverpool. Remodelling to meet contemporary standards on space and suitability will be undertaken at St Mary’s, Scarisbrick, St Bede’s, Ormskirk, and Holy Cross, Chorley.
The trustees approved a major restoration of the organ of the Metropolitan Cathedral, that has commenced in 2021. At a cost of £1.14M the project will provide for the renewal of mechanical and electrical components and other associated works. The organ has been removed from the cathedral with reinstallation to commence around Easter 2022. It is anticipated that the organ will be fully operational by September 2022.
## **Volunteers**
The trustees acknowledge the hard work of so many volunteers in our parishes who help in financial and property administration and also those who are involved in what are a variety of roles that assist in the life and service of the Church and trust and the wider society. They wish to thank them all for all their hard work and dedicated commitment to these aspects of the life of the Church. The monetary value of the volunteers' time is impossible to quantify.
In summary, the overall picture is one of consolidation and improvement of existing resources. The trustees are budgeting carefully in response to archdiocesan needs and priorities to preserve the level of reserves and maintain commitments to existing services, whilst also being able to periodically consider new initiatives, if trustees determine such are to become higher priority temporary projects.
16
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Auditor**
In respect of each trustee at the date the trustees report is signed:
- So far as we are aware, there is no information needed by the charity's auditor in connection with preparing their report (relevant audit information) of which they are unaware, and
- As the trustees of the charity, we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
A resolution to reappoint BDO LLP as auditors for the ensuing year will be proposed.
Signed on behalf of the trustees
16/12/21 Rev Mgr J Devine OBE **Episcopal Vicar for Finance**
17
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.
Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
Financial statements are published on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity's website is the responsibility of the trustees. The trustees' responsibility also extends to the ongoing integrity of the financial statements contained therein.
18
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Opinion on the financial statements**
In our opinion, the financial statements:
- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2020 and of the group’s incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
We have audited the financial statements of Liverpool Roman Catholic Archdiocesan Trust (“the parent charity”) and its subsidiaries (“the group”) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the charity statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated cash flow statement 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).
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## _**Independence**_
We remain independent of the group and the parent charity in accordance with the ethical requirements 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.
## **Conclusions related 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 group and the parent 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 Annual Report, other than the financial statements and our auditor’s report thereon. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
19
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion;
- the information contained in the financial statements is inconsistent in any material respect with the trustees’ annual report; or
- adequate accounting records have not been kept by the parent charity; or
- the parent charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
- **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determines 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 group’s and the parent 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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
## _**Extent to which the audit was capable of detecting irregularities, including fraud**_
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 sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the reporting framework (Charities SORP 2019, FRS 102 and the Charities Act 2011) and we considered the extent to which non-compliance might have a direct impact and material effect on the Charity Financial Statements or their continued operation.
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 posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence if any.
20
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST FOR THE YEAR ENDED 31 DECEMBER 2020**
_**Extent to which the audit was capable of detecting irregularities, including fraud** (continued)_
The audit procedures to address the risks identified included:
- Agreement of the financial statement disclosures to underlying supporting documentation;
- Challenging assumptions made by management in their significant accounting estimates and judgements, in particular investment properties;
- Identifying and testing journal entries posted to the financial statements;
- Discussions with management and trustees, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; and
- Reading minutes of meetings of those charged with governance and reviewing any correspondence with Charity Commission.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:
https://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 the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**BDO LLP, statutory auditor**
**Liverpool, UK**
> **Date** 17 December 2021
**BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.**
**BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).**
21
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**INCOME FROM**
**Donations and legacies**
Collections and donations
**3.1**
Legacies
Grants
**Other trading activities**
Fundraising
**3.2**
Investment income
**3.3**
**Charitable activities**
**4**
**Other**
Net gains on disposal of assets
**TOTAL INCOME**
**EXPENDITURE ON**
**Raising Funds**
**5**
**Charitable activities**
**6**
Ministry support
**6.1**
Pastoral and community
**6.2**
Education
**6.3**
Provision for worship
**6.4**
**TOTAL EXPENDITURE**
**NET (EXPENDITURE) / INCOME BEFORE**
**INVESTMENT LOSSES**
**Net gains / (losses) on investments**
**10**
**NET (EXPENDITURE) / INCOME AFTER**
**INVESTMENT LOSSES**
**TRANSFERS BETWEEN FUNDS**
**25**
**NET MOVEMENT IN FUNDS**
Fund balances at 1 January 2020
**FUND BALANCES AT 31 DECEMBER 2020**
**26**|**Parochial**
**Unrestricted**
**Funds**
**£000's**
6,347
208
357
61
1,588
59
23|**Parochial**
**Designated**
**Funds**
**£000's**
546
-
-
-
243
-
-|**Parochial**
**Restricted**
**Funds**
**£000's**
598
-
-
-
6
-
-|**TOTAL**
**Parochial**
**Funds**
**£000's**
**7,491**
**208**
**357**
**61**
**1,837**
**59**
**23**|**Curial**
**Unrestricted**
**Funds**
**£000's**
121
31
214
5,120
424
357
-|**Curial**
**Designated**
**Funds**
**£000's**
58
9
200
-
2,514
955
-|**Curial**
**Restricted**
**Funds**
**£000's**
30
209
-
-
134
-
-|**TOTAL**
**Curial**
**Funds**
**£000's**
**209**
**249**
**414**
**5,120**
**3,072**
**1,312**
**-**|**TOTAL**
**2020**
**£000's**
**7,700**
**457**
**771**
**5,181**
**4,909**
**1,371**
**23**|
|---|---|---|---|---|---|---|---|---|---|
||8,643|789|604|**10,036**|
6,267|3,736|373|**10,376**|**20,412**|
||107
1,397
3,429
-
5,705|25
-
-
786
-|1
-
463
-
-|**133**
**1,397**
**3,892**
**786**
**5,705**|
7,459
43
866
764
389|350
1,374
2,419
1,449
575|14
288
124
-
-|**7,823**
**1,705**
**3,409**
**2,213**
**964**|**7,956**
**3,102**
**7,301**
**2,999**
**6,669**|
||10,638|811|464|**11,913**|
9,521|6,167|426|**16,114**|**28,027**|
||(1,995)|(22)|140|**(1,877)**
(3,254)||(2,431)|(53)|**(5,738)**|**(7,615)**|
||116|(549)|(21)|**(454)**
(301)||(2,338)|(305)|**(2,944)**|**(3,398)**|
||(1,879)|(571)|119|**(2,331)**
(3,555)||(4,769)|(358)|**(8,682)**|**(11,013)**|
||166|(312)|(130)|**(276)**|143|170|(37)|**276**|**-**|
||(1,713)|
(883)|
(11)|**(2,607)**
(3,412)||(4,599)|(395)|**(8,406)**|**(11,013)**|
||83,565|2,120|1,891|87,576|
13,177|87,508|15,031|115,716|203,292|
||**81,852**|**1,237**|**1,880**|**84,969**|
**9,765**|**82,909**|**14,636**|**107,310**|**192,279**|
All amounts relate to continuing operations. The notes on pages 29 to 68 form part of these accounts.
22
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2019**
|**Note**
**INCOME FROM**
**Donations and legacies**
Collections and donations
**3.1**
Legacies
Grants
**Other trading activities**
Fundraising
**3.2**
Investment income
**3.3**
**Charitable activities**
**4**
**Other**
Net gains on disposal of assets
**TOTAL INCOME**
**EXPENDITURE ON**
**Raising Funds**
**5**
**Charitable activities**
**6**
Ministry support
**6.1**
Pastoral and community
**6.2**
Education
**6.3**
Provision for worship
**6.4**
**TOTAL EXPENDITURE**
**NET (EXPENDITURE) / INCOME BEFORE**
**INVESTMENT LOSSES**
**Net gains on investments**
**10**
**NET INCOME AFTER INVESTMENT GAINS**
**TRANSFERS BETWEEN FUNDS**
**25**
**NET MOVEMENT IN FUNDS**
Fund balances at 1 January 2019
**FUND BALANCES AT 31 DECEMBER 2019**
**26**|**Parochial**
**Unrestricted**
**Funds**
**£000's**
9,199
267
-
235
1,726
153
207|**Parochial**
**Designated**
**Funds**
**£000's**
569
-
-
-
265
-
-|**Parochial**
**Restricted**
**Funds**
**£000's**
1,301
-
-
-
9
-
-|**TOTAL**
**Parochial**
**Funds**
**£000's**
11,069
267
-
235
2,000
153
207|**Curial**
**Unrestricted**
**Funds**
**£000's**
243
7
-
11,792
473
289
-|**Curial**
**Designated**
**Funds**
**£000's**
43
-
-
-
3,482
1,129
76|**Curial**
**Restricted**
**Funds**
**£000's**
98
26
-
-
137
-
-|**TOTAL**
**Curial**
**Funds**
**£000's**
384
33
-
11,792
4,092
1,418
76|**TOTAL**
**2019**
**£000's**
11,453
300
-
12,027
6,092
1,571
283|
|---|---|---|---|---|---|---|---|---|---|
||11,787|834|1,310|13,931|
12,804|4,730|261|17,795|31,726|
||172
1,830
4,016
-
6,557|31
-
-
1,306
-|1
-
1,066
-
-|204
1,830
5,082
1,306
6,557|
11,396
39
806
510
500|262
1,304
2,657
1,508
551|17
296
210
-
-|11,675
1,639
3,673
2,018
1,051|11,879
3,469
8,755
3,324
7,608|
||12,575|1,337|1,067|14,979|
13,251|6,282|523|20,056|35,035|
||(788)|(503)|243|(1,048)
(447)||(1,552)|(262)|(2,261)|(3,309)|
||7,497|1,313|51|8,861|
1,016|8,723|726|10,465|19,326|
||6,709|810|294|7,813|
569|7,171|464|8,204|16,017|
||125|148|(1,052)|(779)|152|683|(56)|779|-|
||6,834|958|
(758)|7,034|
721|7,854|408|8,983|16,017|
||76,731|1,162|2,649|80,542|
12,456|79,654|14,623|106,733|187,275|
||83,565|2,120|1,891|87,576|
13,177|87,508|15,031|115,716|203,292|
All amounts relate to continuing operations.
The notes on pages 29 to 68 form part of these accounts
23
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**INCOME FROM**
**Donations and legacies**
Collections and donations
**3.1**
Legacies
Grants
**Other trading activities**
Fundraising
**3.2**
Investment income
**3.3**
**Charitable activities**
**4**
**Other**
Net gains on disposal of assets
**TOTAL INCOME**
**EXPENDITURE ON**
**Raising Funds**
**5**
**Charitable activities**
**6**
Ministry Support
**6.1**
Pastoral and Community
**6.2**
Education
**6.3**
Provision for worship
**6.4**
**TOTAL EXPENDITURE**
**NET (EXPENDITURE) / INCOME BEFORE**
**INVESTMENT GAINS**
**Net gains / (losses) on investments**
**10**
**NET (EXPENDITURE) / INCOME AFTER**
**INVESTMENT LOSSES**
**TRANSFERS BETWEEN FUNDS**
**25**
**NET MOVEMENT IN FUNDS**
Fund balances at 1 January 2020
**FUND BALANCES AT 31 DECEMBER 2020**
**26**|**Parochial**
**Unrestricted**
**Funds**
**£000's**
6,347
208
357
61
1,588
59
23|**Parochial**
**Designated**
**Funds**
**£000's**
546
-
-
-
243
-
-|**Parochial**
**Restricted**
**Funds**
**£000's**
598
-
-
-
6
-
-|**TOTAL**
**Parochial**
**Funds**
**£000's**
**7,491**
**208**
**357**
**61**
**1,837**
**59**
**23**|**Curial**
**Unrestricted**
**Funds**
**£000's**
121
31
123
14
305
357
**-**|**Curial**
**Designated**
**Funds**
**£000's**
58
9
200
-
2,514
955
-|**Curial**
**Restricted**
**Funds**
**£000's**
30
209
-
-
134
-
-|**TOTAL**
**Curial**
**Funds**
**£000's**
**209**
**249**
**323**
**14**
**2,953**
**1,312**
**-**|**TOTAL**
**2020**
**£000's**
**7,700**
**457**
**680**
**75**
**4,790**
**1,371**
**23**|
|---|---|---|---|---|---|---|---|---|---|
||8,643|789|604|**10,036**|
951|3,736|373|**5,060**|**15,096**|
||107
1,397
3,429
-
5,705|25
-
-
786
-|1
-
463
-
-|**133**
**1,397**
**3,892**
**786**
**5,705**|
21
43
732
-
389|350
1,374
2,419
1,449
575|14
288
123
-
-|**385**
**1,705**
**3,274**
**1,449**
**964**|**518**
**3,102**
**7,166**
**2,235**
**6,669**|
||10,638|811|464|**11,913**|
1,185|6,167|425|**7,777**|**19,690**|
||(1,995)|(22)|140|**(1,877)**
(234)||(2,431)|(52)|**(2,717)**|**(4,594)**|
||116
(1,879)|(549)
(571)|(21)
119|**(454)**
(119)
**(2,331)**
(353)||(2,338)
(4,769)|(305)
(357)|**(2,762)**
**(5,479)**|**(3,216)**
**(7,810)**|
||166|(312)|(130)|**(276)**|83|170|19|**272**|**(4)**|
||**(1,713)**|
**(883)**|
**(11)**|**(2,607)**
(270)||(4,599)|(338)|**(5,207)**|**(7,814)**|
||83,565|2,120|1,891|87,576|
10,737|87,174|14,697|112,608|200,184|
||**81,852**|**1,237**|**1,880**|**84,969**|
**10,467**|**82,575**|**14,359**|**107,401**|**192,370**|
All amounts relate to continuing operations. The notes on pages 29 to 68 form part of these accounts.
24
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2019**
|**Note**
**INCOME FROM**
**Donations and legacies**
Collections and donations
**3.1**
Legacies
Grants
**Other trading activities**
Fundraising
**3.2**
Investment income
**3.3**
**Charitable activities**
**4**
**Other**
Net gains on disposal of assets
**TOTAL INCOME**
**EXPENDITURE ON**
**Raising Funds**
**5**
**Charitable activities**
**6**
Ministry Support
**6.1**
Pastoral and Community
**6.2**
Education
**6.3**
Provision for worship
**6.4**
**TOTAL EXPENDITURE**
**NET (EXPENDITURE) / INCOME BEFORE**
**INVESTMENT GAINS**
**Net gains on investments**
**10**
**NET INCOME AFTER INVESTMENT GAINS**
**TRANSFERS BETWEEN FUNDS**
**25**
**NET MOVEMENT IN FUNDS**
Fund balances at 1 January 2019
**FUND BALANCES AT 31 DECEMBER 2019**
**26**|**Parochial**
**Unrestricted**
**Funds**
**£000's**
9,199
267
-
235
1,726
153
207|**Parochial**
**Designated**
**Funds**
**£000's**
569
-
-
-
265
-
-|**Parochial**
**Restricted**
**Funds**
**£000's**
1,301
-
-
-
9
-
-|**TOTAL**
**Parochial**
**Funds**
**£000's**
11,069
267
-
235
2,000
153
207|**Curial**
**Unrestricted**
**Funds**
**£000's**
243
7
-
20
294
289
-|**Curial**
**Designated**
**Funds**
**£000's**
43
-
-
-
3,482
1,129
76|**Curial**
**Restricted**
**Funds**
**£000's**
98
26
-
-
137
-
-|**TOTAL**
**Curial**
**Funds**
**£000's**
384
33
-
20
3,913
1,418
76|**TOTAL**
**2019**
**£000's**
11,453
300
-
255
5,913
1,571
283|
|---|---|---|---|---|---|---|---|---|---|
||11,787|834|1,310|13,931|
853|4,730|261|5,844|19,775|
||172
1,830
4,016
-
6,557|31
-
-
1,306
-|1
-
1,066
-
-|204
1,830
5,082
1,306
6,557|
26
39
661
-
500|597
1,304
2,657
1,508
551|17
296
205
-
-|640
1,639
3,523
1,508
1,051|844
3,469
8,605
2,814
7,608|
||12,575|1,337|1,067|14,979|
1,226|6,617|518|8,361|23,340|
||(788)|(503)|243|(1,048)
(373)||(1,887)|(257)|(2,517)|(3,565)|
||7,497
6,709|1,313
810|51
294|8,861
7,813|
541
168|8,723
6,836|726
469|9,990
7,473|18,851
15,286|
||125|148|(1,052)|(779)|158|684|-|842|63|
||6,834|958|(758)|7,034|
326|7,520|469|8,315|15,349|
||76,731|1,162|2,649|80,542|
10,411|79,654|14,228|104,293|184,835|
||83,565|2,120|1,891|87,576|
10,737|87,174|14,697|112,608|200,184|
All amounts relate to continuing operations. The notes on pages 29 to 68 form part of these accounts.
25
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2020**
|**Notes**
**FIXED ASSETS**
**Tangible assets**
- investment properties
**11.1**
- other
**11.3**
**Investments**
**12.1**
**Total Fixed Assets**
**CURRENT ASSETS**
**Stock**
**Debtors**
- due within one year
**13**
**Balance at bank**
**CREDITORS**
- amounts falling due
within one year
**14**
**Intra - Group balances**
**NET CURRENT ASSETS**
**Provisions for liabilities**
Deferred taxation
**15**
**NET ASSETS**
**ACCUMULATED FUNDS**
Restricted funds
**16**
Unrestricted funds
-
Designated
**17**
-
General|**Parochial**
**2020**
**£000's**
**15,020**
**11,759**|**Curial**
**2020**
**£000's**
**15,154**
**19,080**|**Total**
**2020**
**£000's**
**30,174**
**30,839**|Parochial
2019
£000’s
13,935
12,422|Curial
2019
£000's
14,484
19,681|Total
2019
£000's
28,419
32,103
60,522
131,809
192,331
332
6,260
16,637
23,229
(12,231)
-
10,998
(37)
203,292
16,922
89,628
96,742
203,292|
|---|---|---|---|---|---|---|
||**26,779**
**53,843**|**34,234**
**71,330**|**61,013**
**125,173**|26,357
56,218|34,165
75,591||
||**80,622**|**105,564**|**186,186**|82,575|109,756||
||**-**
**4,080**
**10,739**|**119**
**2,032**
**14,081**|**119**
**6,112**
**24,820**|-
3,164
1,767|332
3,096
14,870||
||**14,819**
**(20,207)**
**9,735**|**16,232**
**(4,714)**
**(9,735)**|**31,051**
**(24,921)**
**-**|4,931
(8,551)
8,621|18,298
(3,680)
(8,621)||
||**4,347**
**-**|**1,783**
**(37)**|**6,130**
**(37)**|5,001
-|
5,997
(37)||
||**84,969**|**107,310**|**192,279**|87,576|115,716||
||**1,880**
**1,237**
**81,852**|**14,636**
**82,909**
**9,765**|**16,516**
**84,146**
**91,617**|1,891
2,120
83,565|15,031
87,508
13,177||
||**84,969**|**107,310**|**192,279**|87,576|115,716||
The financial statements were approved and authorised for issue by the trustees on 16/12/21
and signed on their behalf by
## **Chairman of the trustees**
The notes on pages 29 to 68 form part of these accounts.
26
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **CHARITY BALANCE SHEET AT 31 DECEMBER 2020**
||**Notes**|**Parochial**|**Curial**|**Total**|Parochial|Curial|Total|
|---|---|---|---|---|---|---|---|
|||**2020**|**2020**|**2020**|2019|2019|2019|
|||**£000's**|**£000's**|**£000's**|£000's|£000's|£000's|
|**FIXED ASSETS**||||||||
|**Tangible assets**||||||||
|- investment properties|**11.2**|**15,020**|**13,604**|**28,624**|13,935|12,964|26,899|
|- other|**11.4**|**11,759**|**4,583**|**16,342**|12,422|4,511|16,933|
|||**26,779**|**18,187**|**44,966**|26,357|17,475|43,832|
|**Investments**|**12.2**|**53,843**|**67,205**|**121,048**|56,218|71,332|127,550|
|Investment in related||||||||
|companies|**12.3**|**-**|**22,558**|**22,558**|-|22,558|22,558|
|**Total Fixed Assets**||**80,622**|**107,950**|**188,572**|82,575|111,365|193,940|
|**CURRENT ASSETS**||||||||
|**Debtors**||||||||
|- due within one year|**13**|**4,080**|**1,335**|**5,415**|3,164|2,293|5,457|
|**Balance at bank**||**10,739**|**21,346**|**32,085**|1,767|18,323|20,090|
|||**14,819**|**22,681**|**37,500**|4,931|20,616|25,547|
|**LIABILITIES**||||||||
|**Creditors**||||||||
|- amounts falling due
within one year|**14**|**(20,207)**|**(1,813)**|**(22,020)**|(8,551)|(594)|(9,145)|
|**Intra - Group balances**||**9,735**|**(21,417)**|**(11,682)**|8,621|
(18,779)|(10,158)|
|**NET CURRENT ASSETS**||**4,347**|**(549)**|**3,798**|5,001|
1,243|6,244|
|**NET ASSETS**||**84,969**|**107,401**|**192,370**|87,576|
112,608|200,184|
|**ACCUMULATED FUNDS**||||||||
|Restricted funds|**16**|**1,880**|**14,359**|**16,239**|1,891|14,697|16,588|
|Unrestricted funds||||||||
|-Designated|**17**|**1,237**|**82,575**|**83,812**|2,120|87,174|89,294|
|-General||**81,852 **|**10,467 **|**92,319**|83,565|10,737|94,302|
|||**84,969**|**107,401**|**192,370**|87,576|112,608|200,184|
The financial statements were approved and authorised for issue by the trustees on 16/12/21
and signed on their behalf by
## **Chairman of the trustees**
The notes on pages 29 to 68 form part of these accounts.
27
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Cash flows from operating activities**
**Net movement in funds**
Adjustments for:
Depreciation, impairment, and amortisation of fixed assets
Net interest receivable
Dividend income from fixed and current asset investments
Difference between net pension expense and cash contribution
Decrease in trade and other debtors
Decrease in stocks
Increase / (Decrease) in trade and other creditors
Decrease in provisions
Gains on revaluation of investment properties
Losses / (Gains) on revaluation of investments
Profit on disposal of assets
**_Net cash Inflow / (outflow) from operating activities_**
**Cash flows from investing activities**
Proceeds from sale of tangible fixed assets
Purchases of tangible fixed assets
Interest received
Dividends received on fixed asset investments
Purchase of investments
Proceeds from sale of investments
**_Net cash from investing activities_**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**
**Cash and cash equivalents comprise:**
Cash at bank and in hand|**2020**
**£'000s**
**(11,013)**
**1,463**
**(42)**
**(3,621)**
**(39)**
**29**
**213**
**12,729**
**-**
**(2,917)**
**6,315**
**(23)**
**________**
**3,094**
**________**
**1,396**
**(411)**
**42**
**3,741**
**-**
**321**
**________**
**5,089**
**________**
**8,183**
**16,637**
**________**
**24,820**
________
**24,820**
________|**2019**
**£'000s**
16,017
1,178
(126)
(4,679)
63
837
18
(234)
(3)
(4,141)
(15,185)
(283)
________
(6,538)
________
1,816
(202)
126
4,657
(630)
955
________
6,722
________
184
16,453
________
16,637
________
16,637
________|
|---|---|---|
28
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1 PRINCIPAL ACCOUNTING POLICIES**
## **1.1 Charity information**
Liverpool Roman Catholic Archdiocesan Trust is a charity registered in England and Wales under the Charities Act 2011. The registered office is stated on the reference and administrative details page and the principal objective and activity of the charity is stated in the Report of the Trustees.
## **1.2 Basis of preparation**
The financial statements have been prepared under the historical cost convention, with the exception of investments and investment properties which are included at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (Charities SORP (FRS 102)), the Charities Act 2011 and applicable reporting standards.
In preparing these financial statements, the trustees are required to prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue in operation. In satisfaction of this responsibility the trustees have considered the charity's ability to meet its liabilities as they fall due for a period of at least twelve months from signing date of the financial statements.
Due to the current environment arising from the global pandemic, management have made an assessment of the likely impact of COVID-19 on the company based on latest available information and government guidance. This assessment has looked at the likely duration of the crisis as well as the sales that could be expected to be generated during extended government restrictions.
For three months between mid-March and mid-June, all churches were closed to the public. Chaplaincy-led activities, central services and other programmes had to adapt their activities to be provided remotely or online, or they had to close temporarily. As a result, income from donations, commercial trading operations and charitable activities has been adversely impacted in many areas of the charity’s mission, though the impact has been mitigated by deploying additional support for alternative methods of giving, such as online donations, by encouraging donors to consider setting up standing orders. However, the overall drop in income was accompanied by a reduction in operational expenditure in all areas of the charity, easing the pressure on reserves. The charity furloughed some its employees and claimed the eligible sums from the Coronavirus Job Retention Scheme. The evolution of interest rates and the financial markets have adversely impacted investment income and interest receivable for the charity, but not beyond the capacity of its reserves to withstand.
The trustees have considered the period of 12 months from the date of approval of these accounts and have reviewed working capital requirements for the period. As part of this review, reverse stress testing has also been performed, considering the potential disruptions and reductions in income over the coming months as well as the level of investment returns.
Although there has been an impact on the finances and reserves of the charity, 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 based on the carrying value of the assets held by the charity including cash, listed investments and investment property.
The trustees therefore conclude that it remains appropriate to continue to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being appropriate.
Liverpool Roman Catholic Archdiocesan Trust meets the definition of a public benefit entity under FRS 102.
29
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.2 Basis of preparation** _(continued)_
The accounts are presented in sterling and are rounded to the nearest £1,000.
## **1.3 Basis of consolidation**
The consolidated financial statements include those of the subsidiary undertakings which are consolidated on a line-by-line basis using appropriate headings for those subsidiaries which prepare their accounts under the Companies Act or SORP formats.
The consolidated accounts also include the net assets and transactions of other charities under the control of the charity.
The accounts do not include the net assets and results of connected charities.
The charity has taken advantage of the exemption from preparing a charity cash flow statement.
## **1.4 Incoming resources**
Incoming resources are included in the Statement of Financial Activities once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Income from trading activities is included in the period that the relevant services are provided or goods supplied.
Legacies and donations are recognised when receipt is probable, the archdiocese becomes legally entitled to them and they can be measured in financial terms with sufficient reliability.
Collections and fundraising income is recognised on receipt. Investment income is recognised when receivable.
Grants receivable are included in the Statement of Financial Activities as soon as the conditions attaching to the grant are satisfied. Grants are mainly in relation to capital projects. Included within the grants figure on the statement of financial activities is £540k (2019: £Nil) in relation to amounts received under the Coronavirus Job Retention Scheme “Furlough”.
The charity receives substantial voluntary help in the work of the archdiocese, but it is not possible to place a financial value on this work and no amounts are therefore included in the financial statements for the value of services donated by volunteers. Gifts of fixed assets are included at valuation and the corresponding entry is recorded as donation income.
30
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.5 Resources expended**
Resources expended are included in the Statement of Financial Activities on the accruals basis. These are based on the amounts payable for work done or services provided in the year.
## **Costs of raising funds**
Costs of raising funds comprises all costs relating to attracting voluntary income, the costs incurred in subsidiary trading and investment management fees.
## **Charitable activities**
Expenditure on charitable activities includes the costs identified as wholly or mainly attributable to achieving the charitable objectives of the charity, including direct staff costs and other direct costs as well as support costs and costs relating to the governance of the charity apportioned to charitable activities
## **Governance costs**
Governance costs are those costs related to the governance of the charity, to allow it to operate, and to generate information for public accountability. Direct costs include audit and accountancy, legal advice to trustees and costs of trustees’ meetings.
## **Support costs**
All support costs are borne by central funds and have been apportioned to governance costs and charitable activities. The share of support costs attributable to governance reflects costs incurred in the preparation of the statutory accounts and the remaining costs have been allocated pro-rata based upon the charitable activity's share of central expenditure.
## **1.6 Investments and investment gains and losses**
Investments and investment properties are included in the financial statements at fair value at the balance sheet date. Investment properties are valued internally annually and are professionally valued on a rolling basis as part of a five-year programme. Listed investments are included in the balance sheet at bid price.
Realised and unrealised gains and losses on investments and investment properties are dealt with in the Statement of Financial Activities.
Unrealised gains and losses are calculated as the movement in fair value during the year. Realised gains are calculated as the difference between disposal proceeds and market value brought forward.
## **1.7 Tangible fixed assets - other than property**
The cost of computer equipment, office equipment and fixtures and fittings is capitalised and depreciation is provided to write off the original cost, less any estimated residual value, over the expected useful life of the assets concerned. The rates of depreciation applied are as follows:
|follows:||
|---|---|
||**% of cost**|
||**per annum**|
|Computer equipment|25|
|Office equipment and||
|fixtures and fittings|20|
Suitable capitalisation thresholds are adopted in the entities comprising the archdiocese.
31
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.8 Tangible fixed assets - Functional church property**
Prior to 31 December 1997 capital expenditure on functional church property was written off in full as incurred.
At 31 December 1997 the trustees considered that a reasonable approximation of the net book value of the functional church property held would be established by discounting the insurance values of those assets by 90%. This was the policy employed to include these assets on the balance sheet at estimated historic cost net of accumulated depreciation.
From 1 January 1998 to 31 December 2008 the cost of functional church property was capitalised and depreciated over its expected useful life of 20 years. From 2009 listed properties and other functional church properties have been depreciated over useful economic lives of 100 years and 50 years respectively. Commercial properties are considered to have useful economic lives of 20 years.
From 1 January 2019 parochial functional property is depreciated by component over the remaining expected useful life of the individual component as set out below.
|**Building component**|**% of**|**Average remaining life**|**Expected useful life**|
|---|---|---|---|
||**cost**|**in 2020**||
|Roof|30%|24|75|
|Walls, foundations|50%|99|100|
|Windows|5%|19|50|
|Heating installations|5%|9|20|
|Interior|5%|9|20|
|Electrical installations|5%|9|20|
Works of art, treasures and plate are not capitalised in these accounts as they are historic, have extraordinarily long lives and are worth preserving in perpetuity. They are heritage assets for the purposes of Charities SORP (FRS 102). The trustees consider that it would be prejudicial to the safe custody of these assets to disclose details of their values and usage in the accounts.
Where functional church property is no longer operational, impairment is fully recognised unless there is an investment value.
## **1.9 Tangible fixed assets - School property**
The freehold of the land and buildings legally owned by the archdiocese and occupied rentfree on behalf of the trustees of the governing bodies of catholic voluntary aided schools, which are separate charities and publicly funded, are valued at £Nil. The trustees consider that no meaningful value can be attributed to these assets, since they are not used directly by the archdiocese, do not generate income, and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues.
## **1.10 Impairment**
The carrying amounts of the archdiocese's fixed assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount and is recognised in the Statement
## **1.11 Stocks**
Stocks are stated at the lower of cost and net realisable value.
32
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.12 Pension scheme**
The charity and eligible employees make defined contributions to a group personal pension scheme. Contributions are also paid to the Teachers' Pension Superannuation Fund on which further information is given in note 21 to the financial statements. Contributions payable are charged as Resources Expended in the Consolidated Statement of Financial Activities.
## **1.13 Operating leases**
Operating leases in respect of equipment are charged as resources expended on a straightline basis over the period of the lease. Such operating leases mainly relate to parishes and parish centres. Rentals receivable under operating leases are recognised on a straight-line basis over the period of lease term.
## **1.14 Financial instruments**
The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a shortterm instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:
- i. at fair value with changes recognised in the Statement of Financial Activities if the shares are publicly traded or their fair value can otherwise be measured reliably;
- ii. at cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activities.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which approximates to the amount that the charity would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset, and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
33
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.15 Recognition of liabilities**
Liabilities are recognised as soon as there is a legal or constructive obligation committing the archdiocese to pay out resources.
## **1.16 Liquid resources**
Liquid resources are those associated with the cash management of the archdiocese.
## **1.17 Fund accounting**
The funds within the archdiocese are split between Curial and Parochial. Curial Funds can be used across the whole of the archdiocese whereas Parochial Funds comprise funds relating to the individual parishes. These funds are shown separately and subdivided in the financial statements as follows.
## **Restricted funds**
Restricted funds are funds that are used in accordance with specific restrictions imposed by donors or that have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. Details of the restricted funds held are provided in note 16 to the financial statements.
## **Unrestricted funds - Designated**
Designated funds are unrestricted funds that have been set aside by the trustees for specific purposes and are detailed in note 17 to the financial statements.
## **Unrestricted funds - General**
Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the objects of the charity and which have not been designated for other purposes.
## **1.18 Agency arrangements**
The archdiocese acts as agent in the collection of grants from government, local authorities and other funds, and payment of approved invoices for school building projects on behalf of Catholic schools in the archdiocese. This income and expenditure is excluded from the income and expenditure of the charity and any balances due from or held on behalf of schools are shown within debtors and creditors. See note 24.
## **1.19 Current and deferred taxation**
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Financial Activities.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
34
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.19 Current and deferred taxation** _(continued)_
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
## **2 JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
In preparing these financial statements, the trustees have had to make the following judgments:
- Determine whether leases entered into by the group either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease-by-lease basis.
- Determine whether there are indicators of impairment of the group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
- Determine whether there are indicators of impairment in the carrying value of investments in subsidiary undertakings. Factors taken into consideration in reaching such a decision include the economic viability and expected future income generating potential of the subsidiary entity.
Other key sources of estimation uncertainty:
Tangible fixed assets (see note 11)
- Tangible fixed assets, other than investments properties, are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are considered. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
- Investment properties are valued internally annually and are professionally valued on a rolling basis as part of a five-year programme. Valuations are made considering periodic external valuations, derived from current market rents and property yields for comparable real estate, adjusted, if necessary, for any difference in nature, location, or condition. Judgement is required in assessing the appropriateness of the assumptions and methodology in determining the fair value of investment properties.
Investments (see note 12)
- Estimates, assumptions, and judgments relate to the determination of carrying value of investments at fair value through the Statement of Financial Activities, the group follows the International Private Equity and Venture Capital Valuation Guidelines, applying the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction. The nature, facts and circumstances of the investment drives the valuation methodology.
35
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**3**
**INCOME**
**3.1** **Collections and donations**
**PAROCHIAL**
**Group and Charity**
Collections
Donations
Gift Aid rebates
**CURIAL**
**Group and Charity**
Collections
Donations
**TOTAL – GROUP AND CHARITY**|**Unrestricted**
**Funds**
**£000's**
3,936
1,890
521
6,347
40
81
121
6,468|**Designated**
**Funds**
**£000's**
-
546
-
546
-
58
58
604|**Restricted**
**Funds**
**£000's**
598
-
-
598
5
25
30
628|**2020**
**£000's**
**4,534**
**2,436**
**521**
**7,491**
**45**
**164**
**209**
**7,700**|2019
£000's
7,126
3,102
841|
|---|---|---|---|---|---|
||||||11,069|
||||||109
275|
||||||384|
|||||||
||||||11,453|
36
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**3.2 Fundraising**
**PAROCHIAL**
**Group and Charity**
Parish events and other
fundraising activities
**CURIAL**
**Group**
Income from trading subsidiaries
Other
Less income from trading
subsidiaries
**Charity**
**TOTAL - GROUP**
**TOTAL - CHARITY**
**3.3** **Investment Income**
**PAROCHIAL**
**Group and Charity**
Income receivable from unitised
portfolio
Rents and other income
**CURIAL**
**Group**
Interest receivable
Income receivable
from unitised portfolio
Rents and other income
Less investment income from
trading subsidiaries
**Charity**
**TOTAL - GROUP**
**TOTAL - CHARITY**|**Unrestricted**
**Funds**
**£000's**
61
61
5,106
14
5,120
(5,106)
14
5,181
75
950
638
1,588
-
153
271
424
(119)
305
2,012
1,893|**Designated**
**Funds**
**£000's**
-
-
-
-
-
-
-
-
-
243
-
243
42
2,135
337
2,514
-
2,514
2,653
2,757|**Restricted**
**Funds**
**£000's**
-
-
-
-
-
-
-
-
-
6
-
6
-
134
-
134
-
134
140
140|**2020**
**£000's**
**61**
**61 **
**5,106**
**14**
**5,120**
**(5,106)**
**14**
**5,181 **
**75**
**1,199**
**638**
**1,837**
**42**
**2,422**
**608**
**3,072**
**(119)**
**2,953**
**4,805**
**4,790**|2019
£000's
235|
|---|---|---|---|---|---|
||||||235|
||||||11,772
20|
||||||11,792
(11,772)|
||||||20|
||||||12,027|
||||||255|
||||||1,294
706|
||||||2,000|
||||||127
3,385
580|
||||||4,092|
||||||(179)|
||||||3,913|
||||||6,092|
||||||5,913|
37
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
|**4**
**INCOME FROM CHARITABLE**
**ACTIVITIES**
**Unrestricted**
**Funds**
**£000's**
**PAROCHIAL**
**Group and Charity**
Piety stall
45
Newspapers
14
59
**CURIAL**
**Group and Charity**
Cemetery fees
315
School Contribution Scheme
-
Inspection fees and course income
-
Other
42
357
**TOTAL – GROUP AND CHARITY**
416
**5**
**RAISING FUNDS**
**PAROCHIAL**
**Group and Charity**
Parish events and other
fundraising activities
10
Investment management fees
97
107
**CURIAL**
**Group**
Expenditure by subsidiaries
7,438
Other
21
7,459
Less expenditure by subsidiaries
(7,438)
Add impairment in value of
subsidiary company
-
**Charity**
21
**TOTAL - GROUP**
7,566
**TOTAL - CHARITY**
128|**Designated**
**Funds**
**£000's**
-
-
-
-
305
205
445
955
955
-
25
25
-
350
350
-
-
350
375
375|**Restricted**
**Funds**
**£000's**
-
-
-
-
-
-
-
-
-
-
1
1
-
14
14
-
-
14
15
15|**2020**
**£000's**
**45**
**14**
**59**
**315**
**305**
**205**
**487**
**1,312**
**1,371**
**10**
**123**
**133**
**7,438**
**385**
**7,823**
**(7,438)**
**-**
**385**
**7,956**
**518**|2019
£000's
115
38|
|---|---|---|---|---|
|||||153|
|||||278
296
303
541|
|||||1,418|
|||||1,571|
|||||52
152|
|||||204|
|||||11,370
305|
|||||11,675|
|||||(11,370)
335|
|||||640|
||||||
|||||11,879|
|||||844|
38
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**6**
**EXPENDITURE ON**
**CHARITABLE ACTIVITIES**
**PAROCHIAL**
**6.1 Ministry Support**
**Group and Charity**
Clergy allowances
Travel
Supply
Other
**6.2 Pastoral and Community**
**Group and Charity**
Diocesan and other collections
Liturgical and pastoral costs
Lay personnel costs
Housekeeping and hospitality
Printing, postage, stationery
Equipment hire
Telephone
Professional fees
Other office
Piety stall
Newspapers
Miscellaneous
**6.3 Education**
**Group and Charity**
School costs
**6.4 Provision for worship**
**Group and Charity**
Repairs and maintenance
Depreciation
Heat and light
Insurance
Council tax and water rates
Grounds maintenance|**Unrestricted**
**Funds**
**£000's**
965
107
39
286
1,397
-
624
1,395
211
209
162
214
74
178
39
31
292
3,429
-
2,984
449
1,074
542
406
250
5,705|**Designated**
**Funds**
**£000's**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
786
-
-
-
-
-
-
-|**Restricted**
**Funds**
**£000's**
-
-
-
-
-
463
-
-
-
-
-
-
-
-
-
-
-
463
-
-
-
-
-
-
-
-|**2020**
**£000's**
**965**
**107**
**39**
**286**
**1,397**
**463**
**624**
**1,395**
**211**
**209**
**162**
**214**
**74**
**178**
**39**
**31**
**292**
**3,892 **
**786**
**2,984**
**449**
**1,074**
**542**
**406**
**250**
**5,705**|2019
£000's
1,078
236
78
438|
|---|---|---|---|---|---|
||||||1,830|
||||||1,066
887
1,382
285
260
192
181
27
122
101
64
515|
||||||5,082|
|||||||
||||||1,306|
||||||3,500
432
1,404
549
369
303|
||||||6,557|
**TOTAL PAROCHIAL – GROUP AND CHARITY** 10,531 786 463 **11,780** 14,775
39
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**6**
**EXPENDITURE ON**
**CHARITABLE ACTIVITIES**
_(continued)_
**CURIAL**
**6.1** **Ministry Support**
**Group and Charity**
Cathedral
Priests' Training Fund
Retirement costs
Permanent Diaconate
Sabbatical fund
Share of central support costs
Other
**6.2 Pastoral** **and Community**
**Group**
Cathedral
Cemeteries
Curia
Tribunal
Pastoral Formation
Justice and Peace
Youth
Safeguarding
National levies
Chaplaincies
Ecumenical grants
Share of central support costs
Other
Less other costs associated with
subsidiaries
**Charity**|**Unrestricted**
**Funds**
**£000's**
43
-
-
-
-
-
-
43
361
372
-
-
-
-
-
-
-
-
-
-
133
866
(134)
732|**Designated**
**Funds**
**£000's**
-
-
692
81
-
220
381
1,374
-
-
5
61
321
42
129
145
364
269
27
766
290
2,419
-
2,419|**Restricted**
**Funds**
**£000's**
-
288
-
-
-
-
-
288
39
-
-
-
-
-
-
-
-
-
-
-
85
124
(1)
123|**2020**
**£000's**
**43**
**288**
**692**
**81**
**-**
**220**
**381**
**1,705**
**400**
**372**
**5**
**61**
**321**
**42**
**129**
**145**
**364**
**269**
**27**
**766**
**508**
**3,409**
**(135)**
**3,274**|2019
£000's
39
296
797
69
16
159
263|
|---|---|---|---|---|---|
||||||1,639|
||||||396
289
13
59
385
60
143
169
353
273
29
863
641|
||||||3,673|
||||||(150)|
||||||3,523|
40
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**6**
**EXPENDITURE ON**
**CHARITABLE ACTIVITIES**
_(continued)_
**6.3 Education**
**Group**
Education Department
Share of central support costs
Less School Improvement Trust
expenditure
**Charity**
**6.4 Provision for worship**
**Group and Charity**
Cathedral
Depreciation
Share of central support costs
Other
**TOTAL CURIAL - GROUP**
**TOTAL CURIAL - CHARITY**
**TOTAL - GROUP**
**TOTAL - CHARITY**|**Unrestricted**
**Funds**
**£000's**
764
-
764
(764)
-
389
-
-
-
389|**Designated**
**Funds**
**£000's**
980
469
1,449
-
1,449
2
140
185
248
575|**Restricted**
**Funds**
**£000's**
-
-
-
-
-
-
-
-
-
-|**2020**
**£000's**
**1,744**
**469**
**2,213**
**(764)**
**1,449**
**391**
**140**
**185**
**248**
**964**|2019
£000's
1,528
490|
|---|---|---|---|---|---|
||||||2,018|
||||||(510)|
||||||1,508|
||||||500
140
179
232|
||||||1,051|
|||||||
||2,062
1,164
12,593
11,695|5,817
5,817
6,603
6,603|412
411
875
874|**8,291**
**7,392**
**20,071**
**19,172**|8,381|
||||||7,721|
||||||23,156|
||||||22,496|
41
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**7**
**SUPPORT COSTS**
**CURIAL**
**Group and Charity**
Office administration and governance
- Office of the Chief Operating Officer
- Finance Department
- Premises
- Bank charges and interest
- Audit fees
- Other curial|**Ministry**
**Support**
**£000's**
85
62
22
26
11
14|**Pastoral**
**and**
**Community**
**£000's**
297
215
76
93
38
47|**Education**
**£000's**
182
132
46
56
23
30|**Provision**
**for worship**
**£000's**
**2020**
**£000's**
72
**636**
52
**461**
18
**162**
22
**197**
9
**81**
12
**103**|2019
£000's
526
506
235
235
83
106|
|---|---|---|---|---|---|
||220|766|469|185
**1,640**|1,691|
All support costs are borne by central funds and have been apportioned to governance costs and charitable activities. The share of support costs attributable to governance reflects costs incurred in the preparation of the statutory accounts and the remaining costs have been allocated pro-rata based upon the charitable activity's share of central expenditure.
In addition, other amounts paid to the auditors in relation to the audit of subsidiary companies were £91,097 (2019: £105,071). These are included within expenditure on charitable activities.
42
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **8**
|**STAFF COSTS**
Clergy allowances
Wages and salaries
Social security costs
Pension costs
The average number of employees during the year was:
Central employees
Parish employees (excludes parish clergy)
Parish club employees (including part-time staff)|**Total**
**2020**
**£000's**
**1,073**
**8,256**
**391**
**411**
**10,131**
**2020**
**No.**
**138**
**128**
**355**
**621**|Total
2019
£000's
1,156
8,211
316
295|
|---|---|---|
|||9,978|
|||2019
No.
143
132
376
651|
The average number of employees as a full-time equivalent during the year was 371 (2019: 394).
The number of employees whose emoluments including taxable benefits in kind, but excluding pension contributions amounted to over £60,000 in the year was in bands as follows:
||**2020**|2019|
|---|---|---|
|The average number of employees during the year was:|**No.**|No.|
|£60,001 to £70,000|**2**|2|
|£70,001 to £80,000|**1**|-|
|£90,001 to £100,000|**1**|2|
|£120,001 to £130,000|**1**|-|
The charity and eligible employees (see note 21) make defined contributions to a group personal pension scheme. The number of higher paid employees in the scheme in 2020 was 5 (2019:4). The total pension contributions made by the charity in respect of higher paid employees was £23,459 (2019: £24,935).
The day-to-day administrative, legal, and financial activity of the archdiocese is directed by the Chief Operating Officer and other members of the Senior Management Team who are the key management personnel of the charity. The total employment cost of key management personnel during the year was £447,690 (2019: £327,537).
## **9 TRUSTEES**
Several of the trustees are clergy of the Liverpool Roman Catholic Archdiocesan Trust. They are housed and remunerated by the archdiocese and are reimbursed expenses for carrying out their ministry in the same way as other priests of the archdiocese.
No trustee received any remuneration or expenses in respect of their services as a trustee during the year (2019 - £450 expenses).
43
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
**NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**11 TANGIBLE FIXED ASSETS**
**11.1 Investment property at valuation – Group**
At 1 January 2020
Additions
Disposals
Transfers
Net surplus on revaluation
**At 31 December 2020**
**11.2 Investment property at valuation - Charity**
At 1 January 2020
Additions
Disposals
Transfers
Net surplus on revaluation
**At 31 December 2020**
**10** **Net gains / (losses) on**
**investments**
**Unrestricted**
**Funds**
**£000's**
**PAROCHIAL**
**Group and Charity**
Revaluation of investment
properties
2,235
Unrealised (losses) / gains on
investments
(2,119)
116
**CURIAL**
**Group**
Revaluation of investment
properties
50
Unrealised (losses) / gains on
investments
(351)
(301)
Less revaluation of investments
subsidiaries
182
**Charity**
(119)
**TOTAL - GROUP**
(185)
**TOTAL - CHARITY**
(3)|
**Designated**
**Funds**
**£000's**
-
(549)
(549)
632
(2,970)
(2,338)
-
(2,338)
(2,887)
(2,887)|
**Designated**
**Funds**
**£000's**
-
(549)
(549)
632
(2,970)
(2,338)
-
(2,338)
(2,887)
(2,887)|**Parochial**
**£000's**
13,935
1
(1,389)
238
2,235
**15,020**
**Parochial**
**£000's**
13,935
1
(1,389)
238
2,235
**15,020**
**Restricted**
**Funds**
**£000's**
-
(21)
(21)
-
(305)
(305)
-
(305)
(326)
(326)|**Parochial**
**£000's**
13,935
1
(1,389)
238
2,235
**15,020**
**Parochial**
**£000's**
13,935
1
(1,389)
238
2,235
**15,020**
**Restricted**
**Funds**
**£000's**
-
(21)
(21)
-
(305)
(305)
-
(305)
(326)
(326)|**Curial**
**£000's**
**Total**
**£000's**
14,484
28,419
3
4
-
(1,389)
(15)
223
682
2,917
**15,154**
**30,174**
**Curial**
**£000's**
**Total**
**£000's**
12,964
26,899
3
4
-
(1,389)
(15)
223
652
2,887
**13,604**
**28,624**
**2020**
**£000's**
2019
£000's
**2,235**
2,390
**(2,689)**
6,471
**(454)**
8,861
**682**
1,751
**(3,626)**
8,714
**(2,944)**
10,465
**182**
(475)
**(2,762)**
9,990
**(3,398)**
19,326
**(3,216)**
18,851|2019
£000's
2,390
6,471|
|---|---|---|---|---|---|---|
||(549)|||||8,861|
||632
(2,970)|||||1,751
8,714|
||(2,338)|||||10,465|
||-|||||(475)|
||(2,338)|||||9,990|
||||||||
||(2,887)|||||19,326|
||(2,887)|||||18,851|
||||**Parochial**
**£000's**
13,935
1
(1,389)
238
2,235
**15,020**
**Parochial**
**£000's**
13,935
1
(1,389)
238
2,235
**15,020**||**Curial**
**£000's**
14,484
3
-
(15)
682
**15,154**
**Curial**
**£000's**
12,964
3
-
(15)
652
**13,604**||
||||||||
||||||||
||||||||
Investment properties are included on a fair value basis. External revaluations are carried out by Eddisons Real Estate and Business Valuers, and Armistead Barnett, A valuation exercise is performed annually by management and property valuations are informed by internal staff including a qualified chartered surveyor. The trustees have considered the valuations above as a fair reflection of the year end fair value.
44
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**11.3 Other tangible fixed assets – Group**
**Cost**
At 1 January 2020
Additions
Transfers
Disposals
**At 31 December 2020**
**Depreciation**
At 1 January 2020
Charge for the year
Transfers
Disposals
Impairment
**At 31 December 2020**
**Net book value**
**At 31 December 2020**
At 31 December 2019|**Parochial**
**Property &**
**Equipment**
**£000's**
35,904
24
(521)
-
**35,407**
23,482
449
(283)
-
-
**23,648**
**11,759**
12,422|**Curial**
**Fixtures &**
**Equipment**
**£000's**
1,149
144
-
(23)
**1,270**
794
190
-
(12)
53
**1,025**
**245**
355|**Curial**
**Property**
**£000's**
28,259
248
15
-
**28,522**
8,933
594
-
(17)
177
**9,687**
**18,835**
19,326|**Total**
**£000's**
65,312
416
(506)
(23)|
|---|---|---|---|---|
|||||**65,199**|
|||||33,209
1,233
(283)
(29)
230|
|||||**34,360**|
|||||**30,839**|
|||||32,103|
|An impairment charge of £230k was recognised in the year within|An impairment charge of £230k was recognised in the year within|Archdiocesan Parish Centres|Archdiocesan Parish Centres|Management|
|---|---|---|---|---|
|Company Limited in relation to assets at parish centres that closed in 2020 and will not reopen.
|||||
|
**11.4 Other tangible fixed assets - Charity**|**Parochial**|**Curial**|**Curial**|**Total**|
||**Property &**|**Fixtures &**|**Property**||
||**Equipment**|**Equipment**|||
||**£000's**|**£000's**|**£000's**|**£000's**|
|**Cost**|||||
|At 1 January 2020|35,904|242|6,490|42,636|
|Additions|24|22|184|230|
|Transfers|(521)|-|15|(506)|
|Disposals|-|(3)|-|(3)|
|**At 31 December 2020**|**35,407**|**261**|**6,689**|**42,357**|
|**Depreciation**|||||
|At 1 January 2020|23,482|161|2,060|25,703|
|Charge for the year|449|41|303|793|
|Transfers|(283)|-|(195)|(478)|
|Disposals|-|(3)|-|(3)|
|**At 31 December 2020**|**23,648**|**199**|**2,168**|**26,015**|
|**Net book value**
**At 31 December 2020**|**11,759**|**62**|**4,521**|**16,342**|
|At 31 December 2019|12,422|81|4,430|16,933|
All tangible fixed assets were used for charitable purposes.
45
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **12 INVESTMENTS**
|**12.1** **Listed investments - Group**
At 1 January 2020
Transfers
Disposals
Net loss on revaluation
**At 31 December 2020**|**Unrestricted**
**£000's**
51,547
531
(115)
(2,470)
**49,493**|**Designated**
**£000's**
73,509
(546)
(180)
(3,528)
**69,255**|**Restricted**
**£000's**
6,753
15
(17)
(326)
**6,425**|**Total**
**£000's**
131,809
-
(312)
(6,324)|
|---|---|---|---|---|
|||||**125,173**|
There are no individual investments which comprise greater than 5% of the value of the portfolio.
All the quoted fixed asset investments are listed on a recognised Stock Exchange. Listed investments are included in the balance sheet at bid price.
The main archdiocesan investment portfolio is split into two funds managed by BlackRock Investment Management (UK) Limited and Rathbone Investment Management Limited respectively.
The investment funds are comprised of:
|UK Equities
Non-UK Equities
UK government securities and other fixed interest stocks
UK Property Unit Trusts
Cash instruments|**2020**
**£000's**
**51,652**
**39,388**
**15,965**
**11,193**
**6,975**|
|---|---|
||**125,173**|
|**12.2 Listed investments - Charity**
At 1 January 2020
Transfers
Disposals
Net loss on revaluation
**At 31 December 2020**|**Unrestricted**
**£000's**
47,288
454
(116)
(2,258)
**45,368**|**Designated**
**£000's**
73,509
(546)
(180)
(3,528)
**69,255**|**Restricted**
**£000's**
6,753
15
(17)
(326)
**6,425**|**Total**
**£000's**
127,550
(77)
(313)
(6,112)|
|---|---|---|---|---|
|||||**121,048**|
There are no individual investments which comprise greater than 5% of the value of the portfolio.
46
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **12 INVESTMENTS** _(continued)_
## **12.3 Investments in related companies**
At 1 January 2020 and 31 December 2020
**Total £000's 22,558**
Investments in related companies comprise the cost of shareholdings in the subsidiary companies listed in note 22.
|**13**
**DEBTORS**
**Group**
**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income
**TOTAL**
**Charity**
Trade debtors
Other debtors
Prepayments and accrued income
**TOTAL**
**14**
**CREDITORS**
**Amounts falling due within one year**
**Group**
School funding in advance
Trade creditors
Other creditors
Accruals and deferred income
Other taxation and social security
**TOTAL**
**Charity**
School funding in advance
Trade creditors
Other creditors
Accruals and deferred income
Other taxation and social security
**TOTAL**|**Parochial**
**£000's**
54
2,314
1,712
4,080
54
2,314
1,712
4,080
**Parochial**
**£000's**
19,701
-
-
506
-
20,207
19,701
-
506
-
20,207|**Curial**
**£000's**
392
492
1,148
2,032
283
142
910
1,335
**Curial**
**£000's**
-
996
897
2,469
352
4,714
-
220
160
1,433
-
1,813|**Total**
**2020**
**£000's**
**446**
**2,806**
**2,860**
**6,112**
**337**
**2,456**
**2,622**
**5,415**
**Total**
**2020**
**£000's**
**19,701**
**996**
**897**
**2,975**
**352**
**24,921**
**19,701**
**220**
**160**
**1,939**
**-**
**22,020**||Total
2019
£000's
567
2,467
3,226|
|---|---|---|---|---|---|
||||||6,260|
||||||375
2,151
2,931|
||||||5,457|
||||||Total
2019
£000's
8,186
796
877
2,160
212|
||||||12,231|
||||||8,186
30
163
677
89|
||||||9,145|
47
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **15 DEFERRED TAXATION**
|The deferred tax balance is made up as follows:
Accelerated capital allowances
**Group**
Balance as at 1 January 2020
Charged to Statement of Financial Activities
Balance as at 31 December 2020
**Charity**
Balance as at 1 January 2020
Charged to Statement of Financial Activities
Balance as at 31 December 2020|**Parochial**
**£000's**
-
-
-
**Parochial**
**£000's**
-
-
-|**2020**
**£000's**
**37**
**Curial**
**£000's**
37
-
37
**Curial**
**£000's**
-
-
-|**Total**
**£000's**
37
-|
|---|---|---|---|
||||37|
||||**Total**
**£000's**
-
-|
||||-|
||||2019
£000's
37|
The deferred tax charge arose within Metropolitan Cathedral Services Limited.
48
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **16 RESTRICTED FUNDS**
Unexpended balances from collections, donations, legacies, and grants restricted by donors to specific purposes.
|**Analysis of Restricted Funds**
**2020**
**Parochial - Group and Charity**
Foundation Mass capital
Other charitable collections
**Curial - Charity**
Priests' Training Fund
Metropolitan Cathedral Roof
Appeal Fund
Metropolitan Cathedral
Metropolitan Cathedral steps
project
Metropolitan Cathedral crypt
project
Liverpool Archdiocesan
Missionary Project
St Joseph's College
Provision for priests in
retirement
Lenten alms
Other funds
English Sports Council capital
grants
Apostleship of the Sea
**Curial - Group**|**Opening**
**Balance**
**£000's**
468
1,423|**Net**
**Incoming**
**Resources**
**£000's**
5
135|**Investment**
**Gains**
**/(Losses)**
**£000's**
(21)
-
(21)
(156)
-
(20)
-
-
(61)
(29)
-
-
(39)
(305)
-
-
(305)|**Transfers**
**£000's**
-
(130)
(130)
4
-
4
-
-
-
-
5
6
-
19
(56)
-
(37)|**Closing**
**Balance**
**£000's**
452
1,428|
|---|---|---|---|---|---|
||1,891|140|||1,880|
||3,104
3,096
966
2,890
1,791
1,111
809
-
37
893|(16)
-
(5)
-
-
(31)
11
-
(19)
8|||2,936
3,096
945
2,890
1,791
1,019
791
5
24
862|
||14,697|(52)|||14,359|
||111
223|-
(1)|||55
222|
||15,031|(53)|||14,636|
49
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**16 RESTRICTED FUNDS**_(continued)_
**Analysis of Restricted Funds**
**2019**
**Parochial - Group and Charity**
Foundation Mass capital
Other charitable collections
**Curial - Charity**
Priests' Training Fund
Metropolitan Cathedral Roof
Appeal Fund
Metropolitan Cathedral
Metropolitan Cathedral steps
project
Metropolitan Cathedral crypt
project
Liverpool Archdiocesan
Missionary Project
St Joseph's College
Lenten alms
Other funds
English Sports Council capital
grants
Apostleship of the Sea
**Curial - Group**|**Opening**
**Balance**
**£000's**
414
2,235|**Net**
**Incoming**
**Resources**
**£000's**
3
240|**Investment**
**Gains**
**£000's**
51
-
51
381
-
48
-
-
143
68
-
86
726
-
-
726|**Transfers**
**£000's**
-
(1,052)
(1,052)
47
-
(65)
-
-
1
-
17
-
-
(56)
-
(56)|**Closing**
**Balance**
**£000's**
468
1,423|
|---|---|---|---|---|---|
||2,649|243|||1,891|
||2,874
3,096
906
2,890
1,791
1,100
729
41
801|(198)
-
77
-
-
(133)
12
(21)
6|||3,104
3,096
966
2,890
1,791
1,111
809
37
893|
||14,228|(257)|||14,697|
||167
228|-
(5)|||111
223|
||14,623|(262)|||15,031|
## **PURPOSE OF FUNDS**
Foundation Mass capital
- For Masses celebrated on the anniversary of the deceased.
Priests' Training Fund
- Education of students to the priesthood and continuing foundation.
Metropolitan Cathedral Roof Appeal Fund
- English Heritage grants received and expended on substantial repair work to the cathedral roof.
Metropolitan Cathedral
- Golden Book Foundation Mass funds and other donations made for specific cathedral projects.
Metropolitan Cathedral steps project
- European objective 1 and regional development grants expended on the construction of the ceremonial steps.
Metropolitan Cathedral crypt project
- European objective 1 and regional development grants expended on the crypt redevelopment project.
Liverpool Archdiocesan Missionary Project
- To meet the costs of archdiocesan priests in their ministry in Latin America and other associated expenditure.
50
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **16 RESTRICTED FUNDS** _(continued)_
## **PURPOSE OF FUNDS** _(continued)_
St Joseph's College
- Funds associated with priest training.
Provision for priests in retirement
- To meet the costs associated with retired clergy
Lenten alms
- To be expended on projects at the discretion of the archbishop.
English Sports Council capital grants
- English Sports Council grants received and expended on the construction of Cardinal Heenan sports centre.
Apostleship of the Sea
- For the spiritual and temporal welfare of seafarers.
## **17 DESIGNATED FUNDS**
Funds set aside by the trustees for the following purposes:
|**Analysis of Designated Funds**
**2020**
**Parochial - Group and Charity**
School Projects Fund
Other funds
**Curial - Group and Charity**
Central funds
George Andrew Retirement
Fund
2021 Fund
Metropolitan Cathedral Roof
Appeal Fund
Metropolitan Cathedral
Liverpool inner-city
parish reorganisation
Sabbatical Fund
Listed Building Fund
Other designated funds
Less Other designated funds
**Curial - Charity**|**Opening**
**Balance**
**£000's**
1,472
648|**Net**
**Incoming /**
**(Outgoing)**
**Resources**
**£000's**
(24)
2|**Property &**
**Investment**
**Gains**
**/(Losses)**
**£000's**
(549)
-
(549)
(1,276)
(267)
(353)
-
(223)
-
(83)
(84)
(52)
(2,338)
-
(2,338)|**Transfers**
**£000's**
-
(312)
(312)
(30)
-
-
200
-
-
-
-
-
170
-
170|**Closing**
**Balance**
**£000's**
899
338|
|---|---|---|---|---|---|
||2,120|(22)|||1,237|
||51,402
7,814
8,352
7,656
5,897
1,293
2,224
2,127
743|(2,377)
(365)
146
-
225
(4)
33
(66)
(23)|||47,719
7,182
8,145
7,856
5,899
1,289
2,174
1,977
668
82,909
(334)
82,575|
||87,508|(2,431)||||
||(334)|-||||
||87,174|(2,431)||||
51
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **17 DESIGNATED FUNDS** _(continued)_
|**Analysis of Designated Funds**
**2019**
**Parochial - Group and Charity**
School Projects Fund
Other funds
**Curial - Group and Charity**
Central funds
George Andrew Retirement
Fund
2021 Fund
Metropolitan Cathedral Roof
Appeal Fund
Metropolitan Cathedral
Liverpool inner-city
parish reorganisation
Sabbatical Fund
Listed Building Fund
Other designated funds
Less Other designated funds
**Curial - Charity**|**Opening**
**Balance**
**£000's**
443
719|**Net**
**Outgoing**
**Resources**
**£000's**
**£000's**
(518)
15|**Property/**
**Investment**
**Gains**
**£000's**
1,313
-
1,313
6,144
742
857
-
532
-
199
200
125
8,799
(335)
8,464|**Transfers**
**£000's**
234
(86)
148
(90)
391
(21)
200
16
(6)
18
(30)
205
683
1
684|**Closing**
**Balance**
**£000's**
1,472
648|
|---|---|---|---|---|---|
||1,162|(503)|||2,120|
||46,900
6,962
7,362
7,456
5,254
1,300
1,988
1,999
433|(1,552)
(281)
154
-
95
(1)
19
(42)
(20)|||51,402
7,814
8,352
7,656
5,897
1,293
2,224
2,127
743
87,508
(334)
87,174|
||79,654|(1,628)||||
||-|-||||
||79,654|(1,628)||||
## **PURPOSE OF FUNDS**
School Projects Fund
- Funds raised by contributions from parishes and schools to support school building and refurbishment projects.
Central funds
- Fund for the archdiocesan central pastoral and administration functions.
- George Andrew Retirement Fund - Fund to support priests in retirement.
- 2021 Fund
- Funds to support priests in retirement.
Metropolitan Cathedral Roof Appeal Fund
- Investment income expended on the substantial repair work to the Cathedral roof.
Metropolitan Cathedral
- Funding running costs of the Cathedral.
- Liverpool inner-city
- Funds to provide for the reorganisation of the inner-city
Sabbatical Fund
- To provide for the costs of priests in sabbatical years.
Listed Building Fund
- For the preservation of listed buildings.
52
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **18 ARCHDIOCESAN BANKING ARRANGEMENTS**
An offset banking arrangement exists where the total of all individual bank account balances is invested in several deposits over a variety of timescales.
## **19 GRANTS PAYABLE IN FURTHERANCE OF THE CHARITY'S OBJECTIVES**
The archdiocese provides full financial support for the furtherance of its activities and objectives but is not considered a grant-making organisation.
Several ecumenical grants are made annually to organisations with similar objectives to those of the archdiocese. Grants were made to three such organisations totalling £27,099 (2019 - three organisations £27,527). Other small grants are made at the discretion of the archbishop and these totalled £48,623 in 2020 (2019 - £21,114).
The archdiocese covered the tuition and living costs of several individuals studying for the priesthood in the year.
## **20 COMMITMENTS**
|**COMMITMENTS**|||
|---|---|---|
|At 31 December 2020 commitments
to future expenditure were as follows:
School property
Parochial and other property|**Gross**
**£000's**
6,474
1,210
7,684|**Net of**
**grant**
**£000's**
691
1,210|
|||1,901|
The above commitments represent committed property expenditure that has been approved by the trustees on building projects at the year end.
53
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **21 PENSION ARRANGEMENTS**
## **21.1 Personal Pension Schemes**
The archdiocese contributes, for eligible staff, to one of two qualifying pension schemes which are fully compliant with the requirements of auto-enrolment. The schemes are managed by an independent firm of pension administrators. The archdiocese has a policy of matching employee contributions up to 6% of pensionable salary and each member has their own individual pension account within the scheme. The archdiocese is neither liable to finance any funding shortfall nor entitled to benefit from any overfunding.
## **21.2 The Teachers' Pension Scheme**
The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers can opt out of the TPS.
## **The Teachers’ Pension budgeting and valuation account**
Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.
The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.
## **Valuation of the Teachers’ Pension Scheme**
The latest valuation of the Teachers’ Pension Scheme has now taken place, in line with directions issued by HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers started to pay an increased contribution rate of 23.68% from September 2019 (this includes the administration levy of 0.8%). The timing of the implementation was to align its introduction with employers’ budget planning cycles.
The employer's pension costs paid to TPS in the period amounted to £50,871 (2019 - £43,518).
A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.
Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has set out above the information available on the scheme.
## **Scheme Changes**
The arrangements for a reformed Teachers’ Pension Scheme, in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 April 2015.
54
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **The Teachers’ Pension Scheme** _(continued)_
In December 2018, the 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 unlawful. The Supreme Court, in a decision made in June 2019, have rejected the government’s application for permission to appeal the Court of Appeal’s ruling. The case will now be referred to 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 schemes including the TPS. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide evidence to support 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 established.
In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors in same-sex marriages and civil partnerships. The Secretary of State for Education agreed not to defend the case. In June 2020, the Employment Tribunal recorded its findings in respect of the claimant. DfE is currently working to establish what changes are necessary to address this discrimination.
Any impact of these events will be considered when the next scheme valuation is implemented. This is scheduled to be implemented in April 2023, based on April 2020 data.
55
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **22 GROUP BODIES AND RELATED PARTY TRANSACTIONS**
The charity has interests in subsidiary and associated undertakings, which are consolidated in the financial statements. A summary of their trading results (including intercompany trading) is as follows:
|**Subsidiary Companies at**
**31 December 2020**
**% holding in ordinary**
**shares**
**Income from**
Fundraising
Investment Income
**Total Income**
**Expenditure on**
Raising Funds
**Total Expenditure**
**Net losses on**
**investments**
**Net income /**
**(expenditure)**
**Total assets**
**Total liabilities**
**Total capital and reserves**|**Associated**
**Church**
**Clubs**
**Limited**
100
**£000's**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**165**
**-**
**165**|**Metropolitan**
**Cathedral**
**Services**
**Limited**
100
**£000's**
**206**
**-**
**206**
**579**
**579**
**-**
**(373)**
**13,123**
**(677)**
**12,446**|**Tuneside**
**Limited**
100
**£000's**
**13,183**
**-**
**13,183**
**13,661 **
**13,661 **
**-**
**(478)**
**6,668**
**(1,581)**
**5,087 **|**Cardinal**
**Heenan**
**Sports**
**Centre**
**Limited**
100
**£000's**
**102**
**-**
**102 **
**84 **
**84 **
**-**
**18**
**85**
**(63)**
**22**|**Archdiocesan**
**Parish**
**Centres**
**Management**
**Company**
**Limited**
Guarantee
Company
**£000's**
**4,131**
**-**
**4,131 **
**6,017**
**6,017**
**-**
**(1,886)**
**1,128**
**(2,492)**
**(1,364)**|**Archdiocesan**
**Property**
**Services**
**Limited**
Charity
Guarantee
Company
**£000's**
**870**
**19**
**889**
**977**
**977**
**(46)**
**(134)**
**914**
**(892)**
**22**|**Archdiocese**
**of Liverpool**
**Primary**
**School**
**Improvement**
**Trust**
Guarantee
Company
**£000's**
**383**
**-**
**383**
**391 **
**391 **
**-**
**(8)**
**269**
**(296)**
**(27)**|**Archdiocese**
**of Liverpool**
**Secondary**
**School**
**Improvement**
**Trust**
Guarantee
Company
**£000's**
**273**
**-**|
|---|---|---|---|---|---|---|---|---|
|||||||||**273**|
|||||||||**373**|
|||||||||**373**|
|||||||||**-**|
|||||||||**(100)**|
|||||||||**140**
**(300)**|
|||||||||**(160)**|
56
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **22 GROUP BODIES AND RELATED PARTY TRANSACTIONS** _(continued)_
|**Subsidiary Companies at**
**31 December 2019**
**% holding in ordinary**
**shares**
**Income from**
Fundraising
Investment Income
**Total Income**
**Expenditure on**
Raising Funds
**Total Expenditure**
**Net gains on investments**
**Net income**
**Total assets**
**Total liabilities**
**Total capital and reserves**|**Associated**
**Church**
**Clubs**
**Limited**
100
**£000's**
63
-
63
136
136
-
(73)
175
(10)
165|**Metropolitan**
**Cathedral**
**Services**
**Limited**
100
**£000's**
450
-
450
505
505
-
(55)
13,284
(465)
12,819|**Tuneside**
**Limited**
100
**£000's**
18,147
-
18,147
18,441
18,441
-
(294)
6,831
(1,266)
5,565|**Cardinal**
**Heenan**
**Sports**
**Centre**
**Limited**
100
**£000's**
188
-
188
172
172
-
16
149
(145)
4|**Archdiocesan**
**Parish**
**Centres**
**Management**
**Company**
**Limited**
Guarantee
Company
**£000's**
10,429
-
10,429
10,771
10,771
-
(342)
1,887
(1,372)
515|**Archdiocesan**
**Property**
**Services**
**Limited**
Charity
Guarantee
Company
**£000's**
1,140
21
1,161
1,122
1,122
103
142
999
(844)
155|**Archdiocese**
**of Liverpool**
**Primary**
**School**
**Improvement**
**Trust**
Guarantee
Company
**£000's**
231
-
231
278
278
-
(47)
215
(196)
19|**Archdiocese**
**of Liverpool**
**Secondary**
**School**
**Improvement**
**Trust**
Guarantee
Company
**£000's**
211
-|
|---|---|---|---|---|---|---|---|---|
|||||||||211|
|||||||||231|
|||||||||231|
|||||||||-|
|||||||||(20)|
|||||||||165
(226)|
|||||||||(61)|
57
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **22 GROUP BODIES AND RELATED PARTY TRANSACTIONS** _(continued)_
Associated Church Clubs Limited (company number 02724031) coordinates the bulk purchase of stock for supply to archdiocesan parish centres and other members of the scheme operated by the company.
Metropolitan Cathedral Services Limited (company number 03115000) manages the commercial aspects of the Metropolitan Cathedral including income generation from its activities, building services and maintenance.
Tuneside Limited (company number 02316276) coordinates the building services scheme for archdiocesan buildings obligations under the Construction Industry Scheme and commercial activities of the Conference Centre.
Cardinal Heenan Sports Centre Limited's (company number 03822516) principal activity is the operation of a sports centre within the grounds of Cardinal Heenan Roman Catholic High School, Liverpool.
Archdiocesan Parish Centres Management Company Limited (company number 03422332) manages the parish centres within the archdiocese.
Archdiocesan Property Services Limited (company number 03142451 charity number 1055049) manages professional services in respect of maintenance, repair and refurbishment of archdiocesan properties.
Archdiocese of Liverpool Primary School Improvement Trust (company number 10912407) promote education standards in primary education.
Archdiocese of Liverpool Secondary School Improvement Trust (company number 10912398) promote education standards in secondary education.
The companies limited by guarantee are wholly controlled by the charity. All the companies are incorporated in the United Kingdom.
The operations of several other registered charities which have common trustees are under the control of the charity and therefore their incoming resources and resources expended, and net assets have been consolidated with those of the charity on these accounts.
58
**LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **22 GROUP BODIES AND RELATED PARTY TRANSACTIONS** _(continued)_
The charities concerned are as follows:
|**Controlled charities at**
**31 December 2020**
**Income from**
Collections and donations
Investment income
**Total Income**
**Expenditure on**
Charitable activities
**Total expenditure**
**Net Losses on investments**
**Net (loss) / income**
**Total assets**
**Total liabilities**
**Total reserves**
**Controlled charities at**
**31 December 2019**
**Income from**
Collections and donations
Investment income
**Total Income**
**Expenditure on**
Charitable activities
**Total expenditure**
**Net gains on investments**
**Net income**
**Total assets**
**Total liabilities**
**Total reserves**|Apostleship of
the Sea
(Liverpool
Archdiocesan
Council)
**£000's**
**-**
**90**
**90**
**136**
**136**
**(165)**
**(211)**
**4,140**
**(9)**
**4,131 **
Apostleship of
the Sea
(Liverpool
Archdiocesan
Council)
**£000's**
1
96
97
148
148
372
321
4,322
(10)
4,312|Liverpool
Archdiocesan
Education Trust
**£000's**
**-**
**10**|
|---|---|---|
|||**10**|
|||**1**|
|||**1**|
|||**-**|
|||**9**|
|||**2,113**
**(1)**|
|||**2,112**|
|||Liverpool
Archdiocesan
Education Trust
**£000's**
-
63|
|||63|
|||1|
|||1|
|||-|
|||62|
|||2,105
(1)|
|||2,104|
59
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **22 GROUP BODIES AND RELATED PARTY TRANSACTIONS** _(continued)_
The charitable purpose of the Apostleship of the Sea (Liverpool Archdiocesan Council) (charity number 224664) is the spiritual and temporal welfare of seafarers.
Liverpool Archdiocesan Education Trust (charity number 505264) acquires and holds property for education purposes.
In accordance with FRS 102, the related party transactions entered into by the charity are detailed below. All transactions that arose were in the normal course of activity.
The charity recharged salary costs of £nil (2019: £6,729) to Associated Church Clubs Limited, a subsidiary of the charity. A balance of £164,176 (2019: £174,253) was owed to the company at the year end.
The charity recharged salary costs of £175,242 (2019: £192,928) to Archdiocesan Parish Centres Management Company Limited, a subsidiary of the charity. A balance of £1,761,349 was owed from the company at the year end. (2019: £170,524 owed to the company)
The charity recharged salary costs of £304,330 (2019: £286,600) to Archdiocesan Property Services Limited, a subsidiary of the charity. A balance of £791,607 (2019: £750,755) was owed from the company at the year end.
The charity recharged salary costs of £66,220 (2019: £46,031) to Metropolitan Cathedral Services Limited, a subsidiary of the charity. A balance of £451,243 (2019: £255,037) was owed from the company at the year end.
The charity recharged salary costs of £282,943 (2019: £236,995) to Tuneside Limited, a subsidiary of the charity. A balance of £5,591,227 (2019: £5,571,058) was owed to the company at the year end.
A balance of £436,338 (2019: £549,291) was owed to Apostleship of the Sea (Liverpool Archdiocesan Council) at the year end.
A balance of £1,013,493 (2019: £1,004,557) was owed to Liverpool Archdiocesan Education Trust at the year end.
A balance of £58,406 (2019: £8,504) was owed from Archdiocese of Liverpool Primary School Improvement Trust at the year end.
A balance of £21,538 (2019: £29,980) was owed from Archdiocese of Liverpool Secondary School Improvement Trust at the year end.
|**Associated companies**|**%**|**Activity**|
|---|---|---|
||**holding**||
||**in**||
||**ordinary**||
||**shares**||
|Inter-Diocesan Fuel|11|Fuel and power distribution|
|Management Limited|||
|Catholic National Mutual Limited|6|Insurance|
In the year £1,750,898 (2019 - £2,683,694) of fuel was purchased from Inter-Diocesan Fuel Management Limited by the group.
60
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **23 CONNECTED CHARITIES**
Charities with common trustees with the archdiocese and associated subsidiary undertakings are as follows:
|follows:||
|---|---|
||**Charity Number**|
|Nugent Care 2019|1187072|
|Christ's and Notre Dame College, Liverpool|526463|
|Stonyhurst|1127929|
|The Christian Heritage Centre at Stonyhurst|1149129|
|The Friends of Liverpool Metropolitan Cathedral|513469|
|Caritas Social Action|1101431|
|St Mary's College Crosby Trust Limited|1110311|
|Catholic Trust for England and Wales|1097482|
|St Cuthbert's College Ushaw|527408|
|The Catholic Children's Society (Shrewsbury Diocese) Inc|509793|
|Caritas Diocese of Shrewsbury|1169317|
|Leprosy Mission Isle of Man|IOM 1251|
The following transactions 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 the charity. No payments for other services were made in 2020 (2019: £75,379).
The archdiocese made payments totalling £389,713 (2019 - £423,726) to the Catholic Trust for England and Wales in respect of activities undertaken at a national levy in common with other dioceses.
No other transactions occurred with connected charities.
## **24 SCHOOL BUILDING PROJECTS**
The charity assists archdiocesan voluntary aided schools with the administration of funding for school building projects. The archdiocese acts as the agent of school governing bodies in receiving funding from the Department for Education (DfE), local authorities and other funding sources and settling and matching it with the contractors' costs and professional fees. This activity of the archdiocese is not reflected in the Statement of Financial Activities as the transactions are those of the school governing bodies rather than the archdiocese.
Total receipts from the DfE amounted to £15.3M (2019 - £12.7M). Total expenditure on school building projects during the year was £12.54M (2019 - £17.83M). The balance due at the year-end which included deferred and accrued income on individual projects amounted to £1.65M (2019 - £0.68M owed). Individual school balances generated from devolved capital contributions from the DfE and held on behalf of archdiocesan schools amounted to £7.53M (2019 - £8.10M).
61
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**25**
**TRANSFERS**
For the year ended 31 December 2020
**INTRA-DIOCESAN TRANSFERS**
Assessment Fund grants
Parish contributions to restricted
collections
Other
**INTRA-GROUP TRANSFER**
Other
**TOTAL**|
**Unrestricted**
**£000's**
62
104
-
166
-|**PAROCHIAL**
**Designated**
**£000's**
**Restricted**
**£000's**
(312)
-
(130)
-
-
(312)
(130)
-
-
**(312)**
**(130)**|**Total**
**£000's**
**(250)**
**(26)**
**-**
**(276)**
**-**
**(276)**|**Unrestricted**
**£000's**
50
-
33
83
60
**143**|**CURIAL**
**Designated**
**£000's**
200
11
(41)
170
-
**170**|
**Restricted**
**£000's**
-
15
4
19
(56)
**(37)**|**Total**
**£000's**
**250**
**26**
**(4) **
**272**
**4**
**276**|**Total**
**2020**
**£000's**
**-**
**-**
**(4) **
**(4) **
**4**
**-**|
|---|---|---|---|---|---|---|---|---|
||**166**||||||||
62
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**25**
**TRANSFERS**_(continued)_
For the year ended 31 December 2019
**INTRA-DIOCESAN TRANSFERS**
Assessment Fund grants
Assessment Fund levies
Contributions to George Andrew Fund
School levy contributions
Parish contributions to restricted
collections
Interest transferred to/from central
funds
Other
**INTRA-GROUP TRANSFER**
Other
**TOTAL**|
**Unrestricted**
**£000's**
615
(780)
(385)
(238)
913
-
-
125
-|**PAROCHIAL**
**Designated**
**£000's**
**Restricted**
**£000's**
(865)
-
780
-
-
-
243
-
(1,052)
(10)
-
-
-
148
(1,052)
-
-
148
(1,052)|**Total**
**£000's**
(250)
-
(385)
5
(139)
(10)
-
(779)
-
(779)|**Unrestricted**
**£000's**
50
-
(5)
(5)
-
-
118
158
(6)
152|**CURIAL**
**Designated**
**£000's**
200
-
390
-
74
10
10
684
(1)
683|
**Restricted**
**£000's**
-
-
-
-
65
-
(65)
-
(56)
(56)|**Total**
**£000's**
250
-
385
(5)
139
10
63
842
(63)
779|**Total**
**2019**
**£000's**
-
-
-
-
-
-
63
63
(63)
-|
|---|---|---|---|---|---|---|---|---|
||125||||||||
63
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
**26 ANALYSIS OF NET ASSETS**
|**Group**
**Restricted Funds**
-
Parochial
-
Curial
**Designated Funds**
-
Parochial
-
Curial
**Unrestricted General**
**Funds**
-
Parochial
-
Curial
**Total**|**Tangible**
**Fixed**
**Assets**
**£000's**
-
-
-
-
13,261
13,261
26,779
20,973
47,752
**61,013**|**Investments**
**£000's**
434
5,991
6,425
10,775
58,480
69,255
42,634
6,859
49,493
**125,173**|**Current**
**Assets**
**less**
**Creditors**
**£000's**
1,446
8,645
10,091
(9,538)
11,168
1,630
12,439
(18,067)
(5,628)
**6,093**|**Total**
**2020**
**£000's**
**1,880**
**14,636**|
|---|---|---|---|---|
|||||**16,516**|
|||||**1,237**
**82,909**|
|||||**84,146**|
|||||**81,852**
**9,765**|
|||||**91,617**|
|||||**192,279**|
64
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
**26 ANALYSIS OF NET ASSETS** _(continued)_
|**Group 2019**
**Restricted Funds**
-
Parochial
-
Curial
**Designated Funds**
-
Parochial
-
Curial
**Unrestricted General**
**Funds**
-
Parochial
-
Curial
**Total**|**Tangible**
**Fixed**
**Assets**
**£000's**
-
-
-
-
12,559
12,559
26,357
21,606
47,963
**60,522**|**Investments**
**£000's**
449
6,304
6,753
11,352
62,157
73,509
44,417
7,130
51,547
**131,809**|**Current**
**Assets**
**less**
**Creditors**
**£000's**
1,442
8,727
10,169
(9,232)
12,792
3,560
12,791
(15,559)
(2,768)
**10,961**|**Total**
**2019**
**£000's**
**1,891**
**15,031**|
|---|---|---|---|---|
|||||**16,922**|
|||||**2,120**
**87,508**|
|||||**89,628**|
|||||**83,565**
**13,177**|
|||||**96,742**|
|||||**203,292**|
65
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **26 ANALYSIS OF NET ASSETS** _(continued)_
|**Charity**
**Restricted Funds**
-
Parochial
-
Curial
**Designated Funds**
-
Parochial
-
Curial
**Unrestricted General**
**Funds**
-
Parochial
-
Curial
**Total**|**Tangible**
**Fixed**
**Assets**
**£000's**
-
-
-
-
13,260
13,260
26,779
4,927
31,706
**44,966**|**Investments**
**£000's**
434
5,991
6,425
10,775
81,038
91,813
42,634
2,734
45,368
**143,606**|**Current**
**Assets**
**less**
**Creditors**
**£000's**
1,446
8,368
9,814
(9,538)
(11,723)
(21,261)
12,439
2,806
15,245
**3,798**|**Total**
**2020**
**£000's**
**1,880**
**14,359**|
|---|---|---|---|---|
|||||**16,239**|
|||||**1,237**
**82,575**|
|||||**83,812**|
|||||**81,852**
**10,467**|
|||||**92,319**|
|||||**192,370**|
66
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **26 ANALYSIS OF NET ASSETS** _(continued)_
|**Charity 2019**
**Restricted Funds**
-
Parochial
-
Curial
**Designated Funds**
-
Parochial
-
Curial
**Unrestricted General**
**Funds**
-
Parochial
-
Curial
**Total**|**Tangible**
**Fixed**
**Assets**
**£000's**
-
-
-
-
12,559
12,559
26,357
4,916
31,273
**43,832**|**Investments**
**£000's**
449
6,304
6,753
11,352
84,715
96,067
44,417
2,871
47,288
**150,108**|**Current**
**Assets**
**less**
**Creditors**
**£000's**
1,442
8,393
9,835
(9,232)
(10,100)
(19,332)
12,791
2,950
15,741
**6,244**|**Total**
**2019**
**£000's**
**1,891**
**14,697**|
|---|---|---|---|---|
|||||**16,588**|
|||||**2,120**
**87,174**|
|||||**89,294**|
|||||**83,565**
**10,737**|
|||||**94,302**|
|||||**200,184**|
67
## **LIVERPOOL ROMAN CATHOLIC ARCHDIOCESAN TRUST**
## **NOTES AND ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2020**
## **27 OPERATING LEASES**
Throughout the archdiocese there are numerous low value operating leases primarily in relation to equipment. The annual payments in relation to these have not been quantified but they are not deemed to be material to the financial statements.
## **28 CONTINGENT LIABILITIES**
The trustees are reviewing the structure of the organisation from a VAT perspective with initial findings indicating that registration for VAT is probable. There remains potential that a future registration may be applied retrospectively but as this likelihood and size of potential liability cannot be fully assessed at this point, no provision has been made within the financial statements.
## **29 GUARANTEE**
An index-linked product amounting to £1.93M (2019: £1.93M) is used as security against any potential liability in connection with a landfill site. The likelihood of this liability falling due on the charity is considered remote.
## **30 POST BALANCE SHEET EVENT**
In April 2021, Archdiocesan Parish Centres Management Company Limited obtained a £1.7M loan under the government backed Coronavirus Business Loan Interruption Scheme. This event in nonadjusting and has not impacted the figures included in the 2020 financial statements.
68