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2021-08-31-accounts

Portsmouth Roman Catholic Diocesan Trust

Christ at the Centre

2021 Annual Review

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Charity Information

Registered Charity Name Registered Charity Number Charity Trustee

Portsmouth Roman Catholic Diocesan Trust

246871

Portsmouth Roman Catholic Diocesan Trustees Registered

Rt Rev Philip Egan

Board of Trustees

Rev Mgr Paul Townsend Rev Canon Michael Dennehy Rev Canon Paul James Smith

Rev Benjamin Theobald (Appointed 28 April 2022) Rev Canon Simon Thomson

Rev Mark Hogan

Rev Robert Stewart (Resigned 09 December 2021) Rev Mr Gerard Dailly

Bernard Davis

Mike Elks

Catherine Knowles (Appointed 02 July 2021) Martin McCloskey (Resigned 23 September 2021) Sue Masser

Anthony Murphy (Resigned 23 September 2021)

Bishop of Portsmouth Secretary to the Trustees Chief Operating Officer Director of Finance

Rt Rev Philip Egan

Hereward Drummond

Heather Hauschild

Clive Field

Registered St Edmund’s House Auditors Haysmacintyre LLP Office Bishop Crispian Way 10 Queen Street Place Portsmouth London EC4R 1AG PO1 3QA Bankers Lloyds Bank PLC Investment Charles Stanley & Co LTD Cazenove 2-4 Palmerston Road Advisers 25 Luke Street 12 Moorgate Southsea London London PO5 3QH EC2A 4AR EC2R 6DA Solicitors Stone King LLP Principal Catholic Insurance Services Upper Borough Court Insurers Suite 5, Oxford House Upper Borough Walls Oxford Road Bath Thame BA1 1RG OX9 2AH

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www.portsmouthdiocese.org.uk

Contents

Index

1 3
Charity Information 02 Financial Review 30
Introduction from Bishop Philip 04 Structure, Governance and
Our Vision 06 Management 34
Statement from our Chief Independent Auditors Report 40
Operating Offcer 08
2 4
Year in Review Financial Accounts 44
Christ the Companion 12
Year in Review
Christ the Teacher 14
Year in Review
Christ the Healer 18
Year in Review
In the Image of Christ 20
Year in Review
Christ the Servant 26

Overview

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Bishop Philip’s Introduction

“Remain here and watch with me”. I have seen the true faithfulness of our people, who have responded to these words with such vigour and creativity.

As I reflect on the life of our diocese over the last year, during these somewhat troubled times, I am reminded of Christ’s agony in the garden of Olives, just before his passion.

“And being in agony he prayed more earnestly; and his sweat became like great drops of blood falling down upon the ground” (Lk 22:44)

I have seen Christ’s agony in the suffering of our people throughout the year, in the lonely and isolated, in grief-stricken loved ones left behind, in parish communities depleted, families kept apart, people falling into financial difficulty and in the general air of weariness that has lingered on post COVID.

“Remain here and watch with me” (Mt 26:38) Christ asked his disciples. In the anguish of the garden I have seen the true faithfulness of our people, who have responded to these words with such vigour and creativity. They have held their gaze on Christ, and it is here that I have seen the triumph of the Good, in the witness of our faithful who, in keeping him at the centre of their lives, have uttered Jesus’ words “thy will be done” (Mt 26:42).

We have seen unparalleled outreach to the homeless, marginalised and isolated through parish initiatives and our social action groups, generosity of time from our vast network of volunteers, who together with the clergy have

made our parish churches the bedrock of community life and a place in which to encounter Christ.

And Christ has remained ever faithful. Just as he walks with us in our suffering, he invites us into renewal through the Resurrection. This is truly a time of new life and new opportunities, of transformation. Our Church may be significantly smaller, but it is alive. And it is a time for strategic change.

The Church exists to evangelise. The Church evangelised and baptised the classical culture. It struggled to engage with modern culture. It now has the catch-up task of evangelising postmodern culture. This is new territory. The Church has never before passed through a post-modern culture and it’s not easy to find a footing, let alone the right path.

The first goal of evangelisation is individual persons, but the ultimate goal is the conversion of culture. That is our task: to engage with and to baptise the individuals who make up this complex post-modern society and through them to influence and transform culture, the world itself. That’s our mission: ‘Bringing people closer to Jesus Christ through His Church.’ How can we do this?

A lot of what we did pre-COVID, cannot continue. We are at one of those rare axiomatic moments.

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In his book Let us Dream, Pope Francis invites us to see the post-COVID situation as a kairos, a time to seize the moment, an opportunity to do things differently and to build a better world. This is the time to dream dreams, to think outside the box, a time to be creative and be led by the Holy Spirit.

In doing this, we must remember the primacy of

spiritual renewal. As Catholics it’s tempting to focus on changing structures and institutions, changing doctrines and practices, changing parishes and schools.

What is really needed goes much deeper. This is not just about the Church of the Lord; it is about the Lord of the Church. This is really about our relationship with Jesus Christ. It’s about

In Prayer

“Prayer lies at the heart of our relationship with Jesus Christ. It is a two way conversation, like the air we breath - in and out”

the Eucharist as the summit towards which our life and work ascend, and as the source of our energy, commitment and activity. This is really about changing ourselves; a deep, radical, spiritual renewal as individuals, about how we

think and live, about how we love others, about how we collaborate with one another, and about how to take responsibility. This is about the call to holiness and authenticity, by keeping Christ at the centre of our lives.

Bishop Philip Egan Bishop of Portsmouth

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Our Mission

Our diocesan mission is one that can be summed up in one line: Bringing people closer to Jesus Christ through His Church. It is a broad and open ended mission that incorporates all of the great work being done by clergy and our lay

communities across the diocese. Much of this work is carried out at the grassroots level in our parish communities -through our churches, our schools and starting in our homes, through our families.

The mission of the diocese revolves around four main priorities:

Mission and Evangelisation

Through friendship, word, service and example, Jesus sends us out as His ambassadors, to connect with all souls so they can hear the Gospel and meet Him.

Dependence on the Holy Spirit

We are rooted in prayer, and through the sacraments are dependent on God and His providence. Filled with joy and zeal, we deliver new methods to move from maintenance to mission.

Converting Catholics

We help all Catholics, practicing and non practicing, come to a deeper, personal love for Jesus in the Eucharist, to be more intentional disciples, and actively engage in the Church’s mission.

Outward Looking Service

Our parishes and schools endeavour to be outward facing service centres, especially for the marginal, the isolated and the poor. Service to our neighbours lies at the heart of our mission.

The four priorities lead to three specific focuses:

Focus on Youth

Handing on the gift of faith, converting, forming and equipping them to be joyful missionary disciples.

Promoting Vocations

We pray for, foster and support vocations to all states of life and all ministries in the Church.

Prioritise Resources

We manage wisely our property and finances and use our God given patrimony more flexibly and intentionally in the service of mission.

Through our mission, our priorities and our areas of focus the diocese continues to achieve impact against our charitable objects.

Our Charitable objects are detailed on p24.

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Led by Christ in all that we do

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Strategic Report

Statement from Our Chief Operating Officer

Looking back at the priorities we set for 2020/2021 I am pleased to say that through the hard work and commitment of many across the diocese we can say that substantial progress was made.

The development of a 10-year plan for the Diocese is in progress. We have developed a ten clear priority areas taking into account all the feedback we received through the survey “A thousand Voices,” the pastoral area reviews that were undertaken last summer and though the fruitful meetings we have had with parishioners from around the diocese.

with members from a variety of professional disciplines. The “One Church” model for safeguarding agreed by the Bishops Conference of England and Wales has been implemented. We are proud of the team who work in this area and thankful for the volunteers who support parishes to be safe places for the young and the vulnerable.

We hope to publish the final plan by the autumn of 2022.

The Living Our Faith Campaign was finalised, and a new initiative called “Closer to Christ” campaign was commenced with particular focus on Seminarians, support for clergy in active ministry and priests who have served the diocese and who are now retired. Parishes also have a share of the fund to enable them to sustain their day-today mission. The Closer to Christ campaign has begun well with commitment from the priests who are leading the way in the first wave. The generosity of so many who love the church and want to support our priests is gratefully received.

We achieved further success with grant applications particularly for our historic churches, however a long-standing vacancy has slowed down our success in this area. We hope that a successful round of recruitment will enable us to refocus this area in 2022/23.

Our safeguarding committee was established

A new finance system was procured to enable the central team to support parishes more effectively and to provide the tools for central reporting and oversight. Training has been undertaken and the system is live in April 2022.

As part of improving governance a new suite of polices has been approved by trustees including those for Human Resources, Information Governance, Communications Fundraising and Property. Cyber security has been a particular focus including surveillance and training.

Partnership working with universities and hospitals has enabled us to review the contractual arrangements in place and we have agreed service level agreements to reflect the service provided by our priests and others in these important ministries.

Our Caritas mission has been developed and a particular energy has been brought to collaborating with schools as well as parishes in our focus on care for creation.

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www.portsmouthdiocese.org.uk

Our response to the challenges described In Laudato Si have been set out in a strategy which will be further developed as part of the Diocese 10-year plan. We made a commitment to disinvestment in fossil fuels by 2027 which was announced at the time of COP26.

As the lead sponsor, working with the Home Office, we have enabled two local groups to welcome and support refugees as part of the Government community sponsorship scheme. The work they are doing to provide welcome and shelter for families from the most difficult

In Service

“Our work is rooted in the service to our

parish communities. Providing them with the support that they need to carry out their daily mission to all within the community”

of circumstances requires outstanding commitment and selfless service and we are pleased to support them. We hope we will be able to see an expansion of this programme in coming years.

Our priorities for the coming year are to continue to build on the work already begun and to shape our operating plans in line with the Long term

strategic plan so that the charity can most effectively support the mission of the church.

I commend this annual report to you and ask you please to continue to pray for our diocese so that we realise God’s will for us in this time that we have been given to serve Him.

Heather Hauschild

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Plans for the Future

In 2021-22 we will progress the development of our 10-year strategic plan. This will be informed by the survey completed last year called “A Thousand Voices” which was published in November 2021, and an extensive review by Pastoral Areas of their local situation and the impact of the Covid 19 pandemic. Further engagement led by the the Bishop, with clergy and laity, has taken place to discuss the emerging priorities for this long-term plan. A Vatican initiated Synod on Synodality has also contributed to the process. It is expected that our plan will be finalised by the Autumn of

2022 and the strategy for our catholic schools will be finalised at the same time.

The long-term strategic plan is intended to shape our missionary communities for the next ten years centred on Christ and reaching out into the world.

Our detailed priorities are shaped by our commitment to support the mission of the church through our parish and school communities. The key areas are set out below:

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Let us pray that all our endeavors will be instrumental in rebuilding His Church after the last two years when the impact of the pandemic has been deeply felt, accelerating a change in the practice of the faith, and bringing the need for renewal into sharp focus. The challenges ahead will take courage and generosity of time talent and treasure from everyone involved, but we look forward with hope to a renewed sense of mission as we place all our work in the hands of the Lord.

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Year in Review Christ the Companion

As we entered another lockdown and eventually moved into the easing of restrictions, the faithful of the Diocese have continued to keep Christ at the centre. Christ accompanies us in our endeavours.

With 87 parishes, serving 3.2 million people across Hampshire, Berkshire, Oxfordshire, the Isle of Wight and the Channel Islands every year, our churches remain the foundation of community life, providing spiritual nourishment through the sacraments, personal development through various sacramental programmes and support through a variety of social outreach initiatives.

In parish life we truly see Christ the Companion at work.

During the last lockdown, all of our parishes ensured that online services continued so that our most vulnerable members were still able to participate from afar. Services included: live streaming masses and other events, online meetings for groups to gather, online catechesis and formation programmes, as well as telephone outreach initiatives and house calls for the isolated.

With the reopening of parish Churches, tireless efforts were made by parish priests and volunteers together with the Curia to ensure Churches remained open in line with government legislation and guidance, keeping people safe and making people feel welcome, through stewardship initiatives, rotas, risk assessments, H&S, and the procuring and installing of necessary equipment.

As restrictions were eased, parish activity soon moved back into full swing, with the administering of sacraments, baptisms, holy communions and confirmations, marriages and even the ordination of 2 priests, Frs Anthony Fyk and Paul Nwune took place in July 2021.

Our hospital chaplaincy team continued to negotiate access into hospitals through the second lockdown in order to visit the sick and the dying and perform last rights.

Parish initiatives such as RCIA, Alpha, Divine Renovation, Marriage and Family life’s ‘Breakthrough’ and Ananias were all re-opened in person and have brought more and more people back to Church as the year has progressed. In fact, Ananais and Divine Renovation epitomise Christ the Companion, for they are personal programmes which seek to accompany the individual in their life-long faith journey. Aba shields Marriage and Family Life coordinator talks about the importance of the ‘breakthrough’ programme post COVID. “Through this time of lockdowns and restrictions, which has created intense and anxious home environments, many have felt a strain on their marriage.”

She continues, “in the ‘breakthrough’ programme we offer the opportunity for couples to learn to listen to each other and in a friendly environment,, overcome gridlock in communication, and rediscover the beauty and divinity of their marriage”.

Parish life in Fareham and Portchester is never dull - always varied! The community is vibrant and full of the Holy Spirit. The parish is very generous in their support for local community initiatives. Recent outreach projects we have undertaken include Alpha and we have been heavily engaged with CARITAS’ Refugee Matters. Parishioners have worked so hard for over two years setting up a house, and we are expecting a refugee family to arrive any day. This passion and drive has been incredible to watch. Alongside this, our Advent Appeal was in support of the Fareham Churches’ Covid Emergency Fund which helps those who would otherwise lose their homes to rent arrears because of the pandemic. In total we raised £6,250. This truly is the Gospel, the Good News, in action.

Canon John Cooke from Sacred Heart Fareham reflects on the life of his parish during the last year:

As a parish we have been working on a Ministry of Welcome and Hospitality, looking to ensure those who come to join us since the lockdowns, as well as existing parishioners and new, feel they belong. We have a growing Men’s Group who gather monthly for Bible reflection, testimony and worship. With the assistance of Fr Tom Grufferty (retired) we have a newly established Bereavement Group who actively journey with those who are grieving and those who come to the Parish for a funeral of a loved one. Recently, we had a successful “Watch” party joining Divine Renovation with 29 parishioners attending.

Year in Review

Christ the Teacher

We keep Christ at the centre not just of everything we do, but of everything we learn. We turn to him as a friend and as a teacher. The Diocese of Portsmouth strives to hand down the wealth of the Church’s Wisdom and Tradition through the education, formation and personal spiritual growth of its faithful. Significant impact has been achieved this year in these areas, from the provision of its schools and university chaplaincies, to the opportunities for formation provided by our parishes and formation teams.

The diocese provides contemporary education to 31,108 children and young people in primary, secondary and sixth form education throughout our 71 Catholic schools and academy trusts.The light shines in the darkness, and During the year, 2,303 teachers and leaders in education and an additiothe darkness has n ot overcome it.al 1,751 support staff and 800 volunteer governors and directors have delivered an enriching curriculum across a full spectrum of subjects and Catholic schools are now a major component of the education system in England and Wales. Educators have assisted in the Church’s mission of making Christ known to all people with 5460 hours of Religious Education taught in our schools along with the fostering of 4855 hours of prayer.

Some of our schools operate in the most deprived areas and improve the outcomes for many young people, 4218 of whom have special educational needs and disabilities. 42% of all pupils are non white British. We have supported 115 pupils in care and 2,860 pupils to receive free school meals.

Schools have shown their resilience and creativity in the way that they adapted during the pandemic. All schools moved to online learning and found creative ways of engaging with parents as well as children. Examples include: the development of virtual parents evening, online presentation evenings and digital liturgies, recorded nativities and passion plays.

School outreach intensified during the period, not only through collective fundraising efforts but also through the delivery of unique and creative initiatives, for example, in the provision of laptops and food for vulnerable families, virtual friendship opportunities for the isolated, the elderly in care homes and for those away from home (in the armed forces or away at sea on merchant vessels) through pen pal letter

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writing, the making of cards and gift boxes and the sending of audio and visual recordings and messages.

Headteachers were held virtually. 9 briefings engaged with 60 Headteachers.

The Catholic Academies and Schools Office who provide a central service to all schools of the diocese also had to adapt its working practices to provide continual support. Briefings and support meetings for

“Headteachers valued this opportunity to connect with fellow Headteachers for support and to share good practice” explains Catherine Hobbs, Director for Education for the Diocese:

The ability to engage virtually with foundation governors was a positive development of the year...with 60 governors attending the termly briefings, and this has been adopted into the pattern of working for the Catholic Academy and Schools Office going forward

Virtual training also took place for 25 newly qualified teachers on working in a Catholic school and understanding the liturgical life of the school.

The diocese has also provided spiritual support and formation to the students of six universities in

Bournemouth, Portsmouth, Reading, Southampton Solent, Southampton and Winchester through established CathSoc groups and university chaplaincy teams. In Southampton, weekly bible study groups were attended by over 50 students in person, and many more virtually.

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Parishes also supported various stakeholder groups within the parish community and outside in the wider local community with online and in person opportunities for formation and education during the period. Included was the delivery of over 31,670 homilies covering a range of contemporary subject matter, all rooted in prayer and scripture. In addition, the Formation for Mission team supported parishes by developing online means of formation during 2020-2021 for adults, catechists and church readers because of the COVID pandemic.

Altogether, 107 online sessions of formation were delivered to 2,556 participants who registered for sessions. Many of the registrants joined online with family members in addition.

For Adults

Weekly Gospel Webinar - Live online commentary

Back2Basics Course - Reconciliation - 6 sessions

Back2Basics Course - Holy Mass - 6 Sessions

Zoom Retreat on St Joseph

Triduum Retreat - According to the Scriptures

Formation day for the Catholic Women’s Association

Other occasional sessions and conferences for adults

For Catechists

4 Sets of Readers Workshops to train parish readers

217 Participants

Team of Diocesan Listeners set up to offer 1:1 online

practice for diocesan readers.

138 practice sessions organised. Weekly Newsletter 861 Subscribers

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www.portsmouthdiocese.org.uk

For Catechists

Production of Children’s Liturgy Video Resources Workshop for First Holy Communion Catechists 30 Participants

Online Catechesis 101 - 3 Sessions

20 Participants

Online Course for Catechists

Weekly support for parishes - FHC Programme and Catechesis

Support Group for Catechists and for parents of children with additional needs

Maryvale Conference on Directory for Catechesis 200 Participants

Catechists Training - 5 sessions to cover essential principles

32 Participants

Thankyou for tonights webinar. Really grasped it this week. So much of human behaviour packed in there. Love, justice and our way to the Truth - God - who is the Creator of all. To whom we owe all. I feel this was so beautifully explained. The more I learn - the more I want to know. God Bless You All.

Thank you so much, the retreat has been wonderful. You have really opened my eyes to the message of hope in the Scriptures. It has been very meaningful, and a wonderful gift to receive in Lent. I have shared several of the talks with my family too, who found them very helpful. Thank you again.

I can honestly say this has been amazing, fun, educational, and everyone so funny, caring and supportive… thank you for giving me the opportunity to spend time with you and learn.

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Year in Review

Christ the Healer

Social outreach is a fundamental arm of the body of the Church. Rooted in Catholic social teaching, the Church-in-action feeds, provides shelter and educates more people every day than any other organisation in the world.

reports submitted by parishes to funders demonstrate the extent to which our social outreach projects have affected positive transformational change in people’s lives.

Moreover, a major part of the Church’s mission is to reach out directly with Christ’s healing hand to those most in need, to the isolated, marginalised, and poor. Some of the ways in which we do this are through the provision of food banks, homeless shelters, support projects for the rehabilitation of offenders, the settling of refugee families, and support programmes for those who have misused drug and alcohol.

In Portsmouth Diocese, many of our parish communities lie at the heart of some of the most deprived areas in the country, with families and individuals facing terribly difficult circumstances, such as unemployment, homelessness, poverty, crime, poor health or mental illness. We also have a very diverse population with a large immigrant representation, especially in our ports and around our hospital communities.

Caritas is the diocesan agency that takes the lead in supporting our parishes with their social action projects, as well as spearheading a variety of projects centrally. Phil Paulo, deputy head of Charity for Caritas talks about their year:

Throughout the year the fundraising team has worked with parishes’ social action projects and procured £1.2 million worth of grants for parishes to serve those in need in the wider community. The impact

Says

2021 was a year of significant change for Caritas Portsmouth, building on the previous work of need identification and individual project delivery. A new Head of Charity was appointed in May 2021 and a new organisation was implemented thereafter.

This year saw Caritas Portsmouth rising to the challenges of the continuing COVID 19 emergency by diverting much of our outreach work into helping those in need who were especially affected by the isolation and social consequences of various lockdowns and shielding initiatives. Through our modified InSight projects, Caritas volunteers supplied hot take away meals in addition to emergency food parcels in Covid secure conditions to individuals and families in need during the year in four main hubs of Portsmouth, Southampton, Gosport and Basingstoke, in addition to supporting local efforts in many parishes throughout the diocese. We developed and sustained virtual contact systems alleviating loneliness and providing positive impact on mental health. We continued our partnership

working with local charitable organisations particularly in addressing the issue of food waste with the effective diversion of excess food from supermarkets to activities where the excess could be used for the benefit of those in need.

Our work in the refugee sector continued with Community Sponsorship schemes progressing in 2 parishes through the support of Caritas and with the Diocesan COO as named lead sponsor. The first family was welcomed this year and a second Syrian family will be welcomed in March 2022. Our other work in this sector concentrated on capacity building in preparation for assistance in other refugee schemes, in liaison with CSAN , JRS and the Refugee Council.

During 2021, Caritas actively sought and expanded working relationships with relevant third parties, embracing the need for greater external expert practitioner assistance to make our work more focused, efficient and impactful. This was evidenced in our work in Reading parishes where Caritas partnered via an SLA with Hope Into Action, a charity experienced in the provision of houses and managed tenancies for vulnerable adults. We welcomed our first tenant in this joint project in late 2021. Other joint working projects will follow including projects working within the care leavers sector and domestic violence. Caritas Portsmouth became a member of NCVO during this year.

Caritas has taken the lead on developing an environmental strategy. Our first initiative was to implement pollinator projects in parishes and schools throughout the diocese. A widereaching diocesan environmental strategy was researched and written to achieve a diocesan aim of net zero carbon by 2030, through a combination of small incremental changes and large institutional changes. This was approved by Trustees in December 2021 and Caritas will be leading on the implementation of this strategy during 2022. A Caritas proposal for the diocese to divest from fossil fuel investments was prepared at the end of this period, and this was approved by Trustees in October 2021 as part of a joint national and international initiative.

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Year in Review

In the Image of Christ

In our relationship with God, we are called to a deeper child-like sense of trust in Him. As the Good Shepherd, Christ invites each of us to follow him, to rely upon him, to hand over control to him - in order that we might grow in his image and likeness. And he asks of us a definite service with our lives, a ‘vocation’.

Discovering our personal vocation, and to live it out through the various stages of life takes much discernment and much support. The diocese of Portsmouth provides support and accompaniment to all those who seek it at all stages of life, through our youth ministry to young people within the parishes and university chaplaincies, to those discerning their vocation through our Vocations Team, to supporting our priests through our Clergy Support Team and supporting our married couples through our Marriage and Family Life Team.

Youth

“Young people aren’t here for the Church; they are the Church—the most beautiful and dynamic part of the Church.” - Pope Francis

The Diocese of Portsmouth has acted upon Pope Francis’ call to “move from a pastoral care for young people to a pastoral care with young people” in its grassroots youth work in parishes.

Our youth groups, set up in parishes across the diocese, offer young people the right environment and tools in which to take their faith more seriously and grow in awareness of God’s presence in their lives. They are also given the opportunities to witness to their faith through the organisation of charitable activities. Our youth are the “Church of today”, the Church-in-action, and their role is encouraged to be a fully participatory one in the life of the Church, rather than merely passive.

For example, St Swithun Wells parish in Eastleigh runs three youth groups, Stars of Abraham for school years 3 to 6, Grails Seekers for school years 7 to 9 and Student Youth for school years 10 to sixth form. The groups meet weekly, with the younger ones playing games, singing songs, and doing charitable

activities, and the older ones sharing supper, listening to talks, watching inspiring films, inviting special guest speakers, as well as organising day trips and outdoor charitable events.

Vocations Promotion

Canon John Cooke, Portsmouth Vocations Director recounts the activity of his team for the year:

For the first part of the year, while we were still in lockdown, we had the joy of hosting the Discernment Year in the ‘Sacred Heart House’. This was an intense period of hosting, prayer, formation and teaching - helping to cultivate the understanding of the Lord’s call in the lives of the men entrusted to our care. We are glad to say they have since progressed to major Seminary and continue formation.

During that time we continued with our ‘routine’ promotion activity: weekly intercessions, weekly parish newsletter inserts, regular social media outreach and Good Shepherd material.

Parish Priests are by far the biggest influence on men who enter Seminary and so in April ‘21, we were given the opportunity to lead an Ongoing Formation for Clergy Day looking at the Priest as a ‘natural vocation promoter’.

Since September ‘21, we have been able to restart our monthly Seeker Evenings for Discerners. We currently have eight seekers in contact with us. Two of the Seekers have been put in touch with Spiritual Directors as a result of our time together and we have one Seeker who has been discerning religious life with us, who has taken the next step to test the call within a religious Community, which is great news. The motivation for our monthly gatherings is that if a person is moving – gathering information,

checking out the Vocation website, reading books, coming to Seeker Evenings, talking with a Spiritual Director and praying – the Lord can guide their movements. He will close some doors to them, and He will open other doors.

Also since the Autumn ‘21 we were able to resume the monthly Parish visits seeking to reach out to the lay faithful to encourage them to assist with the task of promoting Vocations and raising the profile of our work. It is mainly from these visits that we grow the Prayer Network for Vocations – people who are receiving our monthly Prayer Newsletters (currently 1,175 people from across the Diocese). Where possible we try to tie in visits to University Chaplaincies and any Youth gatherings.

The role of Vocation Promotion in a Diocese is an area that is growing nationally at the moment and as a Diocese we were one of the first to commit resources to this endeavour. As such, our Diocesan promoter has been asked to represent this area and other promoters on the committee for the National Conference of Diocesan Directors of Vocation. The Conference scheduled this autumn is setting aside a day specifically looking at Vocation Promotion (along with the National Office of Vocations).

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Accompaniment in vocations to the priesthood

As a consequence of the Diocese’s ministry in vocation, some young men choose to give their lives in service of the priesthood. The Vocations Director Canon Gerard Flynn supports these men in making this journey. This entails meeting whit he discerners on a one-one and group basis regularly throughout the year, to nurture their vocation and to equip them with the information and tools required to make an application to seminary, which includes psychological testing. The Vocations Director arranges a selection conference each year to determine which candidates are to be accepted by the Diocese to train at seminary. A candidate training for the priesthood spends on average seven years in human, pastoral, intellectual and spiritual formation. The Vocations Director supports each seminarian both spiritually and practically throughout their time in seminary. He also arranges placements in parishes so that they can get hands on experience in pastoral priestly ministry.

The diocese currently has ten seminarians living and training at four seminaries in England and Italy: David Bateman and Ambrose Chou at St Mary’s College, Oscott; Rev Deacon James Lewis, Francis Ezeani and Nathan King at Allen Hall, Chelsea; Ryan Browne, Edward Hauschild, Ryan Hawkes and Jack Ryan at the Venerable English College, Rome; Tom Hiney at the Beda College, Rome.

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Clergy Support

The Department for Clergy promotes the work of the church in the Diocese of Portsmouth through providing support to clergy from ordination to resignation from office and throughout retirement. The team is led by Monsignor Canon Paul Townsend, Head of Department and Vicar General with the assistance of two part time staff. A small team of volunteers support the retired clergy. The positions of Head of Clergy Human Development and Head of Clergy Intellectual Development were vacant for six months of the year with new appointments made to commence Autumn 2021.

The Department for Clergy promotes the health and wellbeing of clergy throughout their active ministry and retirement, supporting 67 diocesan priests in active ministry, 31 priests from overseas or religious orders and 45 retired priests. It is a confidential service which respects individual privacy whilst seeking practical, positive outcomes to support clergy meet the challenges of their vocation. The team contributes to the formation and wellbeing of priests and deacons by supporting and resourcing their human, spiritual, intellectual, and pastoral development.

In 2020/21 29 priests received regular support. Two newly ordained and five first appointments to Parish Priest. Six priests have joined the diocese from overseas this year. The Clergy support team assist with cultural integration, pastoral ministry and practical support. Three complex cases have required a multidisciplinary team approach. Assistance was given to four priests suffering long term health issues and a further five that suffered physical or psychological health issues due to Covid. Short term focused work supported four priests with specific parish matters.

role changes, loneliness and isolation. Assistance with understanding personal finance and with pension credit applications and other government paperwork is provided by Mr Alan Sendall, treasurer of the Priests’ Retirement fund.

The Covid pandemic continued to have an impact on the work of the department. Some of the Clergy training programme moved online and other planned sessions were deferred. Frequent telephone consultations were available to all clergy and individual personal meetings were reintroduced as restrictions allowed. For much of the year only essential face to face visits could take place.

A member of the Department for Clergy has worked closely with four priests planning retirement. Practical and emotional needs are discussed. Consideration is given to a range of issues ranging from domestic skills, setting up utility contracts for the first time, to

24 Impact in Numbers

A single prayer for another is an act of good. Supporting a couple’s first steps in marriage. Comforting the bereaved. Welcoming new life in Baptism. Sustaining Centres for liturgy and the sacraments. Educating, forming and accompanying the young as they grow. With Christ at the heart.

1269

New Baptisms

240

Catechumens

673

Confirmations

260

Marriages

Funerals 1,215

1,481 First Holy Communions

10 million hours of community service

487

88% good or better (Ofsted 8 inspections) 100%[good or better][(Section 48 8 inspections)]

62%[outstanding RE and Catholic Life][(Section 48)]

Weekly Masses

927

people at home receiving communion

72 parishes live streaming Masses 15,075 average weekly Mass attendance

25,324+ hours of online liturgies, support groups and formation

885 Other Core Mission Groups 66 Welcome & Hospitality Groups

21 Evangelisation Strategy Groups 47 Pastoral Councils

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Year in Review

Christ the Servant

The Diocese supports the work of its parishes through the Framework for Collaboration (Curia), which consists of a network of teams and departments to assist in the pastoral delivery of projects and initiatives. Full details of the work of these teams and their impact can be found on the diocesan website at www.portsmouthdiocese. org.uk//about-us/diocese/framework-forcollaboration.

Our Diocese is a large charitable organisation, which employs dedicated professionals to support the efforts of the Bishop, Priests, Deacons, and Lay People working to Bring People Closer to Jesus Christ through His Church. The diocesan offices at St Edmund’s House, on the Cathedral site in Portsmouth, houses the ‘Department for Support and Administration’. The Department provides extensive support to the diocesan curia and to our parishes in areas such as pastoral care, capacity building and governance. We employ approximately thirty members of staff on a full and part-time basis across eight departments – Safeguarding, Finance, HR, Governance, Estates, Communications, Fundraising and IT. The Chief Operating Officer has overall responsibility for the work of the Department for Support and Administration and is the Canonical Finance Officer for the diocese. (Can. 494)

Communications

The communications team developed a new diocesan website during the year and introduced a quarterly newsletter for parishes that demonstrated good news and impact stories at the grassroots level. The team also developed a communications network for parish administrators, with virtual and in person forums and annual development days, and a dedicated fortnightly digital newsletter

providing information, good practice, training and development.

Fundraising

The fundraising team supported our parishes in attaining £1.2m in grant funding for both capital and community mission-based projects. It also developed digital fundraising platforms for every parish and the main diocesan groups. These platforms have raised £450,000 during the period. In addition, multiple promotional resources and communications were developed for parishes to support their communications and fundraising efforts with local communities and parish members.

Finance

The finance dept secured a new Finance Director who was able to strengthen the team and develop a series of policies and procedures to support and improve parish accounting processes. This saved parishes time and money in the way that they managed their finances throughout the year.

HR, Governance, IT

The dept developed a series of policies and procedures to support clergy, staff and volunteers working on behalf of the organisation in the areas of HR, It and GDPR management. Training workshops were delivered to a range of stakeholders across various subject matter including Cyber Security, Microsoft Teams and Sharepoint, Dealing with mental health. The IT team have rolled out an IT blueprint for parishes to support them to implement GDPR compliant systems and to improve operations.

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Focus on

Estates

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In March 2020 the Diocese received a School Capital Allocation of £2,863,153, followed by an additional ‘pandemic bonus’ allocation in August of £1,329,702.22 giving us a final VASCA grant total £4,192,856. As our schools were particularly challenged by managing their Covid response, the tactical decision was made to prioritise external works and reduce the number of smaller internal projects.

In addition to a couple of major boiler and heating projects, we have taken the opportunity to accelerate our school roofing programme and significantly reroofed 8 of our schools, and carried

focused this year on maintaining our parishes in wind and weathertight condition, replacing failed boilers and other essential works, the Trustees approved £997,270 on these projects across 45 parishes.

While carrying out unavoidable expenditure on our parish estate there is a continuing need to review the demographic location of the Catholic population in the Diocese to ensure that churches are full and thriving communities. The diocesan estate is therefore kept under review to ensure that buildings are put to best use.

We have within our Diocese, 27 listed churches, of which 2 (and now 3) are Grade 2* recognised as amongst the most important 8% of heritage buildings in the country. We also have 12 churches under consideration for listing and 22 other listable structures.

This year we had two significant regradings. St Boniface in Southampton was not only listed, but also selected by English Heritage as one of its ‘highlights of the year’

at major water main, drainage and playground resurfacing at a further 5 schools.

We also had the excitement of opening up two new school buildings, a Religious Studies and Performing Arts Block at St Edmunds Portsmouth, which includes a living wall to bring a green lung into the city which was jointly funded by the School and VASCA grant, and the new Science and Technology Block at St George Catholic College in Southampton, funded by a £5.5M PSBP2 grant from the Department for Education.

Due to the impact of the pandemic on parish income, spending on the church estate was

Particular attention is being given to our heritage churches where again we have been successful in obtaining heritage grant aid for our churches and further funding opportunities are being explored. In addition to additional funding for our Grade 2* The Annunciation in Bournemouth taking our grant up to £253,000, we also received £66,000 towards the repair of St Thomas of Canterbury in Newport, a church which is not only a fine example of a Georgian church with a complete galleried interior, largely unaltered in the Victorian period, but also a very early, possibly the earliest, example of a purpose-built Catholic church not associated with a private estate.

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Focus on

Safeguarding

The Head of Safeguarding is responsible for setting the safeguarding strategy for the Diocese and ensuring the effective delivery of the safeguarding functions.

What we do

Supported by a team of safeguarding professionals, the central team manages a number of areas of business including: Providing strategic reports and assurance to the Safeguarding Sub Committee and the Board of Trustees.

Key Actions this Year

In June 2021 a report outlining the required restructure of the safeguarding office was submitted for approval by the Trustee Board. The restructure was required to enable to the safeguarding office to meet the current demands of the Diocese and to ensure practice is at the required standard as identified by the national review of safeguarding structures.

Following approval of the restructure by the Trustees, we have advertised and recruited to 2

newly created Safeguarding Officer posts and 1 newly created full time Safeguarding & DBS post. The increased resources will enable the central team to better meet the needs of the Diocese and embed a culture of safeguarding.

The transition from the Catholic Safeguarding Advisory Service (CSAS) to the Catholic Safeguarding Standards Agency (CSSA) was completed in June 2021. The CSSA is now the regulatory body for the Catholic Church and a set of national safeguarding standards has been agreed.

In accordance with the national review, we have restructured our Safeguarding Commission and refreshed the Terms of Reference. The group is now known as the Safeguarding Sub-Committee and has a Lay Trustee Chairperson. The structure reflects the legal responsibilities of Trustees in terms of safeguarding governance and oversight of the charity.

There are 8 national safeguarding standards against which the Diocese will now subject of oversight and audit, both internally and externally, to ensure we are meeting with the requirements. The standards are:

  1. Embed safeguarding in the Church body’s leadership, governance, ministry and culture. 2. Communicate the Church’s safeguarding message.

  2. Engage with and care for those who report having been harmed.

  3. Effectively manage allegations and concerns.

  4. Manage and support subjects of allegations and concern (respondents).

  5. Implement robust human resource management.

  6. Provide and access training and support for safeguarding. 8. Quality assurance compliance to continuously improve practice.

The Diocese is already performing well in relation to a number of these standards, but we continue to develop and improve our practice and identify our areas for learning and development.

With the increased resources in the central team, we will be able to be more visible within our parishes and church communities, to have more regular engagements with our clergy members and volunteers and support the aims of embedding a culture of safeguarding.

Training is one of the areas where we need to develop our practice. During the pandemic, we responded quickly in moving our training delivery to an online platform to ensure those working in a role with children and/or vulnerable adults could complete the safeguarding training required to support and enable them in their roles.

Following the restructure of the safeguarding office, one of the Safeguarding Officer posts has been assigned the portfolio for training. Engagement work has commenced with parishes to complete a training needs analysis.

The Catholic Safeguarding Standards Agency (CSSA) has developed a Learning Management System (LMS) and created a number of modules relevant to the roles being undertaken by our clergy members, staff, and volunteers across the Diocese.

The LMS, to be launched in April 2022, will provide a platform for training which can be accessed online for learners to complete individually or to join a session led by a trainer. In addition, the sessions will be delivered face to face and tailored for local learning. We know how important it is to receive face to face training.

We continue to work with the CSSA to streamline the DBS process. We now process applications online which has enabled us to work more efficiently and deliver a more timely service. The majority of our DBS applications are completed within 48 hours of submission.

Making our parishes and church communities safe spaces for all is our priority.

Anyone who reports concerns or allegations to

us is responded to sensitively, respectfully and professionally. All concerns and allegations are managed in accordance with the national policies and practice guidance for the Catholic Church and in a timely manner.

The Safeguarding Office is a safe point of contact for survivors and victims of abuse within the Catholic Church. We support survivors who were abused when they were children and those who have been abused as adults. We recognise that speaking out about abuse can be very difficult

and distressing and we are here to support victims and survivors to share their experiences.

In providing support we work with Safe Spaces which is a free and independent support service, providing a confidential, personal and safe space for anyone who has been abused by someone in the Church, or as a result of their relationship with the Church of England, the Catholic Church of England and Wales or the Church in Wales.

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Financial Review Prioritising our Resources

Overview

In 2021 the Roman Catholic Diocese of Portsmouth generated an overall surplus - a net increase in funds - of £7.9 million, thus increasing net assets from £68.5 million to £76.4 million. This positive outcome was primarily due to three factors.

First, the performance of the Diocesan Investment Portfolio, which increased in value by £2.1 million.

Second, the Diocesan investment properties have increased in value in line with the property market overall. Further, a review of properties has identified an additional 10 properties that, based on usage at the end of August 21, require reclassification as investment properties. These 10 properties have added £3.6m as an unrealized gain.

Third a reduction of £1.3m in total expenditure from £14.3 to £13.0 million. The primary driver for the reduction in overall expenditure was cost efficiencies from new ways of working initially enforced and then embraced following the Covid pandemic. Expenditure was £15.5m in 2019.

Meanwhile income remains steady relative to 2020 at £14.2m. However, 2021 income was £1.1m below the pre-covid level of £15.3m in 2019.

Income - Parochial

Looking at income for the preceding three financial years, up to and including 2021, of the now 87 parishes in the diocese, a group of 21 contribute just over 50% of the total Parochial Income. The surplus generated by these Parishes is enough to surpass the deficit generated by the remaining 75% taken as a whole. This does not mean that the majority are generating a deficit. The annual accounts of individual parishes in 2021 showed 24 parishes making a deficit for the year, the total loss for the 24 parishes was £458K. This was an improvement on the previous year, when 48 of our parishes - hit suddenly and more comprehensively by the pandemic - suffered a deficit.

Expenditure - Parochial

The percentage split of Parish spending remains almost identical to 2020 with 19% being spent Staff, and 11% on major repairs. Spending on general repairs and maintenance is down from 6% to 5%, whilst light heat & power and Clergy Stipend continue to account for around 5% each of total expenditure. Of the major repairs, £1.1m of this spending has been capitalised. However, the cash burden of continuing to repair and maintain such a broad portfolio of properties - some of which are under-utilised - remains acute

Income - Curial

The main source of curial income is the Levy raised on the Parishes, which generated £1.9 million. As in previous years this was insufficient to cover net expenditure of £2.1 million. The Levy, at 16% of overall Parish income in 2021, remains comparable to that of other Dioceses. Other sources of revenue include Legacies, Academies and Schools Office income, Grants and Furlough Income.

Expenditure - Curial

Curial expenditure continues to exceed revenue generated by the Levy and other Sources. However, the Curial deficit before investment gains has decreased from £829K in 2020 to £204K in 2021 and is relatively low compared to the Diocesan average nationally. The main costs are personnel and clergy training which made up exactly 50% of total curial costs.

Personnel costs have increased year on year, reflecting the belief that the effectiveness of an organisation results from the effectiveness of its people.

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Investments

The diocese holds £13.1 million in quoted investments. The target level of return set for these stocks and shares is CPI plus 4%. As mentioned, these increased in value by £2.1 million over the course of the financial year.

The trustees of the diocese have agreed an ethical policy for the portfolio. The following is an extract from the investment policy:

“Where the issuer of a security (share, stock or bond) or deposit taker (bank) is directly and substantially (more than 5% of activity of that entity) involved in activities which constitute grave moral evil such investments are to be entirely excluded on the grounds that holding such securities would constitute formal cooperation in that evil. These would include but not be limited to, murder, procured abortion, contraception, sexual activity outside marriage, acts which undermine the dignity and sanctity

of human beings (for example the exploitation of workers, migrants, the weak and the elderly) from conception to natural death, corrupting the young, heresy and sacrilege.”

The Bishop and Trustees require that our investment managers keep under review the environmental stewardship of entities in which the diocese holds investments or deposits and instructs them to refer any activities which might constitute a breach of the duty of the stewardship of creation to them.

The Diocese is also in the process of establishing an investment committee to encourage the parishes, some of whom have significant investment holdings, to participate in investment decisions, and to access the expertise of Catholics members of the Diocese who work or have worked within the field of investment.

Reserves

The reserves policy states that the diocese should hold general funds (unrestricted, nonparish funds) equal to six months of mission support costs. The target level of general funds was set at £730K.

Total reserve of the diocese were £76.4 million at the end of 2020/21 financial year. The value of the churches, halls, and presbyteries of the diocese, at £42 million, account for 55% of total diocesan reserves. As these assets cannot be spent they were transferred out of general fund into a new designated fund. After this transfer, the general funds reduced to be in deficit by £3.9 million at 31 August 2020. By August 2021 the deficit (after gains on investment) had reduced slightly to £3.8 million. This was £4.53 million below the target level of reserves.

To return general funds to a balanced position the diocese is investing into fund raising. Grants of £806k have been secured in 2021 mainly towards the cost of maintaining the Diocesan Estate and its Listed Buildings. The Closer to Christ Campaign was launched in 2021 with the aim of raising £10.5m over five years. Early indications from the pilot parishes are that this overall goal is attainable.

A ten-year strategic plan has been drawn up, consulted on broadly across the Diocese and approved. Once implemented this plan will contribute to the revenue generation required to achieve the target level of reserves. As part of this overall strategy a Capital Projects Officer has been appointed help to unlock value within the Diocesan Estate.

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Risks

A full risk register is in place detailing operational and corporate risks.

The key risks for the trust are:

Finance

Covid -19 continues to have an impact on income and associated church activity.

The risk to Diocesan finance reflects the ability of the Diocese to meet ongoing obligations, exacerbated by year-on-year reductions in practicing Catholics, as well the cost of living crisis, which may impact donations and offertory income.

Compliance

The organisation is highly dispersed, reliant on largely volunteer support with autonomous units of decision making at parish level therefore compliance with trust policy remains a risk. Support and regular communication are provided to parish administrators and parish priests and a full suite of policies has been updated and communicated.

The People Of God

The Government backed CBILS loan provided some short-term assistance, and a major fundraising campaign was initiated with a specific focus on Seminarians, clergy in active ministry and priests in retirement in partnership with the Priests Retirement Fund, which is a separate charity.

A component of the campaign is also designated to bring parish planned giving back up to pre covid levels.

There is exposure to commodity price risks due to the impact of increases in energy prices on the heating and lighting of our parishes. The membership of the National Inter-Diocesan Fuel Management procurement group helps to mitigate this risk by bringing the purchasing power of 20 of the UK’s 22 Dioceses to bear.

The diocese is exposed to equity risk through its investment holdings. However, the policy of holding investment assets for the long term mitigates the impact of short-term fluctuations.

Along with reductions in church attendance the ageing profile of clergy and relatively small number of vocations remains a long-term risk. Active vocations promotion is in place and clergy support is provided in a structured way.

The Diocese is developing a Long-term strategic plan which covers all aspects of diocesan life, so that the church is visible, welcoming, and supportive to all, has focus on the young as well as older generations and revitalises its missionary zeal. Laity have been engaged and consulted in the development of the priorities.

Governance

The trust model was established in 1934 and over time has become complex. The Trustees have authorised the transition to an incorporated charity in order to simplify and streamline governance as part of the risk management strategy

The Diocese is exposed to interest rate risks on the CBILs loan at base rate plus 2.25%. The risk could be mitigated by early repayment of the loan.

There are risks due to dispersed decision making on financial expenditure, and the robustness of financial reporting for non-central activities. These risks are mitigated by the centralizing of all Curia budgets and controls on permitted upper spending limits for parishes.

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Structure, Governance and Management

Constitution

The Portsmouth Roman Catholic Diocesan Trust is a charitable trust established by a Trust Deed dated 04 September 1934. Following a Deed of Revocation dated 5 December 2002, the Trust is governed under a Trust Deed dated 5 December 2002 and the subsequent amendments made on 07 April 2004.

has 95 linked charities.

The Portsmouth Roman Catholic Priests’ Retirement Fund shares the same corporate trustee as the Portsmouth Roman Catholic Diocesan Trust but remains separate.

The Portsmouth Roman Catholic Diocesan Trust is registered under the Charities Act 2011, its charity number is 246871.

Trustee

The Portsmouth Roman Catholic Diocesan Trust has a sole corporate trustee: The Portsmouth Roman Catholic Diocesan Trustees Registered (PRCDTR). The Portsmouth Roman Catholic Diocesan Trustees Registered is a body corporate under Part 12 of the Charities Act 2011 established on the 11 September 1934 and granted corporation status by the Lord Chancellor on 27 November 1934.

The individuals who form the Portsmouth Roman Catholic Diocesan Trustees Registered are the trustees of the Portsmouth Diocesan Trust, a charitable trust registered under the Charities Act 2011, its charity number is 246872.

The Trustees of the Portsmouth Diocesan Trust who formed the corporate trustee of the Portsmouth Roman Catholic Diocesan Trust during the year ended 31 August 2021 and who were in office on the date of this report are detailed on p2.

The trustees board met 5 times during the year.

Linked Charities

Under a Charity Commission Scheme, dated 20 July 2001, all charities which have the Portsmouth Roman Catholic Diocesan Trustees Registered as trustee, except for the Roman Catholic Priests’ Retirement Fund, are linked for the purposes of registration and reporting. The Portsmouth Roman Catholic Diocesan Trust is the reporting charity, it

The Appointment of Trustees

The sole corporate trustee of the Portsmouth Roman Catholic Diocesan Trust does not change. The individuals who form the Portsmouth Roman Catholic Diocesan Trustees Registered are appointed trustees for the Portsmouth Diocesan Trust by a resolution of the Board.

Trustee vacancies are advertised through the appropriate diocesan communication channels. All candidates applying to become a trustee will be interviewed by the Bishop and Secretary to Trustees. Any successful applicants are co-opted as advisory members of the board at the next full meeting for a period of six months. At the end of the six months, they are appointed trustees by a resolution of the Board.

The individuals who form the Portsmouth Roman Catholic Diocesan Trustees Registered will herein be referred to as the Trustees.

Trustee Induction and Training

The Secretary to Trustees is responsible for ensuring that an appropriate induction training programme is arranged for new trustees, within 3 months of appointment.

The induction is expected to include clarification of legal responsibilities, Charity Commission requirements of charity trustees, strategic issues, governance issues, familiarity with the Trust Deed and structure of the charity, and other relevant induction material to allow trustees to understand the Charity’s purpose, activities, financial position and current risks.

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Trustees are encouraged to undertake regular training throughout their appointment which they feel are relevant of their role, and to keep up to date with current legislation.

Trustees Expenses

A number of Trustees are clergy of the Roman Catholic Diocese of Portsmouth. They are housed and renumerated by the Diocese and are reimbursed expenses for carrying out their ministry in the same way as other priests in the Diocese.

However, no Trustee received any renumeration from the Charity, nor had any expenses reimbursed by the Charity, in connections with their duties as Trustees during the year. No Trustee had any beneficial interest in any contract with the Charity.

Management Team

The Trustees are responsible for the overall management, oversight and strategic direction of the Diocese. To achieve this, they have appointed a Chief Operating Officer who has delegated responsibility for the day-to-day running of the Diocese. The Chief Operating Officer is supported by a senior leadership team who have delegated areas of responsibility such as finance, estates, safeguarding, HR, IT, communications, governance, fundraising, charity outreach, and clergy support.

Setting Pay

Renumerated roles in the Curia and central administration, have been benchmarked against several charity sector benchmarks, including other dioceses. The Diocese is a lower-quartile employer, although the Trustee Board may choose to apply a recruitment or retention premium to a particular post in certain circumstances.

Organisation

The Trustee Board is supported in decision making by detailed scrutiny and recommendations provided by sub committees: Finance, Audit and Risk; HR and Remuneration; Vocation Vicariate; Education Vicariate and Evangelisation Vicariate; which meet regularly throughout the year.

The diocesan curia is organised into a Framework for Collaboration, with three vicariates, that for Vocation, leading to that for Education, leading to that for Evangelisation, reflecting the threefold ministry of the Bishop who acts in the name of Our Lord Jesus Christ as priest, prophet and king. Each Vicariate is responsible from one aspect of the Bishop’s threefold ministry: Vocation, Education and Evangelisation. Each is headed by an Episcopal Vicar, who, together with the Vicars General, are the sole members of the Bishop’s Council, all of whom have been appointed Trustees. Each Vicariate Committee is chaired by the Episcopal Vicar for that vicariate.

The purpose of the Finance, Audit and Risk Committee is to provide strategic oversight to the administration of the temporal goods of the Diocese and its parishes: its land and buildings, money, investments and the discharge of its legal and contractual obligations. The FAR Committee is chaired by the Vicar General, Moderator of the Curia. The HR and Remuneration Committee considers remuneration across the Diocese and makes recommendations to the Board. It is chaired by the Vicar General, Moderator of the Curia.

The Safeguarding Committee is responsible for matters which relate to safeguarding and is chaired by a non-clergy trustee.

The Chancery and Tribunal continue to operate independently of the Curia, the Judicial Vicar has been appointed as a Trustee.

The structure of the Diocese presents a harmonious balance between the charity’s legal responsibility and the Diocese’s responsibility to Canon Law. The Council of Priests meets regularly to consult on matters of Canon Law and advises Trustees.

Relationships with Other Organisations Other Regulators

In addition to the Charity Commission for England and Wales the Portsmouth Roman Catholic Diocesan Trust is overseen by the Jersey Charity Commissioner and the Guernsey Register.

The Portsmouth Roman Catholic Diocesan Trust is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice.

Safeguarding in the Diocese is overseen by the Catholic Safeguarding Standards Agency; the CSSA national safeguarding policies are in operation across the Diocese.

Other Organisations within the Diocese

Other Organisations outside the Diocese

In carrying out its work and mission, The Portsmouth Roman Catholic Diocesan Trust works in collaboration with many and varied organisations such as the Catholic Trust for England and Wales (CATEW), the Bishop’s Conference for England and Wales (CBCEW), CAFOD, other Catholic dioceses, hospitals, prisons, universities, foodbanks, and a variety of other charities and organisations.

Charitable Purposes

The provision maintenance and upkeep of churches and public chapels for the celebration of divine worship according to the rights and ceremonies of the Roman Catholic Church and of presbyteries and houses for the residence of Priests and Deacons attached to any such churches or chapels or otherwise

and belonging to or connected with the Roman Catholic Church in the Diocese.

The provision maintenance and upkeep of houses of study halls and colleges for the education and training of priests and persons desirous of becoming priests of the said Church in the Diocese or elsewhere in Great Britain and abroad.

The maintenance, support and provision of medical and surgical aid for infirm and aged priests and deacons of the said Church and the burial of deceased priests and deacons of the said Church.

Fundraising Activity

The Diocese follows the Code of Fundraising Practice and the guidance for all aspects of fundraising and has produced policies and procedures for all fundraising activity which are regularly reviewed by the fundraising department and trustees.

The fundraising activities of the diocese take various forms; including fundraising through campaigns, planned regular giving via digital means and cash, securing grants from instututional, corporate and non profit organisations and via community fundraising.

During the reporting period there were no complaints received in relation to fundraising activity.

The dicoese ensures that the vulnerable are protected by adhering to the code of Fundraising Practice, ensuring diocesan policies and procedures are in place for fundraising activities, and regularly working with the safeguarding and governance teams to ensure that good practice is followed in accordance with the law.

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Public Benefit

The Trustee Board has due regard to the Charity Commission’s guidance on public benefit in exercising its powers and duties.

The Trustee Board ensures the Charity benefits the public by bringing meaning to people’s lives, providing opportunities to strengthen relationships with God, providing a moral and ethical framework for life; through community and social cohesion in its pastoral work; and through its work supporting the poor and the marginalised.

Statement of Trustees Responsibilities

The purpose of this statement is to distinguish the Trustees’ responsibilities for the accounts from those of the auditors as stated in their report. The Charities Act 2011 requires the Trustees to prepare for each financial period financial statements which give a true and fair view of the Charity’s financial activities during the period and of its financial position at the period end. In preparing the financial statements the Trustees are required to:

position of the Charity and enable them to ensure that the financial statements comply with the Trust Deeds and the disclosure regulations. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities.

The Trustees are responsible for ensuring proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial

Approved by the Board of Trustees on 23 June 2022 and signed on its behalf by:

Rt. Rev Philip Egan (Trustee)

Rev PJ Smith (Trustee)

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Independent Auditors Report

to the Trustees of the Portsmouth Roman Catholic Diocesan Trust

Opinion

We have audited the financial statements of The Portsmouth Diocesan Trust for the year ended 31 August 2021 which comprise Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 August 2021 and of the group’s net movement in funds for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 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 ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other Information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work

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we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 3, 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 the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Canon Law, employment law, safeguarding regulations and Charity Law, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Charities Act 2011 and Charities SORP.

Review of minutes of trustees’ meetings;

Identifying and testing journals; and

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 noncompliance 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 noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s

Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London 27 June 2022 EC4R 1AG

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

44

Financial Accounts

Consolidated Statement of Financial Activities

for the Year Ended 31 August 2021

Unrestricted Funds Unrestricted Funds Restricted Total
Curial Parochial Funds 2021 2020
Notes £ £ £ £ £
Income from:
Donations and legacies
Donations and Offertories 16,822 7,662,014 730,589 8,409,425
10,088,427
Legacies 281,246 548,027 - 829,273
755,131
Grants, Furlough Etc 897,531 1,849,876 159,763 2,907,170
761,573
Other trading activities:
Rent – miscellaneous lettings - 740,776 - 740,776
1,231,352
Income of trading subsidiaries 16 - 248,761 - 248,761 257,405
Investment income
Investment income and interest
receivable 1 268,155 54,321
48,156		 370,632
208,415
Rent – investment properties 15,575 567,546 - 583,121
650,754
Other incoming resources:
Insurance Claims - 124,284 - 124,284
151,127
Gain on disposal of tangible fixed - - - -
105,061
assets
------------------------ ------------------------ --------------------- ------------------------
-----------------------
Total income 1,479,329 11,795,605 938,508 14,213,442 14,209,245
------------------------ ------------------------ --------------------- ------------------------ -----------------------
Expenditure on
Raising funds
Expenses of trading subsidiaries - 238,820 - 238,820 376,108
Finance costs 121,075 - - 121,075
55,798
Charitable activities
Activities in furtherance of the
Roman Catholic Faith 3,457,616 8,362,614 802,774 12,623,004
13,864,222
------------------------ ------------------------ ------------------------ ------------------------
------------------------
Total expenditure 2 & 3
3,578,691		 8,601,434 802,774 12,982,899 14,296,128
------------------------ ------------------------ ------------------------ ------------------------ -----------------------
Net (Outgoing)/Incoming Resources
before transfers (2,099,362) 3,194,171 135,734 1,230,543
(86,883)
Realised and Unrealised Gains
on investments 589,951 5,360,886 761,616 6,712,453
(1,061,213)
------------------------ ------------------------ ------------------------ ------------------------
--------------------
Net income/(expenditure) (1,509,411) 8,555,057 897,350 7,942,996
(1,148,096)
Transfers between Funds - - - -
-
Transfers - Schools Building Fund - - - -
-
Levy
Transfers - Diocesan Levy 1,894,585 (1,894,585) - -
-
------------------------ ------------------------ ------------------------ ------------------------
--------------------
Net movement on funds 385,174 6,660,472 897,350 7,942,996
(1,148,096)
Reconciliation of funds
Fund balances brought forward 2,181,921 62,431,266 3,855,648 68,468,835
69,616,931
------------------------ ------------------------ ------------------------ ------------------------
------------------------
Fund balances carried forward £2,567,095 £69,091,738 £4,752,998 £76,411,831
£68,468,835
=========== =========== =========== ===========
===========

The statement of financial activities includes all gains and losses in the period. All operations are continuing and there are no discontinued operations in either year. The comparative year’s Statement of Financial Activities is included in note 20.

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Consolidated Balance Sheet

As at 31 August 2021

Year ended Year ended
Curial Parochial 31 August 31 August
Funds Funds 2021 2020
Notes £ £ £ £
Fixed Assets
Tangible assets 5 3,035,864 39,165,271 42,201,135 42,233,875
Investments 6 9,544,529 23,997,852 33,542,381 26,601,325
----------------------- ------------------------ ----------------------- -----------------------
12,580,393 63,163,123 75,743,516 68,835,200
----------------------- ----------------------- ---------------------- ----------------------
Debtors:due after more than one year 7 698,463 - 698,463 135,643
----------------------- ----------------------- ---------------------- ----------------------
Current Assets
Debtors and prepayments 7 438,783 8,873 447,656 827,757
Cash at bank and in hand 663,782 8,748,183 9,411,965 5,345,890
----------------------- ----------------------- ---------------------- ----------------------
1,102,565 8,757,056 9,859,621 6,173,647
Creditors:due within one year 8 (4,477,142)
(244,492)		 (4,721,634) (5,778,942)
---------------------- ----------------------- ----------------------- -----------------------
Net Current (Liabilities)/ Assets (3,374,577)
8,512,564		 5,137,987 394,705
---------------------- ---------------------- ---------------------- ----------------------
Creditors:due after more than one year
8		 (5,168,135)
-		 (5,168,135) (896,713)
---------------------- ---------------------- ---------------------- ----------------------
Parish Loan Accounts
Due from parishes (6,138,095)
6,138,095		 - -
Due to parishes 6,279,821 (6,279,821) - -
------------------------ ---------------------- -------------------- ---------------------
141,726 (141,726) - -
---------------------- ---------------------- ---------------------- ----------------------
NET ASSETS £4,877,870 £71,533,961 £76,411,831 £68,468,835
========== =========== =========== ========= ==
Unrestricted Funds
General Funds (3,788,993)
-		 (3,788,993) (3,892,874)
Designated Funds 11 6,356,088 69,091,737 75,447,825 68,506,061
---------------------- ---------------------- ------------------------ ----------------------
2,567,095 69,091,737 71,658,832 64,613,187
Restricted Funds 10 2,263,447 1,681,133 3,944,580 3,090,809
Permanent Endowment Funds 9 47,328 761,091 808,419 764,839
---------------------- ---------------------- --------------------- ---------------------
RESERVES £4,877,870 £71,533,961 £76,411,831 £68,468,835
========== =========== =========== ===========

46

Charity Balance Sheet As at 31 August 2021

Year ended Year ended
Curial Parochial 31 August 31 August
Funds Funds 2021 2020
Notes £ £ £ £
Fixed Assets
Tangible assets 5 3,035,864 35,979,736 39,015,600 38,923,415
Investments 6 9,544,529 23,997,852 33,542,381 26,601,325
----------------------- ------------------------ ----------------------- -----------------------
12,580,393 59,977,588 72,557,981 65,524,740
----------------------- ----------------------- ---------------------- ----------------------
Debtors:due after more than one year 7 698,463 - 698,463 135,643
----------------------- ----------------------- ---------------------- ----------------------
Current Assets
Debtors and prepayments 7 438,783 - 438,783 813,439
Cash at bank and in hand 663,782 8,519,329 9,183,111 5,184,746
----------------------- ----------------------- ---------------------- ----------------------
1,102,565 8,519,329 9,621,894 5,998,185
Creditors:due within one year 8 (4,477,142)
(50,182)		 (4,527,324) (5,566,213)
---------------------- ----------------------- ----------------------- -----------------------
Net Current (Liabilities)/Assets (3,374,577)
8,469,147		 5,094,570 431,972
---------------------- ---------------------- ---------------------- ----------------------
Creditors:due after more than one year
8		 (5,168,135)
-		 (5,168,135) (896,713)
---------------------- ---------------------- ---------------------- ----------------------
Parish Loan Accounts
Due from parishes (6,138,095)
6,138,095		 - -
Due to parishes 6,279,821 (6,279,821) - -
------------------------ ---------------------- -------------------- ---------------------
141,726 (141,726) - -
---------------------- ---------------------- ---------------------- ----------------------
NET ASSETS £4,877,870 £68,305,009 £73,182,879 £65,195,642
========== =========== =========== ========= ==
Unrestricted Funds
General Funds (3,788,993)
-		 (3,788,993) (3,892,874)
Designated Funds 11 6,356,088 65,862,785 72,218,873 65,232,868
---------------------- ---------------------- ------------------------ ----------------------
2,567,095 65,862,785 68,429,880 61,339,994
Restricted Funds 10 2,263,447 1,681,133 3,944,580 3,090,809
Permanent Endowment Funds 9 47,328 761,091 808,419 764,839
---------------------- ---------------------- --------------------- ---------------------
RESERVES £4,877,870 £68,305,009 £73,182,879 £65,195,642
========== =========== =========== ===========

Cash Flow Statement

for the Year Ended 31 August 2021

2021 2020
Reconciliation of Net Incoming Resources to Cash £ £
Inflow from Operating Activities
Changes in resources before revaluations 1,230,543 (86,883)
Returns on investment (370,632) (208,415)
Depreciation 907,399 958,714
Loss/(gain) on disposal of Tangible Fixed Assets 87,942 (105,061_)_
(Increase)/decrease in debtors (182,719) 724,950
(Decrease)/increase in creditors (714,886) 1,615,222
-------------------- -------------------
957,647 2,898,527
========== =========
Net cash inflow from operating activities 957,647 2,898,527
-------------------- -------------------
Cash flows from investing activities
Returns on investment 370,632 208,415
Payments to acquire tangible fixed assets (1,144,951) (806,188)
Receipts from sales of tangible fixed assets - 280,586
Payments to acquire investments (3,284,953) (2,156,757)
Receipts from sales of investments 3,238,700 2,374,375
-------------------- -------------------
(820,572) (99,569)
-------------------- -------------------
Cash flows from financing activities
New bank loans received 4,000,000 1,000,000
Bank loan repayments (71,000) (54,000)
-------------------- -------------------
3,929,000 946,000
-------------------- -------------------
Change in cash and cash equivalents in the year 4,066,075 3,744,958
Cash and cash equivalents at the beginning of the year 5,345,890 1,600,932
--------------------- ---------------------
Cash and cash equivalents at the end of the year £9,411,965 £5,345,890
========== ==========
Reconciliation of cash flow to movement in net funds/(debt)
Increase in cash in the year 4,066,075 3,744,958
Net cash inflow from movements in bank loans (3,929,000) (946,000)
-------------------- -------------------
Change in cash and cash equivalents in the year 137,075 2,798,958
Net funds at the beginning of the year 4,399,890 1,600,932
-------------------- ---------------------
Net funds at the year end £4,536,965 £4,399,890
========== ==========
Analysis of net funds/(debt) 1 Sept 2020 Cash flows Other 31 Aug 2021
£ £ £ £
Cash and bank balances 5,345,890 4,066,075 - 9,411,965
Bank loans due within one year (215,855) 71,000 (455,145) (600,000)
Bank loans due after one year (730,145) (4,000,000) 455,145 (4,275,000)
--------------------- --------------------- --------------------- ---------------------
£4,399,890 £137,075 £- £4,536,965
========== ========== ========== ==========

Statement of Accounting Policies

For the Year Ended 31 August 2021

The financial statements have been prepared in accordance with statutory requirements and with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019 and with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS102) (Effective 1 January 2015).

48

The particular accounting policies adopted are described below. The financial statements are prepared under the historical cost convention, as modified to include certain tangible fixed assets at a valuation and fixed asset investments at market value. The Portsmouth Diocesan Trust meets the definition of a public benefit entity under FRS102.

(a) Basis of preparation

The financial statements represent the Portsmouth Diocesan Trust together with its wholly owned trading subsidiary companies (consolidated on a line-by-line basis) listed in note 18. No separate Statement of Financial Activities has been presented for the Charity alone.

(b) General information

The financial statements represent the Portsmouth Diocesan Trust together with its wholly owned trading subsidiary companies (consolidated on a line by line basis) listed in note 16. Since the consolidated balance sheet is not materially different from the Trust balance sheet only a consolidated balance sheet and consolidated notes to the accounts have been presented.

(c) Preparation of accounts on a going concern basis

Having considered future budgets and cash flows, the trustees confirm that they have no material uncertainties about the entity’s ability to continue as a going concern. In coming to this conclusion trustees have considered the effect of COVID-19 and the resources that the charity has available. To accommodate the issues around COVID-19 the charity is making use of government support, has arranged for increased cash flow facilities and has adjusted long term plans for expected long term impact of the virus on the country and the economy.

(d) Legacies, Donations and Grants

Legacies and donations are recognised the Diocese becomes legally entitled to them, receipt is probable and they can reasonably be measured in financial terms. Receipts of property, investments or other gifts in kind are included at market value. Grants are recognised when receivable.

(e) Investment Income

Investment income is accounted for as it accrues.

(f) Taxation

As a registered charity, the Diocese is exempt from income tax, corporation tax and capital gains tax derived from its charitable activities. Gift aid is credited to the category of income to which it relates.

(g) Expenditure

Costs of raising funds comprise those costs associated with attracting voluntary income and grants and the management of the Charity’s investments.

Costs of charitable activities consist of all expenditure directly relating to the objects of the Charity. Support costs which cannot be directly allocated are apportioned between activities.

Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s). Governance costs include expenditure on management and compliance with constitutional and statutory requirements together with an allocation of support costs. Irrecoverable VAT is included with the category of expenses to which it relates.

(h) Schools Building Programme

Any grants obtained on behalf of school governors are netted off against total costs and only the residual cost to the Diocese is included in the financial statements.

49

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(i) Tangible Fixed Assets

Prior to 1 January 1997 the cost of fixed assets was written off in the year of acquisition and no comprehensive cost records were maintained. In order to arrive at a reasonable valuation of parish property, taking into account age, type, condition and life expectancy, the Trustees considered that the then insured values should be discounted by 90% and in subsequent years be depreciated at 2% per annum, on the building value only. Properties acquired after 31 August 1996 are capitalised at their actual cost of acquisition.

The Diocese owns a number of properties that are occupied and run by independent charities in the form of Voluntary Aided Schools and Catholic Academies. The school properties (land and buildings) are vested in the name of the Trustees. The Trustees cannot take a unilateral decision to dispose of these properties. Disposal can only occur if the school governors and the Secretary of State for Education decide that all or part of a school site is no longer required for education. In most circumstances, where a disposal occurs, the Secretary of State or the local authority may be entitled to recoup any grant. Although no rights of ownership vest in the school governing body, most other rights and obligations, such as for the maintenance and repair of the school and its facilities, are passed to the governors. The Trustees therefore consider that there is no capital value to the Diocese in the stock of school buildings.

Thus school properties have not been capitalised. There is a potential value, or contingent asset, in the event of a closure of a school (either connected to a re-organisation or not). Such an asset is recognised only upon the occurrence of a closure/re-organisation and the site’s development value becoming certain, such as upon the granting of planning permission. The recognition of this value is accounted for as an incoming resource in the year in which this value becomes measurable and certain. The inclusion of any value of school properties normally arises from a scheme under s554 Education Act and until then there is legally a duty to repay or recycle the proceeds from the sale of former school sites.

Prior to 4 September 1934, the date of the original Trust Deed of the Charity, most parish properties were acquired on trusts related to individual parish missions and were formally brought under the legal control of the Trustees by virtue of Charity Commission schemes dated 4th and 7th February 1936. These assets are included in Parochial Funds.

There are a few properties held on trusts created after 1934 which are different from those in the 1934 and 2002 trust deeds. These assets are also included in Parochial Funds.

The estimated cost of furniture, equipment and motor vehicles held at 31 August 1996 has been capitalised in the financial statements. Subsequent additions in excess of £5,000 are capitalised at cost. Individual works of art, historical treasures and plate are not capitalised.

Depreciation is calculated by the straight line method to write off the cost/value less anticipated residual value, over the expected useful lives of assets as follows: -

Freehold property (excluding land) 50 years Leasehold property 50 years or, if less, the term of the lease Furniture and equipment 5 to 20 years

(j) Significant judgements and key sources of estimation uncertainty

In preparing these financial statements the trustees have had to make estimates and assumptions that affect the amounts recognised in these financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key areas subject to judgement and estimation are as follows: Fixed asset depreciation. Judgement is applied when assigning anticipated average lives to the fixed assets of the charity.

50

(k) Pensions

All eligible staff may join a personal pension scheme of their choice to which the Diocese makes a matching contribution of up to five per cent of salary. As a defined contribution scheme, no liability falls upon the Diocese, as employer, to make good a shortfall of funding other than contributions due.

(l) Financial instruments

The Diocese only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and investments in stocks and shares. The measurement basis used for these financial instruments is detailed below.

Investments

Investments are valued at fair value on the balance sheet date. Investment properties are stated at market value or a Trustees’ valuation, as advised by a qualified Chartered Surveyor. Gains/losses on investments are calculated as the difference between opening market value and closing market value after adjusting for additions and disposals during the period. No distinction is made between realised and unrealised gains in the financial statements.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value..

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and investments in stocks and shares. The measurement basis used for these financial instruments is detailed below.

(m) Parochial Funds

Each Parish is considered by Canon Law to be a juridical person with corresponding rights and obligations, including the holding and use of funds. The use of these parochial funds is the responsibility of the Parish Priest, Diocesan Finance Council and the Trustees in varying ways depending on the amount and significance of the funds. However, for the purposes of civil law parishes are not distinct legal entities and, unless there are distinct and express special trusts clearly evidenced in law, parochial funds are therefore shown as unrestricted but designated funds.

(n) Permanent Endowment Funds

The capital of Permanent Endowment Funds must be maintained intact with any income arising being available for restricted or general charitable purposes of the Diocese, according to the terms of the original gift.

(o) Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives. Designated funds are funds set aside by the Trustees for specific purposes (see note 11). Restricted funds are used for specific purposes as stated by the grantor. Expenditure which meets these criteria is charged to the fund (see note 10).

111 (_',4THI)LI ATFILDRAL OF J()IIN

Notes to the Accounts

for the Year Ended 31 August 2021

----- Start of picture text -----
1. INVESTMENT INCOME AND INTEREST RECEIVABLE Year ended Year ended
31 August 31 August
2021 2020
£ £
Arising on quoted investments 369,239 204,801
Rent on Investment Property 583,121 650,754
Bank Interest 1,393 3,614
------------------ ------------------
£953,753 £859,169
========= =========
Support of Parish Life Vocation
2. CHARITABLE EXPENDITURE
Locally Incurred Centrally Incurred Supporting Supporting
Training New Clergy
Costs Costs Clergy in ministry Retired Clergy Ca
£ £ £ £ £
Direct Costs - - 125,702 428,943 18,258
The Office of the Bishop - 180,173 - - -
Chancery - 4,166 - - -
Tribunal - 37,535 - - -
Hospital Chaplaincies - 64,319 - - -
Parish Initiatives - - - -
Seminary Fees - - 333,083 - -
Maintenance of Catholic Schools - - - - -
Caritas/ERF 147,103 - - -
Parish Costs
Clergy 1,545,948 - - - -
Staff 1,814,804 - - - -
Church Running Costs 1,267,827 - - - -
Office and Presbytery Running 1,333,808 - - - -
Costs
Parish Centre Running Costs 279,644 - - - -
General: books, events, donations,
127,074 - - - -
fees etc
Insurance 309,086 - - - -
Repairs and Maintenance 885,971 - - - -
Depreciation 798,452 - - - -
Parochial Restricted Funds 379,010
8,741,624 433,296 458,785 428,943 18,258
Support of Parish Life Vocation
3. SUPPORT COSTS
Locally Incurred Centrally Incurred Supporting Supporting
Training New Clergy
Costs Costs Clergy in ministry Retired Clergy Ca
Communications 68,678 68,677.75 13,735.55 13,735.55 -
Estates 131,678 - - - 65,839
People 100,532 - 1,053 1,053 526
IT 86,187 - 3,610 3,610 1,805
Finance 281,085 13,933 14,752 13,793 587
Governance 192,864 9,560 10,122 9,464 403
Curia Property and overheads 137,781 40,534 6,324 6,240 9,872
Safeguarding 104,249 - 1,032 2,064 -
Bishops Confrence Levy - 191,808
Total 9,844,677 757,808 509,413 478,902 97,290
----- End of picture text -----

For full comparative figures see Note 21 (a)

----- Start of picture text -----
Education Evangelisation Fundraising Trading Subsidiaries Total
Supporting the Poor
Youth and
Supporting and Marginalised -
University New Evangelisation Fundraising Trading Subsidiaries Total
atholic Education Inspired by the Love
Chaplaincies
of Christ
£ £ £ £ £ £ £
221,190 40,649 124,801 46,753 54,313 238,820 1,299,429
- - - - - - 180,173
- - - - - - 4,166
- - - - - - 37,535
- - - - - - 64,319
- - - - - - -
- - - - - - 333,083
276,661 - - - - - 276,661
- - - - - - 147,103
- - - - - - 1,545,948
- - - - - - 1,814,804
- - - - - - 1,267,827
- - - - - - 1,333,808
- - - - - - 279,644
- - - - - - 127,074
- - - - - - 309,086
- - - - - - 885,971
- - - - - - 798,452
379,010
497,851 40,649 124,801 46,753 54,313 238,820 11,084,093
Education Evangelisation Fundraising Trading Subsidiaries Total
Supporting the Poor
Youth and
Supporting and Marginalised -
University New Evangelisation Fundraising Trading Subsidiaries Total
atholic Education Inspired by the Love
Chaplaincies
of Christ
13,735.55 13,735.55 13,735.55 13,735.55 54,942.20 - 274,711
65,839 - - - - - 263,355
2,105 1,053 1,579 526 526 - 108,954
7,220 3,610 5,415 1,805 1,805 - 115,066
16,008 1,307 4,013 1,503 1,746 - 348,727
10,984 897 2,753 1,031 1,198 - 239,276
16,689 3,972 4,219 2,950 8,595 - 237,177
1,032 7,225 2,064 2,064 - - 119,732
191,808
631,464 72,448 158,581 70,369 123,127 238,820 12,982,899
----- End of picture text -----

54

Notes to the Accounts (continued)

for the Year Ended 31 August 2021

4. STAFF Year ended Year ended
31 August 31 August
2021 2020
£ £
The average number of total employees (not full-time equivalents) of the
Diocese during the period and their aggregate emoluments are shown below
Staff Costs:
Wages and salaries 3,088,349 2,837,134
Social security 335,382 185,356
Pension costs 63,572 80,119
Redundancy costs 23,731 7,651
--------------------- ---------------------
£3,511,034 £3,110,260
========== ==========
Monthly Average Number of Employees: No No
Departments 39 39
Parishes 203 201
--------- ---------
242 240
==== ====
Employees with emoluments greater than £60,000:
2021 2020
£60,001 - £70,000
3		 1
£70,001 - £80,000 1 0
£80,001 - £90,000
0		 2
£90,001 - £100,000
1		 1

Key management personnel received salary, benefits and pension contributions of £456,374 (2020: £400,838) during the year. This reflects changes to staffing arrangements.

5. TANGIBLE FIXED ASSETS Freehold Leasehold Furniture &
Buildings Buildings Equipment Total
£ £ £ £
COST OR VALUATION
At 1 September 2020
53,217,021		 533,228 2,859,162 56,609,411
Additions
1,144,951		 - - 1,144,951
Disposals
-		 (148,007) - (148,007)
Transfers to Investments
(231,232)		 - - (231,232)
----------------------- ----------------------- ---------------------- ------------------------
At 31 August 2021
54,130,740		 385,221 2,859,162 57,375,123
----------------------- ----------------------- ---------------------- ------------------------
DEPRECIATION
At 1 September 2020
11,937,209		 108,461 2,329,866 14,375,536
Charge for the period
843,784		 6,024 57,591 907,399
On disposals - (60,065) - (60,065)
Transfers to Investments (48,882) - - (48,882)
---------------------- ---------------------- --------------------- -----------------------
At 31 August 2021
12,732,111		 54,420 2,387,457 15,173,988
---------------------- ---------------------- ---------------------- -----------------------
NET BOOK VALUE
At 31 August 2021
£41,398,629		 £330,801 £471,705 £42,201,135
=========== =========== ========= ===========
At 31 August 2020 £41,279,812 £424,767 £529,296 £42,233,875
=========== =========== ========= ===========

55

www.portsmouthdiocese.org.uk

Fixed assets with a Net Book Value of £3.2 million were held by the trading company. This is predominantly property owned in Jersey that has been transferred to a trading company to better comply with Jersey laws.

At 31 August 2021 the Charity had future minimum lease payments under non-cancellable operating leases as follows:

Land and Buildings 2021 2020
£ £
Not later than 1 year 0 25,000
Later than 1 year and not later than 5 years 0 0
Later than 5 years 0 0
Total 0 25,000

The Diocese also owns a number of properties, which are occupied and run by independent charities in the form of Voluntary Aided Schools and Catholic Academies. The Trustees consider that these properties have no capital value to the Charity – see Accounting Policy (f). The total re-instatement cost of these schools is approximately £300m. A list of the schools in the Diocese is set out on the Diocesan website (www.portsmouthdiocese.org.uk).All fixed assets are used in direct furtherance of the Charity’s objects.

6. INVESTMENTS Investment Quoted
Properties Investments Total
Fixed Assets £ £ £
Market value at 1 September 2020 15,635,000 10,966,325 26,601,325
Additions - 3,284,953 3,284,953
Disposals - (2,661,935) (2,661,935)
Transfer from Tangible Fixed Assets 182,350 - 182,350
Revaluation gains 4,672,650 1,463,039 6,135,689
-------------------- -------------------- ----------------------
Market value at 31 August 2021 £20,490,000 £13,052,382 £33,542,382
========== ========== ===========

All quoted investments (other than cash) are quoted on a recognised UK Stock Exchange or are valued by reference to investments listed on a recognised Stock Exchange. No figure for the cost of the investment properties owned at 1 January 1997 is available; the value at which they were first recognised in the accounts was £1,014,500. The majority of investment properties were revalued at 31 August 2019 by Daniel Harrison Surveyors. £13.4m of investment properties have been valued since March 21 by Savills, Lancasters, Leaders, College & County, Ross Nicholas and Homebase Property Management. The Trustees do not believe that there is a material movement in the value of investment properties since the date they were last revalued.

56

Notes to the Accounts (continued) for the Year Ended 31 August 2021

7. DEBTORS 31 August 31 August
2021 2020
£ £
Due after more than one year
School and other loans
£698,463		 £135,643
========== =========
Due within one year
School and other loans 252,536 385,978
Legacies Receivable - -
Other debtors and prepayments 195,120 441,779
--------------------- ------------------
£447,656 £827,757
========== ==========
31 August 31 August
8. CREDITORS 2021 2020
£ £
Due after more than two years
School and other loans
3,697,711		 £600,145
======== =========
Due between one and two years
School and other loans
1,470,424		 £296,568
======== =========
Due within one year
School and other loans 4,165,760 5,061,381
PAYE 47,360 72,062
Other creditors and accruals 508,514 645,499
-------------------- -------------------
£4,721,634 £5,778,942
========== ==========

A loan of £1,000,000 from Lloyds Bank was taken out in October 2019 for a five year commitment period at an interest rate of 1.7% above LIBOR. After an initial 12 month holiday period quarterly repayments are being made with the loan to be repaid in full on the fifth anniversary unless the Bank agrees to extend the commitment period. A Lloyds CBILS five year loan of £4,000,000 was taken out in February 2021, with interest and capital repayments beginning in March 2022 and is underwritten against a portion of the investment portfolio.

57

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9. PERMANENT ENDOWMENT FUNDS
Balance at Net Incoming/ Movement Balance at
1 September (Outgoing) On 31 August
2020 Resources Investments 2021
£ £ £ £
Parochial Funds
Properties 363,997 - - 363,997
Other 146,757 - 26,031 172,788
St Mary’s Mission 214,514 - 9,792 224,306
------------------- ----------------- ---------------- -------------------
725,268 - 35,823 761,091
Curial Funds 39,571 - 7,757 47,328
------------------ ----------------- ----------------- ------------------
£764,839 £- £43,580 £808,419
========= ======== ======== =========

For full comparative figures see Note 21 (c)

10. RESTRICTED FUNDS Balance at Movement Balance at
1 Incoming Resources On 31 August
September Resources Expended Transfers Investments
2021
2020
£ £ £ £ £ £
CURIAL
Social Welfare 163,776 2,983 - - 37,359 204,118
Clergy Training 631,428 31,546 - - 379,812 1,042,786
Bamenda Fund 30,100 55,941 - - 887 86,928
Clergy Assistance 88,056 15,210 - - 69,310 172,576
Lourdes Fund 173,248 2,903 (29) - 29,409 205,531
Youth Funds 782 - - - - 782
Vicariate Triple Trust 54,320 1,244 - - 15,575 71,139
Edmund Rice Fund 278,635 4,427 (10,038) - 55,437 328,461
School Building Fund 113,130 240,677 (276,661) - - 77,146
Other Restricted Funds 56,611 2,294 - - 9,880 68,785
Diocesan Caritas 103,230 39,000 (137,035) - - 5,195
--------------------- ---------------------- ---------------------- -------------------- ----------------------- -------------------------
1,693,316 396,225 (423,763) - 597,669 2,263,447
--------------------- ---------------------- ---------------------- -------------------- ----------------------- -------------------------
PAROCHIAL
Parish Fund Raising 377,306 452,283 (353,098) - - 476,491
Investment Funds 843,089 - - - 120,367 963,456
Foundation Masses 159,862 - - - - 159,862
Caritas Jersey Ltd 17,236 90,000 (25,912) - - 81,324
--------------------- --------------------- ---------------------- -------------------- ---------------------- ----------------------
1,397,493 542,283 (379,010) - 120,367 1,681,133
--------------------- ---------------------- ---------------------- -------------------- --------------------- -----------------------
£3,090,809 £938,508 £(802,773) £- £718,036 £3,944,580
========== ========= ========== ======== ========== ==========

For full comparative figures see Note 21 (d)

58

Notes to the Accounts (continued) for the Year Ended 31 August 2021

10. Restricted Funds (continued)

CURIAL

Social Welfare Fund

This is a fund dating from 1952 for the promotion of Social Welfare generally.

Clergy Training Fund

A fund for the training of students to the priesthood, which is the recipient of a specific annual Diocesan collection for this purpose. A transfer is made to the General Fund from which the training costs are paid.

Bamenda Fund

A fund to provide assistance to the Diocese of Bamenda in Cameroon, Africa that is the recipient of a specific annual Diocesan collection. There is a Trustees’ committee charged with monitoring and making the appropriate grants.

School Building Fund

This Fund was established in 2001, to provide a central fund to meet the governors’ liabilities on expenditures in Voluntary Aided schools. The equalisation fund is targeted as half from all parishes on the mainland, whether feeder parishes or not, and the balance being raised by the schools from parental contributions.

Other Restricted Funds

Other restricted funds consist of donations and other contributions for specific purposes other than those listed above, each not exceeding a period end balance of £50,000.

PAROCHIAL

Clergy Assistance

This fund provides financial support for clergy in need and is the recipient of a specific annual Diocesan collection.

Parish Fund Raising

These are funds that parishes raise for separate funds and charities, and account for as a restricted fund.

Youth Funds

Funds collected specifically for youth purposes including Lourdes Pilgrimages and Summer Schools.

Investment Funds

These are mainly legacies left specifically for expenditure within individual parishes or churches.

Diocesan Caritas

Caritas Diocese of Portsmouth supports and promotes the love of neighbour in the parishes and schools of the Diocese.

Vicariate Triple Trust

The purpose of the Trust is primarily to assist parishes in providing church furnishings.

Foundation Masses

Legacies left for mass intentions of the deceased, are held as separate funds within the parishes.

Caritas Jersey Ltd

Caritas Diocese of Portsmouth supports and promotes the love of neighbour in the parish of Jersey.

Edmund Rice Fund

This donation was received in 2005, primarily for education purposes in Reading and surrounding areas, and the local pastoral area is developing support for appropriate chaplaincies in the area.

11. DESIGNATED FUNDS DESIGNATED FUNDS Balance at Transfers/ Movement Balance at
1 September Incoming Resources On 31 August
2020 Resources Expended Investments 2021
£ £ £ £ £
CURIAL
Education Fund 77,125 10,049 - 125,842 213,016
Diocesan Caritas - 197,208 (67,050) - 130,158
Insurance Risk Fund (8,797) - - - (8,797)
Pastoral Development Fund 1,125,868 - - - 1,125,868
Living Our Faith Fund 1,805,096 4,708 - 10,535 1,820,339
Diocesan Buildings Fund 3,075,504 3,075,504
-------------------- -------------------- ----------------- ----------------- --------------------
6,074,796 211,965 (67,050) 136,377 6,356,088
-------------------- -------------------- ----------------- ----------------- --------------------
PAROCHIAL
Living Our Faith Fund 1,131,440 2,354 (256,726) - 877,068
Diocesan Buildings Fund 39,158,371 39,158,371
Other Parochial Funds 22,141,454 10,273,943 (8,840,354) 4,481,255 28,056,298
----------------------- ----------------------- ------------------------ -------------------- -----------------------
62,431,265 10,276,297 (9,097,080) 4,481,255 68,091,737
----------------------- ---------------------- ------------------------ -------------------- -----------------------
£68,506,061 £10,488,262 £(9,164,130) £4,617,632 £74,447,825
============= ============ ============= ========== =============
For full comparative fgures see Note 21 (e)
Education Fund (i) to provide the Diocese with suffcient funds to
This fund is utilised for the support of schools and
support		 independently the training of stude nts
other educational purposes within the Diocese. for the priesthood and the continuing care of its
ordained clergy in their ministry, to fund ad ult
Insurance Risk Fund formation programmes and resources and vario us
This fund has been designated to assist parishes
capital projects, and (ii) to provide parish funds to
and others to comply with safety requirements. meet local needs.
Pastoral Development Fund Value of Diocesan Buildings
This fund has been set up from the proceeds
Fund Funds invested		 in buildings used by t he
of the sale of a surplus property and will be
diocese		 in furtherance of their charitable obje cts
supplemented from further disposals where
are not		 available to spend. The value of the se
there are surplus funds generated, in order to aid
operational fxed assets have been transferr		 ed
parishes with their own developments. into a designated fund to indicate that they are not
expendable fnancial assets.
Living Our Faith Fund
A programme was initiated in 2008 to raise funds
12 ALLOCATION OF NET ASSETS
31 August
Fixed Current Current Parish Loan
2021
Assets
Investments		 Assets Liabilities Accounts
Total
£ £ £ £ £ £
Permanent
Endowment Funds
Curial -
-		 47,328 - -
47,328
Parochial 510,650
134,345		 116,096 - -
761,091
Restricted Funds
Curial -
259		 2,263,188 - -
2,263,447
Parochial -
1,123,318		 557,815 - -
1,681,133
Unrestricted funds
Curial 3,035,864
9,544,269		 (509,487)
(9,645,277)		 141,726
2,567,095
Parochial 38,654,621
22,740,190		 8,083,144
(244,492)		 (141,726)
69,091,737
--------------------
------------------------		 ----------------------
-------------------		 --------------------
-------------------------
Total Net Assets £42,201,135
£33,542,381		 £10,558,084
£(9,889,769)		 £ -
£76,411,831

(i) to provide the Diocese with sufficient funds to support independently the training of students for the priesthood and the continuing care of its ordained clergy in their ministry, to fund adult formation programmes and resources and various capital projects, and (ii) to provide parish funds to meet local needs.

Fund Funds invested in buildings used by the diocese in furtherance of their charitable objects are not available to spend. The value of these operational fixed assets have been transferred into a designated fund to indicate that they are not expendable financial assets.

For full comparative figures see Note 21 (f)

60

Notes to the Accounts (continued) for the Year Ended 31 August 2021

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Certain of the Trustees are also priests within the Diocese. As priests they receive income from their office together with living accommodation, living expenses and reimbursement of costs incurred on behalf of their parish on the same basis as other priests within the Diocese. No Trustees receive any remuneration or benefits from their trusteeships. No Trustees were paid for providing professional services to the Diocese.

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During the period the Diocese had wholly owned active subsidiary companies incorporated in England and Wales. They were as follows: -

The Portsmouth Diocesan Trading Co Limited - General commercial trading on behalf of the Diocese. (Company Number: 2746549)

Catholic Resource Centre Limited - Sale of religious material. (Company Number: 3141601)

City Centre Parish Gift Shop Ltd - Sale of religious and other material. (Company Number 4861772)

61

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16. Trading Subsidiaries (continued)

Our Lady of Peace Catholic Club Limited - Management of licensed premises on behalf of Our Lady (Company Number: 3340552) of Peace, Earley.

Waterside Fair Trading Limited - Sale of religious and related material. (Company Number: 3454820)

The results and assets and liabilities of the above companies are reported within the financial statements.

Portsmouth Roman Catholic Diocesan Trust Company Limited (Company Number: 9003096) acts as Member of Caritas Jersey Limited, a Jersey registered charitable company, whose results and assets and liabilities are reported within the financial statements.

Portsmouth Roman Catholic Diocesan Properties Limited (Company Number: 9611450) was incorporated on 28th May 2015 and ownership of the Diocese’s freehold properties in Jersey was transferred to it from The Portsmouth Diocesan Trust during the year in order better to comply with Jersey property law.

A summary of the companies’ trading results and balance sheets is set out below: -

Consolidated Profit and Loss Account 31 August 31 August
For the Year Ended 31 August 2021 2021 2020
£ £
TURNOVER 248,761 257,405
Cost of sales (129,046) (150,153)
------------------- -------------------
GROSS PROFIT 119,715 107,252
Administrative expenses (115,860) (157,741)
-------------------- --------------------
3,855 (50,489)
Amount gifted to the Charity (82,000) (56,067)
Transfer of Fixed Assets - 3,372,687
Tax on profit on ordinary activities - -
------------------- -------------------
(LOSS)/PROFIT AFTER TAXATION (78,145) 3,266,131)
Reserves brought forward 3,140,596 (125,535)
------------------- -------------------
RESERVES CARRIED FORWARD £3,062,451 £3,140,596
========= =========

Included within turnover are sales to the Diocese amounting to £96,253 (2020 £65,383).

Notes to the Accounts (continued) for the Year Ended 31 August 2021

62

16. Trading Subsidiaries (continued)

Consolidated Balance Sheet 31 August 31 August
As at 31 August 2021 2021 2020
£ £
FIXED ASSETS
Tangible assets 3,185,535 3,310,460
---------------- ----------------
CURRENT ASSETS
Stocks 11,085 9,969
Debtors 45,111 38,253
Cash at bank and in hand 181,531 161,144
------------------ ------------------
237,727 209,366
CREDITORS: Amounts falling due within one year (194,310) (212,729)
------------------ ------------------
NET CURRENT ASSETS 43,417 (3,363)
CREDITORS: Amounts falling due after one year - -
----------------- -----------------
NET ASSETS £3,228,952 £3,307,097
======== ========
Share capital 166,501 166,501
Reserves 3,062,451 3,140,596
------------------ ------------------
SHAREHOLDERS’ FUNDS £3,228,952 £3,307,097
======== ========
17. FINANCIAL INSTRUMENTS 2021 2020
£ £
Financial assets measured at fair value 13,052,382 10,877,486
Financial assets measured by amortised cost 778,306 1,655,543
========== ==========
Financial liabilities measured by amortised cost 9,334,127 2,462,594
========== ==========

18. RELATED PARTY TRANSACTIONS

There were no related party transactions during the year. (2020: Nil)

19. POST BALANCE SHEET EVENTS

There were no post balance sheet events.

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----- Start of picture text -----
Unrestricted Unrestricted
Notes Restricted Funds Total Funds 2020 Total Funds 2019
Local Mission Mission Support
£ £ £ £ £
Income from:
Donations and legacies
Donations and Offertories 8,466,576 24,063 1,597,788 10,088,427 10,026,348
Legacies 724,480 10,125 20,526 755,131 442,245
Charitable Activities 2 1,153,251 300,255 146,389 1,599,895 1,765,658
Income from trading subsidiaries 18 162,736 - 94,669 257,405 233,418
Investment income 3 691,214 80,614 87,341 859,169 888,066
Other income 433,255 110,902 - 544,157 558,089
Gain on disposal of fixed assets - 105,061 - 105,061 1,375,088
Total Income 11,631,512 631,020 1,946,713 14,209,245 15,288,912
Expenditure on:
Raising funds
Expenses of trading subsidiaries 277,392 - 98,716 376,108 299,657
Fundraising - 83,848 - 83,848 -
Charitable activities
Support of Parish Life 10,653,780 - 995,047 11,648,827 12,612,659,528
Vocation
Training New Clergy - 37,571 308,246 345,817 463,848
Clergy Support - 406,448 18,431 424,879 433,737
Supporting Retired Priests - 114,930 - 114,930 97,496
Education -
Supporting Catholic Education - 384,946 327,762 712,708 829,643
Youth and University Chaplaincies - 280,881 - 280,881 362,937
Evangalisation -
Supporting the Poor and
Marginalised - Inspired by the - 47,166 156,037 203,203 274,348
Love of Christ
New Evangelisation - 104,927 - 104,927 116,253
Total expenditure 4 10,931,172 1,460,717 1,904,239 14,296,128 15,537,447
Net (Outgoing)/Incoming
700,340 (829,697) 42,474 ( 86,883) ( 248,535)
Resources before transfers
Realised and Unrealised
(987,450) ( 4,078) ( 69,685) (1,061,213) ( 563,738)
(Losses) on Investments
Net income/(expenditure) (287,110) ( 833,775) (27,211) (1,148,096) ( 812,273)
Transfers between Funds
Transfers - Curial Services 1,528,897 ( 1,528,897) - - -
Transfers - Diocesan Levy ( 2,152,976) 2,152,976 - - -
Net movement on funds (911,189) ( 209,696) ( 27,211) (1,148,096) ( 812,273)
Reconciliation of funds
Fund balances brought forward 63,342,454 2,391,617 3,882,860 69,616,931 70,429,204
Fund balances carried
62,431,265 2,181,921 3,855,649 68,468,835 69,616,931
forward
----- End of picture text -----

Notes to the Accounts (continued) for the Year Ended 31 August 2021

64

21a,b CHARITABLE EXPENDITURE FOR YEAR ENDED 31 AUGUST 2020

----- Start of picture text -----
Support of Parish Life Vocation
Locally Incurred Centrally Incurred Training New Supporting Supporting
Costs Costs Clergy Clergy in ministry Retired Clergy Ca
£ £ £ £ £
Direct Costs - - 59,758 393,057 30,938
The Office of the Bishop - 179,312 - - -
Chancery - 10,665 - - -
Tribunal - 41,781 - - -
Hospital Chaplaincies - 46,716 - - -
Parish Initiatives - 32,099 - - -
Seminary Fees - - 258,900 - -
Maintenance of Catholic Schools - - - - -
Parish Costs
Clergy 1,535,930 - - - -
Staff 1,946,654 - - - -
Church Running Costs 929,511 - - - -
Office and Presbytery Running 926,511 - - - -
Costs
Parish Centre Running Costs 166,868 - - - -
Other Costs 1,324,722 - - - -
Insurance 391,965 - - - -
Repairs and Maintenance 2,095,344 - - - -
Depreciation 802,425 - - - -
10,119,930 310,573 318,658 393,057 30,938
Support Costs
Communications 23,480 23,479 4,695 4,695 -
Estates 131,616 - - - 65,808
People 112,142 - 1,174 1,174 587
IT 122,974 - 5,151 5,151 2,575
Finance 296,628 9,103 9,340 11,521 907
Governance 22,938 704 722 891 70
Curia Property and overheads 173,617 30,095 4,543 5,322 14,045
Safeguarding 154,951 - 1,534 3,068 -
Bishops Conference Levy - 116,597 - - -
Total 11,158,276 490,551 345,817 424,879 114,930
----- End of picture text -----

----- Start of picture text -----
Trading
Education Evangelisation Fundraising Total
Subsidiaries
Supporting
Youth and the Poor and
Supporting New Trading
University Marginalised - Fundraising Total
atholic Education Evangelisation Subsidiaries
Chaplaincies Inspired by the
Love of Christ
£ £ £ £ £ £ £
260,933 245,445 175,821 88,452 55,395 376,108 1,685,907
- - - - - - 179,312
- - - - - - 10,665
- - - - - - 41,781
- - - - - - 46,716
- - - - - - 32,099
- - - - - - 258,900
327,762 - - - - - 327,762
- - - - - - 1,535,930
- - - - - - 1,946,654
- - - - - - 929,511
- - - - - - 926,511
- - - - - - 166,868
- - - - - - 1,324,722
- - - - - - 391,965
- - - - - - 2,095,344
- - - - - - 802,425
588,695 245,445 175,821 88,452 55,395 376,108 12,703,072
4,695 4,695 4,695 4,695 18,783 - 93,912
65,808 - - - - - 263,232
2,349 1,174 1,761 587 587 - 121,535
10,301 5,151 7,726 2,575 2,575 - 164,179
17,255 7,194 5,154 2,593 1,624 - 361,319
1,334 556 399 200 126 - 27,940
20,737 5,927 4,579 2,757 4,758 - 266,380
1,534 10,739 3,068 3,068 - - 177,962
- - - - - - 116,597
712,708 280,881 203,203 104,927 83,848 376,108 14,296,128
----- End of picture text -----

66

Notes to the Accounts (continued) for the Year Ended 31 August 2021

21. COMPARATIVE FIGURES FOR THE YEAR ENDED 31 AUGUST 2020

----- Start of picture text -----
21c PERMANENT ENDOWMENT FUNDS Balance at Net Inc
1 September (Outg
Net Incoming/
Balance at 31 Aug Movement on Balance at 31 Aug
(Outgoing)
2019 Investments 2020
Resources
£ £ £ £
Local Mission Funds
Properties 371,654 ( 7,639) ( 18) 363,997
Other 145,260 2,984 ( 1,486) 146,757
St Mary's Mission 214,398 681 ( 565) 214,514
Total 731,312 ( 3,975) ( 2,069) 725,268
Mission Support Funds 42,094 ( 1,150) ( 1,373) 39,571
773,406 ( 5,125) ( 3,442) 764,839
----- End of picture text -----

21d RESTRICTED FUNDS

----- Start of picture text -----
Balance at 31 Incoming Resources Movement on Balance at 31
Transfers
Aug 2019 Resources Expended Investments Aug 2020
£ £
MISSION SUPPORT
Social Welfare 165,085 4,336 - - ( 5,645) 163,776
-
Clergy Training 898,319 70,054 ( 305,896) ( 31,049) 631,428
Bamenda Fund 34,889 93,831 ( 98,463) - ( 157) 30,100
-
Clergy Assistance 98,981 10,891 ( 18,431) ( 3,385) 88,056
Lourdes Fund 173,286 5,167 - ( 5,205) 173,248
Youth Funds 782 - - - - 782
-
Vicariate Triple Trust 71,882 1,807 ( 16,911) ( 2,458) 54,320
Edmund Rice Fund 281,841 6,432 - - ( 9,638) 278,635
- -
School Building Fund 194,220 246,672 ( 327,762) 113,130
Other Restricted Funds 59,290 270 ( 1,200) - ( 1,749) 56,611
Diocesan Caritas 1,075 159,729 ( 57,574) - - 103,230
1,979,650 599,189 ( 826,237) - ( 59,286) 1,693,316
LOCAL MISSION
Parish Fund Raising 110,507 1,235,248 ( 968,449) - - 377,306
Investment Funds 837,308 12,738 - - ( 6,957) 843,089
Foundation Masses 160,706 1,205 ( 2,049) - - 159,862
Caritas Jersey Ltd 21,283 94,669 ( 98,716) - - 17,236
1,129,804 1,343,860 ( 1,069,214) - (6,957) 1,397,493
£3,109,454 £1,943,049 ( 1,895,451) - ( 66,243) 3,090,809
----- End of picture text -----

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21e DESIGNATED FUNDS AS AT 31 AUGUST 2020

----- Start of picture text -----
Transfers/
Balance at 31 Incoming Movement on Balance at 31
Resources
Aug 2019 Resources Investments Aug 2020
Expended
£ £
MISSION SUPPORT
Education Fund 64,739 14,600 - ( 2,214) 77,125
Insurance Risk Fund ( 8,797) - - - ( 8,797)
Pastoral Development Fund 1,125,868 - - - 1,125,868
Living Our Faith Fund 2,331,535 15,390 (539,965) ( 1,864) 1,805,096
Value of Diocesan Buildings -
- - 3,075,504 - 3,075,504
Fund
3,513,345 29,990 2,535,539 ( 4,078) 6,074,796
LOCAL MISSION
Living Our Faith Fund 1,282,884 8,468 ( 159,912) - 1,131,440
Value of Diocesan Buildings -
- - 39,158,371 - 39,158,371
Fund
Other Parochial Funds 62,059,570 11,623,044 ( 50,553,710) (987,450) 22,141,454
63,342,454 11,631,512 ( 11,555,251) (987,450) 62,431,265
66,855,799 11,661,502 ( 9,019,712) (991,528) 68,506,061
----- End of picture text -----

21f ALLOCATION OF NET ASSETS AS AT 31 AUGUST 2020

----- Start of picture text -----
Current Current Parish Loan Total 31 Aug
Fixed Assets Investments
Assets Liabilities Accounts 2020
£ £
Permanent
Endowment Funds
Mission Support - 39,571 - 39,571
Local Mission 510,455 186,435 28,378 - 725,268
Restricted Funds
- -
Mission Support 3,104,519 ( 1,411,203) 1,693,316
Local Mission - 793,492 604,001 - 1,397,493
Unrestricted funds
Mission Support 3,075,504 5,270,954 5,136,770 ( 6,255,498) ( 5,045,808) 2,181,922
Local Mission 38,647,916 17,206,354 1,951,344 ( 420,157) 5,045,808 62,431,265
Total Net Assets 42,233,875 26,601,325 6,309,290 (6,675,655) - 68,468,835
----- End of picture text -----

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