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2022-12-31-accounts

1 8ALF CA7H CH lJl:1114,' DIOCESE OF SALFORD ANNUAL REPORT 2022 11 Ilit,

About Contents Charity RegTStered Name: The Salford Diocesan Trust ITSDTI commonly known as the Roman CatholTC Diocese of Salford and also referred to as Salford Roman Catholic Diocesan Trustees Registered ISRCDTRI. The Diocese includes much of Greater Manchester north of the Mersey and Lancashire including Blackburn and Burnley. The diocese comprises approximately 263,295 Catholics, with 109 parishes and 206 schools. About Us Pg 1 Introduction from Bishopjohn Pg 3 Chief Operationg Officers Report Pg 4 Our Work Pg 5-18 2022 Financials Pg 19 Aims, Objectives and Purpose Pg 20 Structure, Governance and Charity Registration Number: 250037 Registered Address Management Pg 20- 23 Plans for Future Periods Pg 23 Financial Review Pg 23- 27 Conclusion and Approval Pg 27 Report of the Independent Auditors Pg 28 -30 Consoliclated Ststement of Flnancial Wardley Hall, Worsley¥ M28 2ND Public Address Cathedral Centre, 3 Ford Street, Salford, M3 6DP Trustees Right Reverend John Stanley Kenneth Arnold, Blshop of Salford Reverend Canon Michael Cooke, Vicar General Reverend Christopher Dawson Reverend Peter Hopkinson, Vicar General Sir Peter Fahy Edward Nally Mary Hunter Reverend Canon Michael Jones Eamonn O'Neal Brendan Mccafferty Ellzabeth Lllley Michael Devlin (resigned July 20231 Activlty Pg 31-32 Charity Balance Sheet Pg 33 Consolidated Statement of Cash Flow Pg34 Notes to the Financial Statements Pg 35 -56 Financial Secretary Pauline Morgan. Chief Operating Officer and Financial Secretary The Trustees present their report along with the consolidated financTal Statements of the Charlty for the year ended 31 December 2022. The Statements appear in the format required by the Statement of Recommended Practice for Accounting (second edition) and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland - Charities SORP FRS102. Key Personnel Rachel McGee - Head of Communlcations and Deputy Chief Operating Officer Jenny Clayton - Head of Safeguarding John Corrigan - Director of Property and Facilities Nicola Cosens - Director of Finance Emma Gardner - Head of Environment Lisa Heywood - Head of Projects and Operations Hannah Howard - Head of HR Simon Smith - Director of Education

AdvTsors: Year In Numbers Auditors Crowe UK LLP, 3rd Floor, The Lexicon, Mount Street, Manchester, M2 5NT 109 parishes 163 church. Banker5 Barclays Bank Plc, Barclays Business Centre, Manchester City Office, PO Box 357, 51 M051ey Street, Manchester, M60 2AU 102 priests 88 religious 66 retired deacons The Royal Bank of Scotland Plc. St Anne Street, Manchester, M60 2SS Lloyds Bank, PO Box 545, Faryners House, 25 Monument Street, London, EC3R 8BQ Santander, 298 Deansgate, Manchester, M3 4HH 403 Sunday Masses Investment Managers 519 162 Weekday Masses Evelyn Partners, 14th Floor, 103 Calmore Row, Blrmlngham B3 3AG Hours of Adoration Solicitors 206 Schools Fieldings Porter, Silverwell House, Silverwell Street, Bolton, BL1 1PP Number of pupil5: 81,000 Pensions Punter Southall, Asplre Beech House, Hackness Road, Northminster Business Park, Northfield Lane, York, Y026 6QR 1,500G overnors 2,060 4,500 1,500 800+ 387 Vlsltor5 to Wardley Vlsltors to St 8ernadette's rellcs Responses to the Universal Synod Attended Synod, Formatlon. or Hope in Ihe Future talks and tralnlng. Walsinqham pllqrlms More than £3 million Spent on parish property repalrs Over £10.5 million £900K Spent on school improvernents in grant income ￿Ceived

Introduction from Bishop John Arnold Over the past few years, we have spoken many times about the challenge of meeting the changing needs of our world today. Pope Francis is clear that we must be prepared to question the way we undertake our ministry, organise our parishes and our role in the wider community. We have already undertaken some changes in our Diocese, thTnking carefully about what it is to be Church today and how we can all play our part as missionary disciples. The reality is that many people, even among our family members and friends, have distanced themselves from the Church, drawn away by the individualism and materialism of our times. We must respond, with that sense of mission and, respond to Pope Francis, challenge; "do we have the courage to walk with them, even while they are walking away from the Church?" As part of this challenge, we have embarked on a diocesan synod. The synod is an opportunity to work together, hearing voices from those connected with our parishes and those who feel they no longer have a part to play, or place in our Church. Listening to those voices will help u5 dTscern what our diocesan Church can be and needs to be. It is an invitation to build a different future, built on joy) hope and renewal. This year we embraced the themes of challenge, hope and renewal as we embarked on the fifth and final stage of our pastoral programme Hope in the Future. This final stage was entitled 'Sharing the Hope, In this time we asked parishes to turn their attention to putting our faith into action through caring for those most in need in our local area, and to caring for our common home. Our parishes already make an enormous contribution to the local community, and I would like to express my gratitude to the many lay people who contribute so generously to the pastoral and social life of the Church. We are fortunate to have such dedicated volunteers who contribute their tlme and expertise to the activlties of our parishes and many Church organisations. It is impossible to measure the full impact of contribution and support, but each volunteer Is a551Sting us on our journey, where we are all called to be mi55ionary disciples in mi5STonary parishes. We understand the urgent need for our Diocese and the whole Church to use Its voice, its members, and its resources to repair the damage of cllmate change and to Ilve In harmony with our cornmon home. It Is an opportunity to evldence how we can play our part globally. As a Diocese we have set ourselves an environmental plan that is ambitious and understands the scale of change that 15 needed, and one that is grounded irs Christian Hope and guided by prayer and Church teaching. We are putting the ecological crisis at the heart of what we do and have comm?tted to be carbon neutral by 2038. There is much to be done to make our world a better place and we all have our part to play. Let us all remember that prayer will guide us and strengthen u5 as we ask: Stay with us, Lord, on Our Journey. Rt Rev John Arnold, Bishop of Salford 24th October 2023

li Report from the Chief Operating Officer I would once again like to Start with my thanks to all our colleagues across the diocese for their continued unwavering dedication, hard work and commitfflent to our mi55i0n to Serve both the diocese and the wider community. Without the ongoing commitment and dedication of staff and volunteers, we would not be able to provide the support needed by our clergy¥ parishes and schools. The diocese like many charities and organi5ations is feeling the effects of the cost-of.living crisis. Escalating fuel costs have especially hit our parish communities. We are incredibly thankful to our parishioners who continue to give generously in the face of rising costs. Desplte these external factors we remain committed to our stewardship of the diocese and our ongoing financial sustainability. Ourlng 2022 we saw many more of our Parish Centres reopen their doors to external events, bringing together our parishes and communities, and again thank you to all our SDC colleagues for making this possible. We have also taken the tlme to review and update our investment policy to reflect our approach to beTng a Responsible Investor. As a diocese we have an obligation to past as well as present and future generations to be a 'good steward. of our investments. In managing the investments, the balance must be struck between the importance of using the money to support the income needs, to run the diocese activities on an ongoing basis, to smooth the financial needs of the diocese when capital sums are needed to maintain buildings or support other capital projects (such as our Cathedral Restoration Project) and maintaln a contingency appropriate to the diocese. Being a responsible investor means ensuring that the beliefs we hold as Catholics are translated into positive action through the portfolio of shares we hold. This Ts about active partlCTpation through the investments we hold in key issues as they affect people and planet. We will continue to review our portfolio and respond effectively. In 2022, there were change5 to several of our diocesan central team5, including welcoming a new Head of Safeguarding, to work alongside our e5tabli5hed Safeguarding Advisory Panel and safeguarding Committee. 2023 has many challenges ahead but we are confident that working together as one team we can navigate our journey to be a diocese adapting and building for the 21st Century. Pauline M Morgan Chief Operating Officer and Financial Secretary 24th October 2023

Our Work As we look back over the last year, we are met with three overriding themes, Hope, Mission and Challenge. Looking forward we a see a challenge for how we as parishes, individuals and parishioners must adapt to a changing world but also we witness Hope as we see the opportunity to build on our success and renew our communities together and grow as missionary parishes. Hope Y,1 Mission Challenge

Hope Hope was evident when as a diocesan communlty we came together in large numbers to celebrate and pay witness to our faith. We were dellghted to see the return of our pilgrlmages to Walsingham and Lourdes. Walsingham saw one of Its largest gatherings in recent years from our Diocese with nearly 400 taking part including the first special youth pilgrimage. In addressing the Pilgrims, Bishop John asked those present to have hope and faith that we can unite to make the world a better place. One of our parishes that ha5 taken that message to heart 15 the Par15h of the Nativity in Failsworth and Limeslde. Coming together volunteer5 from the parish and local communlty have spent three years building the Bee Together Community Cerstre and Garden. Inspired by our diocesan Laudato Sl, project the parish have built a network that has transformed a neglected patch of land into a focus of actlvity. It is now home to vegetable patches, frult trees, wildflowers and more. The space has become a vltal and vibrant communlty hub hosting numerous events and wlnlng the RHS North West In Bloom competitlon for Its pioneering project. The Parish of the Nativity is just one example of how our parishes understand the need for the Church to use its voice, its people, and its resources to create a different legacy for the next generatlon. We look to learn from those around us and in 2022 we saw the fruit of one of the lessons we have taken from other Dioceses with the ordinations of four deacons. Hundreds of parlshioners from across the Dlocese came to support these men who stepped forward to be the first of a new generation of Deacons in our Diocese. The journey of the diaconate also signifies the importance of misslon and challenge. In welcomlng the Deacons Bishop John spoke of the importance of each of us identifying our mission and challenged thern specifically to help shape a diaconate ready to adapt to the need5 of our Diocese. We continued to gather In large numbers and much joy was witnessed from the thousands that flocked to the Cathedral leaving standing room only as they took part in a serTes of open visits, services and Masses for the relics of 5t Bernadette. The two day visit began with a Mass of Welcome, following which the afternoon then saw the flrst of our open visits, welcomlng in the queue of pilgrims that had snaked its way through the cathedral grounds nd Into the surrounding streets, before a Mass of Vocation, Youth Vigil and Mass of Anointing filled the Cathedral once more. The visit from the relics brought an unmistakable atmosphere of hope and the vislt from the relic5 was followed a few weeks later by a challenge to all in the Diocese to 'Share the Hope,. Thi5 wa5 the start of Stage 5 of our pastoral programme, Hope in the Future.

HOP In Stage 5, in collaboration with Caritas Salford, we gave renewed focus to putting our Faith into action through caring for those most in need in our local area and caring for our Common Home. Through the resource pack and 'Sharing the Hope Deanery Days, we accompanied communities in learning more about the needs in their community and encouraged them to prayerfully discern how best to respond, Using the 'See, Judge, Act, method. Different communitie5 responded in a range of different ways including. prayer, financial giving, volunteering, advocacy, signposting to existing support, developing a new project or supporting an existing one. 111 TMI Fu ope in the Future in Statistics 80 Hope in the Future Parish Reps 72% ol pari5he5 Parish Case Study One parish community hit the airwaves in 2022 in an effort to share God's message of love and hope beyond the pews of the parish. Of parishes with Teams Dur?ng Advent, the parish of St Cuthbert's in Bolton appeared In a weekly programme on Bolton FM to share readings, reflections, hymns, and prayers with the wider community. The programme is part of an initiative that has developed since the pandemic, which also includes additional activities such as visiting the sick and housebound, visiting new neighbours, developing projects with the parish schools, and holding additional prayer sessions at church. 200 18 Parfsh Projects Dejnery Prolectg 120 Events over 5 stages. .with more than i****ii

attendeesl DIocF.SE OF SALFORD HOPE IN THE FUTURE I&THE*

Building for the Future In 2017 we Set out on a programme called Hope in the Future. It aimed to provide each parish with the tool5, re50urce5 and opportunities they needed to be missionary parishes moving towards the Church of the Future. We asked people to join with us in Rebuilding the Church. This is a theme we have taken forward over the last 5 years. The Covid-19 Pandemic enhanced the need for our ditxese to look forward and take a fresh focus in to the way we operate. As part of this we have changed the way we operate as a Diocese looking to be more outward facing, placlng our gospel values in a 21st Century world. In this new landscape. a cr?tical role for our school governors and leaders Is to look to the future and guide the strategic directlon of not only their own school but the whole diocesan family of schools. Th15 WTder vision Is crucial to our rni55ion of 'RebuildTng the Church, fit for future generation5' The vision for Schools was set through our Academies Strategy. The diocese's academy trust5 are becoming stronger with the number of voluntary converter5 increasing. A5 of December 2022, there were around 20 academies acr055 Rofnero, St Tere5a of Calcutta and Emmaus Catholic Academy Trusts. Our Catholic Academy Trusts ICATS) are building effective and strong central teams in order to effectively support our schools who are members of the trust as well as those with an aspiration to join and are developin8 closer links with them. Our 81.000 pupils are involved in a number of activities that are helping us learn what they need from u5. 25% of the responses we recelved to the Universal Synod came from our school puplls. They showed an Investment In their falth and the need to put our value5 into action5. Bullding on thls work our Youth Team have been undertaking a listening exercise across our secondary schools meetin8 Wlth focus groups to understand the challenges our young people face in ITving out thelr falth. The Faith In Action Award has been created to help our young people find a way to translate their relatlonship with God Tnto action for the common 9¢￿d. Its Strength Iles in unitTng young people, schools and parishes together to make a difference to the world around them. In 2022 14 new schools joined the award and 376 badges were presented. Puttlng their falth into actlon was also In evidence at our youth eco summlt. More than 40 students from secondary schools across the area met at our Laudato Si Centre to share idea5 and solution5 to tackle some of the biggest environmental challenges we face today. The summit was a concluding event of a pilot research project with over 200 students acr05S the DTocese of Salford, called Laudato Si, Champions. Dubbed "Laudato Si, Champions" in connection to Pope Francis. environmental teachings, these students met to discuss their findings in the programme's first ever youth summit. The day included a range of powerful and inspiring sessions, which saw students present their ideas for a more sustainable future, before taking part in tree planting and meditation session5, and finally burying a tTme capsule of their hopes and ideas.

As well as developing the Laudato ST, Centre at Wardley Hall the arr?val of Bishop John brought the decision that the hall would be opened to allow visitors and further engagement with our parishes and schools. The use of the space for retreats and diocesan celebrations encourages a sense of belonging between the historic hall and our communities. In 2022 we saw a record number of visitors and events being held here. Further adaptations to the Hall improved the acce55 for visitor5 With mobility l55ues. This decision to expand the use of the building ha5 brought a new lease of life to the hall and mirrors our curia mission of being here to support and serve the Diocese, Fomiatlon Education and Pre. 5ale8uardfini Human Resowces bbdr8iive wg, , Piolects, Operatlons, •nd Arthlves LaLpJa¢o Sl. Centre Pll8dma8es .,ILI'¢)RL) Prcperty H&S Por15h Intenance Curia C¢)mmMlcatlonJ Cèthedrnl Céntr• Chancery to enahie TrIb￿l Cefflrterlex Fundralslng WNdley Hall Flnance and In¥￿IM￿ts Leadership Team and COO'S and VG'S Olflce

Synod Synod Vision Having come together to answer the questions put to us by Pope Francis and the Universal Synod. we embarked on a synodal journey that will begin to transform the way in which decisions are made in the Church. It is this invitation from Pope Francis that ha5 encouraged Bishop John to announce the launch of a Diocesan Synod to prayerfully discern how we can addre55 the need5 Qf our diocesan community in a post.pandemic world. To enable true collaboration between the clergy and lalty at diocesan and parish level by truly listening to each other. To dlscem what the Holy Spirft Is Sa￿n8 to the Church in Salford at this next stage of our Journey In calling the Synod Bishop John reflected on the considerable changes our Church has Wltnessed over recent year5, remarkin8 that the tTme has come to envisage a new future for the Church in our diocese. A challenge as to what we need to be now In a changlng world. What our people expect of us and how mlght we rethink things? Our diocesan synod seeks to provide an answer to these questions by calling us to reflect on the needs of our diocesan community today, and to understand more about the opportunities we have to build up the Church in our part of Greater Manchester and Lancashire. The next Stage of the Synod will be 'The Big Listen, where we will ensure each and every voice 15 represented in this new generation of our diocesan Church. DIOCESE OF V SALEORD SYNOD 2023-2025 10

School Singing Programme NATIONAL SCHOOLS SINGING PROGRAMME In 2021 we joined the National School Singing Programme {SSPI. The School Singing Programme enabled via grant fundTng the expansion of Salford Cathedral's grassroot5 Music Foundation. The music team at the Cathedral now work with children and teachers around the diocese to institute long-term musical programmes, comprising both of singing sessions during school hours and after-school choirs. "Our pupils have regalned their enthuslasm, lost thelr self-consclousness, and thelr love for slnging has been re-ignited. Mrs Bainbridge - Headteacher, St Boniface, Salford The Sch¢)o1s Slnging Programme has reached 681 children through 9 schools, with each school recelving at least one hour of Singing each week. Session5 cover musical theory? singing technique and often form the basis of lively spiritual debates, inspired by the children's interaction with powerful sacred music. Singing sacred music has been shown to have a range of mental and physical health benefits for children: it's a great way to build confidence, feel part of a community, further academic attainment and foster a lifelong relationship with Spirituality. , SALFORD CAT SALFORD ATi4EDRA, ,'I', 4F.r)KP

Volition Volition has been active at Manchester Cathedral for a decade and in March 2022 we saw its formal launch in Salford Cathedral, providing another ecumenical link between our two historic Cathedrals. Volition is a partnership between Manchester and Salford Cathedrals, promoting employability through volunteering. This ten.week programme enables the long-term unemployed to develop skills and interview techniques, whilst crucially giving them meaningful volunteering opportunities to put on their CV. The Volition Programme takes advantage of links between the cathedral and local businesses. Volition at Salford Cathedral developed a different strategy to that at Manchester Cathedral - to focus on the well-being of Salfordians, providing a safe, creative, and welcoming space in which people can gain confidence and skills, allowing them to engage with life in a productive manner. Volition can give isolated people the confidence they need to flourish in Salford. One Volition volunteer who has attended the Programme explained how previously she was unable to leave the house. Volition has 8Sven her the encouragement to go outside, take public transport and attend Volltlon's art classes. The Cathedral hosts a wide variety of Volition activities and events over the year, including beekeeping, art classes, interview technique training, and litter picking. Our volunteers have worked across both cathedrals throughout the year. Our art class spent the Autumn crafting beautiful Christmas cards and tree decorations, which were then sold at Salford Cathedral's Christmas Fayre, and throughout the Advent season. The partnership al50 means we have a colony of 8 beehive5 in Cathedral garden51

Hearing the Cry Examples of action In september 2021 we were pleased to share with you, 'For the Beauty of the Earth" which is our commitment to Environmental Action. The Work beBinslo make 5allord Cathedral the most sustalnable cathedral In the UK document ls a guide to put our Christian faith into action protecting the environment. It built upon work already undertaken in our Diocese. Now we are taking the next step. 'Hearing the Cry". Responding with Hope" Is our strategSc response, providing more details of the commltment to be made in the Dlocese. It has one maln ask of all of Dlocesan schools Joln Laudato Sl, Centre "Hear the Cry campalgn to send message to world leaders at COP27 us, that we work together as one Diocese, united towards creatlng transformative change and heallng for our common home. Blshop John calls for urgenl actlon In crurlal new document entitled 'Call for Creatlon. from Blshops, Conference of England and Wales Now is the tlme to unlte these actlons and responslbilltles and set ourselves a plan that is ambltlOU5 and understands the scale of change that is needed, and one that is grounded in Christian Hope. Our joint response brings us together, maximising its impact, guided by prayer and Church teaching. PloneerlDg research project . 'L4udato Sl, Champions. coffles to a close with dynaml Schools Summlt - after engaglng wlth 200 school puplls from across ￿ dSocese Our Laudato Si, Centre gives us a focal point to put our commitment to act into practice. It is rooted in the belief that we can all make a difference through the actions we take and the Centre can provide the tools and learning needed to enable that response. It also enables us to provide a place of inspiration and welcome to the wider community. Providing a vital hub for the local community to fall in love with nature and to experience its beauty first hand. In 2022 we were able to forge successful partnerships to expand our offering and worked with a local Community Interest Company that held self-esteem workshops. a wellbeing café and breathwork in nature. For the first time we ran projects as part of Salford's Green Social Prescribing, work supporting local commtjnity members to use our space for the common good. More than 300 parlsh and school building5 Surveyed for decarbonlsatlon alm5 Travel survey launched to better understand how travel to and from church impacts our carbon emisslons Laudato Si. Centre launches Chnstmas tree recycling Scheme to recycle trees into Yaluable wood chippings and ralse funds for St Ann'5 Hog)Ice

Mission Mission is at the heart of our work. The professional support serv?ces are set the challenge to work collaboratively to enable our mission to support our parishes to be missionary parishes. Our support services look to answer the needs of parishes in their daily work, training and resources. In 2022 we saw the Communications Team hold a 'Digital Missionaries, Training day. The day was aimed at those who play a role or were looking to start In parish communications. The theme for the day wa5 'How can parishe5 be digital missionaries in a post Covid world, Accepting that there have been changes to how people engage with the Church and identlfying digital way5 to encourage parishioner5 to return to in-person worship, In addition to bridging the gap to parishioner5 who have become engaged through the digital channels. Creating digltal and in person hubs ha5 a150 been an area of focus for our Youth Team. Working with the Communlcation Team we have spoken to and listened to our young people about the content they want online and have been led by their responses. At the same time 2022 wa5 the year that we could rebuild our Youth Hub. St Augustine's parish church now provides a much-needed base for the monthly young adults Mass. This creates the opportunity for a regular meeting place each month in order to build community amongst the young adults, the monthly offering is growing and yearly retreats are now on offer. Saleguarding remains essential to all that we do in the diocese, and we are committed to the Church offering a safe space for everyone to enjoy their religious practice and education whilst experiencing positivity in their journey of faith. To help our employees fulfll our mlsslon we also look to provlde a supportlve workplace where our people can reach their full potential. The HR departments and the staff wellbeing group deliver a range of initiative5 where talents are encouraged and wellbeing is prioritised. Last year saw several successful volunteer day5 Wlth Staff taking tiffle out to support our sister charity Carita5 in their homeless provision and planting trees at our Laudato Si Centre. All staff were Invlted to attend a health check and a new lon8 service recognition scheme was introduced with the first beneficiaries being presented with awards an our annual Advent Celebration. The "Appreciating You Scheme was formally launched to recogni5e the efforts of all employees to say thank you to all those who go above and beyond to help in their line of work. Our support for employees echoes our focus to care for our clergy whatever the Stage of their journey from formation to retirement. It speaks to the values we hold as a charity and a church. The welfare of active and retired clergy is central to our 2030 vision. Safeguarding We are lucky to have a fantastic group of committed Safeguardlng Parish Repre5entatlves, dlocesan volunteers and clergy who work hard to help us create a safer environment across our parishes. 2022 saw significant changes to the team and we are grateful to our parishes and clergy for their support during this time. Following an audit the staffing of the team has been reviewed and expanded to ensure we are best equipped to meet the needs of our parishes by being able to offer practical support, guidance and training, listening to their needs and requirements. 148 Parish Safeguarding Reps 2 Staff volunteer days 10 long service awards

Our Volunteers The Trustees wish to recognise and express their gratitude to the number of lay people who contribute to the pastoral and social Life of the Church. In a typical parish volunteers contribute in a variety of ways whether through pastoral work such as assisting in the religious life of the church, visiting sick, elderly or infirm parishioners, providin£ administrative support, acting as local safeguarding representatives and keeping church and parish property clean and well-maintained. At a broader level, volunteers support wider diocesan events and Initiatives including the annual pilgrimages to Lourdes and Walsingham and missionary activities such as Hope in the Future. ltyr •• ¢5 rÉA lJ,'I MERCY BUS

Challenge Investing for the Future In 2022 we saw the beginning of our 'Restoring the Glory, Project. The main aim of the Cathedral Restoration Project is to conserve the mother church of our diocese, renewing its exterior and interior, ensuring that the cathedral is fully sustainable and a source of spiritual inspiration for future generations. Large parts of our cathedral are in extremely poor repair. Thi5 IS the right time to fix these and restore some of the original design features that have been lost over the years and enhance what we are able to offer the diocese and cathedral parish. These repair5 will be performed using sustainable materials and methods. /( As part of this project we will seek to provide full equal and integrated access across the cathedral. The focus of the project so far has been on the outside of the building with repair5 to the masonry, roof and spire. 2023 we will see the focus move inside the building. The current cathedral interior 15 very different from its original appearance - in the 18405. Successive re.ordering5 have meant that the cathedral has lost a lot of its exceptional detailing, ecclesiastical ambience, and interior character. The intention is to introduce interior finishes that match with the style and character of the original finishes. We have grown to understand historical bLbildings in a different way over the last few decades and the restoration project will look to renew the interior while remaining sensitive to the Cathedral's Grade Il. Llsted Status. We are developing a property strategy that will create sustainable estate both environmentally and financially that serves the needs of the parish and school communities we serve. Restoring, celebrating and recognising the future needs of our buildings. TY. 16

(I rtsEccles In 2022 St Marys Church in Eccles celebrated its 125th Anniversary. The Church is now part of St John Paul11 Parish. It is the amalgamation of three parishes joining together to form a new community. Having made the difficult decision than one of the church building5 would need to close the new parish could then focu5 Its efforts on ensuring the parish estate suited their needs and would provide for them in the future. Having vacated the building the were able to undertake a major repair project including complete floor and roof repairs. They also replaced the heaters with a new, modern and efficient system. Investing now for the future sustainability of the parish. The church re-opened in May 2022 by a special service celebrated by Bishop John marking the renovations and the anniversary of the parish. The se￿ice was a full house made up of new and life long parishioners. Restoring and Celebrating Two Property Case Studies St Mary's Church in Failsworth is a Grade11 listed building. Now part of the Parish of the Nativity and some of the architecture behind the listing needed some extra attention. The outside of the building is adorned with cast Stone f rieze5 and a dramatic suspended aluminium Statue of the Virgin Mary greets you at the entrance. Above is a concrete cylindrical spire. All of the external features needed to be restored to match their original beauty. The corroded metal was cleaned, repaired and reinstated. ' St Mary's FaiLsworLh'

Vocations There were no ordinations to the Priesthood in 2022 and while we had one in 2023, the pattern of none or one looks to remain. We remain hopeful with the interest in the diaconate and parishes embracing a new way of operating. Our new vocations team are looking at ways to embed a culture of vocation throughout the diocese and a new campaign wa5 launched. "What is God asking of you?lJ is the question we relaunched our vocatlortrs drive with. A call to respond to God's plan with an "open heart" was shared across the diocese with a video series, poster campaign and the reestablishment of regular vocations Masses. We are looking to Inspire conversation and prayer around vocations to the priesthood. We are challenged to listen to God's voice and respond to our own unique m?ssion. Preparing for the Challenge This decade presented new challenges that we did not envisage having to tackle and it also brought into the 5POtlight that we cannot always rely on practice5 and structures of past decades to best serve our needs. We are using our central support serv?ces to help the dFoce5es and parishes adapt and prepare us to truly be a 21 st Century Church delivering our mission in an economical and sustainable way. We are responding to the growing legislative needs on charlties and resourcin8 departments appropriately to meet these. In 2022 we appointed a new Health and Safety Partner, whose focus is on being out and about providing guidance and practlcal assistance to parishes. The new appointee visited over a third of our parishes In their first few months. The partnership role is echoed in a new IT role centered on proactive and responsive support to parishes and clergy. Parish Partner role5 were created to allow teams to be more visible and proactive in the support they have been able to offer. In f inance this has meant that all of our parishe5 are now using an online accounting System. The rollout has been a succe55 due to having a dedicated person travelling around proactively transitioning parishes in this change. At the same time we have also been rolling out electronic collection plates. These new devices are in 18 parishes and further roll out plans have been identified. Alongside staffing structure reviews we are also reviewing our operational systems. Like most workplaces the way In which we work and the technology needs of our workforce have changed. We are looking at having systems in place that enable people to spend their time dolng what is needed the most and streamlining systems. Reviews of central contracts on telephony and administration have saved over £10,000. We will be repeating this exercise across all contracts to ensure best value for money and that we operate In an economically sustainable manner. We are aware that one of the greatest challenges we all face not just as organisations but as individuals is to adapt our practice5 and cultures to be more environmentally con5CIOU5 and sustainable. As the only UK diocese to have a dedicated Head of EnvTronment leading not only our parishioners in this journey we have also been able to start making an impact in the way In which we operate. We have a diocesan commitment to a decarbonisation pathway that will aim to be carbon neutral by 2038. It 15 an important practical effort to reduce our carbon emi55ions and help repair and heal the damage we've done. The pathway is ambitiau5 but realistic, science.based and balanced in relation to the wider needs of our diocese and the need to take swift and effective action. We know the diocese is responsible for emitting over 23,000 tonnes of carbon each year. To help inform our next steps towards decarbonising the diocese in December 2022 we completed energy audits in over 300 diocesan buildings. A staff travel survey was undertaken that will be used to support targets to reduce carbon associated with commuter travel. We continue to work with Greater Manchester Combined Authority. Salford Council CITmale Action Board and the Greater Manchester Interfaith Climate Action Group to amplify OLtr reach and voice. It is one example of the way we know that to meet the challenges of the future we must look to collaborative working both inside outside the church.

2022 FINANCIALS

Income 2022

25%

of income came from Donations and Legacies

5%

of income came from our Investments

8%

----- Start of picture text -----
Donations and Legacies
7.3m
SCA - School Building Works
11.2m
Other trading activities
2.1m
Income from Investment
1.4m
Income from Charitable activities
1.8m
Other income
4.8m
----- End of picture text -----

was the increase in our income compared with 2021

Expenditure 2022

17%

was the increase in our expenditure compared with 2021

Over 90%

of expenditure was spent on Charitable activities and School Building Work

----- Start of picture text -----
Raising Funds
2.4m
SCA - School Building works
10.5m
Charitable Activities
19.5m
----- End of picture text -----

19

Aims, Objective and Purpose The diocese primary purpose is the advancement of the Roman Catholic Faith. The diocese comprise5 of 109 parishes serving 263, 295 Catholics acr055 much of Greater Manchester and East Lancashire. We achieve this objective by providing activities undertaken by our parishes and central 5ervice5, guided by our gospel value5 and the principle of good stewardship. Those activities include worshipy education. charity and care for our common home. Objectives and Activities • Support to priests during both their active service and in retirement or ill health Charitable works to show our Gospel values to the world around us Access to the Sacraments Education and Youth Services Ongoing Formation for our commtsnities and our clergy EducatTon and Training for those who wish to be priest5 Maintenance and upkeep of our church and parish buildings • Providing assistance to 8overnor5 regarding the upkeep of 5ch¢)ol buildings through grant Schemes under the DFC and SCA. Access to professional advice and support for our communitie5 including in Safeguarding, Health and Safety¥ Human Resources, Project Management, Property Management, Data Protection and Finance Structure, Governance and Management The Bishop of Salford Is ex.offTClO the Chalr of Trustees and membership of the board is based upon Invitatlon by the trustees to suitably qualifled indlviduals subject to approval by the Blshop. Trustees are selected on the ba515 of thelr range of sk1115 and experience and the board comprises a mlx of both ordained clergy and Catholic lay people, Periodic training and workshop Sessions are also held for the trustee body a5 a whale. Governing regulations The Trust Deed of the Charity governs appointments of Trustees. The latter are chosen according to their experience of the Tru5t'5 Ministry and of its need to function in accordance with both Canon and Civil Law. Each Trustee Board committee has defined terms of reference, detailing the delegated authorities where appropriate. Certaln matters are delegated to these trustee commlttees including in the areas of: • Audit and Risk Committee Claims Committee Communication Committee Environment Committee (formerly LaLtdato Sil Finance Committee HR Committee Investment Cornmittee Planning and Resources Committee Property Committee 20

Remuneration Committee Safeguarding Committee Schools & Academies Committee The Chief OperatTng Officer and the Moderator of the Curia are responsible to the board for the day-to-day running of the trust. Annual pay reviews are approved by either the Remuneration Committee {for senior staff) or the HR Committee based on external advice and information and recommendation5 from the Chief Operating Officer. The Salary for the COO is also agreed by the Trustees at the Remuneration Committee. In setting overall pay levels for our staff the Diocese take5 account of pay practice in other similarly Sized charitie5 and, where necessary. private or public sector organi5atTons for 5peciali5t and technical role5. The fixed assets and investments of the Charity are vested in a trust with the Diocesan Trustees as the managing Tru5tee5. Recogni5ing the need for expertise, the Trustees have engaged professional adv150rs in the areas of finance, investment, insurance, law and protection of minors and vulnerable adults. The Trustees are Ilsted on page 1. The Trustees keep themselves Informed of new developments In the above areas and when necessary, meet to be briefed on particular issues by their advisors. The Trust has four active wholly owned trading sub5idiarles. See section Trading SubSTdiarie5 on page 27. Relationships with Other Parties The Trustees conslder Caritas Diocese of Salford to be a related party by virtue of It havlng common Trustees. The Charity's aim is that the live5 of all people should be free from poverty. disadvantage and di5crlmination. Thelr purpose is to help the most vulnerable children, young people and adults In our communities to transform their lives and fulfil their potential. The falth and teachings of the Roman Cathollc Church clearly Tnform and have a profound influence on the operating policies in place within the Trust. As a Catholic diocese within England and Wales, the Diocese of 5alford co-operates on variou5 initiatives, projects and other matters of common interest with other Catholic dioceses, charities and agencies of the Catholic Church. For example, the Diocese and its pari5he5 5UPPOrt the activities of other charities such as the Catholic Agency for Overseas Development (CAFODI, the official aid agency of the Catholic Church in England and Wales (Charlty no 11603841 and adopts unifled policies through natlonal bodies for the safeguarding of children and adults at risk of harm. Statement of Trustees. responsibilities The trustees are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with the United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Pract?ce) and applicable law and regulations. The law applicable to charities require5 the tru5tee5 to prepare financial 5tatement5 for each fTnanclal year which give a true and fair view of the state of affairs of the charity and of the incoming resource5 an¢1

application of resource5 of the charily for that period .In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgefflents and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed, subject to any material departures disc105ed and explained in the flnancial statement5. and prepare the financial statements on the going concern basis unle55 It 15 inappropriate to presume that the charity will continue in business. The trustees are responsible for keeplng proper accounting records that disclose with reasonable accuracy at anytime the f7nancial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 , the applicable Charitie5 (Accounts and Reports) Regulation5, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrlty of the financlal Information included on the charity's website. Statement as to Disclosure of information to Auditors The trustees who were in offlce on the date of approval of these flnancial statements have confirmed, as far as they are aware, that there is no relevant audit information of whlch the auditors are unaware. Each of the trustees have confirmed that they have taken all the Steps that they ought to have taken as trustee5 in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. Public Benefit The Tru5tee5 have ensured they carry out the Trust'5 objective5 for the public benefit and have lin accordance with Charities Act 20111 had regard to guidance published by the Charity Commission on public benefit when exercising powers or duties where that may be relevant. It is clear f rom the detail in the Trustees Report that the Trust acts in a way whlch beneficially impacts on Society. It promotes public service5, in dedicated building5 and elsewhere, in accordance with the practices and teachings of the Roman Catholic Church, for hearing and appropriating the word of God alid for the worship of God both generally and at significant points in people's lives. In this way it helps form and gives expre55ion to the Spiritual dimension of the lives of member5 of the public. It also thu5 provides religious and moral parameters by which individual members of the public may live fulfilled lives and act in a way which is socially beneficial, and influence wider society for the better. The Trust also engages in a rsumber of practical expressions of Christian faith lincluding advancing education in schools and otherwise and relieving Various forms of charitable need in social outreach to the public generally). Investment We have established ourselves as a Responsible Investor. Gulded by the prFnciple of stewardshlp, wlth an authentic set of investment statements and an accomparsying investment framework that demonstrales that the Catholic Social Teaching of Human Dignity, the Common Good and Care for Our Common Home are central to how our investment portfolio is managed. shaped and targeted. 22

As responsible and active investors, we have used our influence to challenge companies to set ambitious targets and make the lasting change we need. As part of this commitment, we also regularly review our investments monitoring our impact and responding to changing landscapes. Where we feel we can no longer make an impact with our investment we will divest and take a stand against companies that do not align with our principles and that put their profits ahead of the common good.

Fundraising

As with other charities we are witnessing the cost of living crisis in our donations levels. Individual giving at a parish level has reached pre 2020 levels but we are now receiving more money from less individuals. We have continued to focus on new ways of donating as we move towards a more cashless society.

Since the appointment of the Grant and Bid Writer post in 2021 we have successfully raised over £900k of funding for parish and capital projects.

In 2023 we will be looking to begin a professional fundraising campaign using an outside agency.

The charity did not carry out any fundraising activities as defined by the Charities (Protection and Social Investment) Act 2016

Plans for Future Periods

We will continue on our strategic plans for a vision to take the diocese into the next decade. Creating parishes that can respond and adapt to the challenges they face.

We will focus on:

Financial Review

The financial statements reflect the activities with our parishes, all aspects of the central professional support services (curia) and some subsidiary activities such as the operating of our clubs and commercial activities.

The Consolidated Statement of Financial Activities and notes for the year ended 31 December 2022 is set out on pages 31-57.

Total incoming resources amounted to £28.6 million in 2022 (2021 £26.7 million).

Most of the funds in the Charity are raised through donations. The funds raised in the parish support the individual parish and contribute towards the expenditure requirements of the Diocese.

23

Income

2022 2022 2021 2021
% £m % £m
Donations and Legacies 25% 7.3 28% 7.4
Other trading activities 7% 2.1 4% 1.1
Income from
Investment		 5% 1.4 4% 1.2
Income from
Charitable activities		 6% 1.8 8% 2.1
Other income 17% 4.8 16% 4.4
SCA- School Building
Work		 39% 11.2 40% 10.6
Total Income 28.6 26.7

Total income figures above include £ 11.2 million in 2022 (2021 £10.6 million) in relation to changes in the way income is received from School Building Projects as set out in accounting policy note 2.6.

Total overall Donations and Legacies have decreased during 2022 by £0.1 million. Our Parish Income is still well below pre-pandemic levels but has increased £0.8 million from 2020.

Our Mass attendance also increased from 20,034 in 2021 to 24, 104, although this does not show a return to pre pandemic levels yet it is an increase of 20%.

During the year collections in the parishes for specific purposes including those for other charities totalled £0.2 million (2021 £0.3 million).

The investment portfolio achieved income of £1.4 million in 2022, this was up from the £1.2 million achieved in 2021.

24

Expenditure

2022 2022 2021 2021
% £m % £m
Raising Funds 7% 2.4 5% 1.5
Charitable activities 60% 19.5 55% 15.4
SCA- School Building Work 32% 10.5 40% 11.0
Total Expenditure 32.5 27.8

Total expenditure amounted to £ 32.5 million in 2022 (2021 £27.8million).

Total expenditure figures above include £ 10.5 million in 2022 (2020 11 million) relating to the change in the recognition of SCA school building works income and subsequently the related expenditure as referenced above.

Summary

The net result for the year was a deficit of (£1.6) million (2021 surplus - £6m), leaving retained funds of £115.8 million (2021 £117.3million) at the year end.

The Trustees continue to monitor the activities and budgets of the Diocesan Departments. The trustees are of the opinion that the necessary measures have been implemented to ensure the viability of the Trust over the medium term.

The Diocese made contributions of £204k in 2022 (2021 - £185k) to National Bodies of the Roman Catholic Church.

Statement of Reserves

The total reserves of the Charity including parochial reserves, amounted to £ 115.8 million at 31 December 2022 (2021 £117.3million). The unrestricted free reserves i.e. current assets including bank deposits less current liabilities amounted to £29.8 million (2021 £31.7million). At 31 December 2022 the free reserves of the Diocese are equivalent to approximately 18 months of recurring expenditure (2021 25 months). The Trustees are currently assessing what the current target level of free reserves should be in the current economic climate

Restricted reserves as at 31 December 2022 were £ 9.7 million (2021 £9.1 million).

Both the economy and stock markets remain uncertain with global supply issues and the cost of living crisis having an impact. Investment income has increased in the year by £0.2m but is still below pre COVID levels.

25

The major project that will affect future reserves in the Cathedral Project as this will be funded from the liquidation of investments. £6m was released in 2021 and 2022, based on current indicative cashflow we estimate that we will release a further £11m during 2024, and the balance at the end of the defects liability period in 2025. The diocese has not committed to any other major projects at this time and are reviewing any in the pipeline.

The demand for services both centrally and within our parishes continues to increase, as do the associated costs and it is within this setting that the trust has to operate.

The diocese as part of the 2030 vision is looking at the whole estate to ensure that this is fit for future purpose and sustainable going forward.

By managing assets and resources the Trustees are confident that the Trust has sufficient available funds to maintain its activities over the medium term.

Investment policy and performance

The Diocesan Trust deed authorises the Trustees to invest the general funds of the Charity in stocks, shares, investments and property, in accordance with charity law.

The Trustees have engaged Evelyn Partners Investment Managers, as advisors. The policy is to invest on a low to medium risk basis with a balance of a reasonable rate of return and capital growth. In 2023 a Responsible Investment Policy was agreed. The policy acknowledges the importance of being good stewards of our donations from past, present, and future generations. Looking to balance the immediate and future needs of the Diocese while ensuring that our Catholic Principles are upheld in our portfolio by being a responsible and active investor. This is about active participation through the investments we hold in key issues as they affect people and planet.

The Investment Managers report to the Trustees on a regular basis.

The Investments are held for the long term. The overall portfolio value decreased in the year by (£7.9) million, mainly as a result of divestment in relation to the plan capital works for the cathedral, the dividend yield increased slightly by 0.5% resulting is an increase in income of £5k from 2021. The Trustees will continue to invest as appropriate with the aim of providing a secure financial and ethical platform for the Diocese.

Principal Risks and Uncertainties

The Trustees have assessed the major risks to which the Charity is exposed, in particular those relating to the specific operational areas of the Charity, and its finances and investments. The Trustees believe that by monitoring and maintaining reserves at an appropriate level, ensuring that proper controls exist in respect of key financial systems, and by examining the operational and business risks relevant to the Charity, they have established effective systems to mitigate these risks.

An Audit Committee was established by the Trustees during 2017. Risks currently include managing the restructuring of the parishes, establishing and monitoring both the Diocesan budget and treasury policy for the Diocesan cash reserves.

SDC Trading Limited the Charity’s subsidiary company responsible for the commercial activities of parish social clubs within the Diocese, is currently in a surplus position, of £64k in 2022 (2021 loss of £256k) The Charity was taking steps to reduce the deficit prior to the pandemic, however the closure of the clubs for an extended period due to government restrictions has put this back a little. Within 2022 It was identified historic transactions required adjustment, assets have been transferred to the parent company and

26

accumulated depreciation has been reversed within S.D.C trading Itd. The cost has been written off against the loan to the parent company. The SDC review is underway to analyse the activity and potential recovery of SDC following the disruption of the Pandemic to this business. Trading Subsidiaries The Trust has four active wholly owned trading subsidiaries. Catholic support Services Llmited which continues to provide trainlng, advice and recruitment assistance to our Catholic schools a5 part of the Diocesan Department for Education and to assist them with buildin8 matters. In addition, it administers the links with local hospital trust5 and police for the provision of chaplains. The operating surplus from the company 15 gift aided to the Diocese, SDC Trading Limited is responsible for the commercial activitie5 of parish social clubs withSn the Diocese. The operating surplus is gift aided to the parishes via the Diocese. 2022 continued to be an exceptional time for SDC Tradin8 Limited following the c105ure of all activitie5 from 22nd March 2020 to late 2021 due to Government guidelines. Catholic Building Services Limited is responsible for the development and management of construction and building projects within the Diocese. Conclusion The commitment, dedication and InnovatTon of the clergy, Staff and volunteer5 of the dTocese ensure that the objectives of Worship, Education, Charity and promotion of the Faith are met and that our work continues to be in accordance with the principles of the Church's teachings. As we contlnue to respond to the many new challenges, we contlnue to revlew the ways in which we operate, creating an agile professional support servlces, building and investing in a forward looklng dlocese serving the need5 of our parishes, people and school5. Approval This report wa5 approved by the Trustees on 24th October 2023 and signed on their behalf". Trustee............................................................ Rt Rev John Arnold, Bishop of Salford 27

Independent Auditor’s Report to the Members of The Salford Diocesan Trust

Opinion

We have audited the financial statements of The Salford Diocesan Trust for the year ended 31 December 2022 which comprise Consolidated Statement of Financial Activities, Charity Statement of Financial Activities, Consolidated and Charity Balance Sheet, Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

28

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 22, 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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:

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements such as the Charities Act 2011.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the completeness and cutoff of non-SCA grant income and offertory income, valuation of properties and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and substantive testing of grant and offertory income, challenging management on their rationale for the valuation of historic properties.

29

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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 Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

The Lexicon Mount Street Manchester M2 5NT

Date: 30th October 2023

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

30

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Consolidated Statement of Financial Activity

Consolidated Statement of Financial Activity Year End to the 31st December 2022

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
2.1
Other trading activities
2.2
Income from Investment
2.3
Income from Charitable activities
2.4
Other income
2.5
SCA - School Building Works
2.6
Total Income
EXPENDITURE ON:
Raising funds
3.1
Charitable activities
3.2
SCA - School Building Works
3.3
Total Expenditure
Net Gains/(losses) on investments
Net income/(expenditure)		 DESIGNATED
ENDOWMENT
2022
Restated 2021
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Total
Total
Total funds
Total funds
£
£
£
£
£
£
£
£
£
£
6,985,599
710
6,986,309
103,284
184,828
288,112
-
-
7,274,421
7,373,569
452,929
-
452,929
1,672,222
-
1,672,222
-
-
2,125,151
1,060,826
92,773
-
92,773
1,320,553
-
1,320,553
-
-
1,413,326
1,212,311
21,500
-
21,500
1,807,209
-
1,807,209
-
-
1,828,709
2,143,463
3,325,591
890,068
4,215,659
508,629
75,497
584,126
-
-
4,799,785
4,360,721
-
-
-
-
11,187,664
11,187,664
-
-
11,187,664
10,556,309
10,878,392
890,778
11,769,170
5,411,897
11,447,989
16,859,886
-
-
28,629,056
26,707,199
560,633
-
560,633
1,880,038
-
1,880,038
-
-
2,440,671
1,475,674
10,315,561
969,320
11,284,881
7,966,095
234,705
8,200,800
-
-
19,485,681
15,351,278
-
-
-
-
10,531,341
10,531,341
-
-
10,531,341
10,997,120
10,876,194
969,320
11,845,514
9,846,133
10,766,046
20,612,179
-
-
32,457,693
27,824,072
-
-
-
(4,256,664)
-
(4,256,664)
-
-
(4,256,664)
6,976,886
2,198
(78,542)
(76,344)
(8,690,900)
681,943
(8,008,957)
-
-
(8,085,301)
5,860,013
DIOCESAN FUNDS
PAROCHIAL FUNDS

31

The notes on pages 36 to 57 form part of these financial statements

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Consolidated Statement of Financial Activity

Notes
Transfer between Funds
Other recognised gains/(losses):
Gains/(losses) on revaluation of
investment properties
5
Gains/(losses) on actuarial provision
3.8
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
17
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Restricted
Total
£
£
£
-
-
-
1,616,727
1,616,727
-
-
-
1,618,925
(78,542)
1,540,383
37,014,446
199,322
37,213,768
38,633,371
120,780
38,754,151
PAROCHIAL FUNDS		 Unrestricted
Restricted
Total
£
£
£
(27,286)
48,486
21,200
3,883,755
3,883,755
-
-
-
(4,834,431)
730,429
(4,104,002)
75,103,326
8,894,243
83,997,569
70,268,895
9,624,672
79,893,567
DIOCESAN FUNDS		 DESIGNATED
Total
£
(21,200)
-
1,010,000
988,800
(3,878,800)
(2,890,000)		 ENDOWMENT
Total
£
-
-
-
-
1,456
1,456		 2022
Restated 2021
Total funds
Total funds
£
£
-
-
5,500,482
1,010,000
90,000
(1,574,819)
5,950,013
117,333,993
111,383,980
115,759,173
117,333,993

The statement of financial activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

Salford Roman Catholic Diocesan Trustees Registered has taken advantage of the exemption from the Charities Act 2011 in not presenting a separate Statement of Financial Activity.

The surplus/(deficit) for the charity alone for the year ended 31st December 2022 was (£1.6) million, 2021: surplus £6.0 million.

32

The notes on pages 36 to 57 form part of these financial statements

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Consolidated and Charity Balance Sheet

Consolidated and Charity Balance Sheet As of 31[st] December 2022

Notes
Fixed assets
Tangible assets
4
Investment Property
5
Investments
6
Current assets
Stocks
7
Debtors
8
Cash at bank and in hand
9
Creditors
Amounts falling due within one year
10.1
Care of Clergy Provision
10.2
Net current assets
Total assets less current liabilities
Total net assets
Funds
Unrestricted & Designated funds
14
Restricted funds
14
Permanent endowment
14
Revaluation Reserve
14
Care of the Clergy
14
Total funds		 2022
Restated 2021
£
£
38,187,602
37,356,405
7,969,000
2,250,000
32,971,703
40,869,388
79,128,305
80,475,793
134,329
109,210
4,667,603
3,623,315
44,906,183
45,384,452
49,708,115
49,116,977
(10,187,247)
(8,358,777)
(2,890,000)
(3,900,000)
36,630,868
36,858,200
115,759,173
117,333,993
115,759,173
117,333,993
103,401,784
112,138,972
9,745,451
9,093,565
1,456
1,456
5,500,482
-
(2,890,000)
(3,900,000)
115,759,173
117,333,993
Group		 2022
Restated 2021
£
£
38,016,314
37,152,709
7,969,000
2,250,000
32,971,708
40,869,393
Charity
78,957,022
80,272,102
-
-
4,594,772
5,089,203
44,251,220
43,770,431
48,845,992
48,859,634
(9,584,771)
(8,079,386)
(2,890,000)
(3,900,000)
36,371,221
36,880,248
115,328,243
117,152,350
115,328,243
117,152,350
102,970,853
111,957,328
9,745,452
9,093,566
1,456
1,456
5,500,482
-
(2,890,000)
(3,900,000)
115,328,243
117,152,350

The financial statements were approved by the Trustees on 24th October 2023 and signed on their behalf by:

Trustee …....................................

The notes on pages 36 to 57 form part of these financial statements

33

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Consolidated Statement of Cash Flow

Consolidated Statement of Cash Flow Year to 31[st] December 2022

SALFORD ROMAN CATHOLIC DIOCESAN TRUSTEES REGISTERED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 DECEMBER 2022

SALFORD ROMAN CATHOLIC DIOCESAN TRUSTEES REGISTERED
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 31 DECEMBER 2022
Restated
2022 2021
£ £
Cash flows from operating activities
Net cash surplus from the reporting period (1,574,819) 5,950,013
Adjustments to cash flows from non - cash items
Depreciation 1,366,573 1,406,643
Investment income (1,413,326) (1,212,311)
Financial instrument (gains) / losses through statement of financial activ (2,393,558) (3,396,392)
(Profit) / loss on disposal of fixed assets (1,716,417) (1,858,846)
(Profit) / loss on disposal of fixed assets investments 6,650,222 (3,580,494)
Increase / (decrease) in Care of Clergy Provision (1,010,000) (90,000)
(91,325) (2,781,387)
Working capital adjustments
(Increase) / decrease in stock (25,119) (82,872)
(Increase) / decrease in debtors (1,044,288) 1,268,734
Increase / (decrease) in creditors 1,828,470 1,126,006
Net cash flows from operating activities
 667,738 (469,519)
Cash flows from investing activities
Interest received and similar income 261,653 66,019
Purchase tangible fixed assets (2,472,548) (1,706,050)
Sale of tangible fixed assets 1,991,193 1,873,001
Purchase of investments (1,669,818) (6,765,011)
Sale of investments 4,063,376 10,671,378
Reclassification of investment property (218,518) -
Income from dividends 1,151,673 1,146,291
Disposal of Investment Assets - 500,000
Reclassification of fixed assets 621
(Increase)/ decrease in Revaluation Surplus (5,500,482) -
Net cash from investing activities (2,393,470) 5,786,249
Net increase/(decrease) in cash and cash equivalents (1,725,732) 5,316,730
Cash and cash equivalents at 1 January 2022 47,239,375 41,922,645
Cash and cash equivalents at 31 December 2022 45,513,643 47,239,375
Cash and cash equivalents Summary
Cash at bank and in hand 44,906,183 45,384,452
Cash held as part of investment fund 607,460 1,854,923
45,513,643 47,239,375

The notes on pages 36 to 57 form part of these financial statements

34

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

Notes to the Financial Statements Year to 31[st] December 2022

1. Significant Accounting policies

1.1. Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The financial statements have been prepared in accordance with Accounting and Reporting by

Charities: Statement of Recommended Practice applicable to charities preparing their accounts in

accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS

102) - Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements include the results of the Charity's operations which are all continuing:

The Charity constitutes a public benefit entity as defined by FRS102.

1.2. Basis of consolidation and scope of the financial statements

The statement of financial activities and the balance sheet consolidate the financial statements of the charity and its subsidiary undertakings, made up to the balance sheet date.

A separate Statement of Financial Activities for the charity has not been presented because the Trust has taken advantage of the exemption from the Charities Act 2011.

1.3. Areas of Judgement or Estimation

The preparation of the financial statements in line with the Charities’ SORP and FRS102 requires the trustees to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditure. The estimates and associated assumptions are based on historical experience and other factors which are considered to be relevant. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The trustees do not consider that there are any estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

The items in the accounts where these judgements and estimates have been made include:

The notes on pages 36 to 57 form part of these financial statements

35

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

1.4. Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

1.5. Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast a significant doubt on the ability of the Charity to continue as a going concern and that they have no material uncertainties about the entity’s ability to continue as a going concern. The trustees made this assessment in respect of a period of one year from the date of approval of the financial statements.

1.6. Income and endowments

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

1.6.1. Donations and legacies

Donations and Legacies are recognised when the receipt is probable, and the amount of income receivable can be measured reliably. Income is deferred only when the charity must fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

1.6.2. Other trading activities

Details of trading activities are set out in the notes. Income receivable is accounted for in the period in which the relevant service or goods are provided or supplied.

1.6.3. Investment income

Interest on funds held on deposit is usually included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

Dividends are recognised once the dividend has been declared and notification has been received of the dividends due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

1.6.4 . Charitable activities

Income from charitable activities is recognised as earned when the related services are provided. The Diocese receives substantial help from volunteers. It is not possible to place a financial value on this work and no amounts are therefore included in the financial statements for the value of services donated by volunteers. Gifts of fixed assets are included at valuation and recorded as donation income.

1.6.5. Government and other grants

Government and other grants are recognised under the performance model. Income is recognised where the grant does not impose performance related conditions and when the performance related conditions are met.

1.6.6 SCA – (Schools Building Work)

Grants received from the education authority are recognised as income on a receipts basis. These funds have been granted to the Diocese as restricted funds to be expended on school building projects. These projects may spread over several years and so there is a balance on the fund at the year end.

The notes on pages 36 to 57 form part of these financial statements

36

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

1.7. Expenditure

All expenditure is recognised once there is a legal or constructive obligation committing the charity to that expenditure. It is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses are allocated or apportioned to the applicable expenditure headings. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.7.1. Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

1.7.2. Charitable activities

Charitable expenditure comprises those costs incurred by the Charity in the deliverance of its activities and services for its beneficiaries. It includes both costs that can be directly attributable to such activities and those costs of an indirect nature necessary to support them and includes governance costs.

1.7.3. Governance costs

Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.

1.7.4. Grants Payable

Grants payable to partner organisations are included in the SOFA when approved by the Trustees and agreed with other organisations. The value of such grants unpaid at the yearend is accrued. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued but are noted as financial commitments.

1.7.5 SCA – (Schools Building Works)

Expenditure is recognised on an accruals basis. These projects may spread over a number of years and so there is a balance on the restricted funds at the year end.

1.8. Taxation

The charity is a registered charity and therefore is exempt from taxation.

1.9. Fixed asset investments

Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value and are subsequently measured at their fair value at the balance sheet date.

Realised gains and losses on investments are calculated as the difference between the sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of the financial activities in the period of disposal.

Unrealised gains and losses represent the movement in market value during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

The Trust does not acquire put options, derivatives or other complex financial instruments.

The notes on pages 36 to 57 form part of these financial statements

37

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

1.10. Tangible fixed assets – other than property

These tangible fixed assets are stated at cost less depreciation, which is calculated to write off the cost or valuation less estimated residual values over their estimated useful lives. Depreciation is provided at the following rates on a straight-line basis and time apportionments are made in the year of acquisition on disposal.

Fixtures and fittings 10%

Motor vehicles 25%

Computer equipment 25%

Central freehold land and buildings 2%

Individual works of art, treasures and plate are not capitalised as they are regarded as heritage assets which are held in a manner consistent with the advancement of the Roman Catholic faith, have very long lives and are worth preserving indefinitely.

1.11. Tangible fixed assets – inalienable school property

Whilst the Charity is the legal owner of many school properties in the diocese comprising voluntary aided schools and academies, many of which are separate exempt or excepted charities funded through combinations of government grants and voluntary contributions, the nature of the occupation of these properties means that the Trustees do not have the power to dispose of the land and buildings until a school ceases occupation, which in turn requires the approval of the school governors and the Secretary of State.

Land and buildings legally owned by the Charity and occupied rent free by Catholic voluntary aided schools and academies, which are exempt charities and publicly funded, are valued at £nil for the purposes of these accounts. The Trustees consider that no meaningful value cab be attributed to these assets since they are not used directly by the Charity, do not generate income, and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues.

The governors are responsible for the buildings, and for repair and refurbishment and insurance costs.

1.12. Tangible fixed assets – church property

Prior to 1 January 1997, the accounting policy was applied for capital expenditure on church property to be written off in full as incurred. The accounts prepared for previous years therefore did not include any balance sheet value for the Cathedral, Churches, Presbyteries, Halls and other parish property or for their contents.

As a result of the previous accounting policy, the original costs and accumulated depreciation of all church parish property held at 31 December 1997 was not readily available. After consideration, the Trustee’s view was that a reasonable approximation of the net book value of the church parish property held at 31 December 1997 was established through discounting the insurance values of the above properties by 90%, which is the policy employed to include assets on the balance sheet at estimated historic cost net of accumulated depreciation.

Following the recommendation of the SORP, the value of church parish property capitalised on the balance sheet is to be depreciated over their expected useful lives at the following rates from 31 December 1997. All depreciation is calculated by using the straight-line method.

The notes on pages 36 to 57 form part of these financial statements

38

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

Cathedral, Churches, Presbyteries, Halls and church properties acquired prior to 31 December 1997 – 2%

Church and Presbytery contents etc

1.13. Investment property

Investment properties of the Group are held for long-term rental yields. Investment properties are treated as on-current investments and are stated at revalued amounts, representing open market value determined on an annual basis by independent valuers. Investment properties are not subject to depreciation.

When an investment property is revalued, revaluation surpluses are taken to the asset revaluation reserve, unless they offset previous revaluation losses of the same investment that were taken to the income statement. Revaluation losses are taken to the asset revaluation reserve, to the extent that they offset previous revaluation surpluses of the same investment that were taken to the asset revaluation reserve. Other revaluation surpluses or losses are taken to the income statement.

If investment property becomes owner-occupied, it is reclassified as property, plant and equipment and its fair value at the date of reclassification becomes its cost for accounting purposes. Property that is being constructed or developed for future use as investment property is classified as development properties until construction or development is completed, at which time it is reclassified and accounted for as investment property.

On disposal of an investment property, the difference between the net disposal proceeds and the carrying amount is taken to the income statement; any amount in the revaluation reserve relating to that investment property is also transferred to the income statement.

1.14. Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow-moving stocks. Cost is determined using the first-in, first-out (FIFO) method.

1.15. Trade debtors

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

1.16. Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

1.17. Trade creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The notes on pages 36 to 57 form part of these financial statements

39

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

Special and other charitable collections on behalf of other charities have not been included in the Statement of Financial Activities as they are not regarded by the Trustees as being funds of the Diocese. Where any balance has not been paid to the respective organisation concerned, it has been included in creditors.

DFC – (School Building Work). The Charity assists governors in managing projects and may make grants via the Curial Offices to assist the governors with their liability for school and academy building and repair costs. The Charity administers these monies as managing agent and makes the appropriate payments to contractors for work carried out. Any monies due to the Charity or held by the Charity on behalf of schools and academies, as at balance sheet date, are included in other amounts owed in creditors.

1.18. Pensions

The Charity has made suitable arrangements for employer pensions, providing access to defined contribution pension schemes for all members of staff, including ensuring compliance with recent legislation for auto-enrolment and where applicable access to the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff. Pension costs charged in the statement of financial activities represent the contributions payable by the Charity in the year.

1.19. Funds accounting

Funds held by the Charity are either:

1.20. Financial Instruments

1.20.1. Classification

Financial assets and financial liabilities are recognised when the charity become a party to the contractual provisions of the instrument.

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

1.20.2. Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at present value of the future payments discounted at a market rate of interest for a similar debt instrument.

The notes on pages 36 to 57 form part of these financial statements

40

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

Financial assets and liabilities are only offset in the statement of financial position when, and only when, there exists a legally enforceable right to offset the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

1.21. Subsidiary/associated bodies

The Charity has interests in the following undertakings:

Name, nature of business Registered Class and % Held
Office number of
shares
Subsidiaries
Catholic Support Services Limited Cathedral Centre One Ordinary 100
3 Ford Street,
Company No. 02790890 Salford,
Lancashire.
M3 6DP
Support for Catholic schools, teachers and parishes, provision of chaplaincy services
S.D.C Trading Limited Cathedral Centre Two Ordinary 100
3 Ford Street,
Company No. 03481323 Salford,
Lancashire.
M3 6DP
Social clubs in the Diocese of Salford
Catholic Building Services Limited Cathedral Centre Two Ordinary 100
3 Ford Street,
Company No. 8020372 Salford,
Lancashire.
M3 6DP
Administration of building projects
Catholic Truth Society (Diocese of Salford) Cathedral Centre N/A N/A:
3 Ford Street, consolidated due
Salford, to common
Lancashire. trusteeship and
M3 6DP nature of Diocesan
control over assets
Advancement of religion by promoting knowledge of the Catholic Faith and its practice among
both Catholics and Non Catholics via the circulation of books and publications.
Associated Bodies
Inter-Diocesan Fuel Management Limited 2 Park Road Sout One Ordinary 11
Birkenhead,
Company No. 02891029 Wirral.
CH43 4UX

Fuel and power distribution for Diocesan properties within the scheme

The aggregate amount of the subsidiaries turnover, expenditure, assets, liabilities and funds at the end of the reporting period can be found in note 18.

The notes on pages 36 to 57 form part of these financial statements

41

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

2. Income and endowments

2.1. Donations and legacies

Donations
Legacies
Offertory collections
 Unrestricted Restricted
£
£
305,564
710
422,450
-
6,257,585
-
6,985,599
710
Parochial funds		 Unrestricted
Restricted
£
£
47,913
12,258
54,905
172,570
466
-
103,284
184,828
Diocesan funds		 Restated
2022
2021
Total
Total
£
£
366,445
685,199
649,925
920,435
6,258,051
5,767,935
7,274,421
7,373,569

2.2. Other trading activities

Social and fundraising income
S.D.C Trading Limited
Catholic Truth Society		 Unrestricted Restricted
£
£
452,929
-
-
-
-
-
452,929
-
Parochial funds		 Unrestricted Restricted
£
£
452,929
-
-
-
-
-
452,929
-
Parochial funds		 Unrestricted
Restricted
£
£
12
-
1,566,864
-
105,346
-
1,672,222
-
Diocesan funds		 2022
Total
£
452,941
1,566,864
105,346
2,125,151		 Restated
2021
Total
£
246,120
709,899
104,807
1,060,826
Restated
2021
Total
£
1,146,291
83,923
(17,903)
1,212,311
Restated
2021
Total
£
534,271
1,609,192
2,143,463
Restated
2021
Total
£
996,327
553,459
534,089
1,858,846
-
418,000
4,360,721
2.3. Investment Income
Income from listed investments
Interest on cash deposits
Loan Interest Income		 Unrestricted Restricted
£
£
-
-
92,773
-
-
-
92,773
-
Parochial funds		 Unrestricted
Restricted
£
£
1,151,673
-
118,880
-
50,000
-
1,320,553
-
Diocesan funds		 2022
Total
£
1,151,673
211,653
50,000
1,413,326
2.4. Charitable Activities
Moston & Wardley cemeteries
Catholic Support Services Limited		 Unrestricted Restricted
£
£
21,500
-
-
-
21,500
-
Parochial funds		 Unrestricted
Restricted
£
£
495,395
-
1,311,814
-
1,807,209
-
Diocesan funds		 2022
Total
£
516,895
1,311,814
1,828,709
Unrestricted Restricted
£
£
Other income
1,102,670
-
Rental Income
507,504
-
Grant Income
-
890,068
Profit/(loss) on disposal of fixed assets
1,715,417
-
Catholic Building Services Limited
-
-
Lease Deed Extension
-
-
3,325,591
890,068
Parochial funds
2.5. Other Income
2.6. Other Income – SCA – School Building Works
Unrestricted Restricted
£
£
SCA - School Building Works
-
-
-
-
Parochial funds
Unrestricted Restricted
£
£
1,102,670
-
507,504
-
-
890,068
1,715,417
-
-
-
-
-
3,325,591
890,068
Parochial funds		 Unrestricted
Restricted
£
£
122,371
23,997
263,668
-
121,590
51,500
1,000
-
-
-
-
-
508,629
75,497
Diocesan funds		 2022
Total
£
1,249,038
771,172
1,063,158
1,716,417
-
-
4,799,785
Unrestricted Restricted
£
£
-
-
-
-
Parochial funds		 Unrestricted
Restricted
£
£
-
11,187,664
-
11,187,664
Diocesan funds		 2022
Total
£
11,187,664
11,187,664		 2021
Total
£
10,556,309
10,556,309

The notes on pages 36 to 57 form part of these financial statements

42

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

2.7. Subsidiary companies

Trading activities within the diocese consist of the subsidiary companies’ activities as follows:

Catholic Building Services Limited
Catholic Support Services Limited
Catholic Truth Society
S.D.C Trading Limited		 Restated
2022
2021
Income
Expenditure
Net Income
Net Income
£
£
£
£
177,853
177,853
-
-
1,311,814
791,630
520,184
950,073
105,345
129,756
(24,411)
5,504
2,410,883
1,727,083
683,800
(212,056)
4,005,896
2,826,322
1,179,573
743,521

The taxable profit of the subsidiary companies is gifted to the charity so that there is no liability to corporation tax for these entities. Further details are set out in note 18 to the financial statements.

3. Resources expended

3.1. Expenditure on raising funds

3.1.1. Investment management costs

Investment Management fees Unrestricted Restricted
£
£
-
-
Parochial funds		 2022
2021
Unrestricted
Restricted
Total
Total
£
£
£
£
152,955
-
152,955
171,438
Diocesan funds
-
-		 152,955
-
152,955
171,438

3.1.2. Fundraising Costs

S.D.C Trading Limited
Social and fundraising
Total expenditure on raising funds		 Restated
2022
2021
Unrestricted Restricted
Unrestricted
Restricted
Total
Total
£
£
£
£
£
£
-
-
1,727,083
-
1,727,083
916,456
560,633
-
-
-
560,633
387,780
Parochial funds
Diocesan funds
560,633
-
1,727,083
-
2,287,716
1,304,236
560,633
-
1,880,038
-
2,440,671
1,475,674

The notes on pages 36 to 57 form part of these financial statements

43

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

3.2. Expenditure on charitable activities

Clergy allowances
Gross Wages
Employer's NI
Pension Costs
Staff costs - other
Diocese & special collections
Church & presbytery supplies
Property Overheads
Office costs
Parish vehicles
Hall upkeep
Repairs and renewals
Other costs
Bank charges
Bad debts provision
Depreciation

3.2.1.Parish Costs		 Restated
2022
2021
Unrestricted Restricted
Unrestricted
Restricted
Total
Total
£
£
£
£
£
£
699,989
-
-
-
699,989
758,546
900,459
-
-
-
900,459
682,476
38,189
-
-
-
38,189
30,226
16,572
-
-
-
16,572
33,014
23,759
-
-
-
23,759
-
-
-
-
-
-
-
5,017,980
20,631
-
-
5,038,611
5,663,372
34,923
58,626
-
-
93,549
349,659
11,970
-
-
-
11,970
23,442
49,649
-
-
-
49,649
36,487
-
-
-
-
-
60,039
2,727,711
890,003
-
-
3,617,714
127,703
0
-
-
-
0
10,808
34,659
-
-
-
34,659
37,761
-
-
-
-
-
-
759,101
-
-
-
759,101
838,322
Parochial funds
Diocesan funds
10,314,961
969,260
-
-
11,284,221
8,651,855

3.2.2. Central & Diocesan Costs
Gross Wages
Employer's NI
Pension Costs
Staff costs - other
Clergy allowances
Sick & retired clergy costs
Property Overheads
Office costs
Church & presbytery supplies
Property costs
Other costs
Subsidiary costs
Bank charges
Bad debts provision
Depreciation
3.2.2.Central & Diocesan Cost		 Unrestricted Restricted
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Parochial funds
s		 Restated
2022
2021
Unrestricted
Restricted
Total
Total
£
£
£
£
2,413,463
15,700
2,429,163
2,218,311
260,666
1,579
262,245
268,465
149,714
593
150,307
148,179
183,788
4,824
188,612
280,113
107,750
5,033
112,783
-
882,099
-
882,099
782,635
1,394,242
11,228
1,405,470
659,063
451,399
7,249
458,648
302,854
877
-
877
-
-
-
-
-
212,645
153,978
366,623
230,862
917,512
-
917,512
759,022
24,285
-
24,285
16,414
(115,522)
-
(115,522)
(31,836)
562,120
629
562,749
485,820
Diocesan funds
-
-		 7,445,038
200,813
7,645,851
6,119,903

3.2.3. Governance Costs

3.2.3.Governance Costs
Legal & professional
Auditors remuneration
Accountancy services		 Unrestricted Restricted
£
£
600
60
-
-
-
-
Parochial funds		 2022
Unrestricted
Restricted
Total
£
£
£
172,418
32,692
205,770
38,540
1,200
39,740
21,970
-
21,970
Diocesan funds		 2021
Total
£
169,515
44,340
54,590
600
60		 232,928
33,892
267,480		 268,445
3.2.4.Grants Payable

CATEW/NCF - Gross
Survivors Manchester		 Unrestricted Restricted
£
£
-
-
-
-
Parochial funds		 2022
Unrestricted
Restricted
Total
£
£
£
204,234
-
204,234
83,895
-
83,895
Diocesan funds		 2021
Total
£
185,472
125,605
-
-		 288,129
-
288,129		 311,076
SCA - School Building Works
3. SCA – School Building Work		 Unrestricted Restricted
£
£
-
-
Parochial funds		 2022
Unrestricted
Restricted
Total
£
£
£
-
10,531,341
10,531,341
Diocesan funds		 2021
Total
£
10,997,120
-
-		 -
10,531,341
10,531,341		 10,997,120

3.3. SCA – School Building Work

The notes on pages 36 to 57 form part of these financial statements

44

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

3.4. Staff Disclosures

Personnel Costs
Gross Wages
Employer's NI
Pension Costs
Other
Total Employee Costs
The average monthly number of staff employed,
during the year was as follows:		 2022
2021
£
£
3,329,622
2,900,786
300,434
298,691
166,879
181,193
212,371
280,113
4,009,306
3,660,784
based on average headcount
Central Diocesan employees
Parish employees (excludes parish clergy)
Cemeteries employees
S.D.C Trading Limited
Catholic Truth Society
Employees receiving remuneration over £60,000
Between £60,000 to £69,999
Between £70,000 to £79,999
Between £80,000 to £89,999
Between £90,000 to £99,999
Between £100,000 to £109,999
Between £110,000 to £119,999
Pension costs to higher paid employees
Contributions to a defined benefits pension
scheme during the year
Key management personnel received salary and
pension contributions		 2022
2021
No.
No.
66
64
91
91
8
8
64
59
2
3
231
225
2022
2021
No.
No.
2
1
2
2
-
-
-
-
1
1
1
1
6
5
43,137
49,201
NIL
NIL
705,707
530,215

Remuneration Policy

Annual Pay changes are approved by the Trustees, and job roles and remuneration are reviewed periodically. Benchmarking against market rates is employed when new roles are created or when

significant roles change hands.

The notes on pages 36 to 57 form part of these financial statements

45

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

3.5. Trustees

The Board of Trustees is made up of members of clergy and laity of the faithful. The priests receive income for their office together with living accommodation, living expenses and reimbursement of costs incurred on the same basis as other Diocesan priests. No Trustee receives any remuneration or benefits from his/her trusteeship other than cover under the indemnity insurance purchased by the charity Trustee received reimbursement for expenses in the year 2022: £543, (2021: £503).

3.6. Employee Loans

At the year end, there were outstanding loans
to employees
The total amount of outstanding loans was:
The total amount of car benefit scheme
outstanding was:		 2022
2021
No.
No.
4
3
£
£
664
2,905
4,286
-
Restated
2022
2021
£
£
50,034
44,340
24,306

11,688
1,716,417
1,858,846
6,650,222
(3,580,494)
1,366,573
1,406,643
89,475
54,175
3.7. Movement in Net Funds
This is stated after charging:
Auditors remuneration:
- Audit
- Other services
Profit on disposal of tangible fixed assets
Profit on disposal of investments
Depreciation of fixed assets
Finance charges payable
3.8. Change in Actuarial Movement
Care of Clergy Restated
2022
2021
£
£
(1,010,000)
(90,000)

The restated accounts for 2021 included a creditor for the Care of Clergy Provision (see note 10.2 and 17.3).

Independently included to provide clarity on the ongoing commitment the Diocese to those no longer in active ministry.

The adjustment noted above is a result of change in circumstances of priest included within the current provision.

The notes on pages 36 to 57 form part of these financial statements

4 6

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

4. Tangible Fixed Assets

Group

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
Disposals
At 31 December 2022
Net book value at 31 December 2022
Restated net book value at 31 December 2021		 Properties
Fixtures &
Fittings
Computer
Equipment
Motor
Vehicles
£
£
£
£
52,546,760
4,878,518
204,927
18,410
2,350,035
97,792
24,721
-
(506,964)
(12,718)
-
-
54,389,831
4,963,592
229,648
18,410
16,776,788
3,323,782
173,667
17,973
1,081,373
263,233
21,530
437
(238,986)
(5,920)
17,619,175
3,581,096
195,197
18,410
36,770,656
1,382,496
34,451
-
35,769,972
1,554,736
31,260
437		 Total
£
57,648,614
2,472,548
(519,682)
59,601,480
20,292,210
1,366,573
(244,905)
21,413,878
38,187,602
37,356,405

Charity

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
Disposals
At 31 December 2022
Net book value at 31 December 2022
Net book value at 31 December 2021		 Properties
Fixtures &
Fittings
Computer
Equipment
Motor
Vehicles
£
£
£
£
52,758,182
3,424,922
177,742
18,410
2,350,035
90,921
22,938
-
(506,964)
(5,676)
54,601,253
3,510,167
200,680
18,410
16,815,359
2,249,073
144,142
17,973
1,081,373
223,442
21,384
437
(238,986)
17,657,746
2,472,515
165,526
18,410
36,943,507
1,037,652
35,154
-
35,942,823
1,175,849
33,600
437		 Total
£
56,379,256
2,463,894
(512,640)
58,330,510
19,226,547
1,326,636
(238,986)
20,314,196
38,016,314
37,152,709

4.1. Assets not used for charitable purposes

All of the tangible fixed assets are used by the Charity for its charitable purposes
with the exception of properties, computer equipment and fixtures and fittings
with a net book value of		 2022
£
171,288		 Restated
2021
£
203,695

4.2. Capital Commitments

2022 2021
Capital commitments authorised and contracted for at 31 December 2022 were £ £
as follows: Diocesan Projects 2,546,892 677,256
School Capital Projects 7,481,885 6,261,657
10,028,778 6,938,913

The notes on pages 36 to 57 form part of these financial statements

47

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

5. Investment properties

Group Charity Charity
2022 2021 2022 2021
£ £ £ £
At 1 January 2022 2,250,000 500,000 2,250,000 500,000
Additions - 2,250,000 - 2,250,000
Transfer from Fixed Assets 218,518 - 218,518 -
Disposals - (500,000) - (500,000)
Revaluation Gain 5,500,482 - 5,500,482 -
At 31 December 2022 7,969,000 2,250,000 7,969,000 2,250,000
As at 31 December 2022, the investment property additions represent the following:
Revalued Initial Revaluation
Property Amount NBV Gain
£ £ £
Sacred Heart Infant School, Gorton 485,000 24,275 460,725
Allen Hall (Land), 281 Wilmslow Road, Manchester 2,150,000 25,526 2,124,474
St Sebastians, Gerald Road, Pendleton, Salford 225,000 11,994 213,006
Former Our Lady's Primary School, Turf Pit Lane, Moorside 300,000 15,015 284,985
Playing Fields, St Bedes 440,000 22,023 417,977
Key Street Bar of Music, Clitheroe 175,000 9,306 165,694
St Wilfrid's Hall, Hulme, Manchester 150,000 4,206 145,794
Workshop, on Back Palace Street, Bolton, BL1 2DR 100,000 501 99,499
Land at Manchester Road Kearsley 19,000 951 18,049
Rental of Stydd Lodge Farm 510,000 25,526 484,474
Former St Paul's RC Church, Preston Old Road BB2 5EP 190,000 9,510 180,490
Lee House Farm 675,000 17,518 657,482
St Anthony's Centre, Trafford Park 300,000 52,167 247,833
Total Investment Property 5,719,000 218,518 5,500,482

The historical cost for the property, formerly held in Fixed Assets, was £431,784 and has been transferred from property fixed assets, net of accumulated depreciation. The historical

cost of land was £nil.

The land and properties have been valued by Axis Property Consultancy LLP and P Wilson & Company in August 2023.

As at 31 December 2021, the investment property represented former inalienable school land which is now leased on a long term lease. The land was valued at £2.25m based on open market value by Axis Property Consultancy LLP in August 2022. There are deemed to be no changes to this for 2022.

The historical cost for the inalienable school land was £Nil.

The notes on pages 36 to 57 form part of these financial statements

48

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

6. Fixed Asset investments

2022
2021
£
£
Subsidiary Undertakings
-
-
Participating Interest
1
1
6.1
1
1
Investments listed or traded on a
recognised stock exchange
6.2
32,364,242
39,014,464
Cash held as part of investment fund
607,460
1,854,923
Total Investments
32,971,703
40,869,388
Group		 2022
2021
£
£
-
-
1
1
Group		 2022
2021
£
£
5
5
1
1
Charity
6
6
32,364,242
39,014,464
607,460
1,854,923
32,971,703
40,869,388		 32,971,708
40,869,393

6.1. Investments held as fixed assets

Shares in group undertakings and participating interests 2022
£
6		 2021
£
6
Shares in group undertakings and participating interests
Cost
At 1 January 2022
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Subsidiary
Undertakings
£
5		 Participating
Interest
£
1
Total
£
6
5 1 6
5 1 6
5 1 6

6.2. Investments listed or traded on a recognised stock exchange

Group and Charity
Movement
Market value at 1 January 2022
Additions at cost
Disposal proceeds
Net gain/(loss)
Market value at 31 December 2022		 2022
2021
£
£
39,014,464
38,193,945
1,669,818
6,765,011
(4,063,376)
(10,671,378)
(4,256,664)
4,726,886
32,364,242
39,014,464

The notes on pages 36 to 57 form part of these financial statements

49

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

Analysed by type
Bonds
Alternatives & Multi-Asset
UK Equities
Global Equities
North America
European equities
Far East
Rest of the World
Analysed by fund
Unrestricted
Restricted
The charity had no holdings which comprised more
market value of the portfolio at that date		 Analysed by type
Bonds
Alternatives & Multi-Asset
UK Equities
Global Equities
North America
European equities
Far East
Rest of the World
Analysed by fund
Unrestricted
Restricted
The charity had no holdings which comprised more
market value of the portfolio at that date		 Analysed by type
Bonds
Alternatives & Multi-Asset
UK Equities
Global Equities
North America
European equities
Far East
Rest of the World
Analysed by fund
Unrestricted
Restricted
The charity had no holdings which comprised more
market value of the portfolio at that date		 Analysed by type
Bonds
Alternatives & Multi-Asset
UK Equities
Global Equities
North America
European equities
Far East
Rest of the World
Analysed by fund
Unrestricted
Restricted
The charity had no holdings which comprised more
market value of the portfolio at that date		 Analysed by type
Bonds
Alternatives & Multi-Asset
UK Equities
Global Equities
North America
European equities
Far East
Rest of the World
Analysed by fund
Unrestricted
Restricted
The charity had no holdings which comprised more
market value of the portfolio at that date		 than 5% of the
29,597,308
Cost
£
5,558,460
5,256,369
7,435,681
2,983,861
3,631,163
1,536,434
2,421,960
773,380
29,597,308
-
29,597,308		 Cost
£
5,558,460
5,256,369
7,435,681
2,983,861
3,631,163
1,536,434
2,421,960
773,380		 Cost
£
5,558,460
5,256,369
7,435,681
2,983,861
3,631,163
1,536,434
2,421,960
773,380		 2022
2021
Market
Market
Value
Value
£
£
4,884,347
5,850,659
5,702,530
7,558,075
8,009,784
9,839,768
3,979,775
5,629,362
4,446,723
4,769,458
1,738,465
1,885,710
2,862,045
2,680,500
740,573
800,933
29,597,308 32,364,242
39,014,465
29,597,308
-		 32,364,242
39,014,465
-
-
29,597,308 32,364,242
39,014,465
2022
2021
NIL
NIL
7. Stock
Stock
8. Debtors
Trade debtors
Prepayments
Amounts due from subsidiaries
Other debtors		 Stock 2022
2021
£
£
-
-
Charity
2022
Restated
2021
£
£
1,730,700
38,778
549,063
208,852
106,842
322,451
2,208,167
4,519,122
4,594,772
5,089,203
Charity
Stock 2022
Restated
2021
£
£
134,329
109,210
Group
Trade debtors
Prepayments
Amounts due from subsidiaries
Other debtors		 2022
Restated
2021
£
£
1,624,280
107,658
606,820
250,042
-
-
2,436,503
3,265,615
Group
4,667,603
3,623,315

8.1. Loans to Other Charities

Group and Charity other debtors due within one year include £1,506,968 (2021: £1,649,134) loans to other charities which are repayable on demand. The figures reflect the amounts shown in the financial statements of the other Charities.

The notes on pages 36 to 57 form part of these financial statements

50

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

9. Cash at bank and in hand

Cash at bank and in hand 2022
Restated
2021
2022
2021
£
£
£
£
44,906,183
45,384,452
44,251,220
43,770,431
Group
Charity

10. 1 Creditors: amounts falling due within one year

10. 1 Creditors: amounts falling due within one year
Trade creditors
Social security and taxation
Other creditors
Accruals & Deferred Income
Amounts due to subsidiaries		 2022
Restated
2021
£
£
1,640,253
1,233,220
82,998
1,007
7,802,227
6,467,230
661,769
657,320
-
-
10,187,247
8,358,777
Group		 2022
Restated
2021
£
£
1,451,609
1,162,007
73,535
-
7,747,163
6,267,208
312,464
650,171
-
-
Charity
9,584,771
8,079,386

10.2. Care of Clergy Provision

Care of Clergy Provision 2022
Restated
2021
2022
Restated
2021
£
£
£
£
2,890,000
3,900,000
2,890,000
3,900,000
2,890,000
3,900,000
2,890,000
3,900,000
Group
Charity

The restated accounts for 2021 include a Care of Clergy Provision. This has been independently assessed and has been included to provide clarity on the ongoing commitment the Diocese has to those no longer in active ministry.

Should a priest leave active ministry prior to retirement, there is no obligation to accrue for a liability and, as such, this has been excluded.

The provision has been recognised on the basis that there is an agreement in place with certain clergy who are no longer in active ministry what gives rise to a future commitment. It has been calculated based upon the agreed levels of financial support, age profile, mortality tables, an appopriate discount rate of 2.5% (derived from a high quality corporate bond) and the number of priests no longer in active ministry and for whom the Diocese has undertaken an ongoing commitment of care.

Care of
Clergy
Provision Total
£ £
Provisions at 1 January 2022 3,900,000 3,900,000
Change in actuarial assumptions (1,010,000) (1,010,000)
Provisions at 31 December 2022 2,890,000 2,890,000

The notes on pages 36 to 57 form part of these financial statements

51

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

11. Contingent Liabilities

Appropriate consideration has been given to historical liabilities in respect of which insurance cover cannot be traced or where the historical policy limits are inadequate. No contingent liabilities have been identified that require disclosure.

12. Related Parties

12.1. Other Related Parties

Mr. Edward Nally has provided consultancy services for a number of years for which he is remunerated and has continued to be paid following his appointment as a Trustee in May 2016. In the accounting year ended 31 December 2022 the total was £55,000 (2021: £55,000). Mr Nally is not paid for his services as a Trustee of the charity but as a consultant to the key management team.

12.2. Donations from Trustees

Throughout the year, Trustees who are not members of the clergy attend Mass and other services and events within the Diocese that they live in. In the course of doing so, the Trustees resident in the Diocese of Salford will contribute to the offertory and make other financial contributions. to the Diocese of Salford. The nature of such giving means that it is not possible to quantify the amount donated to the Charity by its Trustees during any financial year.

13. Funds

Balance Incoming Resources Gains and Balance
01-Jan-22 resources expended Transfers Losses 31-Dec-22
Notes £ £ £ £ £ £
Unrestricted Funds 15 112,117,772 16,290,290 (20,722,328) (27,286) 1,243,818 108,902,266
Restricted Funds
Parishes Special Collections 13.1.1 199,322 67,444 (1,154) - - 265,612
Pleasington Priory 13.1.2 1,208,678 26,588 (60,764) - - 1,174,502
Stydd Trust 13.1.3 309,639 - - - - 309,639
Stanford Trust 13.1.4 385,466 - - - - 385,466
Ecclesiastical Education Fund13.1.5 - 118,363 (166,849) 48,486 - -
SCA - School Building Works 13.1.6 6,834,562 11,187,664 (10,531,341) - - 7,490,885
Other Restricted Funds 13.1.7 155,898 938,707 (975,257) - - 119,348
9,093,565 12,338,766 (11,735,365) 48,486 - 9,745,452
Designated Funds
Moston & Wardley Cemeteri13.2.1 21,200 - - (21,200) - -
Care of Clergy Provision (3,900,000) 1,010,000 (2,890,000)
(3,878,800) - - (21,200) 1,010,000 (2,890,000)
Endowment Funds
SRCDTR 13.3.1 1,000 - - - - 1,000
Moston & Wardley Cemeteri13.3.2 456 - - - - 456
1,456 - - - - 1,456
TOTAL FUNDS 117,333,993 28,629,056 (32,457,693) - 2,253,818 115,759,173

Within note 13 the Unrestricted funds include the £5.5m gain on revaluation relating to Investment Properties.

The notes on pages 36 to 57 form part of these financial statements

52

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

13.1. Restricted Funds

The funds designated as restricted are held for the following purposes:

13.1.1: Parishes Special collections This represents the specific collections and payments within the parishes mainly for Parish based appeals, for example in relation to building projects.

13.1.2: Pleasington Priory Trust Funds held on behalf of the Pleasington Priory Trust for the upkeep and maintenance of the Chapel known as Pleasington Priory and its ancillary substantial buildings.

13.1.3: Stydd Trust Originally for the support of the almshouses at Stydd, the income is for the benefit of the Ecclesiastical Education Fund. This is a separate trust no 229802, administered by the Salford Diocesan Trustees.

13.1.4: Stanford Trust Income to the parish for the poor of Ribchester, this is a separate charitable trust no 252602, administered by the Salford Diocesan Trustees

13.1.5 : Ecclesiastical Education Fund Funds held for the training of priests.

13.1.6: SCA, Schools buildings Programme, relates to committed yet uncompleted works.

13.2. Designated Funds

Designated funds are set aside for various purposes. The main areas are as follows:

13.2: Moston & Wardley Cemeteries - Funds deposited with the cemeteries board to finance the upkeep of individual cemetery plots. No permanent endowment is created by these funds.

13.3. Permanent Endowment Funds

13.3.2: Moston & Wardley endowments are in respect of funds left for the maintenance of individual graves. No further endowments will be accepted for this purpose.

13.4. Revaluation Reserves

13.4: Due to the identification and revaluation of the investment properties, additional reserves have been identified, verified by independent assessment.

14. Funds: movement in the year

Unrestricted
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
Restricted
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
Designated		 2022
2021
2022
2021
£
£
£
£
112,117,772
105,869,118
111,936,128
105,334,330
(8,688,703)
6,041,892
(8,937,990)
6,395,036
(27,286)
206,762
(27,286)
206,762
Group
Charity
103,401,784
112,117,772
102,970,852
111,936,128
9,093,565
9,482,206
9,093,566
9,482,206
603,401
(181,879)
603,401
(181,878)
48,486
(206,762)
48,486
(206,762)
9,745,451
9,093,565
9,745,453
9,093,566
Moston & Wardley Cemeteries
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December		 21,200
21,200
21,200
21,200
-
-
-
-
(21,200)
-
(21,200)
-
-
21,200
-
21,200

The notes on pages 36 to 57 form part of these financial statements

53

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

14. Funds: movement in the year (continued)

1
1		 2022
2021
2022
2021
£
£
£
£
(3,900,000)
(3,990,000)
(3,900,000)
(3,990,000)
-
-
-
-
1,010,000
90,000
1,010,000
90,000
(2,890,000)
(3,900,000)
(2,890,000)
(3,900,000)
1,456
1,456
1,456
1,456
-
-
-
-
-
-
-
-
1,456
1,456
1,456
1,456
-
-
-
-
5,500,482
-
5,500,482
-
-
-
-
-
5,500,482
-
5,500,482
-
Care of Clergy Provision
Balance at 1 January
Provisions created during the year
Amounts released from previous years
Balance at 31 December
Permanent Endowment
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
Revaluation Reserve (Unrestricted)
Balance at 1 January
Net movements in the year
Change in revaluation surplus
Balance at 31 December
Total Funds
115,759,173
117,333,993
115,328,243
117,152,350
Group
Charity
Group
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Permanent
Endowment
Total
£
£
£
£
£
Fund balances at 31 December 2022 are represented by:
Tangible fixed assets
38,187,602
-
-
-
38,187,602
Investment assets
40,940,703
-
-
-
40,940,703
Current assets
39,961,207
(2,890,000)
9,745,452
1,456
46,818,115
Current liabilities
(10,187,247)
-
-
-
(10,187,247)
Total net assets at 31
December 2022
108,902,265
(2,890,000)
9,745,452
1,456
115,759,173
Charity
Unrestricted
Funds
Designated
Funds
Restricted
Funds
Permanent
Endowment
Total
£
£
£
£
£
Fund balances at 31 December 2022 are represented by:
Tangible fixed assets
38,016,314
-
-
-
38,016,314
Investment assets
40,940,708
-
-
-
40,940,708
Current assets
39,099,083
(2,890,000)
9,745,453
1,456
45,955,992
Current liabilities
(9,584,771)
-
-
-
(9,584,771)
Total net assets at 31
December 2022
108,471,334
(2,890,000)
9,745,453
1,456
115,328,243
5. Analysis of net assets between funds
li f fd		 Care of Clergy Provision
Balance at 1 January
Provisions created during the year
Amounts released from previous years
Balance at 31 December
Permanent Endowment
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
Revaluation Reserve (Unrestricted)
Balance at 1 January
Net movements in the year
Change in revaluation surplus
Balance at 31 December
Total Funds
. Analysis of net assets between funds		 Care of Clergy Provision
Balance at 1 January
Provisions created during the year
Amounts released from previous years
Balance at 31 December
Permanent Endowment
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
Revaluation Reserve (Unrestricted)
Balance at 1 January
Net movements in the year
Change in revaluation surplus
Balance at 31 December
Total Funds
. Analysis of net assets between funds		 Care of Clergy Provision
Balance at 1 January
Provisions created during the year
Amounts released from previous years
Balance at 31 December
Permanent Endowment
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
Revaluation Reserve (Unrestricted)
Balance at 1 January
Net movements in the year
Change in revaluation surplus
Balance at 31 December
Total Funds
. Analysis of net assets between funds		 Care of Clergy Provision
Balance at 1 January
Provisions created during the year
Amounts released from previous years
Balance at 31 December
Permanent Endowment
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
Revaluation Reserve (Unrestricted)
Balance at 1 January
Net movements in the year
Change in revaluation surplus
Balance at 31 December
Total Funds
. Analysis of net assets between funds
(2,890,000)
1,456
-
-
1,456
-
5,500,482
-
5,500,482
115,759,173
Group
Unrestricted
Funds
Designated
Funds
£
£
Fund balances at 31 December 2022 are represented by:
Tangible fixed assets
38,187,602
-
Investment assets
40,940,703
-
Current assets
39,961,207
(2,890,000)
Current liabilities
(10,187,247)
-
Total net assets at 31
December 2022
108,902,265
(2,890,000)
Charity
Unrestricted
Funds
Designated
Funds
£
£
Fund balances at 31 December 2022 are represented by:
Tangible fixed assets
38,016,314
-
Investment assets
40,940,708
-
Current assets
39,099,083
(2,890,000)
Current liabilities
(9,584,771)
-
Total net assets at 31
December 2022
108,471,334
(2,890,000)
108,471,334
(2,890,000)
Group
Cash and cash equivalents
Debt due within one year
Net Funds
Charity
Cash and cash equivalents
Debt due within one year
Net Funds
5.1. Anayss o net uns		 Balance
01-Jan-22
Financing
Cash Flows
Balance
31-Dec-22
£
£
£
47,239,375
(1,725,732)
45,513,643
(6,467,230)
(1,334,997)
(7,802,227)
40,772,145
(3,060,729)
37,711,416
Balance
01-Jan-22
Financing
Cash Flows
Balance
31-Dec-22
£
£
£
45,625,354
(766,674)
44,858,680
(6,267,208)
(1,479,955)
(7,747,163)
39,358,146
(2,246,629)
37,111,517

15. Analysis of net assets between funds

Cash and cash equivalents are comprised of Cash at bank as well as Cash held as part of investments

The notes on pages 36 to 57 form part of these financial statements

5 4

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

16. Pensions and similar obligations

The Charity has made suitable arrangements for employee pensions, providing access to defined contribution pension schemes for all members of staff, including ensuring compliance with recent legislation for auto-enrolment and where applicable access to the Teacher' Pension Scheme England and Wales (TPS) for academic and related staff

The Trustees retain the services of independent pension advisors, Punter Southall Aspire, who provide specialist advice. Pension schemes are administered by Insurance Companies with the assets held separately from the Charity.

Pension costs charged in the statement of financial activities represent the contributions payable by the Charity in the year.

Teachers' Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pension Scheme Regulations 2014.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Under the definitions set out in FRS102, the TPS is an unfunded multi-employer pension scheme. The charity has accounted for its contributions to the scheme as if it were a defined contribution scheme.

17. Restatement in relation to 2021 previously presented figures.

Prior to 17.1 17.2 17.3 Restated
Notes: restatement
S.D.C Care of
2021 CTS Trading Clergy 2021
Provision
£ £ £ £ £
2.5 Other Income 4,640,721 104,807 - - 4,745,528
3.1 Expenditure on Raising funds 1,519,827 (44,153) 1,475,674
3.2 Expenditure on Charitable Activities 15,466,578 99,303 65,397 15,631,278
4. Tangible Fixed Assets 37,072,609 220 283,576 37,356,405
4.1 Assets not used for charitable purposes 382,074 - (178,379) 203,695
7. Stock 41,384 67,826 - 109,210
8. Debtors 3,622,227 1,088 - 3,623,315
9. Cash at bank and in hand 45,289,835 94,617 - 45,384,452
10. Creditors: Amounts falling due within one y 8,351,660 7,117 - 3,900,000 12,258,777
13. Funds 120,793,783 156,634 283,576 (3,900,000) 117,333,993

17.1 Catholic Truth Society - Consolidation of Entity into Group Financial Statements

In 2022, it was determined that the subsidiary Catholic Truth Society, should be consolidated into the Group accounts owing to the fact that the parent charity has the power to govern the financial and operating policies of the entity and benefits from its activities.

This consolidation is voluntary and previous finanical statements were still deemed to present a 'true and fair' view of the group as the prior exclusion of CTS had no material impact.

17.2 S.D.C Trading

Comparative figures have been restated in relation to a reassessment of who assets belong to assets paid for by, and ultimately belonging to, the parent charity had gone through S.D.C Trading Limited. These assets have been transferred to the parent charity and accumulated depreciation has been reversed within S.D.C Trading Limited. The cost has been written off against the loan to the parent company.

17.3 Care of Clergy Provision

The restated accounts for 2021 include a creditor for a Care of Clergy Provision. This has been independently assessed and has been included to provide clarity on the ongoing commitment the Diocese has to those no longer in active ministry. Should a priest leave active ministry prior to retirement, there is no obligation to accrue for a liability and, as such, this has been excluded.

The provision has been deemed to be required due to the value of the liability. It has been calculated based upon the age profile and number of priests no longer in active ministry and for whom the Diocese has undertaken an ongoing commitment of care.

The notes on pages 36 to 57 form part of these financial statements

55

Diocese of Salford Trustees' Annual Report and Accounts 2022 Financial Statements Notes to the Financial Statements

18. Details of subsidiaries and consolidation

Tangible fixed assets
Current assets
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one
year
Representing:
Share capital
Profit and loss account		 Catholic
Building
Services
Limited
Catholic
Support
Services
Limited
S.D.C.
Trading
Limited
Catholic
Truth Society
(Diocese of
Salford)
2022 Total
Restated
2021 Total
£
£
£
£
£
£
-
1,105
169,515
664
171,283
203,697
63,826
400,252
418,054
149,492
1,031,624
1,876,022
63,826
401,357
587,569
150,155
1,202,907
2,079,719
(63,824)
(381,172)
(210,073)
(17,931)
(673,000)
(658,919)
2
20,185
377,496
132,224
529,908
1,420,800
-
-
(313,227)
-
-

908,618
-
2
20,185
64,269
132,224
529,908
512,182
2
1
2
2
7
5
0
20,184
64,267
132,222
529,901
512,177
2
20,185
64,269
132,224
529,908
512,182
Turnover
Cost of sales
Gross profit/ (loss)
Administrative expenses
Establishment Costs
Finance charges
Depreciation costs
Other Operating income - grants receivable
Taxation
Net profit
Retained earnings brought forward
Amount gifted to charity
Retained in the subsidiary		 Catholic
Building
Services
Limited
Catholic
Support
Services
Limited
S.D.C.
Trading
Limited
Catholic
Truth Society
(Diocese of
Salford)
2022 Total
Restated
2021 Total
£
£
£
£
£
£
177,853
1,311,814
1,604,647
105,345
3,199,659
2,228,966
(172,787)
(772,993)
(1,345,123)
(76,611)
(2,367,514)
(1,402,368)
5,067
538,821
259,524
28,734
832,145
826,598
(5,000)
(16,342)
(88,366)
(45,945)
(155,653)
(95,766)
-
-
(229,604)
(3,016)
(232,620)
(126,829)
(67)
(157)
(26,360)
(4,013)
(30,597)
(18,072)
-
(2,137)
(37,630)
(170)
(39,938)
(37,342)
-
-
806,236
-
806,236
194,932
-
-
-
-
-
-
0
520,184
683,800
(24,411)
1,179,573
743,521
-
975,076
(619,533)
156,634
512,177
809,702
-
(1,475,076)
-
-
(1,475,076)
(633,569)
0
20,184
64,267
132,222
216,674
919,654

The individual financial statements of the subsidiary companies included in the consolidation are drawn up on the same accounting date, 31st December 2022. All subsidiary companies are fully consolidated in the Group financial statements.

The notes on pages 36 to 57 form part of these financial statements

56

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