OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-04-05-accounts

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST

ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED

5 APRIL 2022

Registered charity number 0234331

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022

Contents

Trustees and advisors 3
Report of the trustees 4
Independent auditor’s report 15
Consolidated statement of financial
activities		 18
Charity statement of financial
activities		 19
Consolidated & charity balance
sheets		 20
Consolidated cash flow statement 21
Notes to the financial statements 22 - 51

2

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022

TRUSTEES AND ADVISORS

The Charity is governed by a Trust Deed dated 31 July 1934 (as subsequently amended by schemes of the Charity Commission) and is registered by the Charity Commission of England and Wales as charity number 234331. The Diocese was created by the Holy See in 1924, the northern area formerly having been within the Diocese of Hexham and Newcastle and the southern area having been within the Archdiocese of Liverpool.

Address

Lancaster Roman Catholic Diocesan Trust The Pastoral Centre Balmoral Road Lancaster LA1 3BT

Trustee

The sole trustee is the Lancaster Roman Catholic Diocesan Trustees Registered a body incorporated under the Charitable Trustees Incorporation Act 1872 (now Part 12 of the Charities Act 2011).

The individuals appointed to the corporate trustee body and known as trustees are:

Who served during the year

Right Rev Bishop P Swarbrick Rev M Docherty Rev Canon P Embery Rev Canon P Hart Rev F Olaseni (resigned 31/01/22) Sister R Thomas Mr P Briers Mr M Callagher Mr M Forrest Mrs L Forster (appointed 01/09/21) Mrs S Greenwood (appointed 01/12/21) Ms N Wisdom

Financial Administrator

Reverend Canon P Hart

Secretary

Ms K Heaton-Brown

Auditors

MHA Moore & Smalley Richard House 9 Winckley Square Preston PR1 3HP

Solicitors

BSG Solicitors 3 & 4 Aalborg Square Lancaster LA1 1GG

Investment managers

Quilter Cheviot One Kingsway London WC2B 6AN

Bankers

HSBC Bank plc 35 Market Street Lancaster LA1 1JQ

3

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

Aims and objectives

The principal purpose of the charity is the furtherance of the Catholic religion within the Diocese of Lancaster. This is achieved by such charitable purposes as the Bishop of Lancaster, in his absolute discretion, shall think fit in accordance with the Trust Deed, the principal objectives of which are as follows:

Organisation, governance and decision-making

The Diocese of Lancaster has at present 71 parishes with regular services available in around 100 churches and chapels and 80 schools (a mix of academies and VA schools) throughout the whole of the county of Cumbria and those parts of Lancashire, north of the River Ribble and the west of the Pennines. The communities served by the charity are quite diverse and include towns/cities in Cumbria such as Barrow, Workington, Carlisle and Whitehaven and the whole of the Lake District. In urban areas, parishes might be just a few square miles in size, whereas in the more rural parts of Cumbria parishes can be 200+ square miles. In Lancashire the coastal resorts of Blackpool and Morecambe fall within our boundaries, as does the city of Preston.

Although a clear structure of accountability and authority exists within the Catholic Church, as far as possible, day-today decision-making and actual pastoral practice takes place at local level in accordance with diocesan policies and wider Church beliefs. Individuals are encouraged to be involved with the delivery and planning of the services that our parishes provide to local communities. Parishes are, for example, expected to have various committees to advise priestleaders on finance and property as well as the care of the charity’s beneficiaries. As there are declining numbers of priests in this country, local communities are increasingly taking a greater responsibility in the running of their parishes. Whilst the trustees of the charity have overall responsibility in civil law matters, many of these local committees are constituted in Church Law, and act in an advisory capacity to Parish Priests/Priests in Charge; however their work to support their Parish Priests/Priests in Charge and the trustees in their own responsibilities is invaluable.

Meetings of the board of trustees, at which the operation of the charity is discussed, are held every two months. Although overall governance is vested with this body, its decision-making is informed by the work of sub-committees through their regular reports. Trustees play a significant role on each of the charity’s main sub-committees.

The principle sub-committees are:

Trustees’ Safeguarding Sub-Committee

The diocese and its trustees are committed to safeguarding children, young people and adults at risk in accordance with civil and national Church guidelines.

4

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

The Lancaster Diocesan Trustees’ Safeguarding Sub-committee oversee safeguarding matters in accordance with recommendations arising from the recent ICSSA enquiry into historic sexual abuse. The diocese is working towards full compliance with the newly developed national catholic safeguarding standards. The Safeguarding Sub-Committee will oversee the necessary governance arrangements in order to monitor that procedures are followed and best practise is developed and maintained. The diocese will be subject to audit by the National Catholic Standards Agency (CSSA) which has regulatory, advisory and audit functions.

Day to day safeguarding work is undertaken by the Diocesan Safeguarding Coordinator whose responsibilities includes oversight of the creation and continuation of a safe environment throughout the diocese; responding when concerns are raised and undertaking the necessary liaison with statutory agencies; supporting those hurt by abuse and managing those church personnel who have caused harm. Each parish has one or more safeguarding representatives .

Finance Sub-Committee

This committee, which is supported by a Certified Accountant who is a diocesan officer, monitors the day to day financial activities of the charity, particularly its liquidity and financial health, setting and controlling the central diocesan budget, and monitors delegated expenditure by parishes (up to £8,000 per project or item). The diocesan office, that this committee supervises, processes most of the charity’s Gift Aid claims and the ‘annual financial returns’ submitted from parishes and other bodies; these are then consolidated into these main charity accounts. The charity’s strategies against fraud (and possible bribery) also sit with this committee. The committee does not of itself currently have delegated spending powers; it is also responsible for liaising with the charity’s external auditors. The Finance Committee in conjunction with the Property Committee is delegated to approve expenditure on individual property maintenance projects costing up to £25,000. Both committees must agree otherwise the matter is to be referred to the board of trustees.

Property and Health & Safety Sub-Committee

This committee is supported by a qualified surveyor, who is also a diocesan officer, examines and makes judgment on the appropriateness, and the value for money of, property projects submitted by the trustees, or parishes of the diocese. Again, parishes must come to the trustees with any projects over £8,000 in value. The committee also examines proposed leases, and land sales or purchases in accordance with best practice and Charity Law. Currently, all proposed leases (and projects over £8,000) are ratified by the full trustee body. The Property Committee in conjunction with the Finance Committee is delegated to approve expenditure on individual property maintenance projects costing up to £25,000. Both committees must agree otherwise the matter is to be referred to the board of trustees.

This sub-committee ensure that the statutory duties under the Health and Safety at Work Act 1974 and other relevant statutory instruments are met within the Diocese of Lancaster. It will represent the diocese on health and safety and act to protect the health and safety of the clergy, diocesan employees and other people who might be affected by their business within the Diocese of Lancaster. We continue to develop the computerised system introduced across the diocese for the evaluation, monitoring and reporting of health and safety at each “site” operated. Training and health and safety advice and support is provided with this system.

Investment Sub-Committee

Members are drawn primarily from the Finance Sub-Committee and the diocesan Faith and Justice Commission. This sub-committee is responsible for setting policy and monitoring performance of the charity’s investments, most of which are designated to individual parishes, but are under the control of the charity in civil law. The portfolio of investments is managed externally by professional investment fund managers. The charity was one of the first Catholic dioceses to introduce an ethical and socially responsible investment strategy, and it uses an ethical screening service to this end. The portfolio manager issues a quarterly report of investment performance and an ethical screening report twice yearly as well as meeting face-to-face annually. The investment manager ensures that the portfolio complies with the Diocesan Ethical Policy. The charity is a member of the Church Investors Group (CIG), a collective of faith-based investors seeking to pro-actively engage with companies regarding their own corporate and social responsibilities, rather than just simply avoiding investing in them.

Board of Education and Formation

The Education Service supports 80 schools to ensure that they are successful and act in accordance with the Trust Deed of the Diocese. This involves offering advice and direction on a broad range of educational matters such as, Religious Education and curriculum issues, Catholic Life of a school, staffing and recruitment, governance, admissions, capital and academy developments. The Diocesan Schools Commissioner works closely with the Catholic Education Service, the Regional Schools Commissioners (North and Northwest), Parishes, Local Authorities, and the Department for Education to secure the best support for the schools of the Diocese.

5

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

Our Catholic schools and sixth form college have an important part to play in the mission of the Church. Our Diocesan schools make a strong contribution to education in Cumbria and North Lancashire. They exist so that the Gospel of Jesus Christ is announced to future generations. As Bishop Paul Swarbrick says, “Our Catholic schools have been the bedrock of our mission to make Jesus Christ known and loved in our communities for nearly two centuries. The past two years have highlighted how vital our schools are and how their work and witness reveal Jesus Christ's presence in their locality. Our schools are an integral and critical part of the Diocese of Lancaster's mission”.

School Buildings Committee

This monitors the repair and development budgets for school buildings in the diocese, which are part of the voluntary sector. In the voluntary sector, building work is commissioned by the governors/schools with the State paying up to 90% of eventual costs in grant-aid. This is provided in the form of an annual budgeted amount of ‘SCA’ money, which is then bid for by schools through a local committee process, aided by a professional officer, so as to prioritise projects according to need, and to ensure best value for the taxpayer.

Diocesan Youth Service Management Group

Currently two trustees serve with others on this committee which oversees the direction and management of our Diocesan Youth Service. Youth Service staff co-ordinate and train volunteers in the parishes and assist with the organisation of events for young people, including the diocesan pilgrimage to Lourdes where our youngsters learn to work with elderly, sick and disabled individuals and groups. The residential diocesan youth centre at Castlerigg in Keswick, which has been open for more than 40 years, draws together young people from schools and parishes from all over the Diocese and beyond – supporting both Catholics and those not of our tradition alike. The centre helps educate young people in order to develop their physical, mental, moral and spiritual abilities so that they grow up to enable them to contribute positively to society as well as helping them achieve their potential as human beings.

Other diocesan commissions and agencies

See below for information on other diocesan commissions and agencies.

Trustees

In accordance with clause 15 of the Trust Deed, new trustees are appointed by resolution of the trustees but only with and subject to the approval of the Bishop of Lancaster. Trustees are appointed with a view to the overall needs of the Diocese, and also taking into account their skills and backgrounds. Recruitment is undertaken internally or externally whenever a vacancy arises, or at any time, so as to ensure there is an appropriate pastoral and professional representation including educational, finance, accountancy, legal and property experience. Trustees are not expected to have knowledge of all the operations of the charity upon appointment, but will learn about these through the way trustees’ meetings are conducted as well as by serving on sub-committees. The responsibilities of trustees in law are clearly explained on the Charity Commission website, and training opportunities are offered as appropriate; though it is appreciated that many trustees are already in full-time employment.

The central administration of the charity has paid qualified staff supporting the work of the trustees. There are also a large number of volunteers working at every level within the charity, many of whom have considerable professional experience. We estimate (broadly) that volunteers provide a full-time equivalent of 75 employees, representing a donation of time equivalent to at least £1.5m throughout each year.

Subsidiary entities

The charity has a number of subsidiary charities and limited liability companies that it controls. Details of these are given in note 2. The subsidiary charities have similar aims to those of the Diocese of Lancaster. The limited companies carry out trading activities mainly that of social centres and clubs. The financial results of all of these subsidiary entities are consolidated into the group accounts.

Investment powers, policy and performance

The trustees' investment powers are governed by the Trustees Act 2000. By an Order of the Charity Commission dated 10th January 1996, the trustees were empowered to delegate certain management and dealing authority to their investment manager. Investments generally comprise a mix of UK FTSE 350 equities, UK gilts, cash and unit trusts. Individual investments conform to the Trustees Investment Policy which includes criteria established in accordance with the Diocesan Ethical Investment Policy which is reviewed regularly. The return on investments in recent years has been good when considered against comparable benchmarking. The trustees are satisfied that the capital performance and income generated are more than satisfactory and meet our current needs and strategies.

6

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

It is noted that bank interest on cash balances has remained at an historic low for a period of years. As the charity is a net ‘saver’ rather than ‘borrower’ this has impacted on income generation from investments and reserves. The charity, however, has continued to perform relatively well.

Covid 19

Following the easing of restrictions all diocesan churches have now re-opened. Most are open for “business” as usual, though a few have opted to retain some limited changes. Although parish life has resumed it is noted that in all churches the numbers attending Mass are still lower than there were pre pandemic. This may be partly due to the continuing decline in church attendance, but many are still concerned about Covid 19 and are not attending public worship.

Although income has recovered, voluntary giving is still below pre pandemic levels which will be connected to reduced numbers at Mass. Cost have increased, but up to April 2022 they were still below pre pandemic levels and are expected to increase significantly as a result of well known worldwide economic issues.

Planning for the future

In line with many other Catholic dioceses in England and Wales, the charity is facing the issue of how best to deliver its services for stakeholders against the backdrop of declining numbers at church. Buildings for worship were often constructed in years gone by when demographics were quite different to today and when the principles of design were also quite different.

Our church buildings and parish communities have a special place in the hearts of many Catholics; therefore the capacity to adapt to changing circumstances does not always come easy, and the Bishop together with the trustees recognise this when plans for the future are being considered. An important strategic review document, formed after extensive consultation, ‘Fit for Mission?’ remains the blueprint for many of the changes that necessarily have to take place.

Our schools however remain popular, with overall pupil numbers broadly static. Many of our schools serve areas of relative social deprivation. We also have well-used church halls across the diocese, many of which are used by the wider community for non-religious use.

Review of activities – general

The activities of the charity are carried out in three main areas: parishes, schools and diocesan. All are directed towards promoting the Faith and spreading the Word of God. Although most direct contact with beneficiaries is via parishes and schools there is a significant amount provided by the diocese which also provides support to the schools and parishes. It is difficult to quantify the Spiritual “success” of these activities but most parishes remain well supported despite the overall decline in Mass attendance and the number on roll at schools remain high. It is also difficult to gauge the financial benefit of activities. How can the “success “of rich and poor parishes be compared?

Review of activities - parishes

Most of the charity’s beneficiaries’ contact with the charity is at local level; that is our parishes. The reach and impact of parish ministry includes contact with people in schools, hospitals, higher education establishments and prisons. As well as religious services, parishes provide many additional activities including youth groups, social groups, and important support for some of the most vulnerable in our society.

Practical support for those in need, both at home and abroad, feature prominently in the regular activities of many parishes. Although many parish activities nourish those who attend church or are closely connected to it, the evangelising nature of the Gospel imperative and the call to service mean that our parishes are also outward-looking communities with a sense of contributing to the common good of the wider community and building-up ‘social capital’. Parishes have a degree of autonomy within the charity, not least because locally delivered services are best planned and delivered by local people. Each parish has its own bank account and is responsible for its own income and expenditure, according to the principle of subsidiarity. Financial records are also kept locally, with annual financial returns being submitted. Independent Financial Examiners are appointed in each parish and a number of parishes are randomly selected for more detailed external audit each year. All bank balances and account transactions can be viewed centrally for monitoring purposes, with an alert system in place for any unusual or significant transactions.

There are at present 55 priests working in the diocese, together with 9 priests on loan to us from elsewhere. We have 38 retired priests for whom we care. Some priests and sisters from religious communities have a presence in the diocese, either working with the charity or doing similar work under their own auspices.

7

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

The Diocese has undertaken a number of initiatives to welcome more religious priests and sisters to minister in our community. Their presence in the Diocese adds a new and vibrant element which will be beneficial to the Diocesan Family. Any overseas religious coming to the Diocese comply with all immigration and safeguarding requirements.

The diocese is aware that immigration is an important national issue, and always seeks, as a recognised Level 1 Sponsoring Body, to only invite an appropriate number of individuals into the country. These have clearly defined religious roles and the diocese undertakes to provide for their upkeep. Thanks are due to the United Kingdom Visa and Immigration Office for the role they play. It should be noted that such invitations are to complement the work done by indigenous priests and religious communities, not replace it. Our strategy for promoting vocations to priesthood remains at the forefront of our minds, though it is recognised that this ‘career’ does not fit neatly into usual ‘recruitment’ models or remuneration packages.

Review of activities - diocese

In addition to the principal trustees’ sub-committees listed above, diocesan structures exist to support and implement the decisions of the trustees generally, and the Bishop specifically. These include a range of committees, service delivery bodies, advisory boards and commissions to provide assistance to the Bishop in his ministry of oversight and service within the diocese. There are also a number of funds managed at diocesan level for the general benefit of the diocese as a whole; these include:

Faith & Justice Commission

The commission works with parishes, schools and youth groups throughout the diocese in promoting justice and peace issues, particularly in raising awareness and encouraging involvement with these. Significant emphasis is placed on a greater understanding of world development. The commission organises conferences and produces regular newsletters for the people of the diocese. A part-time worker is employed to support this work.

Sick & Retired Priests Care Fund

The diocese looks after its aged and infirm clergy through the Sick and Retired Priests Care Fund. This is a restricted fund whereby priests who are recovering from illness are also provided for. The fund provides a discretionary retirement grant for priests no longer in active ministry, and a home where needed. Some retired priests are able to continue serving the diocesan community in a reduced role providing occasional help. The fund provides support for some retired housekeepers and also manages residential properties for retired clergy situated in the diocese.

Whilst many priests generously continue to serve past conventional retirement age (75 for clergy in Church Law), we do have an increasing number of those retired due to longevity of life and medical advances. Care of these priests is included as an integral part of the diocesan Trust Deed.

Ecclesiastical Education Fund

This (restricted) fund provides financial support for the selection and formation of students preparing for the Priesthood and for the Permanent Diaconate in the diocese. Currently we have three students in training for the Diocesan Priesthood. It also supports ongoing formation of the clergy and provides for priests undertaking postgraduate studies in the UK or abroad. The fund also supports the Vocations Directors for Priesthood and the Permanent Diaconate and their teams in the work of promoting vocations.

Lancaster Diocesan Pilgrimage Trust

The Pilgrimage Trust oversees the annual diocesan pilgrimage to Lourdes for the sick and disabled pilgrims and their families. The pilgrimages are extensively supported by the young people and volunteer medics and carers of the diocese who assist in the care and transporting of the sick and disabled. Due to the Covid 19 pandemic the pilgrimages planned for July 2020 and July 2021 have been cancelled. A successful pilgrimage was held in July 2022.

Public benefit

The Charities Act 2006 has included "Public Benefit" in the definition of a charitable purpose, such that all organisations wishing to be recognised as charities must demonstrate explicitly that their aims are for the public benefit. Based on the Charity Commission guidance, specific examples of a public benefit include the advancement of religion, the advancement of education, the prevention or relief from poverty, the relief of those in need by reason of youth, age, ill health, disability, financial hardship etc. As a "mainstream" religious denomination (and that religion has been stated by parliament to be a charitable purpose) the trustees are confident that the existing aims and activities of the charity, as set out above, sit comfortably within the Charity Commission guidelines.

Many parishes have outreach groups/activities committed to actively working for the needy in their locality. As far as is possible, practical help is given at the point of need, rather than to schemes and projects, though the latter also often happens. Many parishes in urban areas are now involved with local food banks.

8

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

International aid also features in the activities of many parishes, usually using existing recognised charities established for this purpose (e.g. CAFOD), or through religious orders who have people on the ground to ensure that aid is used for the purpose it is given. Some parishes have formal links with the projects they support and this ensures good communication and education about the issues facing people in difficult situations abroad.

It should also be recognised that well over 1,000 weekly visits are made to the elderly in their homes throughout the year. We also have teams of chaplains working in hospitals (often on 0.2 of a post) and other healthcare facilities; with many of the clergy working in these places offering a round-the-clock availability throughout the year. These are usually helped by volunteer visitors.

One of the principal activities within each parish is the celebration of Mass by the parish priests. Approximately 9,000 (December 2021) people attend Sunday Mass within our Diocese. But parish priests do far more than celebrate Mass: they are active leaders in our communities and many of our clergy are involved with people at important times of their lives, such as births, marriages and bereavement. Although a church service may take only one hour, this is usually preceded by several hours of contact and preparation with those concerned. Most clergy are involved in personal counselling, even if informally; others have trained to use sign-language to provide spiritual support to those who have serious hearing impairments. There is clear evidence that the majority of our schools - which are open to non-Catholics as well as Catholics - produce good results, both academically and socially. Although our schools are denominational in nature, OFSTED reports often comment on their positive achievements in areas of social inclusion, community cohesion, mutual respect and understanding, and promoting citizenship. Faith groups also provide important support and anchor points for persons who are new to the country. One of the strengths of church communities is that they provide community ‘anchor-points’; this often includes the church building itself, which has sometimes been used by generations of the same family. Of its nature, the Church does not only look after its ‘own’, but serves the wider locality; it is difficult to gauge the full amount of social investment that is accumulated from the efforts of people of faith, not least because they often do their work deliberately unnoticed and unsung. We know that many parishioners are involved in other local charitable endeavours which may or may not have any faith connection.

The stability of parish life is important in a changing world, but that does not mean that local communities are not responding to changing times. Some youth groups, for example have been around for many years with inflow and outflow of young people; other activities for young people are established in the knowledge that they will have a timespan to serve a particular group of young people, who will inevitably move on to other things as they get older or move to university.

It is worth mentioning that many church communities collaborate with other non-Catholic church communities in social projects, so that the interaction generated avoids duplication and best allows delivery of a quality service. One such project includes the ‘Street Pastors’ initiative which puts volunteers on the streets of cities and towns at night to coincide with young adults’ social activities. The initiative not only provides a listening ear, but often helps people get home more safely, and also frees up the emergency services to deal with more pressing matters – such initiatives are always done in partnership with the local authority and the Police.

Our Lake District churches and youth centre serve people who come to the area for recreation. Similarly, those coming to seaside resorts such as Blackpool and Morecambe, often come to services during their stay and receive hospitality.

Charitable objectives

The principal objectives of the charity are the provision of churches, religious services, halls, welfare of clergy, relief of poverty and education. The days of diocesan expansion through construction of new church buildings are all but over. The challenge now is to keep existing places of worship open in the context of declining numbers of worshippers and fewer clergy. Creative twinning or merging of parishes is an on-going process, led by the diocesan bishop, who has the primary responsibility for the conduct of public religious worship. It is also true that use of motor vehicles generally aids mobility and facilitates journeying to other Catholic churches further afield; this being said, there is still great loyalty to local parishes.

The charity continues to respond to developments in education. Our one sixth form college and 11 secondary schools and 69 primary schools, some of which are in socially deprived areas, are run by good staff and are overseen by volunteer governing bodies. Generally, OFSTED reports are very positive with some outstanding schools being identified, or good schools with some outstanding features. The provision of an academy support trust, and close liaison with local authorities by the Diocesan Education Service helps to ensure that our faith-led education sector keeps up with change and is able to respond to developing needs quickly.

Our diocesan priests are required to take on more work as their numbers decline. The boom years for clergy were the 1960’s and early 1970’s. Since then the ratio of priests to people nationally has returned to where it was for much of

9

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

the late 1800’s and early 1900’s (that is 1:750). However, we now have more churches open than 100 years ago, all of which need staffing (even if part-time). In common with other dioceses and denominations, clergy are developing new ways of working to ensure the provision of quality and quantity of worship and pastoral services to our beneficiaries, which includes an ever greater use of lay leadership and deacons. At the same time, our clergy are to be commended, that they have not withdrawn from other areas of pastoral ministry to prisons, hospitals and schools for example.

Serious incident reporting

No serious incidents have been reported during the year of review.

Review of financial performance

The group (including social clubs) reported a surplus, before investment gains, of £468k for the year (2021: deficit of £681k).

The charity (parishes and central diocese only) reported a surplus of £412k (2021: deficit £523k). The surplus includes gains on sale of assets (surplus properties) of £537k (2021: loss on sale of assets of £365k). Without the sale of surplus assets then the charity would have reported a loss of £125k.

There was an increase in the market value of group investments £1.19m (2021: increase £7.94m) which was further recovery of losses attributed to the effects of the Covid 19 pandemic. The value of investments fell heavily post year end as a result of general market conditions. The market value of group investments at 5 April 2022 was £35.4m compared to £33.8m at 5 April 2021.

At the end of the financial year, the diocese had net positive group credit bank balances of £13.68m (2021 £12.62m), including cash balances of £652k (2021:£149k) held as part of the investment portfolio.

The following is a summary of the financial performance of the Diocesan charity for the last six years:-

Net results of the charity
Gains/(losses) on investment
Net movement in funds		 2022
2021
2020
2019
2018
2017
£000
£000
£000
£000
£000
£000
412
(523)
(2,647)
4,998
737
1,524
1,118
7,558
(4,164)
(348)
88
990
1,530
7,035
(6,811)
4,650
825
2,514

Total charity funds at 5 April 2022 were £81.17m (2021: £79.65m) and total group funds were £83.85m (2021: £82.19m).

Income

Total charity incoming resources were £7.85m (2021 £10.50m, reducing to £6.29m when receipts relating to Newman School excluded) and the charity reported a surplus on activities of £412k (2021: deficit of £523k reducing to £80k deficit excluding Newman School transactions). There was an increase in the value of investments and the unrealised gain on these for the charity was £1.19m (2021: gain £7.56m) resulting in total fund movement (increase) of £1.53m (2021: increase £7.04m). There was a gain on disposal of assets of £537k compared to a loss of £365k for 2021.

There has been a decrease in voluntary income streams of the charity with the total of donations and legacies decreasing from £4.38m to £4.05m. Legacy receipts decreased from £1.18m to £405k. Donations received increased slightly from £699k to £705k. Income from Charitable Activities has increased overall from £686k (excluding £3.64m grants and £575k insurance receipts re Newman School) to £1.4m.This increase reflect the return to more normal activities following lifting of Covid 19 restrictions.

Mass offertory collections have increased from £1.81m to £2.18m. The increase is due to churches now being fully following the lifting of restrictions but Mass offertory and Mass attendance remain below pre Covid 19 pandemic levels. There is an underlying downward decline in Mass attendance which has been the trend for a number of years now.

The average giving per head for 2020 was £3.25 based on the reported Mass attendance figure of approximately 14,800 (December 2019) per week, before Gift Aid, and not including other donations. A meaningful calculation of the current giving per head is not possible as the data is skewed by the effects of Covid 19 on Mass attendance. We do not anticipate the average giving per head to have changed significantly.

As the name suggests, ‘voluntary donations’ or ‘donations’ are at the discretion of the donor, and at the present time pushing for more, especially in poorer communities might be deemed inappropriate. However, the trustees note that

10

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

other charities have had to respond to drops in their income by developing new methods of fundraising. The scope for this within church on a Sunday is limited, but a possible fundraising initiative in the future might be adopted.

Thanks are due to our parishioners and other donors for their continued and generous support, particularly during the exceptional circumstance resulting from the Covid 19 pandemic

Income from stock and share investments showed an increase from £694k in 2021 to £828k for 2022. Although bank interest rates are increasing the charity does not have any funds held in interest bearing deposits at present.

Trading/cost of raising funds

The trustees do not consider that the charity has any trading income and that any sale of goods etc is from charitable activities and such activities are fund raising and not trading. Such income only forms a small part of the charity’s total income. Although the charity has used the standard SORP heading “Other trading activities” which include “social clubs” and “fund raising – fetes etc”, the income from these is not trading income. The trading of parish centre bars and proprietary parish clubs is operated through separate limited companies the results of which are consolidated in the group accounts.

Donated goods form only a very small amount of charity income, although there is no practical method of valuing donated goods, but the total value of these is not expected to be significant. Many of these would be given as raffle prizes.

Expenditure

Resources expended by the charity in 2022 were £7.43m and the comparable figure for 2021, excluding costs relating to Newman school is £6.37m. The cost of the provision of places of worship and other buildings, including repairs and maintenance, increased from £2.76m to £2.83m. The increase in expenditure is directly attributable to the re-opening of churches following the lifting of Covid 19 restrictions.

Two of the highest areas of expenditure are the provision of places of worship & ancillary buildings at £2.83m (2021: £2.76m), a significant number of which are listed buildings, and the provision of religious services and pastoral care at £1.99m (2021: £1.73m). These two cost headings account for approximately 65% (2021: 70%) of total expenditure (adjusted to exclude expenditure re Newman School) of the charity and equate to around 62% (2021 circa 71%) of the total income (excluding income relating to Newman School) of the charity. Percentages for the 2021 year have been skewed by the effect on income of the pandemic.

Overall there has been a small increase in most individual heads of expenditure as Church activity increased post Covid 19 restrictions removal. Some larger repair projects delayed due to the effect of the pandemic on supply chains and delivery. There will be a “catch up” in the coming years on such expenditure. Further costs will also rise at least short term due well documented inflationary increases and there will be little we can do to combat these price rises. It is noted that many church heating systems are out of date and inefficient. The age and listed status of many of our properties mean that locally installed renewables, such as solar power are not often possible to consider.

The charity rarely makes external grants from central diocese; however parishes have a degree of discretion in supporting local causes. Those organisations supported by central diocese include ecumenical partnerships, £12k (2021: £5k) and for the structures of the Catholic Church nationally £9k (2021: £86k). Total of grants, donations and levies for the charity as a whole amounted to £1.05m (2021: £497k) which includes an exceptional donation to education of £454k.

Staff costs

One employee of the charity received remuneration over £60,000. No trustee received payment for services as a trustee, though clergy trustees receive payments as office holders (i.e. clergy in active ministry).

We employ several professionals as senior management, to work in the central administration of the diocese in the areas of: financial management, property management, safeguarding and education. There is a total of 16 (2021: 15) professional staff and support staff with a total remuneration (including pension and National Insurance cost) of circa £461k (2021: £461k).

Again, it should be noted that some of our management, and most of the charity’s governance, is by the efforts of volunteers, many of whom have a lifetime of experience in their given field. This applies to the main trustee body, principal sub-committees and diocesan commissions. Parishes rely heavily on volunteers in all aspects of parish live. Total staff costs for the year were virtually unchanged at £1.04m (2021: £1.06m) with the majority of staff engaged by the parishes.

11

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

A total of £355k (2021: £403k) was paid to clergy as office holders in active ministry. The number of priests in active ministry has decreased from 68 to 64 as recorded at 5 April annually, including priests on loan from other religious orders, of which there were 9 at 5 April 2022 (9 as at April 2021). The decline in priest numbers is due to more priests retiring on reaching retirement age than there are men joining the priesthood. An increasing number of priests will retire in the coming years reducing further the number of priests in active ministry.

Staff pay is determined by the trustees for those staff not engaged at parish level. The trustees may decide directly or via one of the sub-committees or boards. The pay of parish staff is decided locally following available guidance from the trustees. The Diocese is committed to ensuring that all of its staff, wherever engaged, are remunerated at least to the living wage level.

Fund Raising

Fund raising within the diocesan charity is carried out at local parish or department level and there is no co-ordinated diocesan wide fund raising structure or activity. We do not use any professional fund raisers and are not registered with any fund raising body or organisation.

Local fund raising is usually by means of appeals made at public events such as Mass or by organising events such coffee mornings, sale or fetes for example. Appeals and events are organised by the Parish Priest or by parishioners on his behalf. A parish priest may on occasion approach an individual parishioner direct for support but this would be rare and by exception and only if the parishioner was well known to him.

Although these public events are open to all, the majority of those who attend are regular and well know supporters i.e. local parish congregations and are often social occasions as well as fund raising opportunities. The members of the congregation are all well known to and by the parish priest and many to each other. These close relationships allow for the easy identification of people who are vulnerable and to take appropriate action to protect them such as involving a family member if a person were to offer a large or unusual donation.

The Catholic Church has a long tradition of raising funds from its supporters. These supporters range from those who are very poor to those who are very wealthy and will include many vulnerable people. The Church has taken care to ensure the people can only give what they can afford and that donations are freely given. People are free to attend events or not, will not be pressurised to donate and will not be contacted at home.

The Diocesan Trustees do not have a formal system for monitoring of fund raising activities and due to the nature and widespread location of such activities it would not be possible or practicable to introduce one. The Trustees have not received any complaints regarding fund raising during the current financial year.

Reserves policy

The Diocesan Trustees recognises that the reserves of the Trust reflect the full range of activities across parishes and the diocese as a whole. There are funds that are held for specific purposes (restricted funds). Detailed records are held which identify the range of reserves for internal management purposes (see note 13), and it should be noted that the policy for the financial management of these reserves will vary with the purpose for which they are held.

Parish based reserves often reflect endowments or legacies from previous years, many of which have been given or established to provide for the longer-term costs associated with the care of often large and old buildings, some of which are ‘listed’ for the public benefit of the nation. It is also important to recognise that in the canon law of the Catholic Church, each parish is an individual entity and the designation of the particular finances of each entity has to be respected; therefore it is often not possible for cash-based funds to be simply moved from one part of the charity to another. However, given that a levy is paid on various sources of parish income to contribute to the costs of centrally provided diocesan services, then those parishes which are better off, or which have reserves are, in fact, contributing to the common good of all.

Generally speaking, the majority of regular voluntary donations by the charity’s beneficiaries and donors in parishes will be spent on the general purposes of the charity in that parish within a reasonably short amount of time as ‘revenue’ expenditure.

When a parish with unrestricted reserves in any asset class requires funding for a particular project, the trustees will consider using these reserves as either partial, or occasionally as full, funding for the project, whilst taking the longer term future of the parish and the overall diocesan position into account. However, some fundraising at local level is normally expected for significant projects, so that parish reserves are not exhausted all at once, unless this is absolutely necessary.

12

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES

Diocesan reserves reflect funds held for broader or group obligations, such as those for investing in the formation of future clergy and the care of sick and retired priests, as well as funds held for specific purposes. There is no doubt that the diocese needs to consider how these reserves can best be applied in the future to help support changes that will take place due to changes in demography, pastoral need and the actual practise of the faith from place to place (i.e. where the charity is committed to provide churches in order to maintain genuine accessibility by the charity’s beneficiaries, even where a particular church might be deemed financially non-viable as a standalone unit). It should be noted that the central diocesan administration does not presently hold any long term reserves itself, but has an internal historic debt to parishes, which represents previous expenditure. With the agreement of parishes, a long term plan is in place to repay this debt over an appropriate period, primarily using ‘windfall’ receipts.

The net asset distribution of the reserves set out in note 14 reflects conscious decisions which have been taken in respect of liquidity and longer term investment. Across the charity, banking and market based investment arrangements are pooled, and the trustees are satisfied that the unrestricted reserves are sufficiently liquid and under their control that they are able to fund the activities of the diocese for a period in excess of 12 months.

The charity is currently meeting all its pension contribution arrangements and is fully compliant with auto enrolment. All pension arrangements are contributory schemes there are no final salary schemes. Clergy retirement grants are paid from a separate restricted fund with its own management body. Its portfolio is also actively managed by Quilter Cheviot.

The total of group reserves, including endowment funds and restricted funds, at 5th April 2022 was £83.85m (2021: £82.19m) with £36.63m (2021: £36.72m) held in fixed assets, the majority of which is property; investments in shares/stocks £35.38m (2021: £33.8m) and £13.03m in cash at bank (2021: £12.46m).

Investments

Reserves are held in a number of different asset classes, which include cash, market-based investments and property. On occasion, reserves held in physical assets (land and buildings) may be converted from one asset class to another to provide a better income return.

As indicated above, parish reserve cash balances which are not needed for use in the medium-term future may be pooled with those reserves of others for investment purposes. Our investments, held predominantly in FTSE 350 companies, gilts and cash have performed quite well over several years. The portfolio valuation at 5th April 2022 was £35.38m (2021: £33.8m) including the investments of the restricted fund for Sick and Retired Priests valued at £3.76m (2021: £3.66m) which is held in a separate fund with a greater emphasis on the generation of income to provide a source of funding for our revenue obligations in this regard.

Our investment manager has a medium high balanced risk brief for potential progressive capital growth and income. In recent years the performance of our investments has compared favourably with the financial sector benchmarks considered by the Investment Committee. The main benchmark used is a composite index of income and capital return of FTSE 350 shares and Government Gilts on a weighted 75%/25%. Investment income of the Group for the year was £899k (2021: £733k) and unrealised capital gain was £1.19m (2021: £7.94m)

Risk management

The trustees actively review the major risks which they believe the charity is potentially exposed to, identifying the types of risk and the likelihood and potential impact of occurrence, as well as the steps that can be taken to mitigate against these. To mitigate risk the trustees maintain and regularly review a risk register and have put in place insurances, checks, controls and procedures which are communicated to parishes and other diocesan organisations.

A significant percentage of voluntary donations are in cash. Our external auditors select a number of parishes each year for audit. The audit includes a check on procedures for counting and banking cash donations, including separation of duties.

Staff in our Finance Office scrutinizes local bank account balances online daily, noting any significant account movements which are reported to the Finance Sub-committee. Urgent action will be taken to investigate any suspicious transactions or account activity immediately.

Property projects are monitored by the Property Sub-committee to prevent escalation of costs. Parishes are required to report significant variations on any project’s costs. School projects are also closely monitored through the School Building Committee.

At the present time, twenty one schools across the diocese have converted to academy status), with each school being part of one of three diocesan multi academy trusts. Several trustees are ‘members’ of each of these three academy trusts. The aim is for all diocesan schools to convert to academy status in due course. Although we have a good track

13

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 REPORT OF THE TRUSTEES record with our voluntary schools. academy status ￿ a area of risK esp8cialty as the direthrs of academy trusts are responsible for education standards aThJ financkql control. The on-going financlal and pastoral viabilty of a number of parishes eontinues to be a matter of COr￿ern. ￿ere a parish makes a financial loss for three years in a row, this is lomwlty reported to the trustees. The central administration budget is r￿nrtored nh)nthty aThJ a variance re￿ is presented to trustees. Tru$ts•8' r88pon8lbllltl•s In MspKt of Ihe financlal statoments The law applKable lo charl￿$ In ENJknd and Wa￿S rffjuires the trustees lo prepare flnanelal statements for each financial year which give a true and fair view of the finanual a¢tNrt￿$ of the charity during the year and ol its financial poshion al the end of the year. In preparing financrdl slatem8nts, gTriing a true and tdir vivw, the trustees Should follow bost practice ant1.'- select sultable a￿Unting polims and then appty them ¢￿s1$1entty, make judgements and estimates that a￿ reasonab￿ and prudent. stale whether appl￿ble accounting 5tsndards and statements of recommended practko have been followed. subiect lo any departures disdosed and explained in the financral $talem8nts, prepare the financral staletrY*nts on the going concern basis unless this basis is nol considered approprtat6. The Iru$tso$ are responsib￿ for keeping &o)unb'ng records whlch dlsclose with reasonable accuracy tha flnaneial

siIK)n of the charity and to ensure that the financial slatem8nts compty with the applicable law and provislons of the Trust Deeds. Thè trustses are also responsible for safeguarding the assets of the charity and for taking reasonable stsps lor the prevention and deteCt￿n of fraud and othL¥ irregularities Appolntment ol audltorn A resdulion lo re4ppoinl MHA Moore & Smal* as auditors will be o)nsKlered at a meeting of the tru8lee8. Rev Canon P Hart- Trustee Dats: 10th Januw 2023 14

THE INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE LANCASTER ROMAN CATHOLIC DIOCESAN TRUST

Opinion

We have audited the financial statements of the Lancaster Roman Catholic Diocesan Trust (the ‘parent charity’) and its subsidiaries (the 'group') for the year ended 5 April 2022 which comprise of the consolidated and parent charity statement of financial activities, the consolidated and parent charity balance sheets, the consolidated cash flow statement and notes to the financial statements, including 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).

Use of our report

This report is made solely to the charity’s trustees, as a body, 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 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.

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or 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 other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are 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.

15

THE INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE LANCASTER ROMAN CATHOLIC DIOCESAN TRUST

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group's and 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 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

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

Because of the industry in which the charity operates, we identified the following areas as those most likely to have an impact on the financial statements: Health and Safety (including safeguarding), employment law and compliance with the UK Charities Act.

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

16

NCASTER

ROMAN CATHOLIC DIOCESAN TRUST

https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.

MHA Moore and Smalley Statutory Auditor Richard House 9 Winckley Square Preston PR1 3HP

Date 1 February 2023

MHA Moore and Smalley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

17

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES

Note
INCOME FROM:
3.1
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
TOTAL

EXPENDITURE ON:
4.1
Raising funds
Charitable activities
Other
TOTAL

NET INCOME/(EXPENDITURE)
before other recognised gains

Net gains/(losses) on investments
10

NET INCOME/(EXPENDITURE)
Transfers between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
FUNDS CARRIED FORWARD		 Unrestricted
Funds
£000
3,717
459
1,139
547
533		 PARISH
Restricted
Funds
Endowment
£000
£000
124
-
111
-
-
-
-
15
-
-		 PARISH
Restricted
Funds
Endowment
£000
£000
124
-
111
-
-
-
-
15
-
-		 Total
£000
3,841
570
1,139
562
533		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
17
149
166
831
76
907
79
27
106
72
265
337
(1)
5
4		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
17
149
166
831
76
907
79
27
106
72
265
337
(1)
5
4		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
17
149
166
831
76
907
79
27
106
72
265
337
(1)
5
4		 GROUP
TOTAL		 Group
2021
£000
4,384
4,903
962
750
(323)
£000
4,007
1,477
1,245
899
537
6,395 235 15 6,645 998 522 1,520 8,165 10,676
295
5,318
6		 -
117
-		 -
-
-		 295
5,435
6		 75
1,418
-		 31
437
-
106
1,855
-		 370
10,987
-
401
7,290
6
5,619 117 - 5,736 1,493 468 1,961 7,697 11,357
776 118 15 909 (495) 54 (441) 468 (681)
754 - 23 777 73 339 412 7,942
1,189
1,530 118 38 1,686 (422) 393 (29) 1,657 7,261
(824) (21) (15) (860)
889		 (29)
860		 -
-
706 97 23 826 467 364 831 1,657 7,261
64,693 453 621 65,767 2,738 13,689 16,427 74,933
82,194
65,399 550 644 66,593 3,205 14,053 17,258 83,851 82,194

The Statement of Financial activities includes all recognised gains and losses in the year. All of the above relate to continuing activities. The notes to the accounts form part of the financial statements.

18

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 CHARITY STATEMENT OF FINACIAL ACTIVITIES

Notes
INCOME FROM:
3.2
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
TOTAL

EXPENDITURE ON:
4.2
Raising funds
Charitable activities
Other


NET INCOME/(EXPENDITURE)
before other recognised gains

Net gains/(losses) on investments
10

NET INCOME/(EXPENDITURE)
before transfers
Transfers between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
FUNDS CARRIED FORWARD		 Unrestricted
Funds
£000
3,717
385
971
547
532		 PARISH
Restricted
Funds
Endowment
£000
£000
124
-
112
-
-
-
-
15
-
-		 PARISH
Restricted
Funds
Endowment
£000
£000
124
-
112
-
-
-
-
15
-
-		 Total
£000
3,841
497
971
562
532		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
14
150
164
831
75
906
80
26
106
1
265
266
(2)
7
5		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
14
150
164
831
75
906
80
26
106
1
265
266
(2)
7
5		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
14
150
164
831
75
906
80
26
106
1
265
266
(2)
7
5		 CHARITY
TOTAL		 Charity
2021
£000
4,381
4,901
890
694
(365)
£000
4,005
1,403
1,077
828
537
6,152 236 15 6,403 924 523 1,447 7,850 10,501
84
5,316
-		 -
118
-		 -
-
-		 84
5,434
-		 38
1,415
-		 30
437
-		 68
1,852
 133
10,891
-
152
7,286
5,400 118 - 5,518 1,453 467 1,920 7,438 11,024
752 118 15 885 (529) 56 (473) 412 (523)
754 - 23 777 2 339 341 7,558
1,118
1,506 118 38 1,662 (527) 395 (132) 1,530 7,035
(817) (21) (15) (853) 884 (31) 853 -
-
689 97 23 809 357 364 721 1,530 7,035
64,541 453 621 65,615 342 13,689 14,031 72,611
79,646
65,230 550 644 66,424 699 14,053 14,752 81,176 79,646

The Statement of Financial activities includes all recognised gains and losses in the year. All of the above relate to continuing activities. The notes to the accounts form part of the financial statements.

19

���������������������������������������� ����������������������������������������������������������� ��������������

�����������
��������������
�����������
�������������
������
�������
�������������������
���������������������������������
�����
�
��
��
�������
��
����������
��������������������
������������������������������������
�����������
��
���������
�����
���������������������
��������������
������������������
��������������������
����������
����
����
����
����		 �����
����
����
������
������
������
��
���
������
������
�������
������
�����
������
������
���
������
�����
������
����
����
������
������
������
��
�����
������
������
�������
������
����
������
������
���
������
�����
������		 �����
����
����
������
������
������
��
���
������
������
�������
������
�����
������
������
���
������
�����
������
����
����
������
������
������
��
�����
������
������
�������
������
����
������
������
���
������
�����
������		 ������� ������� �������
����
����
������
������
������
��
���
������
������
�������
������
�����
������
������
���
������
�����
������		 ����
����
������
������
������
�
���
������
������
�������
������
�
������
������
���
������
���
������
����
����
������
������		 ����
����
������
������		 ����
����
������
������		 ����
����
������
������
������
��
���
������		 ������ ������ ������
��
�����
������		 �
���
������
������
�������		 �
�����
������
������ ������ ������
�������
������� �������
������ ������ ������
�		 ������
����� ���� �
������
������
���
������
���
������		 �
������ ������ ������
������
���
������
�����		 ������
���
������
�����		 ������
���
������
���
������
������ ������

������������������������������[���] ������������������������������������������� �� �� �� �� � �� �� ���� � ��������������

�������������������������������

����������������������������������� ���������

����������������������

����������������������������������

���

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 CONSOLIDATED CASH FLOW STATEMENT

2022
2021
£000
£000
Cash flows from operating activities
Net cash provided by (used in) operating activities
(526)
147


Cash flows from investing activities:

Dividends, interest and rents from investment
899
733

Proceeds from sale of property, plant & equipment
608
1,170

Purchase of property, plant & equipment
(18)
(5)

Proceeds of sale of investments
9,590
1,900

Purchase of investments
(9,484)
(4,170)

Net cash provided by (used in) investing activities
1,069
(225)

Cash flows from financing activities:

Repayment of borrowing
-
-
Cash inflows from new borrowing
-
-
Net cash provided by (used in) financing activities
-
-

Change in cash and cash equivalents in the reporting period
1,069
(225)

Cash and cash equivalents at the beginning of the reporting period
12,615
12,840

Change in cash and cash equivalents due to exchange rate movement
-
-

Cash and cash equivalents at the end of the reporting period
13,684
12,615
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
1,657
7,261


Adjustments for:

Depreciation charges
26
15

(Gains)/losses on investments
(1,189)
(7,942)

Dividend, interest and rents from investments
(899)
(733)

Loss/(Profit) on sale of fixed assets
(537)
365

(increase)/decrease in stocks
1
4

(increase)/decrease in debtors
299
(434)

increase/(decrease) in creditors
116
1,611

Net cash provided by/(used in) operating activities
(526)
147

Analysis of change in cash in hand and at bank
Bank
13,032
12,466
Held by investment fund managers
652
149

13,684
12,615






















change
566
503
1,069

21

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

1 ACCOUNTING POLICES

Basis of accounting

Lancaster Roman Catholic Diocesan Trust is a registered charity in the United Kingdom. The address of the charity, the nature of its operations and its principal activities are all detailed in the Trustees’ report and Trustees and Advisors pages of these financial statements.

The charity constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at valuation. The financial statements are prepared in sterling which is the functional currency of the charity.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Preparation of the accounts on a going concern basis

The trustees have assessed whether the use of the going concern basis is appropriate in the preparation of the financial statements. The period of assessment is one year from the date of approval of these financial statements. The trustees have concluded that there are no material uncertainties that cast doubt on the ability of the charity/group to continue as a going concern. The trustees are of the opinion, based on available financial data, that there will be sufficient incoming resources and assets to meet future liabilities when they fall due taking into account the expected reduction in income with expenditure remaining unchanged during the period of assessment.

A significant area of uncertainty is the value of investments and the income from these which can be drastically affected by economic and other factors beyond the control of the trustees. The trustees are of the opinion that the Charity can withstand a significant fall in the value of these and in investment income receipts, though this in not anticipated.

Basis of consolidation

The consolidated financial statements of the group incorporate the financial statements of the Diocesan Trust, “the charity” which comprise the parishes and central diocesan agencies and subsidiary entities over which the diocese is considered to exert control. Details of the subsidiary entities are given in note 2.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

22

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of financial activities.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of comprehensive income.

De-recognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

De-recognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

Judgement and key sources of estimation uncertainty

In the application of the charity’s accounting polices the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

In the opinion of the trustees there have been no significant estimate or judgements made in the process of applying the charity’s accounting policies that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

23

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

Income recognition

Income is included in the period in which the charity/group becomes entitlement to the income, it is probable that it will be received and the amount of income receivable can be measured reliably. Specific polices apply to the categories of income noted below.

Legacies are accounted for on entitlement which is considered to be the earlier of notification from the executor that probate has been granted and confirmed that there are sufficient assets to make a distribution or a when a distribution is received.

Collections, including Mass offerings, and other donations are accounted for on a cash received basis as such voluntary donations can only be measured with certainty upon receipt.

Gift Aid donations are accounted for on a cash received basis with any related Gift Aid or Gift Aid Small Donation Scheme tax credits accounted for on an accruals basis.

Revenue grant income is accounted for when received.

Capital grants are recognised as restricted income when received or receipt can be measured reliably and associated costs are charged against these restricted funds.

Investment income is accounted for an accruals basis.

Income from charitable activities is accounted for on a cash received basis.

Income from fund raising activities is accounted for on a cash received basis.

Rental income from functional properties is accounted for when received under the terms of the lease or hire agreement and when it is probable that it will be received and the amount can be reliably measured.

Trading subsidiary accounts are produced on an accruals basis.

Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be required and the amount can be reliably measured. All expenditure is included in the financial statements on an accruals basis inclusive of irrecoverable VAT.

Expenditure on direct charitable activities mainly comprise: the provision of places of worship and associated buildings e.g. presbyteries; provision of religious services and pastoral care and support; support of education and youth services; training of priests and deacons and the financial support of sick and retired priests.

Support costs include the costs of the Finance and Property Offices, Health & Safety services, Safeguarding Office, the provision of the Pastoral Centre, which houses the administrative offices of the diocese and provide a central meeting venue, and governance costs. Support costs are apportioned to charitable activities based on an estimate of management and employee time spent in support of these activities.

Governance costs are now included under support costs and comprise those costs of the organisation administration and compliance with constitutional and statutory requirements including external audit, legal and other professional services. Governance costs are apportioned to charitable activities based on an estimate of management and employee time spent in support of these activities.

Investments

Investments are initially recognised at their transaction value then subsequently included in the balance sheet at their fair value using the closing quoted market price. Any realised and unrealised gains and losses on revaluation or disposals throughout the year are included in the statement of financial activities.

Tangible fixed assets - other than schools

Functional freehold properties including churches, presbyteries, houses, parish hall/centres and similar buildings are included in the balance sheet at deemed cost. The deemed cost is the discounted insurance value at 1997, which

24

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

have been discounting based on inflation statistics to arrive at original cost. For the purposes of these financial statements and in line with the provisional arrangements of FRS 102 these estimates of depreciated value at 1997 are now the deemed cost.

The charity took advantage of the transitional provisions under FRS 102 to take the value of freehold property as deemed cost on transition at 6 April 2014 but as historical cost is unknown and cost per the accounts refers to an earlier valuation by the charity, the trustees have continued to show brought forward valuation and accumulated depreciation at transition date in the notes to the accounts. Depreciation has not been charged on freehold property following the introduction of FRS 102 as this charge is considered meaningless.

Freehold properties purchased since 1997 are recorded at cost. Properties donated after 1997 are included at valuation.

Depreciation is calculated to write off the cost, or valuation, of tangible fixed assets, less their estimated residual values over the expected useful economic lives of the assets concerned. The principal annual rates and method used for this purpose are as follows:

Rate Method
Fixtures, fittings and equipment 25% reducing balance basis
Motor Vehicles 25% reducing balance basis

All additions to fixtures, fittings and other fixed assets after 6th April 1995 in excess of £5,000 are included at purchase cost less accumulated depreciation.

The charity owns a number of works of art, including paintings, manuscripts and sculptures. All parishes own silverware, in daily use for the purposes of the parish, which are on display within the diocese and parishes. Many have been donated, bequeathed or inherited by the diocese or parishes. Such items are not included at any value in the financial statements because it is considered that no meaningful value can be attributed to them.

Tangible fixed assets – schools property

The diocese owns land on which its voluntary aided and academy schools are built. The school buildings are occupied, improved, extended and repaired by the school governors. All voluntary aided schools, which are exempt charities, and academy schools, occupy land and buildings rent free. The nature of occupation of the land and buildings by these exempt charities and academies means that the diocesan trustees do not have the power to dispose of the land or buildings until a school ceases its occupation, which in turn would require the approval of the governing body and the Secretary of State and may involve recovery of grant aid by the DCSF or the obligation to use the proceeds for other educational provision. Consequently such land and buildings are not in direct use by the charity, do not generate any income, cannot be disposed of on the open market and cannot be used for any other purpose during the schools’ occupation, which may be indefinite. In view of these restrictions the trustees believe the recoverable amount of these assets is nil and are included at nil valuation in these financial accounts.

Stocks

Stocks are stated at the lower of cost and net realisable value.

Debtors and creditors within one year

Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Cash and cash equivalents

Liquid resources comprise amounts held on deposit with recognised banks and building societies and cash on hand at parishes etc.

Provisions

These are recognised when there is a commitment made to the incurring of expenditure.

25

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

Pension costs

The charity operates a defined contribution scheme. Contributions are charged in the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

Fund accounting

The charity/group has various types of funds for which it is responsible, and which require separate disclosure within the financial statements. These are:

Endowment funds

Funds given to the charity or its subsidiaries, subject to the restriction that they are held as capital. Income derived from endowment funds is included in the Statement of Financial Activities and may be restricted to a particular purpose.

Restricted funds

Donations, grants or legacies received which have been given for a specific purpose or purposes as specified by the donor, where such purposes are within the overall aims of the organisation. These funds may represent capital only (where the capital must be retained) or income and capital (where the donation and income deriving from them may be utilised).

General funds

These represent unrestricted funds which are available at the discretion of the Trustee in furtherance of the objectives of the charity and which have not been designated for other purposes.

Designated funds

These are funds included within the general funds that have been set aside and designated by the trustees for specific purposes.

Parish funds

There are included within the general funds. In civil administration a parish is not a distinct legal entity but forms part of the wider diocese, but with a degree of independence and autonomy. Parish funds and assets, unless subject of a separate trust recognised in law, are funds of the Diocesan Trust and therefore the responsibility of the diocesan trustees. In Canon Law a parish is a public juridical person with the parish priest carrying out his ministry under the authority of the Bishop. A parish has the right under Canon Law to acquire, retain, administer and alienate temporal goods subject to the norms of Canon Law.

Taxation

The Roman Catholic Diocese of Lancaster is a charity within the meaning of section 1119 Corporation Taxes Act (CTA) 2010. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by sections 478 - 489 of the CTA 2010 or section 256 of the Taxation of Chargeable Gains Act 2010, to the extent that such income or gains are applied to exclusively charitable purposes.

The charity’s subsidiary and associated undertakings are subject to corporation tax in the same way as any commercial or charitable organisation, as appropriate.

26

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

2 GROUP BODIES

The charity has interests in associated and subsidiary undertakings, which are consolidated in the financial statements, as follows:

Limited companies St Kentigern’s Parish Centre Ltd Subsidiary 100% Social club/centre St Anthony’s Parish (Preston) Centre Ltd Subsidiary 100% Social club/centre St Margaret Mary's Parish Community Centre Subsidiary 100% Social club/centre (Carlisle) Ltd

All the above companies are incorporated in the United Kingdom.

Trusts and Charities

The charity has consolidated the financial statements of the following associated or subsidiary trusts and charities into these financial statements:

The Moyston Trust

Lancaster Diocesan Pilgrimage Trust St Cuthbert’s Carlisle School Charity St John’s Poulton 1838 Charity

27

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

3.1 ANALYSIS OF INCOME – GROUP CURRENT YEAR

3.1 ANALYSIS OF INCOME – GROUP
CURRENT YEAR
Donations and legacies
Collections
Donations
Legacies
Special collections
Gift Aid
Other
Charitable activities
Grants received
Service charges receivable
Sale of candles, votives etc
Youth Service income
Insurance claim receipts
Income from chaplaincy
Subscriptions and other charges
Inter diocese re-charges
Education Service income
Income for graveyards & funerals
Other
Other trading activities
Social clubs
Fund raising - fetes etc
Rental income
Investments
Bank interest received
Dividend income
Rental and leasing income
Other
Other
Gains and losses on sale of fixed assets
Other
TOTAL GROUP INCOME 2022		 PARISHES
Unrestricted
Restricted
Endowments
Total
£000
£000
£000
£000
2,183
-
-
2,183
525
84
-
609
298
40
-
338
290
-
-
290
421
-
-
421
-
-
-
-		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
15
83
98
2
66
68
-
-
-
-
-
-
-
-
-		 GROUP
TOTAL		 2021
£000
1,814
698
1,188
215
469
-
£000
2,183

707
406
290
421
-
3717
124
-
3841		 17
149
166		 4,007 4384
,
,
117
111
-
228
-
-
-
-
91
-
-
91
-
-
-
-
45
-
-
45
66
-
-
66
96
-
-
96
-
-
-
-
-
-
-
-
41
-
-
41
3
-
-
3		 127
35
162
-
-
-
16
-
16
350
-
350
-
-
-
-
-
-
35
41
76
-
-
-
-
-
-
-
-
-
303
-
303		 ,
3,908
9
57
69
606
79
25
47
-
28
75
390
-
107
350
45
66
172
-
-
41
306
459
111
-
570		 831
76
907		 1,477 4903
37
-
-
37
230
-
-
230
872
-
-
872		 -
-
-
-
-
-
79
27
106		 ,
35
118
809
37
230
978
1139
-
-
1139		 79
27
106		 1,245 962
,
,
-
-
-
-
547
-
15
562
-
-
-
-
-
-
-
-		 -
-
-
72
265
337
-
-
-
-
-
-		 -
733
17
-
899
-
-
547
-
15
562		 72
265
337		 899 750
533
-
-
533
-
-
-
-		 (1)
5
4
-
-
-		 (365)
42
537
-
533
-
-
533		 (1)
5
4		 537 (323)
6,395
235
15
6,645		 998
522
1,520		 8,165 10,676

28

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

3.1 ANALYSIS OF INCOME – GROUP PREVIOUS YEAR

3.1 ANALYSIS OF INCOME – GROUP
PREVIOUS YEAR
Donations and legacies
Collections
Donations
Legacies
Special collections
Gift Aid
Other
Charitable activities
Grants received
Service charges receivable
Sale of candles, votive etc
Youth Service income
Insurance claim receipts
Income from chaplaincy
Subscriptions and other charges
Inter diocese re-charges
Education Service income
Income for graveyards & funerals
Other
Other trading activities
Social clubs
Fund raising - fetes etc
Rental income
Investments
Bank interest received
Dividend income
Rental and leasing income
Other
Other
Gains and losses on sale of fixed assets
Other
TOTAL GROUP INCOME 2021		 PARISHES
Unrestricted
Restricted
Endowments
Total
£000
£000
£000
£000
1,814
-
-
1,814
617
25
-
642
309
203
-
512
215
-
-
215
468
-
468
-
-
-
-		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
8
48
56
15
661
676
-
-
-
1
-
1
-
-
-		 2021
GROUP
TOTAL		 2020
£000
2,357
1,141
330
434
504
-
£000
1,814
698
1,188
215
469
-
3,423
228
-
3,651		 24
709
733		 4,384 4,766
78
10
-
88
7
-
-
7
51
-
-
51
-
-
-
-
13
-
-
13
79
-
-
79
-
-
-
-
-
-
-
-
-
-
-
-
28
-
-
28
10
-
-
10		 182
3,638
3,820
2
-
2
6
-
6
69
-
69
-
593
593
-
-
-
25
-
25
-
47
47
-
-
-
-
-
-
65
-
65		 7,903
3
186
331
404
95
98
-
192
30
237
3,908
9
57
69
606
79
25
47
-
28
75
266
10
-
276		 349
4,278
4,627		 4,903 9,479
35
-
-
35
118
-
-
118
648
-
-
648		 -
-
-
-
-
-
133
28
161		 81
474
901
35
118
809
801
-
-
801		 133
28
161		 962 1,456
-
989
-
-
-
-
-
449
-
14
463
-
-
-
-
-
-
-
-		 -
-
-
40
230
270
17
-
17
-
-
-		 -
733
17
-
449
-
14
463		 57
230
287		 750 989
-
-
-
-
42
-
-
42		 -
__(365)
(365)
-
-
-_		 849
(365)
42
42
-
-
42		 -
(365)
(365)		 (323) 849
4,981
238
14
5,233		 563
4,880
5,443		 10,676 17,539

29

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

3.2 ANALYSIS OF INCOME – CHARITY CURRENT YEAR

3.2 ANALYSIS OF INCOME – CHARITY
CURRENT YEAR
Donations and legacies
Collections
Donations
Legacies
Special collections
Gift Aid
Other
Charitable activities
Grants received
Service charges receivable
Sale of candles, votives etc
Youth Service income
Insurance claim receipts
Income from chaplaincy
Subscriptions and other charges
Inter diocese re-charges
Education Service income
Income for graveyards & funerals
Other
Other trading activities
Social clubs
Fund raising - fetes etc
Rental income
Investments
Bank interest received
Dividend income
Rental and leasing income
Other
Other
Gains and losses on sale of fixed assets
TOTAL CHARITY INCOME 2022		 Unrestricted
£000
2,184
525
297
290
421
-		 PARISHES
Restricted
Endowments
£000
£000
-
-
84
-
40
-
-
-
-
-
-
-		 Total
£000
2,184
609
337
290
421
-		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
13
83
96
1
67
68
-
-
-
-
-
-
-
-
-		 CHARITY
TOTAL		 2021
£000
1,814
699
1,184
215
469
-
£000
2,184

705
405
290
421
-
3717 124 - 3841 14 150 164 4,005 4381
,
43
-
91
-
45
65
97
-
-
41
3		 112
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-		 ,
155
-
91
-
45
65
97
-
-
41
3		 128
18
16
350
-
-
15
2
-
-
302		 34
41
-
-
-
-
-
-
-
-		 162
59
16
350
-
-
15
2
-
-
302		 ,
3,907
49
57
69
606
80
25
6
-
28
74
317
59
107
350
45
65
112
2
-
41
305
385 112 - 497 831 75 906 1,403 4901
37
62
872		 -
-
-		 -
-
-		 37
62
872		 -
-
80		 -
-
26		 -
-
106		 ,
36
45
809
37
62
978
971 - - 971 80 26 106 1,077 890
-
547
-
-		 -
-
-
-		 -
15
-
-		 -
562
-
-		 -
1
-
-		 -
265
-
-		 -
266
-
-		 -
694
-
-
-
828
-
-
547 - 15 562 1 265 266 828 694
532 - - 532 (2) 7 5 (365)
537
- - - -
-
(365)
6,152 236 15 6,403 924 523 1,447 7,850 10,501

30

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

3.2 ANALYSIS OF INCOME – CHARITY

PREVIOUS YEAR

3.2 ANALYSIS OF INCOME – CHARITY
PREVIOUS YEAR
Donations and legacies
Collections
Donations
Legacies
Special collections
Gift Aid
Other
Charitable activities
Grants received
Service charges receivable
Sale of candles, votive etc
Youth Service income
Insurance claim receipts
Income from chaplaincy
Subscriptions and other charges
Inter diocese re-charges
Education Service income
Income for graveyards & funerals
Other
Other trading activities
Social clubs
Fund raising - fetes etc
Rental income
Investments
Bank interest received
Dividend income
Rental and leasing income
Other
Other
Gains and losses on sale of fixed assets
TOTAL CHARITY INCOME 2021		 PARISHES
Unrestricted
Restricted
Endowments
Total
£000
£000
£000
£000
1,814
-
-
1,814
617
25
-
642
309
203
-
512
215
-
-
215
468
-
-
468
-
-
-
-		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
9
48
57
11
661
672
-
-
-
1
-
1
-
-
-		 2021
CHARITY
TOTAL		 2020
£000
2,357
1,142
330
431
507
-
£000
1,814
699
1,184
215
469
-
3.423
228
-
3,651		 21
709
730		 4,381 4,767
78
10
-
88
-
-
-
-
51
-
-
51
-
-
-
-
13
-
-
13
80
-
-
80
7
-
-
7
-
-
-
-
-
-
-
-
28
-
-
28
9
-
-
9		 181
3,638
3,819
2
47
49
6
-
6
69
-
69
-
593
593
-
-
-
18
-
18
6
-
6
-
-
-
-
-
-
65
-
65		 7,903
4
185
331
404
95
99
-
193
29
235
3,907
49
57
69
606
80
25
6
-
28
74
266
10
-
276		 347
4,278
4,625		 4,901 9,478
36
-
-
36
45
-
-
45
648
-
-
648		 -
-
-
-
-
-
133
28
161		 78
172
877
36
45
809
729
-
-
729		 133
28
161		 890 1,127
-
942
-
-
-
-
-
449
-
14
463
-
-
-
-
-
-
-
-		 -
-
-
1
230
231
-
-
-
-
-
-		 -
694
-
-
449
-
14
463		 1
230
231		 694 942
-
-
-
-		 -
(365)
(365)		 323
(365)
-
-
-
-		 -
(365)
(365)		 (365) 323
4,867
238
14
5,119		 502
4,880
5,382		 10,501 16,637

31

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

4.1 ANALYSIS OF EXPENDITURE – GROUP CURRENT YEAR

Expenditure on raising funds:
Parish fund raising events’ costs
Other fund raising events’ costs
Social club bar purchases
Social club other costs
Investment management costs		 PARISHES
Unrestricted
Restricted
Endowments
Total
£000
£000
£000
£000
28
-
-
28
-
-
-
-
60
-
-
60
145
-
-
145
57
-
-
57
5
-
-
5
-
-
-		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
38
2
40
-
-
-
-
-
-
20
29
49
17
-
17
-
-
-		 GROUP
TOTAL		 2021
£000
26
36
41
97
85
18
67
£000
28
40
60
145
106
Rental property management costs 22
Other -

Expenditure on charitable activities
Provision of places of worship & ancillary
buildings
Provision of religious services & pastoral care
Support of education & youth services
Training of priests, deacons & seminarians
Support of retired priests
Grants, donations & levies
Other charitable activity costs

Other

TOTAL GROUP EXPENDITURE 2022		 295
-
-
295		 75
31
106		 401 370
2,658
88
-
2,746
1,615
14
-
1,629
-
-
-
-
-
-
-
-
-
-
-
-
1,006
15
-
1,021
39
-
-
39		 87
-
87
325
44
369
850
4
854
4
144
148
9
236
245
20
9
29
123
-
123		 3,426
2,109
12,154
121
294
499
233
2,833
1,998
854
148
245
1,050
162
5,318
117
-
5,435		 1,418
437
1,855		 7,290 10,987
6
-
-
6		 -
-
-		 6 -
5,619
117
-
5,736		 1,493
468
1,961		 **7,697 ** 11,357

32

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

4.1 ANALYSIS OF EXPENDITURE – GROUP PRE
Expenditure on raising funds:
Parish events fund raising costs
Other events fund raising costs
Social club bar purchases
Social club other costs
Investment management costs		 VIOUS YEAR HES
Endowments
Total
£000
£000
-
26
-
-
-
41
-
97
-
62
-
-
-
12
-
238
-
2,662
-
1,438
-
-
-
-
-
-
-
469
-
120
-
4,689
-
-
-
4,927		 IOCESAN AGENCIES
Restricted
Total
£000
£000
-
-
-
36
-
-
-
-
10
23
-
18
-
55
10
132
-
99
23
288
4,656
5,364
105
110
284
294
9
30
-
113
5,077
6,298
-
-
5,087
6,430
Unrestricted
£000
26
-
41
97
62
-
12		 PARIS
Restricted
£000
-
-
-
-
-
-
-		 HES
Endowments
Total
£000
£000
-
26
-
-
-
41
-
97
-
62
-
-
-
12		 CENTRAL D
Unrestricted
£000
-
36
-
-
13
18
55		 IOCESAN AGENCIES
Restricted
Total
£000
£000
-
-
-
36
-
-
-
-
10
23
-
18
-
55		 2021
GROUP
TOTAL		 2020
£000
48
17
159
208
87
65
7
£000
26
36
41
97
85
Rental property management costs 18
Other 67
Expenditure on charitable activities
Provision of places of worship & ancillary buildings
Provision of religious service & pastoral care
Support of education & youth services
Training of priests, deacons & seminarians
Support of retired priests
Grants, donations & levies
Other charitable activity costs
Other
TOTAL GROUP EXPENDITURE 2021		 238 - -
238		 122 10
132		 370 591
2,648
1,438
-
-
-
459
120		 14
-
-
-
-
10
-		 -
2,662
-
1,438
-
-
-
-
-
-
-
469
-
120		 99
265
708
5
10
21
113		 -
99
23
288
4,656
5,364
105
110
284
294
9
30
-
113		 3,426
2,109
12,154
121
317
682
298
2,761
1,726
5,364
110
294
499
233
4,665 24 -
4,689		 1,221 5,077
6,298		 10,987 19,107
- - -
-		 - -
-		 - -
4,903 24 -
4,927		 1,343 5,087
6,430		 11,357 19,677

33

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

4.2 ANALYSIS OF EXPENDITURE - CHARITY CURRENT YEAR

Expenditure on raising funds:
Parish fund raising events’ costs
Other fund raising events’ costs
Social club bar purchases
Social club other costs
Investment management costs		 U nrestricted
R
£000
28
-
-
-
56
-		 PARISHES
estricted
En
£000
-
-
-
-
-
-
dowments
Total
£000
£000
-
28
-
-
-
-
-
-
-
56
-
-		 CENTRAL DIOCESAN
AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
30
30
38
-
38		 CENTRAL DIOCESAN
AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
30
30
38
-
38		 CENTRAL DIOCESAN
AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
30
30
38
-
38		 CHARITY
TOTAL		 2021
£000
22
3
-
-
72
36
£000
28
-
-
-
86
Rental property management costs 38

Expenditure on charitable activities
Provision of places of worship & ancillary
buildings
Provision of religious services & pastoral
care
Support of education & youth services
Training of priests, deacons & seminarians
Support of retired priests
Grants, donations & levies
Other charitable activities

TOTAL CHARITY EXPENDITURE
2022		 84 - -
84		 38 30 68 152 133
2,657
1,614
-
-
-
1,006
39		 88
15
-
-
-
15
-		 -
2,745
-
1,629
-
-
-
-
-
-
-
1,021
-
39		 87
325
849
4
9
20
121		 -
44
4
144
236
9
-		 87
369
853
148
245
29
121		 2,762
1,726
5,364
111
295
497
136
2,832
1,998
853
148
245
1,050
160
5,316 118 -
5,434		 1,415 437 1,852 7,286 10,891
5,400 118 -
5,518		 1,453 467 1,920 7,438 11,024

34

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

4.2 ANALYSIS OF EXPENDITURE – CHARITY PREVIOUS YEAR

Expenditure on raising funds:
Parish events fund raising costs
Other events fund raising costs
Social club bar purchases
Social club other costs
Investment management costs		 PARISHES
Unrestricted
Restricted
Endowments
Total
£000
£000
£000
£000
22
-
-
22
3
-
-
3
-
-
-
-
-
-
-
-
62
-
-
62
-
-
-
-		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Restricted
Total
£000
£000
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
10
10
36
-
36		 2021
CHARITY
TOTAL		 2020
£000
46
11
-
-
76
59
£000
22
3
-
-
72
Rental property management costs 36
Expenditure on charitable activities
Provision of places of worship & ancillary buildings
Provision of religious service & pastoral care
Support of education & youth services
Training of priests, deacons & seminarians
Support of retired priests
Grants, donations & levies
Other charitable activities
TOTAL CHARITY EXPENDITURE 2021		 87
-
-
87		 36
10
46		 133 192
2,649
14
-
2.663
1,438
-
-
1,438
-
-
-
-
-
-
-
-
-
-
-
-
458
10
-
468
25
-
-
25		 99
-
99
265
23
288
708
4,656
5,364
5
106
111
11
284
295
21
8
29
111
-
111		 3,427
2,109
12,153
119
317
683
284
2,762
1,726
5,364
111
295
497
136
4,570
24
-
4,594		 1,220
5,077
6,297		 10,891 19,092
4,657
24
-
4,681		 1,256
5,087
6,343		 11,024 19,284

35

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

5 EMPLOYEES AND OFFICE HOLDERS (including key management personnel)

The number of employees, which excludes clergy and volunteers, during the year was:-

Central diocesan: administration and support services
Education Service
Youth Service including Castlerigg
Parochial
Clubs & centres


The aggregate remuneration paid to employees was:-
Wages and salaries
Social security costs
Pension costs



Amounts paid to clergy during the year:- for active ministry
retirement gratuities
 2022
12
4
11
50
20
97
£000
958
42
40
1,040
355
193
548		 2021
11
4
11
70
12
12
4
11
50
20
97 108
£000
988
39
37
£000
958
42
40
1,040 1,064
403
195
355
193
548 598

The number of employees who earned more than £60,000 (including benefits but excluding employer’s national insurance and pension contributions) during the year was as follows

£60,001 - £70,000 2022
1
1		 2021
1
1

Employees include administrative staff at both Diocese and Parishes, together with associated and related entities. Clergy are self-employed office holders and not employees.

Key personnel

The trustees consider the board of trustees as the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give their time freely, and no trustee receives any remuneration in respect of the work undertaken in the role of trustee. There are members of the board of trustees who are also clergy of the Diocese of Lancaster, and as with other members of the clergy receive a remuneration for the work they undertake in their clerical role only. These trustees are identified in the list of trustees on page 3 " Trustees and Advisors".

Details of trustees' expenses and related party transactions are disclosed in the notes the accounts. Trustees are required to disclose all relevant interests and register them with the diocesan secretary and in accordance with the trustees' policy withdraw from decisions where a conflict of may interest arises.

36

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

6 TRUSTEES

No trustee received any remuneration during the year or previous year. Certain trustees received allowances as serving clergy but not in their capacity as trustee.

During the year 4 trustees (2021: 2) received expenses to the value of £1,918 (2021 £1,149) in respect of travel and subsistence costs in respect of their position as a trustee. With the easing of restrictions imposed relating to the Covid 19 pandemic, meetings have returned to in person with an increase in expenses claimed.

Trustees who are also serving clergy may receive expenses in connection with their clerical role. Any such expenses have not been quantified and are not included above.

7 NET EXPENDITURE

This is stated after charging:-
Depreciation

Audit

ALLOCATED SUPPORT COSTS
Raising Funds
Charitable Activities:
Provision of places of worship
Provision of religious services & pastoral
care
Support of education & youth services
Training of priests, deacons & seminarians
Support of sick & retired priests
Grants, donations & Levies
Other charitable activity costs		 2022
£000
26
26
Finance Office
Gift Aid & Special
Collections
Pastoral Centre
Property Office
H&S
Governance
£000
£000
£000
£000
£000
£000
1
-
-
-
-
4
19
5
4
35
11
14
9
9
18
10
4
3
30
10
24
30
11
41
1
-
-
-
-
2
2
-
1
2
-
4
2
3
1
3
-
7
2
-
1
1
-
1		 2021
£000
15
26

Group Total
£000
5
88
53
146
3
9
16
5
66
27
49
81
26
76		 325

8 ALLOCATED SUPPORT COSTS

Basis of allocation

Governance and support costs are allocated on estimates of staff and trustees time spent on each charitable or other activity.

37

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

9 TANGIBLE FIXED ASSETS

9.1 Group

Cost or valuation
At the beginning of the year
Adjust b
/f allocation
Additions
Disposals
At end of the year

Depreciation and impairments
At beginning of the year
Eliminated on disposals
Depreciation
Impairment
At end of the year

Net book value
Net book value at the beginning
of the year

Net book value at the end of
the year		 Freehold
land &
buildings
£000
£
37,117
-
-
(85)		 PARISHES
Motor
vehicles
Fixtures,
fittings and
equipment
£000
£000
£
£
42
1,063
-
(16)
-
4
-
-		 PARISHES
Motor
vehicles
Fixtures,
fittings and
equipment
£000
£000
£
£
42
1,063
-
(16)
-
4
-
-		 Total
£000
£
38,222
(16)
4
(85)		 CENTRAL DIOCESAN AGENCIES
Freehold
land &
buildings
Motor
vehicles
Fixtures,
fittings and
equipment
Total
£000
£000
£000
£000
£
£
£
£
6,874
20
118
7,012
-
-
16
16
-
11
3
14
-
(10)
(1)
(11)		 CENTRAL DIOCESAN AGENCIES
Freehold
land &
buildings
Motor
vehicles
Fixtures,
fittings and
equipment
Total
£000
£000
£000
£000
£
£
£
£
6,874
20
118
7,012
-
-
16
16
-
11
3
14
-
(10)
(1)
(11)		 CENTRAL DIOCESAN AGENCIES
Freehold
land &
buildings
Motor
vehicles
Fixtures,
fittings and
equipment
Total
£000
£000
£000
£000
£
£
£
£
6,874
20
118
7,012
-
-
16
16
-
11
3
14
-
(10)
(1)
(11)		 CENTRAL DIOCESAN AGENCIES
Freehold
land &
buildings
Motor
vehicles
Fixtures,
fittings and
equipment
Total
£000
£000
£000
£000
£
£
£
£
6,874
20
118
7,012
-
-
16
16
-
11
3
14
-
(10)
(1)
(11)		 GROUP 2021
£000
£
46,993
-
5
(1,764)
£000
£

45,234
-
18
(96)
37,032 42 1,051 38,125 6,874 21 136 7,031 45,156 45,234
6,172
(17)
-
-		 32
(8)
3
-		 1,021
-
12
-		 7,225
(25)
15
-		 1,161
-
-
-		 17
-
3
-		 113
-
8
-		 1,291
-
11
-		 8,730
(229)
15
-
8,516
(25)
26
-
6,155 27 1,033 7,215 1,161 20 121 1,302 8,517 8,516
30,945 10 42 30,997 5,713 3 5 5,721 38,263
36,718
30,877 15 18 **30,910 ** 5,713 1 15 **5,729 ** 36,718
**36,639 **

38

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

9 TANGIBLE FIXED ASSETS 9.2 Charity

9 TANGIBLE FIXED ASSETS
9.2 Charity
Cost or valuation
At the beginning of the year
Additions
Disposals
At end of the year
Depreciation and impairments
At beginning of the year
Eliminated on disposals
Depreciation
Impairment
At end of the year
Net book value
Net book value at the beginning
of the year
Net book value at the end of
the year		 Freehold
land &
buildings
£000
£
36,914
-
(85)		 PARISHES
Motor
Vehicles
Fixtures,
fittings and
equipment
£000
£000
£
£
42
965
-
-

-
-		 Total
£000
£
37,921
-
(85)		 CENTRAL DIOCESAN AGENCIES
Freehold
land &
buildings
Motor
vehicles
Fixtures,
fittings and
equipment
Total
£000
£000
£000
£000
£
£
£
£
6,873
20
135
7,028
-
11
3
14
-
(10)-
(10)		 CHARITY 2021
£000
£
46,693
3
(1,747)
£000
£
44,949
14
(95)
36,829 42 965 37,836 6,873 21 138 7,032 44,868 44,949
6,172
(16)
-
-		 34
-
2
-		 961
-
2
-		 7,167
(16)
4
-		 1,161
-
-
-		 16
(8)
3
-		 112
-
9
-		 1,289
(8)
12
-		 8,659
(217)
14
-
8,456
(24)
16
-
6,156 36 963 7,155 1,161 11 121 1,293 8,448 8,456
30,742 8 4 30,754 5,712 4 23 5,739 38,034
38,493
30,673 6 2 30,681 5,712 10 17 **5,739 ** 36,493
36,420

39

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

10 INVESTMENTS
Charity
Equities & unit trusts
Fixed interest
Cash

Held for subsidiary entities
Held for third parties
Charity
Group
Equities & unit trusts
Fixed interest
Held for third parties

Cash
Group		 Market
value at
start of year
Costs of
investments
purchased
Proceeds
of sale of
investments
£000
£000
£000
28,007
7,439
(9,141)
5,614
2,033
(437)		 CIMV
£000
555
636		 Market
value at
end of year
£000
26,860
7,846
33,621
9,472
(9,578)
149

31,770
(2,150)
(22)
31,598
28,059
7,451
(9,153)
5,614
2,033
(437)
(22)
-
-		 1,191
(72)
(1)		 34,706
651
35,357
(2.222)
(23)
1,118 33,112
554
636
(1)
26,911
7,846
(23)
33,651
9,484
(9,590)
149

33,800
 1,189 34,734
652
35,386

The Diocesan Trust operates a pooled investment fund where investors hold units and do not invest directly in discrete holdings.

40

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

11 DEBTORS & PREPAYMENTS

11 DEBTORS & PREPAYMENTS
Gift Aid and Gift Aid Small
Donation Scheme recoverable
Sundry debtors
Prepayments and accrued income
Loans to clergy		 GROUP
 CHARITY

2022
£000
346
229
150
2
727
2022 2021 2022 2021
£000
401
815
38
2
£000 £000
401
822
38
2		 £000
346 346
466 229
150 150
2 2
964 1,263 727 1,256

An amount of £73,964 included in sundry debtors is being repaid by annual instalment of £18,491 each and therefore full repayment will be made within 4 years. All other debtors are receivable within one year.

12 CREDITORS & ACCRUALS

Amounts falling due within one year

Trade creditors
15
Accruals and deferred income
50
Taxation and social security
-
Other creditors
2,039
2,104
Amounts falling due after more than one year
Other creditors
79		 50
95
-
1,848
1,993

41

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

13.1 RESTRICTED FUNDS –current year
Charity: Diocesan Central Agencies
Ecclesiastical Education Fund
Poor Missions Fund
Sick and Retired Priests Fund
Funds for Overseas Missions
Kirkham Church of St John and RC Purposes
Catforth, Thurnham & Westby Schools
St Ignatius Legacy
Diocesan Catholic Caring Fund
Good Shepherd Fund
Academy Support Grant
Newman School (Carlisle) Chapel Fund
Newman School Rebuilding Fund
Legacy (M Lawton)
Porticus Grant(Youth Service)
Diocesan Schools Singing Program
Mary Strand Trust
Sundry Funds (restated)
Total of diocesan agencies restricted fund		 Opening
balance
2021
Income
Expenditure
Transfers
Unrealised
gains on
investments
Closing
balance
2022
£000
5,384
118
(165)
(36)
155
5,456
2,044
48
(4)
(24)
61
2,125
5,403
216
(248)
125
110
5,606
9
-
-
-
-
9
321
8
(1)
(7)
11
332
88
2
-
1
2
93
21
-
-
-
-
21
134
-
-
-
-
134
53
6
(2)
-
-
57
18
-
-
-
18
104
-
(8)
(90)
-
6
65
-
(5)
-
-
60
-
41
-
-
-
41
-
34
(34)
-
-
-
-
25
-
-
-
25
-
25
-
-
-
25
45
-
-
-
-
45
13,689
523
(467)
(31)
339
14,053

42

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

13.1 RESTRICTED FUNDS (continued) – current year

Charity: Parishes
St John Vianney & St Monica, Legacy
Our Lady of Eden, Carlisle, Reverend Turner legacy
Our Lady of Perpetual Help, Carlisle Restoration Fund
St Mary, Fleetwood, legacy
St Mary, Fleetwood, Local Authority grant
St Wulstan & St Edmund, Fleetwood, Allen Millar Memorial Fund
Our Lady of the Assumption & St Cuthbert, Wigton & Silloth
Refugee support projects (various parishes)
Workington Stella Maris Project
Workington, Legacy
St Thomas, Clayton, legacy
St Mary & St James, Scorton, Legacy
St Mary, Hornby, Lottery Community Grant
St Joseph, Lancaster, Bells Restoration & HLF Grant
Total of parish restricted funds
Charity total: all restricted funds 2022

Group total 2022: all restricted funds		 Opening
balance
2021
36
18
17
193
37
9
65
78
-
-
-
-
-		 Income
-
-
-
-
81
26
3
44
20
10
10
10
32		 Expenditure
-
-
(1)
-
(74)
(3)
(14)
(12)
-
-
-
-
(1)
(13)		 Transfers
-
-
-
-
-
(2)
-
-
-
-
-
-
(19)		 Unrealised
gains on
investments
-
-
-
-
-
-
-
-
-
-
-
-
-		 Closing
balance
2022
36
18
16
193
7
34
19
56
122
20
10
10
9
-
453 236 (118) (21) - 550
14,142 759 (585) (52) 339 14,603
14,142 759 (585) (52) 339 14,603

43

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS


13.1 RESTRICTED FUNDS –previous year
Charity: Diocesan Central Agencies
Ecclesiastical Education Fund
Poor Missions Fund
Sick and Retired Priests Fund
Funds for Overseas Missions
Kirkham Church of St John and RC Purposes
Catforth, Thurnham & Westby Schools
St Ignatius legacy Fund
Diocesan Catholic Caring Fund
Good Shepherd Fund
Academy Supper Grant
Newman School (Carlisle) Chapel Fund
Newman School Rebuilding Fund
Sundry Funds (restated)
Charity : Parishes
Our Lady of Furness, Barrow: grant
St John Vianney & St Monica, Legacy
Our Lady of Eden, Carlisle, Reverend Turner legacy
Our Lady of Perpetual Help, Carlisle ( formerly Our Lady & St Wilfrid, Warwick Bridge, Carlisle), Restoration Fund
St Mary, Fleetwood, legacy
St Wulstan & St Edmund, Fleetwood, Allen Millar Memorial Fund
Our Lady of the Assumption & St Cuthbert, Wigton & Silloth
Refugee support projects (various parishes)
Workington Stella Maris Project
Charity total 2021
Group total 2021		 Opening
balance 2020
£000
4,290
1,634
4,540
9
248
70
21
134
57
18
84
508
48		 Income
£000
209
41
380
-
7
2
-
-
3
-
25
4,213		 Expenditure
Tr
£000
(122)
-
(294)
-
-
-
-
-
(7)
-
(5)
(4,656)
(3)		 Expenditure
Tr
£000
(122)
-
(294)
-
-
-
-
-
(7)
-
(5)
(4,656)
(3)		 ansfers
Un
on
£000
(28)
(40)
75
-
(9)
-
-
-
-
-
-
-
-		 realised gains
investments
£000
1,035
409
702
-
75
16
-
-
-
-
-
-
-		 Closing
balance
2021
£000
5,384
2,044
5,403
9
321
88
21
134
53
18
104
65
45
11,661 4,880 (5,087) (2) 2,237 13,689
10
50
18
6
-
40
-
52
-		 -
-
-
11
193
7
9
4
14		 -
(14)
-
-
-
(10)
-
-
-		 (10)
-
-
-
-
-
-
9
64		 -
-
-
-
-
-
-
-
-		 -
36
18
17
193
37
9
65
78
176 238 (24) 63 - 453
11,837 5,118 (5,111) 61 2,237 14,142
_11,837 _ 5,118 (5,111) _61 _ _2,237 _ 14,142

44

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

Purpose of restricted funds

The specific purposes for which the funds are to be applied are as follows:

Diocesan Central Agencies Ecclesiastical Education Fund Poor Missions Fund Sick and Retired Priests Fund Funds for Overseas Missions Kirkham Church of St John and RC Purposes Catforth, Thurnham & Westby Schools

St Ignatius Legacy Fund

Diocesan Catholic Caring Fund Good Shepherd Academy Support Grant Newman Chapel Fund Newman School Sundry Funds

Training of priests and deacons of the diocese. Support of poor parishes of the diocese.

Financial and medical care of sick and retired clergy of the diocese. Support for overseas missions at the discretion of the Bishop.

The provision and maintenance of resources and facilities for the people of Kirkham for the pursuit of the Roman Catholic religion, through the church of St John The Evangelist, Kirkham.

The provision and maintenance of resources and facilities for the people of Catforth, Thurnham and Westby for the pursuit of the Roman Catholic religion in these areas and educational purposes.

Legacies received and previously held as general parish funds which were given for the upkeep of the parish property now in the Canonical ownership of the Diocese.

To provide support for diocesan sponsored caring activities.

To assist diocesan projects that aim to support the poor and disadvantaged, particularly the young and those with special needs.

To assist with costs of setting up school academy trusts. To meet costs of the construction and fittings etc of a new chapel at Newman School, Carlisle. Application of insurance and grant money received to assist with the purchase of a new site, contribution towards construction costs of a new school and any other costs associated with the project and to assist the governors with certain costs associated with operating from a temporary site. For the purposes of those funds.

Parishes

Our Lady of Furness, Barrow: grant St John Vianney & St Monica, Legacy Our Lady of Eden, Carlisle, Reverend Turner legacy St Mary, Fleetwood, Legacy Our Lady & St Wilfrid, Warwick Bridge, Carlisle, Restoration Fund

Our Lady of the Assumption & St Cuthbert, Wigton & Silloth Christ the King, Workington, Stella Maris Refugee support projects (various parishes)

To fund buildings maintenance programs. For the parish building fund.

For the refurbishment/rebuilding of the St Ninian's Chapel, Brampton, Carlisle.

For the saying of Masses for the nominated family members (name not published for privacy) For the restoration of the church of Our Lady & St Wilfrid, Warwick Bridge, Carlisle.

Fleetwood, Lancashire. Grant received to help towards cost of external repairs to the church. To fund repairs works to the church of Our Lady and St Michael, Workington To support Syrian refuge families.

45

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

13.2 PERMANENT ENDOWED FUNDS
Charity- Lancaster Capital Common Investment Fund
Group- Lancaster Capital Common Investment Fund
Previous year
Charity - Lancaster Capital Common Investment Fund
Group- Lancaster Capital Common Investment Fund		 Opening
balance
£000		 Income
£000		 Expenditure
£000		 Transfers
£000		 Unrealised
gains on
investments
Closing
balance
£000
£000
621 15 - (15) 23
644
621 15 - (15) 23
644
470 14 - (14) 151
621
470 14 - (14) 151
621

The Lancaster Capital Common Investment Fund represents the endowment fund held by the Charity.

As a direct result of the further scheme of the Charity Commission dated 2 May 2000 (applied on this date but sealed 6 November 2000), as mentioned earlier in the Trustees’ Report – Investment Powers, the trustees have transferred a portion of general reserves and reclassified these as an endowment fund “Lancaster Capital Common Investment Fund”.

13.3 PARISH GENERAL FUNDS(including designated funds)
Charity
Group

Previous year
Charity
Group		 Opening
balance
Income
Expenditure
Transfers
Unrealised
gains/losses
on
investments
Closing
balance
£000
£000
£000
£000
£000
£000
64,541
6,152
(5,400)
(817)
754
65,230
64,693
6,395
(5,619)
(824)
754
65,399

59,445
4,867
(4,657)
(273)
5,159
64,541
59,730
4,981
(4,903)
(273)
5,158
64,693

46

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

13.4 DIOCESAN GENERAL FUNDS(including designated funds)
5
Charity
Group
Previous year
Charity
Group		 Opening
balance
Income
Expenditure
Transfers
Unrealised
gains on
investments
Closing
balance
£000
£000
£000
£000
£000
£000
342
924
(1,453)
884
2
699
2,738
998
(1,493)
889
73
3,205
859
502
(1,256)
226
11
342
2,896
563
(1,343)
226
396
2,738
13.5 DESIGNATED FUND(included in general funds)
Charity: Diocesan central agencies
Evangelisation
Newbridge House
Vocations
Special collections
Parishes none
Charity total
Group total		 Opening
balance
£000
347
96
21
49		 Income
£000
8
-
-
-		 Expenditure
£000
(63)
-
-
-		 Transfers
£000
-
-
-
-		 Unrealised
gains on
investments
£000
-
-
-
-		 Closing
balance
£000
292
96
21
49
513 8 (63) - - 458
- - - -
513 8 (63) - - 458
513 8 (63) - - 458

47

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

Previous year
Charity: Diocesan central agencies
Evangelisation
Newbridge House
Vocations
Special collections
Parishes none
Charity total 2020
Group total 2020		 £000
£000
£000
£000
£000
£000
402
12
(67)
-
-
347
103
-
(7)
-
-
96
21
-
-
-
-
21
49
-
-
-
-
49
575
12
(74)
-
-
513
-
-
-
-
-
575
12
(74)
-
-
513
575
12
(74)
-
-
513

48

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

14 ANALYSIS OF NET ASSETS BETWEEN FUNDS

14.1 GROUP

14.1 GROUP
Fixed assets
Investments
Stock
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than
one year
Internal balances:
Loans
Diocesan bonds
NET ASSETS		 PARISHES GROUP BALANCES
Unrestricted
Funds
Restricted
Funds
Endowment
Total
£000
£000
£000
£000
30,910
-
-
30,910
22,150
-
644
22,794
10
-
-
10
702
-
-
702
8,720
550
-
9,270

(484)
-
-
(484)
(79)
-
-
(79)
(2,063)
-
-
(2,063)
5,533
-
-
5,533		 CENTRAL DIOCESAN AGENCIES
GROUP BALANCES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
4,976
753
5,729
2,320
10,272
12,592
3
-
3
262
-
262
1,543
2,219
3,762
(1,620)
-
(1,620)
-
-
-
2,063
-
2,063
(6,342)
809
(5,533)		 GROUP 2021
£000
36,718
33,800
14
1,263
12,466
(1,993)
(74)
-
-
£000
36,639
35,386
13
964
13,032
(2,104)
(79)
-
-
65,399
550
644
66,593		 3,205
14,053
17,258		 **83,851 ** 82,194

49

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

14 ANALYSIS OF NET ASSETS BETWEEN FUNDS

14.2 Charity

14.2 Charity
Fixed Assets
Investments
Stock
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one
year
Internal balances:
Loans
Diocesan bonds
NET ASSETS		 PARISHES
Unrestricted
Funds
Restricted
Funds
Endowment
Total
£000
£000
£000
£000
30,681
-
-
30,681
22,150
-
644
22,794
-
-
-
-
689
-
-
689
8,680
550
-
9,230

(440)
-
-
(440)
-
-
-
-
(2,063)
-
-
(2,063)
5,533
-
-
5,533		 CENTRAL DIOCESAN AGENCIES
Unrestricted
Funds
Restricted
Funds
Total
£000
£000
£000
4,986
753
5,739
46
10,272
10,318
3
-
3
38
-
38
1,525
2,219
3,744
(1,620)
-
(1,620)
-
-
-

2,063
-
2,063
(6,342)
809
(5,533)		 CHARITY 2021
£000
36,493
31,598
1
1,256
12,439
(2,141)
-
-
-
£000
36,420
33,112
3
727
12,974
(2,060)
-
-
-
65,230
550
644
66,424		 699
14,053
**14,752 **		 81,176 72,646

50

LANCASTER ROMAN CATHOLIC DIOCESAN TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022 NOTES TO THE ACCOUNTS

15 CONTINGENT LIABILITIES

In the opinion of the trustees there were no contingent liabilities in existence, other than in the normal course of the activities of the charity, as at 5th April 2022 or at 5th April 2021.

16 RELATED PARTY TRANSACTIONS

Due to the nature of the charity's operations and the composition of the trustee body, it is inevitable that transactions will take place with organisations in which a member of the trustees may have an interest. Such transactions involving organisations in which a member of the trustee body may have an interest are conducted at arm's length.

Following his appointment as Bishop of Lancaster in April 2018, Right Reverend P Swarbrick holds positions on non-diocesan bodies, including Ushaw College.

The diocese holds one of nine £1 ordinary shares issued by Inter-Diocesan Fuel Management Limited (IFM), a company set up in conjunction with eight other dioceses in order to obtain competitively priced energy for diocesan properties. The profits of the company are covenanted to the participating dioceses under Deed of Covenant. The majority of all fuel payments are made through the IFM bulk buying scheme.

At 5th April 2022 an amount of £73,965, unchanged, (2021 £92,456) was owing to the diocese from IFM in respect of overpaid contributions and is disclosed in the accounts under other debtors. At the 5th April 2022 an amount of £71,100, (2021 £135,213) was owed to IFM from individual parishes and other bodies in respect of fuel charges and is disclosed under other creditors. See note 12.

The Blessed Edward Bamber Catholic Multi Academy Trust (BEBCMAT) and Mater Christi Multi Academy Trust (Mater Christi) are considered as related parties as both the Roman Catholic Bishop of Lancaster and the Lancaster Roman Catholic Diocesan Trustees Register are members of BEBCMAT and Mater Christi.

During the year the Diocesan Education Service received the following amounts from BEBCMAT:

BEBCMAT
Inspection fees
Training & conference fees
Building support services
School governance support service
Academy support services

Mater Christi
Inspection fees
Training & conference fees
Building support services
School governance support
service
Academy support services
Academy Conversion charge		 2022
£
1,190
-
17,682
2,000
5,090
-
16,535
10,500
8,000		 2021
£
-
-
-
18,221
-
-
-
-
-
-

17 HERITAGE ASSETS

The diocese, via its parishes, holds work of art, historic treasures, plate and similar items which are not capitalised in these accounts. In the opinion of the trustees these are considered to be historical assets which are integral to the charity's overall objectives of advancing the Roman Catholic religion and do not fall under the definition of heritage assets.

51