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


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 -----**<br>
Raising Funds<br>2.4m<br>SCA - School Building works<br>10.5m<br>Charitable Activities<br>19.5m<br>**----- End of picture text -----**<br>


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: 

- Being a synodal church as asked by the Holy Father 

- Supporting our clergy 

- Reviewing our support services to best support our parishes and schools, including increasing our digital solutions 

- Completing a property strategy that recognises the future needs of our buildings 

- Adapting to a new landscape of fundraising in the Church 

- Completing our Cathedral Restoration 

- Leading by example to care for our common home 

- Using our voice to champion for dialogue, change and action as a Responsible and active investor 

## 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<br>Investment|5%|1.4|4%|1.2|
|Income from<br>Charitable activities|6%|1.8|8%|2.1|
|Other income|17%|4.8|16%|4.4|
|SCA- School Building<br>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: 

- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2022 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended; 

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

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

## **Basis for opinion** 

We 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: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- sufficient accounting records have not been kept by the parent charity; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement 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**<br>**INCOME AND ENDOWMENTS FROM:**<br>Donations and legacies<br>**2.1**<br>Other trading activities<br>**2.2**<br>Income from Investment<br>**2.3**<br>Income from Charitable activities<br>**2.4**<br>Other income<br>**2.5**<br>SCA - School Building Works<br>**2.6**<br>**Total Income**<br>**EXPENDITURE ON:**<br>Raising funds<br>**3.1**<br>Charitable activities<br>**3.2**<br>SCA - School Building Works<br>**3.3**<br>**Total Expenditure**<br>Net Gains/(losses) on investments<br>Net income/(expenditure)|**DESIGNATED**<br>**ENDOWMENT**<br>**2022**<br>**Restated 2021**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**Total**<br>**Total**<br>**Total funds**<br>**Total funds**<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>£<br>6,985,599<br>710<br>6,986,309<br>103,284<br>184,828<br>288,112<br>-<br>-<br>7,274,421<br>7,373,569<br>452,929<br>-<br>452,929<br>1,672,222<br>-<br>1,672,222<br>-<br>-<br>2,125,151<br>1,060,826<br>92,773<br>-<br>92,773<br>1,320,553<br>-<br>1,320,553<br>-<br>-<br>1,413,326<br>1,212,311<br>21,500<br>-<br>21,500<br>1,807,209<br>-<br>1,807,209<br>-<br>-<br>1,828,709<br>2,143,463<br>3,325,591<br>890,068<br>4,215,659<br>508,629<br>75,497<br>584,126<br>-<br>-<br>4,799,785<br>4,360,721<br>-<br>-<br>-<br>-<br>11,187,664<br>11,187,664<br>-<br>-<br>11,187,664<br>10,556,309<br>10,878,392<br>890,778<br>11,769,170<br>5,411,897<br>11,447,989<br>16,859,886<br>-<br>-<br>28,629,056<br>26,707,199<br>560,633<br>-<br>560,633<br>1,880,038<br>-<br>1,880,038<br>-<br>-<br>2,440,671<br>1,475,674<br>10,315,561<br>969,320<br>11,284,881<br>7,966,095<br>234,705<br>8,200,800<br>-<br>-<br>19,485,681<br>15,351,278<br>-<br>-<br>-<br>-<br>10,531,341<br>10,531,341<br>-<br>-<br>10,531,341<br>10,997,120<br>10,876,194<br>969,320<br>11,845,514<br>9,846,133<br>10,766,046<br>20,612,179<br>-<br>-<br>32,457,693<br>27,824,072<br>-<br>-<br>-<br>(4,256,664)<br>-<br>(4,256,664)<br>-<br>-<br>(4,256,664)<br>6,976,886<br>2,198<br>(78,542)<br>(76,344)<br>(8,690,900)<br>681,943<br>(8,008,957)<br>-<br>-<br>(8,085,301)<br>5,860,013<br>**DIOCESAN FUNDS**<br>**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**<br>Transfer between Funds<br>**Other recognised gains/(losses):**<br>Gains/(losses) on revaluation of<br>investment properties<br>**5**<br>Gains/(losses) on actuarial provision<br>**3.8**<br>**NET MOVEMENT IN FUNDS**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**17**<br>**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**<br>**Restricted**<br>**Total**<br>£<br>£<br>£<br>-<br>-<br>-<br>1,616,727<br>1,616,727<br>-<br>-<br>-<br>1,618,925<br>(78,542)<br>1,540,383<br>37,014,446<br>199,322<br>37,213,768<br>38,633,371<br>120,780<br>38,754,151<br>**PAROCHIAL FUNDS**|**Unrestricted**<br>**Restricted**<br>**Total**<br>£<br>£<br>£<br>(27,286)<br>48,486<br>21,200<br>3,883,755<br>3,883,755<br>-<br>-<br>-<br>(4,834,431)<br>730,429<br>(4,104,002)<br>75,103,326<br>8,894,243<br>83,997,569<br>70,268,895<br>9,624,672<br>79,893,567<br>**DIOCESAN FUNDS**|**DESIGNATED**<br>**Total**<br>£<br>(21,200)<br>-<br>1,010,000<br>988,800<br>(3,878,800)<br>(2,890,000)|**ENDOWMENT**<br>**Total**<br>£<br>-<br>-<br>-<br>-<br>1,456<br>1,456|**2022**<br>**Restated 2021**<br>**Total funds**<br>**Total funds**<br>£<br>£<br>-<br>-<br>5,500,482<br>1,010,000<br>90,000<br>(1,574,819)<br>5,950,013<br>117,333,993<br>111,383,980<br>115,759,173<br>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**<br>**Fixed assets**<br>Tangible assets<br>**4**<br>Investment Property<br>**5**<br>Investments<br>**6**<br>**Current assets**<br>Stocks<br>**7**<br>Debtors<br>**8**<br>Cash at bank and in hand<br>**9**<br>Creditors<br>Amounts falling due within one year<br>**10.1**<br>Care of Clergy Provision<br>**10.2**<br>**Net current assets**<br>Total assets less current liabilities<br>**Total net assets**<br>Funds<br>Unrestricted & Designated funds<br>**14**<br>Restricted funds<br>**14**<br>Permanent endowment<br>**14**<br>Revaluation Reserve<br>**14**<br>Care of the Clergy<br>**14**<br>**Total funds**|**2022**<br>**Restated 2021**<br>**£**<br>**£**<br>38,187,602<br>37,356,405<br>7,969,000<br>2,250,000<br>32,971,703<br>40,869,388<br>79,128,305<br>80,475,793<br>134,329<br>109,210<br>4,667,603<br>3,623,315<br>44,906,183<br>45,384,452<br>49,708,115<br>49,116,977<br>(10,187,247)<br>(8,358,777)<br>(2,890,000)<br>(3,900,000)<br>36,630,868<br>36,858,200<br>115,759,173<br>117,333,993<br>115,759,173<br>117,333,993<br>103,401,784<br>112,138,972<br>9,745,451<br>9,093,565<br>1,456<br>1,456<br>5,500,482<br>-<br>(2,890,000)<br>(3,900,000)<br>115,759,173<br>117,333,993<br>**Group**|**2022**<br>**Restated 2021**<br>**£**<br>**£**<br>38,016,314<br>37,152,709<br>7,969,000<br>2,250,000<br>32,971,708<br>40,869,393<br>**Charity**|
|---|---|---|
|||78,957,022<br>80,272,102|
|||-<br>-<br>4,594,772<br>5,089,203<br>44,251,220<br>43,770,431|
|||48,845,992<br>48,859,634|
|||(9,584,771)<br>(8,079,386)<br>(2,890,000)<br>(3,900,000)|
|||36,371,221<br>36,880,248|
|||115,328,243<br>117,152,350|
|||115,328,243<br>117,152,350|
|||102,970,853<br>111,957,328<br>9,745,452<br>9,093,566<br>1,456<br>1,456<br>5,500,482<br>-<br>(2,890,000)<br>(3,900,000)|
|||115,328,243<br>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**<br>**CONSOLIDATED STATEMENT OF CASH FLOW**<br>**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**<br>|**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: 

- Parochial – consolidation of Diocesan parish accounts 

- Diocesan – consolidation of Central Funds and subsidiary company accounts 

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: 

- Assessing the probability of the receipt of legacy income. 

- Estimating the useful economic life of tangible fixed assets for the purposes of determining a depreciation charge. 

- Assessing the need for any provision against slow-moving and/or obsolete stock within SDC Trading Limited and Catholic Truth Society. 

- Assessing the recoverability of outstanding debtors and the need for any provision for bad or doubtful debts. 

- Where certain clergy who are no longer in active ministry and the Diocese has undertaken a commitment of care a provision has been recognised using a discount rate of 2.5% (Note 10.2) 

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% 

- Land element, Nil 

- Building element, 2% 

Church and Presbytery contents etc 

- Fixtures and fittings, 10% 

- Computer equipment, 25% 

## **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: 

- Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. 

- Unrestricted designated funds – these are funds which have been set aside by the Trustees for specific purposes. 

- Restricted funds – these are funds which can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for a particular restricted purpose. 

- Permanent endowment funds – these represent funds given to the Charity, subject to the restriction that they are held as capital. Income derived from endowment funds is included in the Statement of Financial Activities, unless restricted to a particular purpose. 

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



## **2.2. Other trading activities** 

|Social and fundraising income<br>S.D.C Trading Limited<br>Catholic Truth Society|**Unrestricted Restricted**<br>**£**<br>**£**<br>452,929<br>-<br>-<br>-<br>-<br>-<br>452,929<br>-<br>**Parochial funds**|**Unrestricted Restricted**<br>**£**<br>**£**<br>452,929<br>-<br>-<br>-<br>-<br>-<br>452,929<br>-<br>**Parochial funds**|**Unrestricted**<br>**Restricted**<br>**£**<br>**£**<br>12<br>-<br>1,566,864<br>-<br>105,346<br>-<br>1,672,222<br>-<br>**Diocesan funds**||**2022**<br>**Total**<br>**£**<br>452,941<br>1,566,864<br>105,346<br>2,125,151||**Restated**<br>**2021**<br>**Total**<br>**£**<br>246,120<br>709,899<br>104,807<br>1,060,826<br>**Restated**<br>**2021**<br>**Total**<br>**£**<br>1,146,291<br>83,923<br>(17,903)<br>1,212,311<br>**Restated**<br>**2021**<br>**Total**<br>**£**<br>534,271<br>1,609,192<br>2,143,463<br>**Restated**<br>**2021**<br>**Total**<br>**£**<br>996,327<br>553,459<br>534,089<br>1,858,846<br>-<br>418,000<br>4,360,721|
|---|---|---|---|---|---|---|---|
|||||||||
|**2.3.** **Investment Income**||||||||
|Income from listed investments<br>Interest on cash deposits<br>Loan Interest Income|**Unrestricted Restricted**<br>**£**<br>**£**<br>-<br>-<br>92,773<br>-<br>-<br>-<br>92,773<br>-<br>**Parochial funds**||**Unrestricted**<br>**Restricted**<br>**£**<br>**£**<br>1,151,673<br>-<br>118,880<br>-<br>50,000<br>-<br>1,320,553<br>-<br>**Diocesan funds**||**2022**<br>**Total**<br>**£**<br>1,151,673<br>211,653<br>50,000<br>1,413,326|||
|||||||||
|**2.4. Charitable Activities**||||||||
|Moston & Wardley cemeteries<br>Catholic Support Services Limited|**Unrestricted Restricted**<br>**£**<br>**£**<br>21,500<br>-<br>-<br>-<br>21,500<br>-<br>**Parochial funds**||**Unrestricted**<br>**Restricted**<br>**£**<br>**£**<br>495,395<br>-<br>1,311,814<br>-<br>1,807,209<br>-<br>**Diocesan funds**||**2022**<br>**Total**<br>**£**<br>516,895<br>1,311,814<br>1,828,709|||
|||||||||
|**Unrestricted Restricted**<br>**£**<br>**£**<br>Other income<br>1,102,670<br>-<br>Rental Income<br>507,504<br>-<br>Grant Income<br>-<br>890,068<br>Profit/(loss) on disposal of fixed assets<br>1,715,417<br>-<br>Catholic Building Services Limited<br>-<br>-<br>Lease Deed Extension<br>-<br>-<br>3,325,591<br>890,068<br>**Parochial funds**<br>**2.5. Other Income**<br>**2.6. Other Income – SCA – School Building Works**<br>**Unrestricted Restricted**<br>**£**<br>**£**<br>SCA - School Building Works<br>-<br>-<br>-<br>-<br>**Parochial funds**||||||||
|||**Unrestricted Restricted**<br>**£**<br>**£**<br>1,102,670<br>-<br>507,504<br>-<br>-<br>890,068<br>1,715,417<br>-<br>-<br>-<br>-<br>-<br>3,325,591<br>890,068<br>**Parochial funds**|**Unrestricted**<br>**Restricted**<br>**£**<br>**£**<br>122,371<br>23,997<br>263,668<br>-<br>121,590<br>51,500<br>1,000<br>-<br>-<br>-<br>-<br>-<br>508,629<br>75,497<br>**Diocesan funds**||**2022**<br>**Total**<br>**£**<br>1,249,038<br>771,172<br>1,063,158<br>1,716,417<br>-<br>-<br>4,799,785|||
|||||||||
|||||||||
|||**Unrestricted Restricted**<br>**£**<br>**£**<br>-<br>-<br>-<br>-<br>**Parochial funds**|**Unrestricted**<br>**Restricted**<br>**£**<br>**£**<br>-<br>11,187,664<br>-<br>11,187,664<br>**Diocesan funds**||**2022**<br>**Total**<br>**£**<br>11,187,664<br>11,187,664||**2021**<br>**Total**<br>**£**<br>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<br>Catholic Support Services Limited<br>Catholic Truth Society<br>S.D.C Trading Limited|**Restated**<br>**2022**<br>**2021**<br>**Income**<br>**Expenditure**<br>**Net Income**<br>**Net Income**<br>**£**<br>**£**<br>**£**<br>**£**<br>177,853<br>177,853<br>-<br>-<br>1,311,814<br>791,630<br>520,184<br>950,073<br>105,345<br>129,756<br>(24,411)<br>5,504<br>2,410,883<br>1,727,083<br>683,800<br>(212,056)<br>4,005,896<br>2,826,322<br>1,179,573<br>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**<br>**£**<br>**£**<br>-<br>-<br>**Parochial funds**|**2022**<br>**2021**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>152,955<br>-<br>152,955<br>171,438<br>**Diocesan funds**|
|---|---|---|
||-<br>-|152,955<br>-<br>152,955<br>171,438|



## **3.1.2.** Fundraising Costs 

|S.D.C Trading Limited<br>Social and fundraising<br>**Total expenditure on raising funds**|**Restated**<br>**2022**<br>**2021**<br>**Unrestricted Restricted**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>1,727,083<br>-<br>1,727,083<br>916,456<br>560,633<br>-<br>-<br>-<br>560,633<br>387,780<br>**Parochial funds**<br>**Diocesan funds**|
|---|---|
||560,633<br>-<br>1,727,083<br>-<br>2,287,716<br>1,304,236|
|||
||560,633<br>-<br>1,880,038<br>-<br>2,440,671<br>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<br>Gross Wages<br>Employer's NI<br>Pension Costs<br>Staff costs - other<br>Diocese & special collections<br>Church & presbytery supplies<br>Property Overheads<br>Office costs<br>Parish vehicles<br>Hall upkeep<br>Repairs and renewals<br>Other costs<br>Bank charges<br>Bad debts provision<br>Depreciation<br> <br>**3.2.1.**Parish Costs|**Restated**<br>**2022**<br>**2021**<br>**Unrestricted Restricted**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>699,989<br>-<br>-<br>-<br>699,989<br>758,546<br>900,459<br>-<br>-<br>-<br>900,459<br>682,476<br>38,189<br>-<br>-<br>-<br>38,189<br>30,226<br>16,572<br>-<br>-<br>-<br>16,572<br>33,014<br>23,759<br>-<br>-<br>-<br>23,759<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>5,017,980<br>20,631<br>-<br>-<br>5,038,611<br>5,663,372<br>34,923<br>58,626<br>-<br>-<br>93,549<br>349,659<br>11,970<br>-<br>-<br>-<br>11,970<br>23,442<br>49,649<br>-<br>-<br>-<br>49,649<br>36,487<br>-<br>-<br>-<br>-<br>-<br>60,039<br>2,727,711<br>890,003<br>-<br>-<br>3,617,714<br>127,703<br>0<br>-<br>-<br>-<br>0<br>10,808<br>34,659<br>-<br>-<br>-<br>34,659<br>37,761<br>-<br>-<br>-<br>-<br>-<br>-<br>759,101<br>-<br>-<br>-<br>759,101<br>838,322<br>**Parochial funds**<br>**Diocesan funds**<br>|
|---|---|
||10,314,961<br>969,260<br>-<br>-<br>11,284,221<br>8,651,855|



## **3.2.2.** Central & Diocesan Costs 

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



## **3.2.3.** Governance Costs 

|**3.2.3.**Governance Costs||||
|---|---|---|---|
|Legal & professional<br>Auditors remuneration<br>Accountancy services|**Unrestricted Restricted**<br>**£**<br>**£**<br>600<br>60<br>-<br>-<br>-<br>-<br>**Parochial funds**|**2022**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**£**<br>**£**<br>**£**<br>172,418<br>32,692<br>205,770<br>38,540<br>1,200<br>39,740<br>21,970<br>-<br>21,970<br>**Diocesan funds**|**2021**<br>**Total**<br>**£**<br>169,515<br>44,340<br>54,590|
||600<br>60|232,928<br>33,892<br>267,480|268,445|
|**3.2.4.**Grants Payable||||
|<br>CATEW/NCF - Gross<br>Survivors Manchester|**Unrestricted Restricted**<br>**£**<br>**£**<br>-<br>-<br>-<br>-<br>**Parochial funds**|**2022**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**£**<br>**£**<br>**£**<br>204,234<br>-<br>204,234<br>83,895<br>-<br>83,895<br>**Diocesan funds**|**2021**<br>**Total**<br>**£**<br>185,472<br>125,605|
||-<br>-|288,129<br>-<br>288,129|311,076|
|||||
|SCA - School Building Works<br>**3. SCA – School Building Work**|**Unrestricted Restricted**<br>**£**<br>**£**<br>-<br>-<br>**Parochial funds**|**2022**<br>**Unrestricted**<br>**Restricted**<br>**Total**<br>**£**<br>**£**<br>**£**<br>-<br>10,531,341<br>10,531,341<br>**Diocesan funds**|**2021**<br>**Total**<br>**£**<br>10,997,120|
||-<br>-|-<br>10,531,341<br>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**<br>Gross Wages<br>Employer's NI<br>Pension Costs<br>Other<br>Total Employee Costs<br>The average monthly number of staff employed,<br>during the year was as follows:|**2022**<br>**2021**<br>**£**<br>**£**<br>3,329,622<br>2,900,786<br>300,434<br>298,691<br>166,879<br>181,193<br>212,371<br>280,113<br>4,009,306<br>3,660,784<br>based on average headcount|
|---|---|



|Central Diocesan employees<br>Parish employees (excludes parish clergy)<br>Cemeteries employees<br>S.D.C Trading Limited<br>Catholic Truth Society<br>Employees receiving remuneration over £60,000<br>Between £60,000 to £69,999<br>Between £70,000 to £79,999<br>Between £80,000 to £89,999<br>Between £90,000 to £99,999<br>Between £100,000 to £109,999<br>Between £110,000 to £119,999<br>Pension costs to higher paid employees<br>Contributions to a defined benefits pension<br>scheme during the year<br>Key management personnel received salary and<br>pension contributions|**2022**<br>**2021**<br>**No.**<br>**No.**<br>66<br>64<br>91<br>91<br>8<br>8<br>64<br>59<br>2<br>3<br>231<br>225<br>**2022**<br>**2021**<br>**No.**<br>**No.**<br>2<br>1<br>2<br>2<br>-<br>-<br>-<br>-<br>1<br>1<br>1<br>1<br>6<br>5<br>43,137<br>49,201<br>NIL<br>NIL<br>705,707<br>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<br>to employees<br>The total amount of outstanding loans was:<br>The total amount of car benefit scheme<br>outstanding was:|**2022**<br>**2021**<br>**No.**<br>**No.**<br>4<br>3<br>**£**<br>**£**<br>664<br>2,905<br>4,286<br>-<br>**Restated**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>50,034<br>44,340<br>24,306<br> <br>11,688<br>1,716,417<br>1,858,846<br>6,650,222<br>(3,580,494)<br>1,366,573<br>1,406,643<br>89,475<br>54,175|
|---|---|
|**3.7. Movement in Net Funds**||
|This is stated after charging:<br>Auditors remuneration:<br>- Audit<br>- Other services<br>Profit on disposal of tangible fixed assets<br>Profit on disposal of investments<br>Depreciation of fixed assets<br>Finance charges payable||
|**3.8. Change in Actuarial Movement**||
|Care of Clergy|**Restated**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>(1,010,000)<br>(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**<br>At 1 January 2022<br>Additions<br>Disposals<br>At 31 December 2022<br>**Depreciation**<br>At 1 January 2022<br>Charge for the year<br>Disposals<br>At 31 December 2022<br>Net book value at 31 December 2022<br>Restated net book value at 31 December 2021|**Properties**<br>**Fixtures &**<br>**Fittings**<br>**Computer**<br>**Equipment**<br>**Motor**<br>**Vehicles**<br>**£**<br>**£**<br>**£**<br>**£**<br>52,546,760<br>4,878,518<br>204,927<br>18,410<br>2,350,035<br>97,792<br>24,721<br>-<br>(506,964)<br>(12,718)<br>-<br>-<br>54,389,831<br>4,963,592<br>229,648<br>18,410<br>16,776,788<br>3,323,782<br>173,667<br>17,973<br>1,081,373<br>263,233<br>21,530<br>437<br>(238,986)<br>(5,920)<br>17,619,175<br>3,581,096<br>195,197<br>18,410<br>36,770,656<br>1,382,496<br>34,451<br>-<br>35,769,972<br>1,554,736<br>31,260<br>437|**Total**<br>**£**<br>57,648,614<br>2,472,548<br>(519,682)<br>59,601,480<br>20,292,210<br>1,366,573<br>(244,905)<br>21,413,878<br>38,187,602<br>37,356,405|
|---|---|---|



## **Charity** 

|**Cost**<br>At 1 January 2022<br>Additions<br>Disposals<br>At 31 December 2022<br>**Depreciation**<br>At 1 January 2022<br>Charge for the year<br>Disposals<br>At 31 December 2022<br>Net book value at 31 December 2022<br>Net book value at 31 December 2021|**Properties**<br>**Fixtures &**<br>**Fittings**<br>**Computer**<br>**Equipment**<br>**Motor**<br>**Vehicles**<br>**£**<br>**£**<br>**£**<br>**£**<br>52,758,182<br>3,424,922<br>177,742<br>18,410<br>2,350,035<br>90,921<br>22,938<br>-<br>(506,964)<br>(5,676)<br>54,601,253<br>3,510,167<br>200,680<br>18,410<br>16,815,359<br>2,249,073<br>144,142<br>17,973<br>1,081,373<br>223,442<br>21,384<br>437<br>(238,986)<br>17,657,746<br>2,472,515<br>165,526<br>18,410<br>36,943,507<br>1,037,652<br>35,154<br>-<br>35,942,823<br>1,175,849<br>33,600<br>437|**Total**<br>**£**<br>56,379,256<br>2,463,894<br>(512,640)|
|---|---|---|
|||58,330,510|
|||19,226,547<br>1,326,636<br>(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<br>with the exception of properties, computer equipment and fixtures and fittings<br>with a net book value of|**2022**<br>**£**<br>171,288|**Restated**<br>**2021**<br>**£**<br>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**<br>**2021**<br>**£**<br>**£**<br>Subsidiary Undertakings<br>-<br>-<br>Participating Interest<br>1<br>1<br>**6.1**<br>1<br>1<br>Investments listed or traded on a<br>recognised stock exchange<br>**6.2**<br>32,364,242<br>39,014,464<br>Cash held as part of investment fund<br>607,460<br>1,854,923<br>Total Investments<br>32,971,703<br>40,869,388<br>**Group**|**2022**<br>**2021**<br>**£**<br>**£**<br>-<br>-<br>1<br>1<br>**Group**|**2022**<br>**2021**<br>**£**<br>**£**<br>5<br>5<br>1<br>1<br>**Charity**|
|---|---|---|
|||6<br>6<br>32,364,242<br>39,014,464<br>607,460<br>1,854,923|
||32,971,703<br>40,869,388|32,971,708<br>40,869,393|



## **6.1. Investments held as fixed assets** 

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



## **6.2. Investments listed or traded on a recognised stock exchange** 

|**Group and Charity**<br>**Movement**<br>Market value at 1 January 2022<br>Additions at cost<br>Disposal proceeds<br>Net gain/(loss)<br>Market value at 31 December 2022|**2022**<br>**2021**<br>**£**<br>**£**<br>39,014,464<br>38,193,945<br>1,669,818<br>6,765,011<br>(4,063,376)<br>(10,671,378)<br>(4,256,664)<br>4,726,886|
|---|---|
||32,364,242<br>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**<br>Bonds<br>Alternatives & Multi-Asset<br>UK Equities<br>Global Equities<br>North America<br>European equities<br>Far East<br>Rest of the World<br>**Analysed by fund**<br>Unrestricted<br>Restricted<br>The charity had no holdings which comprised more<br>market value of the portfolio at that date|**Analysed by type**<br>Bonds<br>Alternatives & Multi-Asset<br>UK Equities<br>Global Equities<br>North America<br>European equities<br>Far East<br>Rest of the World<br>**Analysed by fund**<br>Unrestricted<br>Restricted<br>The charity had no holdings which comprised more<br>market value of the portfolio at that date|**Analysed by type**<br>Bonds<br>Alternatives & Multi-Asset<br>UK Equities<br>Global Equities<br>North America<br>European equities<br>Far East<br>Rest of the World<br>**Analysed by fund**<br>Unrestricted<br>Restricted<br>The charity had no holdings which comprised more<br>market value of the portfolio at that date|**Analysed by type**<br>Bonds<br>Alternatives & Multi-Asset<br>UK Equities<br>Global Equities<br>North America<br>European equities<br>Far East<br>Rest of the World<br>**Analysed by fund**<br>Unrestricted<br>Restricted<br>The charity had no holdings which comprised more<br>market value of the portfolio at that date|**Analysed by type**<br>Bonds<br>Alternatives & Multi-Asset<br>UK Equities<br>Global Equities<br>North America<br>European equities<br>Far East<br>Rest of the World<br>**Analysed by fund**<br>Unrestricted<br>Restricted<br>The charity had no holdings which comprised more<br>market value of the portfolio at that date|than 5% of the<br>29,597,308<br>**Cost**<br>**£**<br>5,558,460<br>5,256,369<br>7,435,681<br>2,983,861<br>3,631,163<br>1,536,434<br>2,421,960<br>773,380<br>29,597,308<br>-<br>29,597,308|**Cost**<br>**£**<br>5,558,460<br>5,256,369<br>7,435,681<br>2,983,861<br>3,631,163<br>1,536,434<br>2,421,960<br>773,380|**Cost**<br>**£**<br>5,558,460<br>5,256,369<br>7,435,681<br>2,983,861<br>3,631,163<br>1,536,434<br>2,421,960<br>773,380|**2022**<br>**2021**<br>**Market**<br>**Market**<br>**Value**<br>**Value**<br>**£**<br>**£**<br>4,884,347<br>5,850,659<br>5,702,530<br>7,558,075<br>8,009,784<br>9,839,768<br>3,979,775<br>5,629,362<br>4,446,723<br>4,769,458<br>1,738,465<br>1,885,710<br>2,862,045<br>2,680,500<br>740,573<br>800,933|
|---|---|---|---|---|---|---|---|---|
|||||||29,597,308||32,364,242<br>39,014,465|
|||||||29,597,308<br>-||32,364,242<br>39,014,465<br>-<br>-|
|||||||29,597,308||32,364,242<br>39,014,465|
|||||||||**2022**<br>**2021**<br>NIL<br>NIL|
|**7. Stock**<br>Stock<br>**8. Debtors**<br>Trade debtors<br>Prepayments<br>Amounts due from subsidiaries<br>Other debtors||**Stock**||||||**2022**<br>**2021**<br>**£**<br>**£**<br>-<br>-<br>**Charity**<br>**2022**<br>**Restated**<br>**2021**<br>**£**<br>**£**<br>1,730,700<br>38,778<br>549,063<br>208,852<br>106,842<br>322,451<br>2,208,167<br>4,519,122<br>4,594,772<br>5,089,203<br>**Charity**|
|||Stock||**2022**<br>**Restated**<br>**2021**<br>**£**<br>**£**<br>134,329<br>109,210<br>**Group**|||||
||||||||||
||Trade debtors<br>Prepayments<br>Amounts due from subsidiaries<br>Other debtors|||**2022**<br>**Restated**<br>**2021**<br>**£**<br>**£**<br>1,624,280<br>107,658<br>606,820<br>250,042<br>-<br>-<br>2,436,503<br>3,265,615<br>**Group**|||||
|||||4,667,603<br>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**<br>**Restated**<br>**2021**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>44,906,183<br>45,384,452<br>44,251,220<br>43,770,431<br>**Group**<br>**Charity**|
|---|---|



## **10. 1 Creditors: amounts falling due within one year** 

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



## **10.2. Care of Clergy Provision** 

|Care of Clergy Provision|**2022**<br>**Restated**<br>**2021**<br>**2022**<br>**Restated**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>2,890,000<br>3,900,000<br>2,890,000<br>3,900,000<br>2,890,000<br>3,900,000<br>2,890,000<br>3,900,000<br>**Group**<br>**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 Fund**13.1.5**||-|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 Cemeteri**13.2.1**||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 Cemeteri**13.3.2**||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**<br>Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December<br>**Restricted**<br>Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December<br>**Designated**|**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>112,117,772<br>105,869,118<br>111,936,128<br>105,334,330<br>(8,688,703)<br>6,041,892<br>(8,937,990)<br>6,395,036<br>(27,286)<br>206,762<br>(27,286)<br>206,762<br>**Group**<br>**Charity**|
|---|---|
||103,401,784<br>112,117,772<br>102,970,852<br>111,936,128|
||9,093,565<br>9,482,206<br>9,093,566<br>9,482,206<br>603,401<br>(181,879)<br>603,401<br>(181,878)<br>48,486<br>(206,762)<br>48,486<br>(206,762)|
||9,745,451<br>9,093,565<br>9,745,453<br>9,093,566|
|||
|**Moston & Wardley Cemeteries**||
|Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December|21,200<br>21,200<br>21,200<br>21,200<br>-<br>-<br>-<br>-<br>(21,200)<br>-<br>(21,200)<br>-|
||-<br>21,200<br>-<br>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**<br>**1**|**2022**<br>**2021**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>(3,900,000)<br>(3,990,000)<br>(3,900,000)<br>(3,990,000)<br>-<br>-<br>-<br>-<br>1,010,000<br>90,000<br>1,010,000<br>90,000<br>(2,890,000)<br>(3,900,000)<br>(2,890,000)<br>(3,900,000)<br>1,456<br>1,456<br>1,456<br>1,456<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,456<br>1,456<br>1,456<br>1,456<br>-<br>-<br>-<br>-<br>5,500,482<br>-<br>5,500,482<br>-<br>-<br>-<br>-<br>-<br>5,500,482<br>-<br>5,500,482<br>-<br>**Care of Clergy Provision**<br>Balance at 1 January<br>Provisions created during the year<br>Amounts released from previous years<br>Balance at 31 December<br>**Permanent Endowment**<br>Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December<br>**Revaluation Reserve (Unrestricted)**<br>Balance at 1 January<br>Net movements in the year<br>Change in revaluation surplus<br>Balance at 31 December<br>**Total Funds**<br>115,759,173<br>117,333,993<br>115,328,243<br>117,152,350<br>**Group**<br>**Charity**<br>**Group**<br>**Unrestricted**<br>**Funds**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Permanent**<br>**Endowment**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**Fund balances at 31 December 2022 are represented by:**<br>Tangible fixed assets<br>38,187,602<br>-<br>-<br>-<br>38,187,602<br>Investment assets<br>40,940,703<br>-<br>-<br>-<br>40,940,703<br>Current assets<br>39,961,207<br>(2,890,000)<br>9,745,452<br>1,456<br>46,818,115<br>Current liabilities<br>(10,187,247)<br>-<br>-<br>-<br>(10,187,247)<br>Total net assets at 31<br>December 2022<br>108,902,265<br>(2,890,000)<br>9,745,452<br>1,456<br>115,759,173<br>**Charity**<br>**Unrestricted**<br>**Funds**<br>**Designated**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Permanent**<br>**Endowment**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**Fund balances at 31 December 2022 are represented by:**<br>Tangible fixed assets<br>38,016,314<br>-<br>-<br>-<br>38,016,314<br>Investment assets<br>40,940,708<br>-<br>-<br>-<br>40,940,708<br>Current assets<br>39,099,083<br>(2,890,000)<br>9,745,453<br>1,456<br>45,955,992<br>Current liabilities<br>(9,584,771)<br>-<br>-<br>-<br>(9,584,771)<br>Total net assets at 31<br>December 2022<br>108,471,334<br>(2,890,000)<br>9,745,453<br>1,456<br>115,328,243<br>**5. Analysis of net assets between funds**<br>**li f  fd**|**Care of Clergy Provision**<br>Balance at 1 January<br>Provisions created during the year<br>Amounts released from previous years<br>Balance at 31 December<br>**Permanent Endowment**<br>Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December<br>**Revaluation Reserve (Unrestricted)**<br>Balance at 1 January<br>Net movements in the year<br>Change in revaluation surplus<br>Balance at 31 December<br>**Total Funds**<br>**. Analysis of net assets between funds**|**Care of Clergy Provision**<br>Balance at 1 January<br>Provisions created during the year<br>Amounts released from previous years<br>Balance at 31 December<br>**Permanent Endowment**<br>Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December<br>**Revaluation Reserve (Unrestricted)**<br>Balance at 1 January<br>Net movements in the year<br>Change in revaluation surplus<br>Balance at 31 December<br>**Total Funds**<br>**. Analysis of net assets between funds**|**Care of Clergy Provision**<br>Balance at 1 January<br>Provisions created during the year<br>Amounts released from previous years<br>Balance at 31 December<br>**Permanent Endowment**<br>Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December<br>**Revaluation Reserve (Unrestricted)**<br>Balance at 1 January<br>Net movements in the year<br>Change in revaluation surplus<br>Balance at 31 December<br>**Total Funds**<br>**. Analysis of net assets between funds**|**Care of Clergy Provision**<br>Balance at 1 January<br>Provisions created during the year<br>Amounts released from previous years<br>Balance at 31 December<br>**Permanent Endowment**<br>Balance at 1 January<br>Net movements in the year<br>Transfer between funds<br>Balance at 31 December<br>**Revaluation Reserve (Unrestricted)**<br>Balance at 1 January<br>Net movements in the year<br>Change in revaluation surplus<br>Balance at 31 December<br>**Total Funds**<br>**. Analysis of net assets between funds**|
|---|---|---|---|---|---|
|||||(2,890,000)||
|||||1,456<br>-<br>-||
|||||1,456||
|||||-<br>5,500,482<br>-||
|||||5,500,482||
|||||||
|||||115,759,173||
|||||||
|||**Group**<br>**Unrestricted**<br>**Funds**<br>**Designated**<br>**Funds**<br>**£**<br>**£**<br>**Fund balances at 31 December 2022 are represented by:**<br>Tangible fixed assets<br>38,187,602<br>-<br>Investment assets<br>40,940,703<br>-<br>Current assets<br>39,961,207<br>(2,890,000)<br>Current liabilities<br>(10,187,247)<br>-<br>Total net assets at 31<br>December 2022<br>108,902,265<br>(2,890,000)<br>**Charity**<br>**Unrestricted**<br>**Funds**<br>**Designated**<br>**Funds**<br>**£**<br>**£**<br>**Fund balances at 31 December 2022 are represented by:**<br>Tangible fixed assets<br>38,016,314<br>-<br>Investment assets<br>40,940,708<br>-<br>Current assets<br>39,099,083<br>(2,890,000)<br>Current liabilities<br>(9,584,771)<br>-<br>Total net assets at 31<br>December 2022<br>108,471,334<br>(2,890,000)||||
||||108,471,334<br>(2,890,000)|||
|||||||
||**Group**<br>Cash and cash equivalents<br>Debt due within one year<br>Net Funds<br>**Charity**<br>Cash and cash equivalents<br>Debt due within one year<br>Net Funds<br>**5.1. Anayss o net uns**||||**Balance**<br>**01-Jan-22**<br>**Financing**<br>**Cash Flows**<br>**Balance**<br>**31-Dec-22**<br>**£**<br>**£**<br>**£**<br>47,239,375<br>(1,725,732)<br>45,513,643<br>(6,467,230)<br>(1,334,997)<br>(7,802,227)|
||||||40,772,145<br>(3,060,729)<br>37,711,416|
||||||**Balance**<br>**01-Jan-22**<br>**Financing**<br>**Cash Flows**<br>**Balance**<br>**31-Dec-22**<br>**£**<br>**£**<br>**£**<br>45,625,354<br>(766,674)<br>44,858,680<br>(6,267,208)<br>(1,479,955)<br>(7,747,163)|
||||||39,358,146<br>(2,246,629)<br>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<br>|
|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<br>Current assets<br>Creditors: amounts falling due within one year<br>Creditors: amounts falling due after more than one<br>year<br>Representing:<br>Share capital<br>Profit and loss account|**Catholic**<br>**Building**<br>**Services**<br>**Limited**<br>**Catholic**<br>**Support**<br>**Services**<br>**Limited**<br>**S.D.C.**<br>**Trading**<br>**Limited**<br>**Catholic**<br>**Truth Society**<br>**(Diocese of**<br>**Salford)**<br>**2022 Total**<br>**Restated**<br>**2021 Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>1,105<br>169,515<br>664<br>171,283<br>203,697<br>63,826<br>400,252<br>418,054<br>149,492<br>1,031,624<br>1,876,022|
|---|---|
||63,826<br>401,357<br>587,569<br>150,155<br>1,202,907<br>2,079,719<br>(63,824)<br>(381,172)<br>(210,073)<br>(17,931)<br>(673,000)<br>(658,919)<br>2<br>20,185<br>377,496<br>132,224<br>529,908<br>1,420,800<br>-<br>-<br>(313,227)<br>-<br>-<br> <br>908,618<br>-|
||2<br>20,185<br>64,269<br>132,224<br>529,908<br>512,182|
||2<br>1<br>2<br>2<br>7<br>5<br>0<br>20,184<br>64,267<br>132,222<br>529,901<br>512,177|
||2<br>20,185<br>64,269<br>132,224<br>529,908<br>512,182|



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



WIL
iri
MERCY BUS
www.dioceseofsalford.org.uk
@SalfordDiocese