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2023-12-31-accounts

Charity number: 233748

DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

DIOCESE OF MIDDLESBROUGH

CONTENTS

Page
Reference and administrative details of the Diocese, its Trustee and advisers 1
Trustees' report 2 - 11
Independent auditors' report on the financial statements 12 - 15
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 - 46

DIOCESE OF MIDDLESBROUGH

REFERENCE AND ADMINISTRATIVE DETAILS OF THE DIOCESE, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023

Trustee Diocese of Middlesbrough Trustee

Directors And Officers of The Diocese Of Middlesbrough Trustee:

The directors shown below have held office for the whole of the period from 1 January 2023 to the date of this report.

Changes in directors holding office are as follows:

Charity registered

Charity registered
number 233748
Principal office Curial Offices
50a The Avenue
Middlesbrough
TS5 6QT
Financial Secretary Mr J Walton
Independent auditors Waltons Business Advisers Limited
Harbour Walk
The Marina
Hartlepool
TS24 0UX
Bankers Barclays Bank PLC
5 St Ann's Street
Quayside
Newcastle upon Tyne
NE1 3DX
Solicitors Grays Solicitors
Duncombe Place
York
YO1 2DX
Key Management Personnel:
Chief Operating Officer: Rev P Warren
Financial Secretary: Mr J Walton
Director of Schools: Mrs K Bailey

Page 1

DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustee presents its report and accounts for the year ended 31 December 2023

CONSTITUTION AND AIMS

The Roman Catholic Diocese of Middlesbrough is governed by a Trust Deed dated 2 January 1928, and is registered under the Charities Act 1960 – No 233748. The sole Trustee of the Charity is a Trust Corporation, Diocese of Middlesbrough Trustee, company registration number 03482285, which was incorporated on 17 December 1997. The Charity is controlled by the Bishop who is assisted by up to ten directors of the Trust. The Bishop is empowered to appoint and dismiss all directors. Details of the Directors, acting as Trustees of the Charity, who served during the year, are given on page one.

The aims and objectives of the Trust are the “advancement or maintenance of the Roman Catholic Religion in the Roman Catholic Diocese of Middlesbrough”.

The Trustee Board confirm that they have complied with the duty in the Charities Act 2011 Section 17 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.

OBJECTIVES AND ACTIVITIES

The aim of the Diocese is, in accordance with the objectives of the charity, the advancement of the Roman Catholic religion and education.

This advancement of the Roman Catholic religion is achieved, most effectively, when Catholics, inspired by faith, share the love of God with those around them, whether in their families, in the workplace, in schools or in the community.

The Diocese fulfils its purpose by offering religious and pastoral services, educational programmes and charitable support and assistance to all within its boundaries whether they be Catholics or belong to other religions or to none. This formation then enables the people of the Diocese to carry out the mission of the Church by reaching out to those in any form of need including refugees and asylum seekers and immigrants, to those who have alcohol or drug dependency, to the homeless and to the poor and by supporting food banks. Schools, too, have involvement in this outreach through the way in which they help to form responsible individuals going out into society and reflecting the love of God by putting their faith into action.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Diocese comprises seventy-three parishes, five of which are served by the Benedictine Order, two by the Oratorians who have now formed their own charity, the York Oratory Trust, one by a Syro Malabar priest and two by the Oblates of The Virgin Mary. In addition to this, we have University Chaplaincies in Hull and in York. We now have thirty four diocesan priests in active ministry. Following the recent deaths of two of their number, we now have twenty two priests who have retired from parish pastoral office. A number of our retired priests provide supply assistance to resident priests. There are now nine permanent deacons working in various parishes of the Diocese and seven who have retired. Parishes aim to provide for the spiritual needs of people of all ages with special emphasis on the needs of the poor and the sick. There is also great awareness of the plight of refugees and asylum seekers and much effort is expended on assisting those in this position.

We try to work in harmony with other Christian churches and people of all faiths as appropriate. We also provide education in the faith much of which is done through a network of schools. There are forty five primary schools and eight secondary schools all of which are now members of multi academy trusts (MATs). We also have two independent schools. One of our academy schools serves jointly Catholics and Church of England pupils from the Richmond area.

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The operation of the Charity is overseen by the Corporate Trustee. Directors of the Trustee are appointed by the Bishop. The Trustee Board normally meets seven times in the year under the Chairmanship of the Bishop. A number of Board committees provide advice and guidance to the Trustee Board on a range of matters relevant to the Charity. These meet, normally, in advance of each Board meeting so that the Trustee body can be made aware of any matters of significance. Currently, these committees and sub committees are as follows:

Finance Advisory Committee: The committee is made up of three Trustee directors and a senior priest supported by officers and specialists. The committee meets seven times a year, in advance of the Trustee Board meeting. It reviews the Curia Budget and other matters of financial governance. It also receives and reviews parish expenditure and makes expenditure-related recommendations to the Trustee Board.

Ethical Investment Committee: Led by the Financial Secretary and including a member of the Diocesan Justice & Peace Commission, a member of the Council of Priests and the Investment Manager this committee reviews the Diocesan investment portfolio ensuring that the investments which make up the portfolio comply with the principles of the Ethical Investment Policy.

Safeguarding Sub-Committee: This Sub Committee is chaired by an independent person who has significant experience in Child Protection work. He is also a Trustee Board Director. The sub committee is made up of representatives of statutory authorities, diocesan clergy and another Director of the Trustee Board. The diocesan Safeguarding Co Ordinator attends the meetings of the sub committee and reports to each Trustee Board meeting on the implementation of policies and procedures and, additionally, any matters of concern.

Diocesan Historic Churches Commission (HCC): The HCC is chaired by a senior priest with representatives from various heritage bodies, specialists and Diocesan representatives. The Commission is charged with the task of ensuring that regular inspections are carried out and that any required work is carried out in an appropriate manner. It also requires that any work on the twenty four listed churches and chapels in the Diocese is not undertaken without its prior approval. The Commission has also taken into its care a number of churches which experts consider should be listed.

Sick and Retired Priests’ Welfare Committee: This committee, chaired by the Episcopal Vicar for Clergy, is responsible for supporting the sick and aged priests of the Diocese and the approval of expenditure for their welfare. The Care & Welfare Consultant reports to the Committee and her reports are integral to the operation of the Committee. Membership comprises the Chair, two priests elected by the Diocesan priests, a priest retired from pastoral office, a deacon, the Financial Secretary and laity appointed by the Bishop.

The Directors of the Trust are also the Diocesan Finance Committee required by Canon Law (Canon 492). Newly appointed Trustee Directors are briefed, initially, by the Company Secretary and receive copies of the Memorandum and Articles of Association, copies of the Charity Commission document on the responsibilities of Trustees and copies of Board minutes.

The Chief Operating Officer continues to provide legal advice and act as Company Secretary in addition to having responsibility for the operations of the Curia.

The Financial Secretary and his staff, under the ultimate authority of the Bishop, are responsible for handling all financial and property matters.

The Bishop’s Council, comprising the Vicar General, and Episcopal Vicars with responsibility across the Diocese for aspects of a pastoral nature, together with the Chancellor, advise and assist the Bishop in pastoral matters.

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The Diocesan Gift Aid Officer works closely with parishes on financial matters and provides support where requested. He meets, periodically, with representatives of parish Finance Committees. It was, previously, reported that he had introduced facilities for cashless giving in parishes. These machines are now in place in thirty-one parishes. It has been recognised that more effort needs to be put into fundraising and with Board approval, it is envisaged that, commencing in early 2025, this officer’s role will change to that of fundraising only. A new appointment would, therefore, arise.

Care and Welfare: The consultant dealing with welfare needs of priests has continued her work throughout the Diocese. This is a service very much appreciated and well used by priests.

Remuneration Policy

The Trustee Board approves annual pay awards, and job roles and remuneration are reviewed periodically. If, and when, significant roles change hands, benchmarking of rates is employed.

Subsidiary Company

The Diocese has a wholly owned subsidiary company, Diocesan Property Management Limited. The company was established to facilitate the management of building contracts for the Diocese and its sales are to the Diocese only. The company provides its services at cost and, therefore, make a minimal profit or loss. For the year ended 31 December 2023, the turnover of the company was £Nil (2022: £Nil) and its loss was £713 (2022: £698).

Investment Powers and Policy

The Trust Deed, in conjunction with the Trustee Investment Act 1961 and the Memorandum and Articles of Association of the Trust Corporation, authorises the Trustee to make and hold investments using the general funds of the Diocese. The investment objective of the Trustee is that the real value of the assets should be maintained and enhanced over the long term and that the fund provides income to assist in the operational costs of the Diocese.

The Investment Manager manages the portfolio on a discretionary basis, with an emphasis on medium risk, and the Diocese and the Investment Manager meet periodically to review the portfolio and its performance. In the management of the portfolio the Investment Manager takes due account of the Diocesan Ethical Investment Policy and reports to the Ethical Investment Committee. Dividend income has held up well during the year and, to that extent, the Trustee is satisfied with the performance of the portfolio during the year.

During 2023, asset prices were driven lower as a result of a number of factors including higher interest rates and events in the Middle East. More recently, further outbreaks of violence in the Middle East have further affected the value of the portfolio. It is hoped that, in the mid to long term we will see recovery in the value of the portfolio. A small committee made up of two Trustee Board directors, the Investment Manager and the Financial Secretary will shortly commence to meet to discuss the longer term approach to our investment portfolio.

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL REVIEW AND REVIEW OF THE YEAR

FINANCIAL REVIEW AND REVIEW OF THE YEAR
The table below summarises the financial activities of the Diocese:-
2023 2022
Unrestricted Restricted _Unrestricted _ Restricted
£k £k £k £k
PARISHES
Income(excluding profit on sale of assets) 3,920 299 3,853 228
Expenditure (3,553) (257) (3,328) (199)
Diocesan assessment and transfer **(731) ** - 37 -
Surplus/(deficit) before transfers etc **(364) ** 42 562 29
Transfers - - -
(Loss)/Profit on sale of assets - - - -
Unrealised(loss)/gain on investmentproperty **(200) ** - 1,834 -
Added to/(deducted from)reserves - 564 42 2,396 29
CURIAL
Diocesan assessment & transfer **731 ** - (37) -
Other income(excluding profit on sale of assets) 1,623 328 1,440 618
Total income 2,354 328 1,403 618
Expenditure (2,073) (347) (1,900) (193)
Surplus/(deficit) 281 (19) (497) 425
Other transfers (96) 96 10 (10)
(Loss)/Profit on sale of assets - - -
Realised/unrealisedgain/(loss)on investments (549) (262) (15)
Added to/(deducted from)reserves **(364) ** 77 (749) 400
Full details of the income and expenditure are shown
notes to the accounts.		 in the statement of financial activities on page 16 and in the
The Trustee Board wishes to place on record its sincere thanks to all priests, the Curia Office staff, parish
volunteers and externalprofessions for their efforts on behalf of the Trust.

Reserves Policy

The Trustee Board has not determined a fixed amount of general reserves that are required but consider that the reserves need to be maintained at least at the present level in order to meet possible shortfalls in income and to be able to respond to requests for funding.

PUBLIC BENEFIT, ACHIEVEMENTS AND PERFORMANCE

In preparing this report, the Directors of the Corporate Trustee confirm that they have complied with their duty in the Charities Act 2011 to have full regard to the public benefit guidance published by the Charity Commission’s guidance in the exercise of their powers and duties.

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The provision of public benefit provided by the Charity includes the provision of religious ceremonies (such as baptisms, weddings and funerals), maintaining religious burial grounds, celebrating public Masses and providing and maintaining places of worship. There is also a benefit to the general public since churches can be accessed, by people of all faiths and none, for personal spiritual contemplation. Parishes are, themselves, communities which contribute to the moral and spiritual wellbeing of those who attend, and, from these centres, educational, social and pastoral work is carried out as a practical expression of faith.

In supporting the parish endeavour, the Diocese has a number of agencies which provide central services. Details of this provision are shown below.

Youth Ministry

Father Philip Cunnah, our Schools Chaplaincy Co ordinator, continues to be the Curial lead in working with young people and he is heavily involved in the organisation of Youth and Liturgy work of the diocesan Pilgrimage to Lourdes and attends the pilgrimage. Father Phil also has a national chaplaincy role. Preparations are already underway for a group to attend Flame, the largest Catholic youth gathering in the UK, in 2025. The theme for 2025 is “Unstoppable”. The venue will be the OVO Arena, Wembley.

The Bishop’s Council for Spirituality and Worship

The council supports Catechists, Extraordinary Ministers of Holy Communion (EMHC) and Ministers of the Word (MoW) by way of initial and ongoing formation. Regular deanery meetings are held in order to reinforce the support which is provided.

In October/November of each year the Diocese holds an “Inspirational Day” and all EMHCs and MoWs are invited to attend. Generally, this is a well attended event at which there is an external speaker and which culminates with Mass before departure and returning home.

Various opportunities for formation are offered – these include, among a number of others, the Catholic Certificate in Religious Studies (CCRS). The Diocese continues to provide support to suitable students, lay leaders etc in undertaking an online course in pastoral and religious education available via the Diocese of Liverpool in conjunction with the Loyola Institute for Ministry based in Chicago, USA.

The Council recognises that these various initiatives are an essential part of evangelisation and outreach.

Education

Bishop Terry, as the chief educator of the Diocese continues to believe strongly in the value of Catholic schools and in the development of the Catholic ethos and religious education in all schools in accordance with the Diocesan Trust documents. Foundation Governors and Directors, appointed by the Bishop, form the majority on each Governing Body and they assist the Bishop in addition to carrying out the various functions of the schools as required by statute.

The two-trust structure is now fully operational with thirty-eight schools in the Nicholas Postgate Catholic Academy Trust and fifteen in the Saint Cuthbert’s Roman Catholic Academy Trust (SCRCAT) and both MAT’s are enjoying continued success. A new CEO took up her place at SCRCAT on 1 June 2024. She was, previously, employed by a trust in the Roman Catholic Diocese of Leeds and brings a wealth of experience to the role.

Vocations

2023 Was an interesting year to say the least. At the beginning of the year we had three men training to be permanent deacons and one man still discerning whether he had a vocation to the priesthood.

During the course of the year four others expressed an interest in permanent diaconate and our Vocations Director began to meet regularly with them either by Zoom or in person. One of these became much firmer in his

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

decision to follow the vocation and he was enrolled on the NDFP (Northern Diaconal Formation Programme). For various reasons, two did not proceed and the final man decided in September that he would like to commit and so discernment began in more earnest. Fortunately, he lives in the Vocations Director’s parish so that was a much easier process.

The man discerning priesthood became firmly committed and so the process began to send him to begin initial training in Valladolid. The Visa process for sending men to seminary now is labyrinthine and took five months to complete. He received his visa the day before he was due to travel. It also involves a fair financial outlay. He completed his psychological testing and finally left to begin studying in September.

Over the year five more men came forward expressing an interest in priesthood and again a course of monthly meetings was undertaken as a group, taking them out to dinner to see how they interacted socially. They were also taken to meet some of the Sisters who live in the diocese.

They all decided they would go on a discernment weekend organised by Oscott College in November. This was offered for free by the Birmingham Archdiocese. Two came back very enthused and wishing to continue discernment with the remainder, for varying personal reasons, deciding that the priestly life was not for them.

The two who were enthusiastic committed to studying and so we began the visa process for sending them to Valladolid in 2024.

We had an enjoyable Vocations Directors’ Conference in Palazzola, Rome. We visited the Beda and Venerable English College who both “set out their stalls” as places to send seminarians. Both they and Oscott College seem happy places and there were no qualms about sending our students to any of them.

Finally, in November, the Vocations Director met a Nigerian man who lives in Hull. He is convinced that he has a vocation to the priesthood. However, there will be visa problems which the Trustees will need to discuss if we can take this student forward. There have been discussions with the diocesan solicitor but will need to chat at some point to the Trustees.

In summary, we have five men committed to studying for the permanent diaconate and three for priesthood with others in the pipeline.

Work of the Tribunal

The Ministry of the Tribunal is often a last resort when a marriage has completely broken down and has ended in a civil divorce. A declaration of nullity may be requested for a number of reasons. Most commonly, someone wants to enter into another union or is already in another union and wishes to regularize the situation in the eyes of the Catholic Church so that they may participate more fully in its life.

The Tribunal is also involved in the processing of cases concerning clergy in co operation with the CDF and the and the Congregation for the Clergy.

Work of the Chancery

The main work of the Chancery is the processing of marriage papers, sometimes worldwide, for couples where the Catholic party, at least, is resident within the diocesan boundary. This work includes enabling marriages to take place legally (both civilly and canonically); ensuring that the property of the Church is correctly protected and administered on behalf of the people to whom it properly belongs. Other matters dealt with by the Chancery include advice to the Bishop on matters of public good and public order; liaising with outside agencies (both outside of the Church itself and within the Church but outside of the Diocese); enquiries from people regarding the status of themselves or their parishes/churches in Canon Law. In short, the Chancery works to ensure that the Church works properly on behalf of all its members.

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Vicariate for Missionary Discipleship

This Vicariate encompasses a number of elements including Adult Formation, Caritas, Bishop’s Council for Marriage and Family Life, Justice and Peace, Hospital, Prisons, Liaison for Catholic Fellowship and LGBT+ Outreach and Service and it forms a link with the wider community beyond the bounds of the liturgical and spiritual life of the Diocese. A priest, working part time, together with administrative support from the Curial Office, works with volunteers from the Diocese, upon whom much of the work depends, and encourages the various agencies.

The Marriage Preparation programme is in place to welcome couples from every part of the diocese into a marriage preparation programme for couples intending to get married in the Catholic Church. Groups and organisations such as the Justice and Peace Commission and people who support refugees and asylum seekers, in interfaith and ecumenical bodies, continue their work.

Communications

Communications falls within the ambit of the Episcopal Vicariate for Stewardship and Administration. Work is performed by a part time consultant whose duties include editing the monthly Catholic Voice newspaper, which is available free in all parishes, running the social media platforms and promoting the Diocese via local and national media. The consultant also assists with crisis management and responds to press queries in co ordination with the Bishop, Chief Operating Officer and department heads.

Prison Chaplaincy

There are seven prisons within the Diocese of Middlesbrough covering the whole range of categories: local, remand, maximum security, women and young people. Each is served by a priest chaplain, or deacon or volunteer, of varying contracted hours to celebrate Mass and other sacraments and respond to the pastoral needs of prisoners as requested. Roman Catholic Chaplains also play their part as members of the multi faith chaplaincy teams in each prison and contribute to the daily round of prison life in a variety of other ways as required by the prison service.

Roman Catholic Chaplains, like all Chaplains, receive regular training and development opportunities provided by the prison service.

Sick and Retired Priests

Care of our retired priests comes within the remit of the Vicariate for the Clergy. The local Deans still have an important part to play to make our retired priests feel that they remain involved in the life of the local church by attending Deanery conferences if possible as well as other spiritual and social gatherings.

The Retired Priests’ Welfare Committee meets several times a year and the practical needs of each retired priest are discussed with the aim that their needs, from housing to healthcare, are met. The Diocese supports priests who have retired from active ministry by providing accommodation and financial assistance. Four properties were purchased during 2023 for priests entering retirement. Retired priests also have the services of our consultant Care and Welfare Officer.

Their independence is important to them as it is to us all. Mrs Audrey Kirby, our Care and Welfare Consultant, with her in depth knowledge of the needs of older people coming from her long professional career in nursing, visits our retired men to offer them advice and reassurance about any health issues they may have. It is clear that this is much appreciated and she has a deeper insight into these issues than might another priest.

Our active retired priests are a great help in their willingness to supply cover for holidays, illness etc.

Every year the Bishop meets with the retired priests to celebrate Mass together and then have lunch in a convivial and relaxed atmosphere. The chance to meet up and share stories and anecdotes is enjoyed although some of the stories are re told from previous years.

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The annual collection for the retired priests and generous bequests are vital to maintain them in a manner which offers them security after often more than fifty years of service to the people of the Diocese. As mentioned in the Trustee Report for 2022, a specific appeal for raising funds to help in support of retired priests did take place in early-2024.

Safeguarding

The Bishop and Trustee Board of Directors are committed to safeguarding children and adults who may be at risk. Safeguarding is a standing item for every ordinary meeting of Trustee Directors, at which the Directors receive and discuss a report from the Safeguarding coordinator. The Safeguarding Sub Committee, formed in 2022 is chaired by Mr Andrew McMillan (Trustee Director) who has significant safeguarding knowledge and experience.

The Safeguarding Team consists of one Safeguarding Coordinator, one Safeguarding Support Manager and two part time administrators. The Safeguarding Team supports parishes with safer recruitment of volunteers and co ordinates training for Clergy and Parish Safeguarding Representatives. The Team has developed strong relations within the Curia, the wider Diocese, Statutory Agencies and other organisations in order to provide a safe environment.

In December 2023, the Catholic Safeguarding Standards Agency (CSSA) published its report following the audit which was undertaken in September of that year. The audit report graded the Diocese of Middlesbrough as “having demonstrated Firm Progress toward meeting the safeguarding standards” and auditors reported that they “found evidence of a long-standing commitment to safeguarding that is promoted and modelled by senior leaders”. The report was welcomed by Bishop Terry and the diocesan Trustee Board who recognised that the CSSA report will be a valuable aid in its journey.

Liturgy

We continue to place a great deal of emphasis on all our liturgies, as such we have a wonderful lay faithful who are involved in all aspects of the celebration of Mass. We have good teams of ushers, welcomers, Ministers of the Word and Ministers of Holy Communion. Every year we have training sessions and inspirational days for all our lay faithful; they are an integral part of our Church. Once again, we had a wonderful study day for Ministers of Word and Holy Communion from around our Diocese and our thanks go out to all who assist in organising this, and other events.

The annual pilgrimages to Lourdes and Walsingham continue and were, once again, led by the Bishop and provided opportunities for reflection and faith enhancement.

In each year we have some wonderful liturgies. Most notable of these continues to be the annual Chrism Mass, held at the Cathedral, which brings together the family of the Diocese. We aim to continue the high standards of liturgy throughout our Diocese for this coming year.

Volunteers

Volunteers play a central role in fulfilling the Mission of the Church in the Diocese. Parish volunteers are involved in all aspects of the spiritual, pastoral and social life of their parishes. They serve as Extraordinary Ministers of the Eucharist and the Word, as catechists, welcomers, altar servers, musicians and cleaners. Within the wider parish, volunteers visit the sick and the housebound and raise funds used to provide food parcels to families in need of such support.

Acting as Parish Safeguarding Representatives, volunteers work with the diocesan Safeguarding Team ensuring that all volunteers are DBS-checked to the appropriate standard for the role they are undertaking and that best practices are integral to their ministry.

Volunteers also work in other Catholic charities and agencies throughout the Diocese, often engaging with

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Government and other national agencies.

All of these activities are very much a part of the public benefit requirement in accordance with Charity Commission guidance.

FUTURE PLANS

The diocesan Lourdes Pilgrimage remains very popular and continues into 2025. The next pilgrimage will take place between 24 and 30 May 2025 and will be the Diocese’s 72nd Lourdes Pilgrimage.

Pope Francis has chosen as his motto for the Eighth World Day of the Poor “The Prayer of the poor rises up to God”. Dedicated to prayer, as the beginning of the Ordinary Jubilee 2025 approaches, this expression, taken from the ancient scribe, Ben Sira is easily understood. This day of prayer will take place on 17 November 2024.

RISK ASSESSMENT

The Diocesan Trustee Board has assessed the major risks to which the Diocesan Trust is exposed, in particular, those related to the operation and finances of the Trust, and is satisfied that the systems in place to mitigate our exposure to the major risks are operating effectively. The most significant risks identified were Pastoral risks relating to parish life. The issue of the increasing burden on priests due to serving additional churches and communities was identified as significant. Other risks include declining Mass attendances, reducing numbers of priests in active ministry and the risk of failures in safeguarding matters. The Diocese addresses falling Mass attendance in a number of ways including Youth Mission. The Diocesan Vocations Director is active in seeking suitable candidates for Ordination. In terms of safeguarding, the Diocese has a policy and parishes are monitored for compliance.

STATEMENT OF RESERVES

Total reserves at 31 December 2023 amounted to £57,971,682 (2022: £58,780,824) and this is made up of:

Parochial reserves £37,267,610 (2022: £37,752,069) which relate, principally, to the assets and activities of individual parishes.

Curial reserves £20,704,072 (2022: £20,028,755). Of this £4,300,054 represents the balance on restricted items which is not available for general purposes. Included in that restricted total is £1,542,502 being the amount held in the Retired Priests’ Welfare Fund. Details of the restricted funds are included in Note 25 to the accounts. Unrestricted funds amount to £15,534,980.

This year saw a decrease in the valuation of investment properties of £302,252 and, an unrealised reduction in the value of listed investments of £434,278.

Total reserves are £57,951,682 and of this free reserves are in deficit by £4,788,943. However this does not include investments which could be sold if necessary and amount to £5,995,134. If these are included free reserves would be £1,206,181.

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DIOCESE OF MIDDLESBROUGH

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

THE STATEMENT OF TRUSTEE’S RESPONSIBILITIES

The Trustee Board is responsible for preparing the Trustee’s Report and the financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements the Trustee is required to:

In accordance with charities legislation, the Trustee is responsible for keeping proper accounting records which disclose, with reasonable accuracy, at any time, the financial position of the Diocese and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed dated 2 January 1928. The Trustee is also responsible for safeguarding the assets of the Diocese and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of the Trustee and signed on their behalf by:

Rt Rev Bishop T P Drainey Bishop of Middlesbrough Diocese of Middlesbrough Trustee

Date: 25 October 2024

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DIOCESE OF MIDDLESBROUGH

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE OF DIOCESE OF MIDDLESBROUGH

UNQUALIFIED OPINION

We have audited the financial statements of Diocese of Middlesbrough (the 'charity') for the year ended 31 December 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

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DIOCESE OF MIDDLESBROUGH

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE OF DIOCESE OF MIDDLESBROUGH (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustee is responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEE

As explained more fully in the Trustees' responsibilities statement, the Trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustee 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 Trustee is responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Page 13

DIOCESE OF MIDDLESBROUGH

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE OF DIOCESE OF MIDDLESBROUGH (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we considered the most significant laws and regulations which have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), and the Diocese' governing document. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing the financial statements including the Trustee's report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion.

Audit procedures performed included, but were not limited to:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 14

DIOCESE OF MIDDLESBROUGH

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEE OF DIOCESE OF MIDDLESBROUGH (CONTINUED)

USE OF OUR REPORT

This report is made solely to the Charity's Trustee in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustee those matters we are required to state to them in an Auditors' 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 its trustee for our audit work, for this report, or for the opinions we have formed.

Waltons Business Advisers Limited

Harbour Walk The Marina Hartlepool TS24 0UX

28 October 2024

Waltons Business Advisers Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 15

DIOCESE OF MIDDLESBROUGH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
TOTAL INCOME
EXPENDITURE ON:
Raising funds
9
Charitable activities
10
TOTAL EXPENDITURE
NET (EXPENDITURE)/INCOME
BEFORE NET (LOSSES)/GAINS ON
INVESTMENTS
Net (losses)/gains on investments
15
NET (EXPENDITURE)/INCOME
Transfers between funds
24
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward as
previously stated
Prior year adjustment
Total funds brought forward as restated
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
2023
£
2,895,946
390,204
279,645
1,863,925
113,624
5,543,344
10,650
5,615,640
5,626,290
(82,946)
(749,671)
(832,617)
(95,598)
(928,215)
54,110,944
-
54,110,944
(928,215)
53,182,729		 Restricted
funds
2023
£
532,315
-
63,942
30,788
-
627,045
109,056
494,514
603,570
23,475
-
23,475
95,598
119,073
4,669,880
-
4,669,880
119,073
4,788,953		 Total
funds
2023
£
3,428,261
390,204
343,587
1,894,713
113,624
6,170,389
119,706
6,110,154
6,229,860
(59,471)
(749,671)
(809,142)
-
(809,142)
58,780,824
-
58,780,824
(809,142)
57,971,682		 Total
funds
2022
£
3,652,696
400,751
259,050
1,703,756
122,761
6,139,014
50,750
5,569,352
5,620,102
518,912
1,556,691
2,075,603
-
2,075,603
57,090,865
(385,644)
56,705,221
2,075,603
58,780,824

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 19 to 46 form part of these financial statements.

Page 16

DIOCESE OF MIDDLESBROUGH

BALANCE SHEET AS AT 31 DECEMBER 2023

Note
FIXED ASSETS
Tangible assets
16
Investments
19
Investment property
18
CURRENT ASSETS
Debtors due after more than 1 year
20
Debtors due within 1 year
20
Investments
21
Cash at bank and in hand
Creditors: amounts falling due within one
year
22
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
23
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
24
Unrestricted funds
Designated funds
24
General funds
24
Total unrestricted funds
24
TOTAL FUNDS		 687,425
598,912
4,498,832
12,730,601
18,515,770
(13,860,952)
1,261,250
51,921,479		 2023
£
10,252,905
5,995,134
37,491,960
53,739,999
4,654,818
58,394,817
(423,135)
57,971,682
4,788,953
53,182,729
57,971,682		 686,952
580,939
4,603,942
13,592,181
19,464,014
(13,719,557)
1,324,614
52,786,330		 2022
£
9,980,194
6,299,412
37,207,847
53,487,453
5,744,457
59,231,910
(451,086)
58,780,824
4,669,880
54,110,944
58,780,824

The financial statements were approved and authorised for issue by the Trustee and signed on their behalf by: Date: 25 October 2024

The notes on pages 19 to 46 form part of these financial statements.

Page 17

DIOCESE OF MIDDLESBROUGH

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
NET CASH PROVIDED BY INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Cash inflows from new borrowing
Repayments of borrowing
NET CASH USED IN FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
The notes on pages 19 to 46 form part of these financial statements		 2023
£
(1,044,890)
1,894,713
-
(457,199)
323,389
(947,785)
813,118
-
(227,951)
(227,951)
(459,723)
6,919,670
6,459,947		 2022
£
(330,601)
1,703,756
1,000
(208,364)
982,509
(1,229,138)
1,249,763
500,000
(623,963)
(123,963)
795,199
6,124,471
6,919,670

Page 18

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. GENERAL INFORMATION

The Roman Catholic Diocese of Middlesbrough is governed by a Trust Deed dated 2 January 1928 and is registered with the Charity Commission of England and Wales (No 233748). The sole Trustee of the charity is a Trust Corporation which was incorporated on 17 December 1997.

The registered office address is:

Curial Offices 50a The Avenue Middlesbrough TS5 6QT

2. ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Diocese of Middlesbrough meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The financial statements are prepared on a going concern basis and the Trustee considers that there are no material uncertainties about the Diocese's ability to continue as a going concern.

2.3 Subsidiary company

All of the turnover of the Diocese's wholly owned subsidiary, Diocesan Property Management Limited, represents sales of building construction to the Diocese. The subsidiary has no material net assets or liabilities. There is no significant difference between the Statement of Financial Activities and the Balance Sheet of the Diocese, as presented, and the consolidated group figures, and accordingly the subsidiary has not been consolidated within these financial statements.

Page 19

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.4 Income

All income is recognised once the Diocese has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Diocese has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Diocese, can be reliably measured.

In the event that a donation is subject to conditions which require a level of performance before the Diocese is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Diocese and it is probable that those conditions will be fulfilled in the reporting period. Collections and Fundraising income are recognised on receipt.

Investment income is credited to income when it is receivable and the amount can be measured reliably by the Diocese; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure on raising funds includes all expenditure incurred by the Diocese to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Diocese's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 20

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.6 Tangible fixed assets and depreciation- Freehold land and buildings

Churches, Presbyteries, Halls and Offices etc

Functional Land and Buildings (i.e. Land and buildings used for the prime purpose of the Diocese), which are still in use by the Diocese are included in the financial statements at original cost or where this is not available at an estimate of their Historic cost (or in the case of donated buildings, at an estimate of their fair value at the date of receipt). All new functional buildings, improvements and major renovations are capitalised at the cost of construction.

Buildings are depreciated at rates calculated to write off their estimated Historic cost (less the estimated residual value) evenly over the whole of their useful life.

The estimate of the useful life of a building varies on the condition and future use of the building, however, in general, it is expected that a building in a reasonable state of repair will continue in use without major renovation or improvements for the following period:

• Unlisted Churches 25 to 100 years • Cathedral and Listed Churches 100 to 200 years • Presbyteries 25 to 100 years • Other buildings 25 to 100 years

Depreciation rates are calculated using the age of the building and its expected useful life.

Details and addresses of the Diocesan churches and other buildings can be found in the Diocesan Yearbook.

Voluntary Aided Schools and Academies Land

The Diocese owns the land on which its Voluntary Aided Schools and Academies are built. The nature of the occupation of the land by these exempt and excepted charities means that the Diocesan Trustee does not have the power to dispose of the land, until the school ceases its occupation, which in turn would require the approval of the governors and the Secretary of State. The Diocesan Trustee considers its ownership to be in the nature of custodianship of the assets and therefore these are not capitalised in the financial statements. The cost of any land acquired for the purposes of a Voluntary Aided School or Academy is charged to the Statement of Financial Activity in the year of acquisition.

Buildings

The School buildings are occupied, extended and repaired by the school governors. The nature of the occupation of these buildings by these exempt and excepted charities means that the Diocesan Trustee does not have the power to dispose of the buildings, until the school ceases its occupation, which in turn would require the approval of the governors and the Secretary of State. Any proceeds of sale would be subject to clawback by the Secretary of State of any related grant aid provided. The Diocesan Trustee considers its ownership to be in the nature of custodianship of the assets and therefore these are not capitalised in the financial statements. The School governors account for the building, improvement and repair costs of the schools less any grants received in respect of these costs.

Details of the Diocesan Voluntary Aided Schools and Academies (both freehold and leasehold) are given in the Diocesan Yearbook.

Page 21

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.7 Tangible fixed assets and depreciation - other assets

Fixtures, Fittings and Equipment

Fixtures, Fittings and Equipment which were in use at 31 December 1995 and which had a current replacement cost exceeding £1,000, have been capitalised and included in the financial statements at an estimate of their Historic cost (or in the case of donated assets, at an estimate of the value at the date of acquisition). Subsequent acquisitions with a cost (or in the case of donated assets, estimated value) of over £1,000 are capitalised on the same basis. They are depreciated at rates calculated to write off the cost or valuation, less the estimated residual value, of each asset evenly over its expected useful life as follows:

Contents of presbyteries are not included in the financial statements.

Works of Art and Historic Treasures

The Diocese owns several individual Works of Art and Historic Treasures and Plate. The items have extraordinarily long lives and are worth preserving perpetually. The collection is not recognised in the Balance Sheet because details of the cost of these items are not available and the cost to the Diocese of obtaining valuations would exceed the benefit arising from doing so.

Motor Vehicles

Motor Vehicles have been capitalised and included in the financial statements at an estimate of their Historic cost (or in the case of donated assets, at an estimate of the value at the date of acquisition), and are depreciated at rates calculated to write off the cost or valuation, less the estimated residual value of each asset, over its expected useful life as follows:

Page 22

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

Investments in subsidiaries and associates are valued at cost less provision for impairment.

Investment properties are shown at the Trustees’ best estimate of market value which reflects the annual movement on the house price index for the Diocesan geographical location and other known circumstances. All changes in value during the year are reported in “Gains and Losses on Revaluation and Investment Asset Disposals” section of the Statement of Financial Activities.

Current asset investments are designated as such as they are highly liquid and the Diocese has specified that they be made readily available to convert to cash within a short term notice period of no longer than 6 months.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Diocese anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.12 Financial instruments

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

Page 23

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES (CONTINUED)

2.13 Pensions

The Diocese contributes 6% of gross salary to a group personal pension scheme for staff who elect to join. The scheme is a defined contributions scheme and the pension charge represents the amounts payable by the Diocese to the fund in respect of the year.

Eligible teachers and former teachers subscribe to the Teacher's Pension Scheme (TPS) supperannuation scheme which is a defined benefits scheme. The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees’ working lives with the Diocese in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. TPS is an unfunded multiemployer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Diocese and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustee for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Diocese for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 24

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Diocese makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimate and assumption that has a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is discussed below.

The Trustee has made the decision not to commission an external valuer to value Investment property. Instead the Investment property is revalued annually using the UK House Price Index Summary prepared by the ONS. The Diocese has properties in both the North East and York regions and therefore uses these values to inform the current year revaluation. To December 2023 the average house price decrease was 0.8% in the North East and 1.2% in Yorkshire and the Humber. An annual decrease of 0.8% has been applied to all investment property as the Trustee believed this to be representative of the portfolio.

Had property not been revalued it would be included at historic cost and this is disclosed in note 18.

4. INCOME FROM DONATIONS AND LEGACIES

Parochial Parochial Parochial
Curial		 Parochial
Curial		 Curial Total Total 2022
Unrestricted
Funds
£		 Restricted
Funds
£
Unrestricted
Funds
£		 Restricted
Funds
£		 £ £
Donations 2,569,303 219,784 15,041 23,822 2,827,950 2,853,398
Legacies 58,911 78,945 252,691 209,764 600,311 799,298
Total 2023 2,628,214 298,729 267,732 233,586 3,428,261 3,652,696
Total 2022 2,764,394 228,283 86,484 573,535 3,652,696

Page 25

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

5. INCOME FROM CHARITABLE ACTIVITIES

Parochial
Curial		 Parochial
Curial		 Parochial
Curial		 Total Total 2022
Unrestricted
Funds
£
Unrestricted
Funds
£		 £ £
School Service Contribution - 226,492 226,492 210,395
Stipends 163,712 - 163,712 190,356
Total 2023 163,712 226,492 390,204 400,751
Total 2022 190,356 210,395 400,751

6. INCOME FROM FUNDRAISING ACTIVITIES

Parochial Parochial Curial Total Total 2022
Unrestricted
Funds
£		 Restricted
Funds
£		 £ £
Fundraising 181,982 63,942 245,924 169,312
Papers, candles & piety stalls 97,663 - 97,663 89,738
Total 2023 279,645 63,942 343,587 259,050
Total 2022 240,655 18,395 259,050

7. INVESTMENT INCOME

Parochial
Curial		 Parochial
Curial		 Parochial
Curial		 Curial Total Total 2022
Unrestricted
Funds
£
Unrestricted
Funds
£		 Restricted
Funds
£		 £ £
Rents and hire fees 673,019 584,325 9,540 1,266,884 1,169,645
Investment income - 482,352 382 482,734 514,446
Bank interest received 108,449 15,780 20,866 145,095 19,665
Total 2023 781,468 1,082,457 30,788 1,894,713 1,703,756
Total 2022 647,777 1,030,751 25,228 1,703,756

Page 26

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

8. OTHER INCOMING RESOURCES

Parochial
Curial		 Parochial
Curial		 Parochial
Curial		 Curial Total Total 2022
Unrestricted
Funds
£
Unrestricted
Funds
£
Gain/ (loss) on sale of fixed
assets
-
-		 Restricted
Funds
£
-		 £
-		 £
(2,080)
Other income 67,447 46,177 - 113,624 124,841
Total 2023 67,447 46,177 - 113,624 122,761
Total 2022 9,667 112,544 550 122,761
RAISING FUNDS
Summary by fund type		 Parochial Curial Total Total 2022
Unrestricted
Funds
£		 Restricted
Funds
£		 £ £
Raising funds 10,650 109,056 119,706 50,750
Total 2023 10,650 109,056 119,706 50,750
Total 2022 12,635 38,115 50,750

9. RAISING FUNDS

10. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted
funds
2023
£
Parochial
3,542,822
Curial
2,072,818
5,615,640
Total 2022
5,215,522		 Restricted
funds
2023
£
256,395
238,119
494,514
353,830		 Total
2023
£
3,799,217
2,310,937
6,110,154
5,569,352		 Total
2022
£
3,514,727
2,054,625
5,569,352

Page 27

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Parochial
Curial
Total 2022		 Activities
undertaken
directly
2023
£
3,799,217
1,868,095
5,667,312
5,151,789		 Support
costs
2023
£
-
442,842
442,842
417,563		 Total
funds
2023
£
3,799,217
2,310,937
6,110,154
5,569,352		 Total
funds
2022
£
3,514,727
2,054,625
5,569,352

Page 28

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF DIRECT COSTS

Staff costs
Depreciation
Repairs, Maintenance & Upkeep of properties
Establishment costs
Administration
Domestic
Motor and travel
General Church expenses
Bishop & Clergy Support
Schools
Donations
Special collections
Sundries
Priest training
Youth Service
Services to Parishes & Chaplaincies
Retired Priest Welfare fund
Justice & Peace
National assessments
Finance charges
Governance costs
Diocesan events
Lourdes
Total 2022		 Parochial
2023
£
-
153,912
934,492
1,029,177
312,180
153,026
114,710
181,863
-
600
184,187
106,781
75,059
-
-
518,100
-
-
-
35,130
-
-
-
3,799,217
3,514,727		 Curial
2023
£
742,755
30,576
326,818
-
-
-
-
-
199,280
49,153
50,000
-
-
42,544
3,433
119,992
161,086
3,000
25,974
60,723
52,327
434
-
1,868,095
1,637,062		 Total
funds
2023
£
742,755
184,488
1,261,310
1,029,177
312,180
153,026
114,710
181,863
199,280
49,753
234,187
106,781
75,059
42,544
3,433
638,092
161,086
3,000
25,974
95,853
52,327
434
-
5,667,312
5,151,789		 Total
funds
2022
£
580,372
171,840
1,441,292
815,913
288,329
155,395
92,072
157,970
170,637
84,066
83,172
155,686
12,671
44,006
(711)
605,851
136,185
3,000
25,975
55,527
71,384
556
601
5,151,789

Page 29

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Curial
2023
£
Staff costs
353,742
Establishment costs
35,609
Administration
26,317
Motor and travel
12,990
Bishop & Clergy Support
14,184
442,842
12.
AUDITORS' REMUNERATION
Fees payable to the Diocese's auditor for the audit of the Diocese's annual
financial statements
Fees payable to the Diocese's auditor in respect of:
Accountancy and taxation advice		 Total
funds
2023
£
353,742
35,609
26,317
12,990
14,184
442,842
2023
£
17,325
5,195		 Total
funds
2022
£
335,787
24,341
25,400
11,564
20,471
417,563
2022
£
16,500
5,300

13. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
761,549
71,888
263,060
1,096,497		 2022
£
771,460
76,155
68,544
916,159

Page 30

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

13. STAFF COSTS (CONTINUED)

The average number of persons employed by the Diocese during the year was as follows:

2023 2022
No. No.
Curial employees 24 25

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £60,001 - £70,000 1 -
In the band £70,001 - £80,000 1 1
In the band £80,001 - £90,000 1 -

Total remuneration to key management personnel in the year (including pension and employers NI) was £272,418 (2022- £238,247).

14. TRUSTEE'S REMUNERATION AND EXPENSES

During the year, no Trustee received any remuneration or other benefits (2022 - £NIL) .

During the year ended 31 December 2023, no Trustee expenses have been incurred (2022 - £NIL) .

Page 31

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

15. NET GAINS/LOSSES ON INVESTMENTS

Parochial
Curial		 Parochial
Curial		 Parochial
Curial		 Parochial
Curial		 Parochial
Curial		 Curial Total Total 2022
Unrestricted
Funds
£
Unrestricted
Funds
£		 Restricted
Funds
£		 £ £
Realised gains (46,941) 33,800 - (13,141) 29,062
Unrealised gains (153,249) (583,281) - (736,530) 1,527,629
Total 2023 (200,190) (549,481) - (749,671) 1,556,691
Total 2022 1,833,799 (262,451) (14,657) 1,556,691
TANGIBLE FIXED ASSETS
Cost
At 1 January 2023
Additions
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Freehold
property
£
14,292,781
424,885
14,717,666
4,767,391
155,552
4,922,943
9,794,723
9,525,390		 Motor
vehicles
£
63,173
-
63,173
19,612
10,893
30,505
32,668
43,561		 Fixtures and
fittings
£
802,008
8,628
810,636
395,301
13,436
408,737
401,899
406,707		 Office
equipment
£
79,319
23,686
103,005
74,783
4,607
79,390
23,615
4,536		 Total
£
15,237,281
457,199
15,694,480
5,257,087
184,488
5,441,575
10,252,905
9,980,194

16. TANGIBLE FIXED ASSETS

Page 32

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

17. TANGIBLE FIXED ASSET SPLIT

Curial Freehold
property
£		 Motor
vehicles
£		 Fixtures
and fittings
£		 Office
Equipment
£		 Total
£
Cost
At 1 Janaury 2023 1,020,155 63,173 - 79,319 1,162,647
Additions 424,885 - - 23,686 448,571
At 31 December 2023
Depreciation		 1,445,040 63,173 - 103,005 1,611,218
At 1 January 2023 357,477 19,612 - 74,783 451,872
Charge for year 15,076 10,893 - 4,607 30,576
At 31 December 2023
Net book value		 372,553 30,505 - 79,390 482,448
At 31 December 2023 1,072,487 32,668 - 23,615 1,128,770
At 1 January 2023 662,678 43,561 - 4,536 710,775
Parochial
Cost
At 1 January 2023 13,272,626 - 802,008 - 14,074,634
Additions - - 8,628 - 8,628
At 31 December 2023
Depreciation		 13,272,626 - 810,636 - 14,083,262
At 1 January 2023 4,409,914 - 395,301 - 4,805,215
Charge for year 140,476 - 13,436 - 153,912
At 31 December 2023
Net book value		 4,550,390 - 408,737 - 4,959,127
At 31 December 2023 8,722,236 - 401,899 - 9,124,135
At 1 Janaury 2023 8,862,712 - 406,707 - 9,269,419
Total 2023
Total 2022		 9,794,723
9,525,390		 32,668
43,561		 401,899
406,707		 23,615
4,536		 10,252,905
9,980,194

Page 33

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

18. INVESTMENT PROPERTY

Valuation
At 1 January 2023
Additions
Disposals
Revaluation
At 31 December 2023		 Parochial
£
19,264,959
60,378
(165,141)
(153,249)
19,006,947		 Curial
£
17,942,888
691,128
-
(149,003)
18,485,013		 Total
£
37,207,847
751,506
(165,141)
(302,252)
37,491,960

As explained in the accounting policies investment properties are shown at the Trustees’ best estimate of market value which reflects the annual movement on the house price index for the Diocesan geographical location and other known circumstances.

There are no restrictions on the ability to realise investment property or on the remittance of income or proceeds on disposal.

The historical cost of investment property (Curial) on 31 December 2023 was £11,932,582 ( 2022: £11,542,298 ). See also note 25.

19. FIXED ASSET INVESTMENTS- CURIAL

Cost or valuation
At 1 January 2023
Additions
Disposals
Revaluations
Investment manager fees
At 31 December 2023		 Investments
in
subsidiary
companies
£
2
-
-
-
-
2		 Investments
in
associates
£
4,000
-
-
-
-
4,000		 Listed
investments
£
6,276,598
815
-
(294,147)
-
5,983,266		 Unlisted
investments
£
18,812
4,489
(815)
-
(14,620)
7,866		 Total
£
6,299,412
5,304
(815)
(294,147)
(14,620)
5,995,134

The Historical cost of listed investments on 31 December 2023 was £6,596,234 (2022: £6,498,071).

Included within the listed investment balance above are no balances which represent more than 5% of the total (1 January 2023 2 balances: £817,700).

Page 34

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19. FIXED ASSET INVESTMENTS- CURIAL (CONTINUED)

Principal subsidiaries and associates

The following was a subsidiary undertaking of the Diocese:

Name Company Principal activity Holding Included in
number consolidation
Diocesan Property Management 02960826 Building contractor 100% Yes
Limited and property
developer

The financial results of the subsidiary for the year were:

Name Expenditure (Loss) for Net assets/
£ the year (liabilities)
£ £
Diocesan Property Management Limited 698 (698) (14,864)
The following was an associate of the Diocese:
Name Income for Expenditure Profit /
the year for the year (Loss) for
£ £ the year
£
Inter-Dicoesan Fuel Management Limited 30,864,811 (30,201,390) 8,801

The Diocese holds 4.35% (2022: 4.5%) of the ordinary shares of Inter-Dicoesan Fuel Management Limited. The principal activity of Inter-Dicoesan Fuel Management Limited is that of fuel and power distribution to various Roman Catholic Dioceses throughout England.

Page 35

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

20. DEBTORS

Curial Total
Total
2023 2023
2022
£ £
£
Debtors in over 1 year:
Amounts owed by group companies 687,425 687,425
686,952
Debtors within 1 year:
Trade debtors 59,713 59,713
48,325
Other debtors 115,185 115,185
133,785
Other debtors-school loans 212,153 212,153
374,061
Prepayments and accrued income 211,861 211,861
24,768
Due within 1 year 598,912 598,912
580,939
Total 2023 1,286,337 1,286,337
1,267,891
21.
CURRENT ASSET INVESTMENTS- CURIAL
Listed investments
Unlisted investments		 2023
£
4,493,335
5,497
4,498,832		 2022
£
4,567,875
36,067
4,603,942

The Historical cost of listed investments on 31 December 2023 was £4,603,942 (2022: £5,130,370).

Page 36

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

22. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

23. Parochial Curial Total Total
2023 2023 2023 2022
£ £ £ £
Bank overdrafts - 6,270,654 6,270,654 6,672,511
Bank loans<1 yr - 27,951 27,951 27,951
Loans<1 yr - 5,689,040 5,689,040 5,889,040
Trade creditors - 39,947 39,947 178,029
Other taxation and social security - 22,247 22,247 19,488
Other creditors - 137,690 137,690 213,943
Other creditors-school loans - 1,325,105 1,325,105 616,158
Accruals 48,797 299,521 348,318 102,437
48,797 13,812,155 13,860,952 13,719,557
Curial Total
Total
2023 2023
2022
£ £
£
Bank loans 423,135 423,135
451,086
423,135 423,135
451,086

The bank loan is secured on property owned by the Diocese. This security is over approximately £7m of the full property portfolio. The interest rate is charged at 3.6% over LIBOR payable quarterly with the facility repayable in full at the maturity date of March 2027.

Page 37

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

24. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

Unrestricted
funds
Designated
funds
St John of
Beverley
Designated fund
John Paul
Centre
Designated
Fund
Parochial
Designated
funds
General funds
Unrestricted
funds Parochial
Unrestricted
funds Curial
Revaluation
reserve Curial
Total
Unrestricted
funds		 Balance at 1
January
2023
£
587,089
345,313
392,212
1,324,614
36,950,622
9,435,118
6,400,590
52,786,330
54,110,944		 Income
£
-
9,843
-
9,843
3,920,486
1,613,015
-
5,533,501
5,543,344		 Expenditure
£
-
(50,000)
-
(50,000)
(3,553,472)
(2,022,818)
-
(5,576,290)
(5,626,290)		 Transfers
in/out
£
(23,207)
-
-
(23,207)
(730,947)
278,125
380,431
(72,391)
(95,598)		 Gains/
(Losses)
£
-
-
-
-
(200,190)
(400,478)
(149,003)
(749,671)
(749,671)		 Balance at
31
December
2023
£
563,882
305,156
392,212
1,261,250
36,386,499
8,902,962
6,632,018
51,921,479
53,182,729

Page 38

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

24. STATEMENT OF FUNDS (CONTINUED)

Restricted
funds
Retired Priests
Welfare Fund
Priests' Training
Fund
Lacy Fund
Lourdes Sick
Fund
Catholic Child
Care
Cecil H Walker
Memorial Fund
Mike McCullagh
Memorial Trust
Fund
Mathias Smyth
Memorial
Masses Fund
Levy Fund
(Active Priests)
Common Stock
Mensal Fund
Parochial
Restricted funds
Other Restricted
funds below
£25k each
Total of funds		 Balance at 1
January
2023
£
1,605,640
1,495,438
333,592
244,586
118,558
100,298
67,090
46,867
40,742
37,598
35,218
446,565
97,688
4,669,880
58,780,824		 Income
£
28,763
228,379
-
66,388
2,054
1,003
1,053
-
-
-
352
298,729
324
627,045
6,170,389		 Expenditure
£
(163,457)
(39,379)
32,123
(109,140)
-
-
-
(3,700)
-
(376)
(17,351)
(256,395)
(45,895)
(603,570)
(6,229,860)		 Transfers
in/out
£
71,556
-
-
5,000
100
-
-
-
-
376
15,000
-
3,566
95,598
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(749,671)		 Balance at
31
December
2023
£
1,542,502
1,684,438
365,715
206,834
120,712
101,301
68,143
43,167
40,742
37,598
33,219
488,899
55,683
4,788,953
57,971,682

Page 39

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

24. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

Unrestricted
funds
Designated
funds
St John of
Beverley
Designated fund
John Paul
Centre
Designated
Fund
Parochial
Designated
funds
General funds
Unrestricted
funds Parochial
Unrestricted
funds Curial
Revaluation
reserve Curial
Total
Unrestricted
funds		 As restated
Balance at
1 January
2022
£
587,089
440,768
392,212
1,420,069
34,555,278
11,945,616
4,543,596
51,044,490
52,464,559		 Income
£
-
14,947
-
14,947
3,852,969
1,425,107
-
5,278,076
5,293,023		 Expenditure
£
-
-
-
-
(3,328,745)
(1,899,412)
-
(5,228,157)
(5,228,157)		 Transfers
in/out
£
-
-
-
-
37,321
(27,150)
-
10,171
10,171		 Gains/
(Losses)
£
-
(110,402)
-
(110,402)
1,833,799
(2,009,043)
1,856,994
1,681,750
1,571,348		 Balance at
31
December
2022
£
587,089
345,313
392,212
1,324,614
36,950,622
9,435,118
6,400,590
52,786,330
54,110,944

Page 40

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

24. STATEMENT OF FUNDS (CONTINUED)

Restricted
funds
Retired Priests
Welfare Fund
Priests' Training
Fund
Lacy Fund
Lourdes Sick
Fund
Catholic Child
Care
Cecil H Walker
Memorial Fund
Mike McCullagh
Memorial Trust
Fund
Mathias Smyth
Memorial
Masses Fund
Levy Fund
(Active Priests)
Common Stock
Mensal Fund
Church
Extension Fund
Parochial
Restricted funds
Other Restricted
funds below
£25k each
Total of funds		 As restated
Balance at
1 January
2022
£
1,585,597
1,061,369
300,379
252,885
119,608
99,305
63,812
50,467
40,742
37,598
30,400
44,360
416,892
137,248
4,240,662
56,705,221		 Income
£
90,569
500,199
-
22,224
1,707
993
861
-
-
-
304
-
228,283
851
845,991
6,139,014		 Expenditure
£
(86,382)
(36,591)
33,213
(35,523)
(2,857)
-
-
(3,600)
-
(376)
4,514
-
(198,610)
(65,733)
(391,945)
(5,620,102)		 Transfers
in/out
£
15,856
(12,465)
-
5,000
100
-
-
-
-
376
-
(44,360)
-
25,322
(10,171)
-		 Gains/
(Losses)
£
-
(17,074)
-
-
-
-
2,417
-
-
-
-
-
-
-
(14,657)
1,556,691		 Balance at
31
December
2022
£
1,605,640
1,495,438
333,592
244,586
118,558
100,298
67,090
46,867
40,742
37,598
35,218
-
446,565
97,688
4,669,880
58,780,824

Page 41

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

24. STATEMENT OF FUNDS (CONTINUED)

Designated funds

These represent funds set aside for the maintenance of buildings.

Unrestricted Funds

These include both Parish and Curial funds which are shown separately. The revaluation reserve reflects the difference between the historic cost and current fair value on the investment properties held within Curial funds. The historic cost of the Parish Investment properties is not known and therefore no revaluation reserve is provided.

Restricted Funds

Retired Priests Welfare Fund

A fund set up in 1996 to provide support upon retirement for incardinated Diocesan Priests.

Priests Training Fund

For training students for the priesthood of this Diocese.

Lacy Fund

To meet pension requirements of retired clergy.

Lourdes Sick Fund

For pilgrimages to Lourdes.

Catholic Child Care

Provides a fostering and adoption service.

Cecil H Walker Memorial Fund

For the support of retired priests of the Diocese; in particular those who have spent part or all of their ministry in the Southern areas of the Diocese.

Mike McCullagh Memorial Trust Fund

Supporting junior football, prison visiting and sick children in the Tees Valley.

Mathias Smyth Memorial Masses Fund

Masses for the repose of the souls of Matthias Smyth and his family.

Levy Fund (Active Priests)

To provide a pension for each active priest on their retirement.

Mensal Fund

Deals with the income and costs of the Bishop of Middlesbrough and his administration.

Church Extension Fund

To assist the new churches and Mass centres of the Diocese.

Parochial Restricted Funds

Restricted funds belong to the individual parishes.

Page 42

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

25. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2023
£
Tangible fixed assets
10,252,905
Fixed asset investments
5,995,134
Investment property
37,491,960
Debtors due after more than one year
687,425
Current assets
13,039,392
Creditors due within one year
(13,860,952)
Creditors due in more than one year
(423,135)
Total
53,182,729
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Unrestricted
funds
2022
£
Tangible fixed assets
9,980,194
Fixed asset investments
6,299,412
Investment property
37,207,847
Debtors due after more than one year
686,952
Current assets
14,107,182
Creditors due within one year
(13,719,557)
Creditors due in more than one year
(451,086)
Total
54,110,944		 Restricted
funds
2023
£
-
-
-
-
4,788,953
-
-
4,788,953
Restricted
funds
2022
£
-
-
-
-
4,669,880
-
-
4,669,880		 Total
funds
2023
£
10,252,905
5,995,134
37,491,960
687,425
17,828,345
(13,860,952)
(423,135)
57,971,682
Total
funds
2022
£
9,980,194
6,299,412
37,207,847
686,952
18,777,062
(13,719,557)
(451,086)
58,780,824
Tangible fixed assets
Fixed asset investments
Investment property
Debtors due after more than one year
Current assets
Creditors due within one year
Creditors due in more than one year
Total

Page 43

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

26. AMOUNTS DUE TO & FROM PARISHES FROM CURIAL

Amounts
due to
Parishes		 Amounts
due from
Parishes		 Total
Balance at 1 January 2023 7,693,871 (3,753,578) 3,940,293
Parish Levy - (730,947) (730,947)
Legacy recieved 31,000 - 31,000
Expenditure by Diocese on behalf of Parishes (92,190) (16,830) (109,020)
Transfers and repayments of loans 39,750 242,547 282,297
Sale of property 118,200 - 118,200
Rent and interest 145,761 9,570 155,331
Balance at 31 December 2023 7,936,392 (4,249,238) 3,687,154

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 27. ACTIVITIES

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Gains on investments
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease/(increase) in debtors
Increase in creditors
Loss on sale of investment property
Net cash used in operating activities		 2023
£
(809,142)
184,488
702,730
(1,894,713)
-
(18,446)
743,252
46,941
(1,044,890)		 2022
£
2,075,603
171,840
(1,727,742)
(1,703,756)
3,880
116,993
732,581
-
(330,601)

Page 44

DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

28. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
Overdraft facility repayable on demand
Total cash and cash equivalents		 2023
£
12,730,601
(6,270,654)
6,459,947		 2022
£
13,592,181
(6,672,511)
6,919,670

29. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand
Bank overdrafts repayable on demand
Debt due within 1 year
Debt due after 1 year
Liquid investments		 At 1
January
2023
£
13,592,181
(6,672,511)
(5,916,991)
(451,086)
4,603,942
5,155,535		 Cash flows
£
(861,580)
401,857
200,000
27,951
(105,110)
(336,882)		 At 31
December
2023
£
12,730,601
(6,270,654)
(5,716,991)
(423,135)
4,498,832
4,818,653

30. PENSION COMMITMENTS

The Diocese contributes 6% of gross salary to a group personal pension scheme for staff who elect to join. The scheme is a defined contributions scheme for which the Diocese is neither liable to finance any funding shortfall nor entitled to benefit from any over funding. At the year end pension contibutions outstanding were £4,325 (2022: £3,091).

Eligible teachers and former teachers subscribe to the Teacher's Pension Scheme (TPS) supperannuation scheme which is a defined benefits scheme. The employer's contibution is set by the TPS. The TPS represents a collective scheme as it is not possible to separately identify the assets and liabiliites attributable to a particular employer. Hence the employer has neither a committment to make good any actuarial deficit nor an entitlement to benefit from any over funding. Under the provisions of FRS102 the accounting treatment for the TPS scheme is as if the scheme were a defined contributions scheme. The pension charge for the year includes contributions payable to the TPS of £36,071 and at the year end £4,325 (2022: £3,091) was accrued in respect of contributions to this scheme (Included in total above).

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DIOCESE OF MIDDLESBROUGH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

31. RELATED PARTY TRANSACTIONS

During the year purchases of £2,500 and sales of £11,213 were made to companies in which Directors of the Diocese of Middlesbrough Trustee are involved as either Trustee or Director. At the year end £900 (2022: £9,000) was included in Creditors and £80 (2022: £nil) in Debtors in respect of these companies.

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