DIOCESE OF
SALFORD
Annual
Report
2023
1
## Table of Contents
- About Us Pg 2-3
- Introduction from Bishop John Pg 4
- Chief Operating Officers Report Pg 5
- Year in Numbers Pg 6
- Our Finances at a Glance Pg 7-8
- Annual Review Pg 9-17
- Aims, Objectives and Purpose Pg 18
- Structure, Governance and Management Pg 17 -21 Plans for Future Periods Pg 21
- Financial Review Pg 22- 25
- Conclusion and Approval Pg 26
- Report of the Independent Auditors Pg 27-29
- Consolidated Statement of Financial Activity Pg 30-32 Charity Balance Sheet Pg 33
- Consolidated Statement of Cash Flow Pg 34
- Notes to the Financial Statements Pg 35 - 54
2
## About Us
The Diocese includes much of Greater Manchester north of the Mersey and Lancashire including Blackburn and Burnley. The diocese comprises approximately 260,995 Catholics, with 109 parishes and 206 schools*.
## Charity Registered Name:
The Salford Diocesan Trust (TSDT) commonly known as the Roman Catholic Diocese of Salford and also referred to as Salford Roman Catholic Diocesan Trustees Registered (SRCDTR).
Charity Registration Number: 250037
## Registered Address:
Wardley Hall, Worsley, M28 2ND
## Public Address:
Cathedral Centre, 3 Ford Street, Salford, M3 6DP
## Trustees:
Reverend John Stanley Kenneth Arnold, Bishop of Salford Reverend Canon Michael Cooke, Vicar General and Moderator of the Curia Reverend Christopher Dawson Reverend Peter Hopkinson, Vicar General Sir Peter Fahy Edward Nally Mary Hunter Reverend Canon Michael Jones Eamonn O’Neal Brendan McCafferty Elizabeth Lilley Michael Devlin (resigned July 2023)
## Financial Secretary:
Pauline Morgan, Chief Operating Officer, and Financial Secretary
## Key Personnel:
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 (Left May 2024) Rachel McGee – Head of Communications and Deputy Chief Operating Officer Simon Smith – Director of Education
*Our schools finances are not consolidated into these accounts
3
## About Us
## Advisors:
Auditors
Crowe UK LLP, 3rd Floor, St George’s House, 56 Peter Street, Manchester M2 3NQ
Bankers:
Barclays Bank Plc, Barclays Business Centre, Manchester City Office, PO Box 357, 51 Mosley Street, Manchester, M60 2AU
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
## Investment Managers:
Evelyn Partners, 14th Floor, 103 Calmore Row, Birmingham B3 3AG
Solicitors:
Fieldings Porter, Silverwell House, Silverwell Street, Bolton, BL1 1PP
## Pensions:
Punter Southall, Aspire Beech House, Hackness Road, Northminster Business Park, Northfield Lane, York, YO26 6QR
102 Clergy 69 Retired Clergy
89 Religious 5 Deacons
4
## I ~~ntroduction from Bishop John~~
As I look forward to marking the tenth anniversary of my arrival as Bishop of Salford, I am very grateful for the work that has been achieved by the people of the Diocese over those ten years which has demonstrated a determination to put Gospel values into action in the circumstances in which we now find ourselves. There is a clear sense of mission. Together, through our initiatives, pastoral programmes, and world events we have been on a journey of learning, renewal and participation.
Parishes of the Diocese should feel rightly proud of the work they are doing, and I believe that the synodal process and its prayerful discernment of what God is asking of our Church will be another important step in our diocesan journey. We certainly need to be open and listening so that we can adopt the right priorities for the future. We live in changing times, and we must discern how we live Gospel values and select the appropriate priorities.
We must, as good stewards, also focus on the resources of our Diocese. We must be careful to take the time to review our estate, our expenditure, and our needs. In all our decisions we must be sure to be environmentally and ecologically aware in all that we do in building a Diocese fit for the future and for the purpose of the church in the 21st century.
2023 brought much joy as we saw the gathering of our youth at events such as World Youth Day, and pilgrimages to Lourdes and Walsingham, showing the companionship and faith that we hope to continue to foster in our diocesan family. Encouraging the enthusiasm and dedication, particularly of the young, is a challenge to us all as we look to build our Diocese fit for their future needs.
In all matters of Faith, we must be thankful for all that is achieved but be careful to avoid any sense of complacency. We face many challenges as “Missionary Disciples”, but we can be confident that, with the guidance of the Holy Spirit, we can overcome obstacles and strengthen the Church, in this Diocese of Salford.
109 Parishes
206 Schools
5
## Chief Operating Officer’s Report
2023 saw more of a return to pre covid activity with our events and pilgrimages in full swing, Our Mass attendance is still below 2019 levels, but we are seeing seeds of hope throughout the diocese.
As a result of the fall in Mass attendance, despite the generosity of our parishioners, our offertory income has still not reached pre covid levels. The financial impact of the cost-of-living crisis and the war the Ukraine continues to provide a challenging economic environment for our parishes. They are especially impacted by rising fuel prices, most parishes saw a large increase on their 2023 energy bills.
Following concerns about income and cash flow in June 2023 we introduced a 12-month moratorium on non-essential spend. The trustees also took the decision to review all capital projects. This has resulted in a considerable reduction in the plans for The Laudato Si’ Centre, we are no longer looking to convert the Coach House due to rising costs, in the short-term we are looking at a muchreduced plan to only convert the Stable Block.
This was not a decision that was taken lightly, and we appreciate the impact this will have on many parishes. A strategic review across all Diocesan property is underway which will permit the Diocesan Team to adopt a more proactive approach as we move forward, safeguarding the financial future of the Diocese. We are also witnessing the impact of repairs caused by a failure to conduct a regular maintenance programme, we must now take action to curb these future costs.
We must accept that we cannot just operate business as usual but ensure that we use this time effectively to get ahead for the future.
Finally, I would like to express my gratitude to clergy, staff, and our amazing volunteers for all they do for the diocese.
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164
Employees
Curia and
Parish
32
Contactless
Giving
Parishes
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6
## ~~Year In Numbers~~
92 weekly hours of reconciliation
3281 Baptisms
529 Weekday Masses
676 Faith in Action Awards
1308 Confirmations
1 Ordination to the Priesthood
413 Sunday Masses
4108 First Holy Communions
26 417 Average weekly attendance
7
## Our Finances at a Glance
Income £28.2M
Reduction in total yearly income of £0.4M
Expenditure £35.9M Operating Deficit £7.7M
Reduction in yearly parish income of £1.3M
34% of our income from Offertory collection Increase in yearly parish expenditure of £3.9M
£211 per parishioner spent on repairs and maintence of churches
£0.6M reclaimed in Gift Aid
8
## Our Finances at a Glance
## Income 2023
## Total income of £28.2 million
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Donations and Legacies
26.1%
SCA - School Building Works
37.8%
Other Trading Activities
7.4%
Income from Investment
Other Income Income 9.9%
12% from
Charitable
Activities
6.7%
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Raising Funds
Expenditure 2023 7.2%
SCA - School Building Works
Total Expenditure of 29%
£35.9 million
Charitable Activities
63.8%
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## Annual Review
We began the year as a Diocese with a call from Bishop John that we as an organisation, parish, and individuals reflect upon becoming the Church God is calling us to be.
The themes of reflection, listening and coming together to celebrate recurred throughout 2023 as we continued our journey to better understand the challenges and opportunities facing our Diocese, and how God might be calling us to respond.
## Listening
In Lent of 2023 we official launched our diocesan synod. This started with seeking representatives from all our parishes and encouraging a wide range of voices to get involved and be heard. The preparation stage took several months and was followed in October 2023 by the start of ‘The Big Listen’.
Running between October 2023 and January 2024, this stage of the process sought to hear from as many people as possible. We asked parishes, schools, groups, and individuals to help us by reflecting on and responding to four key questions that help us identify the role and mission of the Church in our diocese today.
Responses were gathered by synod members through Big Listen events in parishes across the diocese. In addition we sought out views from groups such as prisoners, young adults, LGBT+ Catholics, those who had left the church and Caritas service users. We received thousands of responses via our portal bringing a range of issues, suggestions, and thoughts to be formulated for the Synod gathering events in 2024.
We were delighted to see so many people respond to the call to help shape our diocese for the future. At the same time as the Synod and complementing its work, our Youth Ministry team has
also been visiting schools and colleges across the diocese to hear from the youngest members of our diocesan community. Nearly 400 students across 23 schools and colleges have made their voices be heard.
The move to be a listening church echoes the call from Pope Francis and as well as stand-alone projects like the diocesan synod it is an approach we are bringing into other aspects of diocesan life.
221 Synod Reps
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We welcomed the opportunity to undertake a pilot audit of our safeguarding function in February 2023. The audit was completed by the Catholic Safeguarding Standards Agency (CSSA). As part of the new CSSA remit they will be undertaking regular audits of the 22 dioceses of England and Wales. Salford was one of the dioceses that volunteered to be audited during the pilot period. Auditors were impressed by the consistent evidence that the Bishop and Leadership are leading from the front in promoting safeguarding and that all departments across the diocese make safeguarding a key consideration from the start of all new activities. The provision of support services for victims was highlighted as a strength, but as with all safeguarding activities we continue to look to build and improve.
## Reflecting on our achievements
The expansion and development of the Laudato Si’ Centre and its growing reputation both within our diocese and wider afield remains a source of great pride. Since March 2019 a lot of hard work and dedication by a small team of dedicated staff and volunteers means that the Laudato Si’ Centre is established as educational and wellbeing space, with the woodland being added to the walled gardens, greenhouses, orchard and outdoor classroom in this year. In 2023 we welcomed 2,200 visitors including school and parish groups to a variety of educational and inspiring activities. The expansion into the woodland meant we have been able to offer an even more varied programme of retreats, courses and opportunities for children to explore nature through play.
One of our main aims of the Centre is to reach out to groups that are often excluded from society. Since our inception we have partnered with the Northern School of Permaculture, Lancashire Wildlife Trust, Salford CVS, Take Action Together and local community interest companies and charities. We have been able to offer programmes for people with mental health problems, refugee and asylum seekers and horticulture therapy for all ages, as well as learning new skills such as learning to save seeds, survey wildlife and gardening for wildlife.
We are currently reassessing how we can adapt some of the remaining spaces on the estate of Wardley Hall, so that we can still use the opportunity to repurpose part of the redundant space. We now do so within the post covid financial landscape.
2200 Visitors to LSC
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The centre and our work help people to learn how they can take practical action to tackle climate change and work towards a sustainable world. This remains a priority for us but we believe that in the immediate future we can still have the desired impact within a smaller building and a reduced capital project.
We looked to develop the strategic work of our environmental commitment by launching, Hearing the Cry: Responding in Hope – a positive document setting out our wholescale diocesan response to the ecological crisis. The document begins with a powerful call from Bishop John, reminding us that caring for creation is an integral part of our Catholic faith – a faith grounded in hope. Despite the severity of the challenges we face, it is precisely this sense of hope that provides the building blocks for our strategy, highlighting the positive impact we can make within our diocese and the wider Christian community for the good of our common home.
Hope is a theme we return to regularly in our diocese, believing that we can, as missionary disciples in missionary parishes make a difference. This was the core concept behind our pastoral programme, Hope in the Future, which drew to a conclusion as our fifth and final stage closed with a joyful celebration. At our celebration Bishop John reminded us that our work doesn’t simply end with the programme; it merely provided a bedrock for each one of us to live out our mission as individuals and as parishes and schools.
These words were summed up in our legacy document:
“Equipped in the knowledge and experiences we gained through our Hope in the Future programme, many of our parishes are now primed to continue their mission in the face of these challenges to make a difference, to bear witness to the joy of the Gospel, to leave this world perhaps a little better than we found it”
Over 300 Pilgrims to Walsingham
Over 200 Pilgrims to Lourdes
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## Celebrating Our People
When people think of our diocese they will often think of churches or maybe even schools. We like to think of people, clergy, volunteers, parishioners and those employed across our the whole of our diocese who contribute to the pastoral and social life of the Church. We are lucky to have such dedicated people, especially our volunteers who contribute their time and expertise on an unpaid basis across a wide array of diocesan activities. It is impossible to quantify their contribution and support but without them our parishes and diocesan life would not be as vibrant or as effective in achieving the Church’s mission. In addition we have been making volunteering a focus of our employee calendar. 2023 saw two more successful volunteering days when colleagues took the opportunity to step out of the office and help with our sister charity, Caritas, and our Laudato Si’ Centre. Organised by our wellbeing group these days are becoming a regular activity and in 2024 we have plans to use them to support our parishes.
As well as our adult volunteers we would also like to recognise the active faith and service of children and young people in their school and parish community. Our Faith in Action award will mark 5 years from its launch in 2024 and each year we say more and more young people choose to get involved. In 2023 we saw 11 new schools sign up and 676 certificates and badges were presented to our young people. The award creates opportunities for them to become more active in their parish and helps us to build the parish volunteers of the future.
We give special thanks to parishioners across the diocese who take on significant positions across the diocese in order to live out our mission to serve one another. These include a member of our Cathedral Choir Mary-Liz Walker JP DL, who was chosen by King Charles III as the High Sheriff of Greater Manchester and the current Mayor of Trafford, Dolores O’Sullivan.
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676
Faith in
Action
Awards
300+
Attended
Young Adult
Events
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## 13 Two Parish Case Studies
## St John the Baptist, Rochdale
A striking church in the heart of Rochdale has enjoyed a new lease of life in 2023, thanks to a varied outreach programme on the back of an extensive restoration project.
Volunteers at St John the Baptist have been working hard to develop innovative and engaging ways to make the church a real home for local people of all faiths and backgrounds.
The newly-restored church welcomed in almost a 1,000 people through its heritage open days, which enabled visitors to explore and learn more about the remarkable history and structure of the church – not least its magnificent mosaic.
The dedicated team of volunteers continued to extend its reach by implementing new signage, increasing footfall by 100, and transforming the grounds into a friendly community garden, gaining a Level 5 “Outstanding” Accolade from the Royal Horticultural Society.
Regular music events celebrated the rich and diverse culture of the Rochdale community, while arts, crafts, and photography sessions invited visitors to take artistic inspiration from the incredible Byzantine-style church and develop their creative talents.
Volunteers put the church on the digital map by launching a range of growing social media channels and new user-friendly website, all the time maintaining its historic roots by searching out fascinating stories about the church and community and celebrating its extraordinary heritage through talks and exhibitions.
315 metres of mosaic cleaned and repaired
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## Bee Together Garden Awards
The close of 2023 has seen The Bee Together Community Centre and Garden – based at the Parish of The Nativity in Failsworth and Limeside – nominated for The Kings Award for Voluntary Service.
No stranger to awards and accolades, the project already has a number of RHS Awards under its belt, thanks to its vibrant community garden. This latest nomination pays tribute to the tireless efforts of all the volunteers who work tirelessly to make the garden and accompanying community centre a welcoming hub for people of all generations, backgrounds, and faith groups.
The project began in 2019 in response to Bishop John’s call to take environmental action in our parishes. Since then, volunteers from the parish and beyond have taken the project from strength to strength.
The garden, brimming with wildlife and an array of colourful plants and crops, is set to embark on a year-round growth plan, to increase produce that is shared with the local community. Meanwhile, the lively centre is a hive of activity for the whole community, offering Irish dancing and film nights, honey tasting and community get togethers. Keeping Pope Francis’ message of fraternity at its heart, the centre also has a “Call in for a Cup” group, providing a friendly face over a warm drink and a game of Bingo, whilst its food distribution service – The Pantry – offers a helping hand to people across the area.
3 Colonies each with 60k bees
35 regulars at weekly drop in
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## Responding to our Challenges
As we listen and reflect to the needs of our communities and how we must adapt to the changing world around us, we also need to accept that we cannot just operate business as usual but ensure that we are planning for the future and the most appropriate use of our resources.
In 2023 we began a review of all diocesan property. All the property has been rated into three categories. Over the coming months we will start to engage with parishes about the future of some of the unused buildings that are in a poor state of repair. This strategic review across the whole Diocese will permit the Diocesan Property Team to adopt a more proactive approach as we move forward, safeguarding the financial future of the Diocese.
We remain mindful of our finances but also our responsibility as guardians of listed buildings. Therefore 2023 saw the continuation of several restoration projects.
The restoration of our Cathedral moved on to Phase 2 which concentrates on the interior. Salford Cathedral has been altered significantly over its lifetime, with much of the original layout and decoration having been removed in the latter half of the 20th Century. We are aiming to restore the original internal character of the cathedral, reordering and relighting it, using sustainable technologies such as heat pumps, new insulation, and double-glazing each stained-glass window.
In July 2023, our contractors took over the cathedral and we moved to a temporary purpose-built building on the same site. The cathedral community has come together and made our temporary home a vibrant place to worship.
Phase 1 works continued simultaneously, and we saw the completion of a large number of repairs to stonework, the spire and the roofs. The great majority of the repairs concern the external fabric, with a relatively small amount being used for internal redecoration and refurbishment. The redecoration costs have been reduced significantly due to the impact that the repair work has had on the building.
Our city-centre parish was the grateful recipient of a five-figure funding boost to help preserve its beautiful building. St Mary’s Church in Manchester – also known as the Hidden Gem – was granted £30,000 from National Churches Trust to help pay for urgent repairs to rainwater goods and for roof and dome repairs.
61 Listed Properties
16
The Grade II*-listed church also received an additional £6,750 from the Benefact Trust, £6,000 from The Wolfson Foundation, and £2,000 from a private charitable trust, as well as other donations from charitable organisations and parishioners. These generous donations helped provide a new lease of life for this much-loved church, allowing them to commence Phase 1 of the restoration project.
Both these restoration projects are examples of crucial repairs being needed following extreme weather condition over recent years, including intense rainfall. The environmental impact on buildings will form a key pillar of our property strategy but work has already begun with the decarbonisation audit of diocesan buildings. Audit reports and decarbonisation pathways are being developed for all parish buildings. The work in schools is well underway and interventions to reduce energy use, such as solar photovoltaics and LEDS, have been installed in over 150 schools.
We are grateful to the organisations that have awarded our grant funding. In 2023 this amounted to over £250k in grants to help our parishes in essential building work and property maintenance. We were delighted that one of our Churches, St Thomas Moore in Alkrington was amongst the recipients of the National Churches Trust ‘Last Chance Churches Campaign’, one of only 18 Churches chosen across the UK. Additionally we have secured nearly £900k to be reclaimed from the Listed Places of Worship VAT Reclaim scheme.
As well as a focus on grant funding as an alternative funding stream we have continued to roll out our digital offering to support parishes to enable parishioners to donate in a way that is most suitable for them. 15 new Churches signed up during the year, bringing the total to 32. Nearly £10,000 was raised from the machines in December 2023 alone. Alternative ways of giving and exploring the best ways to support parishes in this task remains in our plans as we move forward.
Towards the end of the year we announced our divestment from Fossil Fuels. Over the previous two years we had been putting our responsible investment policy into action and using our influence to challenge companies to set ambitious targets and make the lasting change we need. It became clear that with the two companies we were invested in that they no longer shared our commitment to decarbonisation pathways and transition plans. We would be failing in our duty to our common home and our brothers and sisters, if we had decided not to act. Our policy and our action is clear - We must take a stand against companies that do not align with our principles and that put their profits ahead of the common good. This does not mean that we end our engagement, a crucial element of our policy in practice is that we continue to use our voice to champion for dialogue, change, and action.
£250k in successful parish grant funding
17
## Aims, Objective and Purpose
The diocese primary purpose is the advancement of the Roman Catholic Faith. The diocese comprises of 109 parishes serving 260,995 Catholics across much of Greater Manchester and East Lancashire. We achieve this objective by providing activities undertaken by our parishes and central services, guided by our gospel values and the principle of good stewardship.
Those activities include worship, 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 communities and our clergy
- Education and Training for those who wish to be priests
- Maintenance and upkeep of our church and parish buildings
- Providing assistance to governors regarding the upkeep of school buildings through grant schemes under the DFC and SCA.
- Access to professional advice and support for our communities 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-officio the Chair of Trustees and membership of the board is based upon invitation by the trustees to suitably qualified individuals subject to approval by the Bishop.
Trustees are selected on the basis of their range of skills and experience and the board comprises a mix of both ordained clergy and Catholic lay people. Periodic training and workshop sessions are also held for the trustee body as a whole.
18
## Governing Regulations
The Trust Deed of the Charity governs appointments of Trustees. The latter are chosen according to their experience of the Trust’s 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. Our committees are:
- Audit and Risk Committee
- Claims Committee
- Communication Committee
- Environment Committee (formerly Laudato Si)
- Finance Committee
- HR Committee
- Investment Committee
- Planning and Resources Committee
- Property Committee
- Remuneration Committee
- Safeguarding Committee
- Schools & Academies Committee
The Chief Operating Officer 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 recommendations 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 takes account of pay practice in other similarly sized charities and, where necessary, private, or public sector organisations for specialist and technical roles.
The fixed assets and investments of the Charity are vested in a trust with the Diocesan Trustees as the managing Trustees. Recognising the need for expertise, the Trustees have engaged professional advisors in the areas of finance, investment, insurance, law and protection of minors and vulnerable adults.
The Trustees are listed on page 2.
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 three active wholly owned trading subsidiaries. See section Trading Subsidiaries on page 25.
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## Relationships with Other Parties
The Trustees consider Caritas Diocese of Salford to be a related party by virtue of it having common Trustees. The Charity’s aim is that the lives of all people should be free from poverty, disadvantage and discrimination. Their purpose is to help the most vulnerable children, young people and adults in our communities to transform their lives and fulfil their potential.
The faith and teachings of the Roman Catholic Church clearly inform 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 Salford co-operates on various 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 parishes support the activities of other charities such as the Catholic Agency for Overseas Development (CAFOD), the official aid agency of the Catholic Church in England and Wales (Charity no 1160384) and adopts unified policies through national 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 (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently.
- observe the methods and principles in the Charities SORP.
- make judgements and estimates that are reasonable and prudent.
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at anytime the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution.
20
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 integrity of the financial information included on the charity’s website.
## Statement as to Disclosure of information to Auditors
The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware.
Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees 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 Trustees have ensured they carry out the Trust’s objectives for the public benefit and have (in accordance with Charities Act 2011) 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 from the detail in the Trustees Report that the Trust acts in a way which beneficially impacts on society. It promotes public services, in dedicated buildings and elsewhere, in accordance with the practices and teachings of the Roman Catholic Church, for hearing and appropriating the word of God and for the worship of God both generally and at significant points in people’s lives. In this way it helps form and gives expression to the spiritual dimension of the lives of members of the public. It also thus 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 number of practical expressions of Christian faith (including 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 and active Investor. Guided by the principle of stewardship, with an authentic set of investment statements and an accompanying investment framework that demonstrates 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.
As an active investor, 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.
21
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. This was put into action in 2023 by our decision to divest directly from Fossil Fuel companies.
Our investment policy was ratified in 2021 and since then we have implemented the following changes and actions:
- Delegated powers to investment sub committee
- Increased monitoring of the portfolio and how it relates to our principles
- Implemented ESG performance verification and reporting
- Implemented additional Roman Catholic values based investment screening
- Engaged, collaborated and participated with companies and networks to use our influence to challenge for change
- Divested from fossil fuels, taking a stand against companies that do not align with our principles.
## Fundraising
As with other charities we are witnessing the cost-of-living crisis in our donation 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 started a feasibility study on the possibility of undertaking a professional fundraising campaign using an outside agency. The agency consulted with clergy and laity from 69 parishes across all 9 deaneries. Following the final report we decided to not pursue a professional campaign at this stage but Trustees agreed that new ways of funding would be looked at in 2024.
The charity did not carry out any fundraising activities as defined by the Charities (Protection and Social Investment) Act 2016
## Plans for Future Periods
In 2023 we implemented a moratorium of all non-essential property spend in our parishes and all non essential spend in diocesan departments. We felt that a pause was needed to minimise the impact that current expenditure levels were having on diocesan cash flow. Whilst we are finally seeing a slow return to pre covid income levels, our expenditure continues to rise above inflationary levels. Due to the recent rise in the cost of building work and materials, we are also witnessing tenders returning at significantly increased price.
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The impact of the pause will now be calculated. The break also allowed time for strategic planning to take place allowing us to create a vision to take the diocese into the next decade. Creating parishes that can respond and adapt to the challenges they face.
In our wider plans 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.
- Completing a property strategy that recognises the future needs of our buildings. Leading by example to care for our common home.
- Adapting to a new landscape of fundraising in the Church.
- Completing our Cathedral Restoration.
- 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 2023 is set out on pages 29-31. Total incoming resources amounted to £28.2 million in 2023 (2022 £28.6 million). Most of the unrestricted 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.
## Income 2023
Total income figures above include £ 10.7million in 2023 (2022 £11.2 million) in relation to changes the way income is received from the school building projects. Total overall Donations and Legacies have increased during 2023 by £0.1 million. Our Parish Income is still well below pre-pandemic levels and has decreased by(£4.7million from 2022 to 2023. Our Mass attendance also increased from 24,104 in 2022 to 26,417 in 2023, although this does not show a return to pre pandemic levels yet it is an increase of 9.59%.
During the year collections in the parishes for specific purposes including those for other charities totalled £0.2 million (2022 £0.2 million). The investment portfolio achieved income of £2.8 million in 2022, this was up from the £1.4 million achieved in 2022, this increase was due to interest on restricted funds.
23
|Income 2023|2023
%|2023
£m|2022
%|2022
£m|
|---|---|---|---|---|
||||||
|Donations and legacies|26.0%|7.4|25.4%|7.3|
|Other trading activities|7.5%|2.1|7.4%|2.1|
|Income from Investment|9.8%|2.8|4.9%|1.4|
|Income from Charitable
activities|6.9%|1.9|6.4%|1.8|
|Other income|11.9%|3.4|16.8%|4.8|
|SCA - School Building
Works|37.7%|10.7|39.1%|11.2|
||||||
|Total Income||28.2||28.6|
## Expenditure 2023
Total expenditure amounted to £35.9 million in 2023 (2022 £32.5million).
Total expenditure figures above include £10.4 million in 2023 (2022 10.5 million) relating to the recognition of SCA school building works related to expenditure
|Expenditure 2023|2023
%|2023
£m|2022
%|2022
£m|
|---|---|---|---|---|
|Raising funds|7.2%|2.6|7.7%|2.4|
|Charitable activities|63.8%|22.9|59.0%|19.5|
|SCA - School Building
Works|29.0%|10.4|33.3%|10.5|
|Total Expenditure||35.9||32.5|
24
## Summary
The net movement for the year was a deficit position of £7.0 million (2022 deficit - £1.6m), 2023 carried forward funds of £108.8 million (2022 £115.8 million) 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. This included a moratorium on non-essential building spend in 2023/2024.
The Diocese made contributions of £ £0.2million in 2023 (2022 - £0.2million) to National Bodies of the Roman Catholic Church.
## Statement of Reserves
The total reserves of the Charity including parochial reserves, amounted to £108.8 million at 31 December 2023 (2022 £115.8million). The unrestricted free reserves i.e. current assets including bank deposits less current liabilities amounted to £25.2 million (2022 £36.6 million). At 31 December 2023 the free reserves of the Diocese are equivalent to approximately 14 months of recurring expenditure (2022 24 months). The Trustees continue to assess what the current target level of free reserves should be in the current economic climate taking into account the expenditure and investment requirements moving forward. The diocese as part of the 2030 vision is looking at the whole estate to ensure that this is fit for future and is financially and environmentally sustainable going forward.
Restricted reserves as at 31 December 2023 were £ 9.8 million (2022 £9.7 million). Both the economy and stock markets continue to remain uncertain with global supply issues and the ongoing cost-of-living crisis.
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, £1m in 2023 and based on current indicative cashflow we estimate that we will release a further £10m 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 will continue to monitor 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 must operate.
By managing assets and resources the Trustees are confident that the Trust has sufficient available funds to maintain its activities over the medium term.
25
## 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 (£0.2) million, as a result of divestment in relation to the plan capital works for the cathedral, the dividend yield increased slightly by 0.3% resulting is an increase in income of £5k from 2022. 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.
Risks currently include reducing the structural deficit, ensuring Health and Safety compliance in all our properties and reducing the burden of our empty properties.
## Trading Subsidiaries
The Trust has four active wholly owned trading subsidiaries.
Catholic Truth Society (CTS) provides our onsite and online bookshop. The bookshop traded in 2023 but announced its closure. The bookshop closed from March 2024 and the company will be dormant.
Catholic Support Services Limited which continues to provide training, advice and recruitment assistance to our Catholic Schools as part of the Diocesan Department for Education and to assist them with building matters. In addition, it administers the links with local hospital trusts and police for the provision of chaplains. The operating surplus from the company is gift aided to the Diocese.
26
Catholic Building Services Limited – no activity took place during 2023 and the company is currently dormant.
SDC Trading Limited the Charity’s subsidiary company responsible for the commercial activities of parish social clubs within the Diocese, is currently in a deficit position, of (78.7k) in 2023 (2022 £65k surplus). SDC Trading Limited is responsible for the commercial activities of parish social clubs within the Diocese.
## Conclusion
Over the last 12 months direct action has been taken to address unprecedented levels of expenditure. We are aware of the impact this action, coupled with rising costs and a continued recovery from the pandemic is having on our parishes. We could however not operate business as usual.
These changes have given us time to pause and plan effectively for the future. Ensuring that we can continue to live out our mission, responding to challenges and building a diocese ready for the needs of future generations.
## Approval
This report was approved by the Trustees on 19th September and signed on their behalf:
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 (the “charitable company”) and its subsidiaries (the “group”) for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Consolidated Statement of Cash Flows 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 the charitable company’s affairs as at 31 December 2023 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 Companies Act 2006.
## **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 trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
28
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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- the parent company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; 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 19, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
29
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, legacy income and offertory income, valuation of properties, valuation of the provision for clergy no longer in active ministry 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 and the assumptions adopted in calculating the provision for clergy no longer in active ministry.
A further description of our responsibilities for the audit of the financial statements is available 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Vicky Szulist
Senior Statutory Auditor
For and on behalf of
## **Crowe U.K. LLP**
Statutory Auditor
3rd Floor St George's House 56 Peter Street Manchester M2 3NQ 27th September 2024
30
## Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Consolidated Statement of Financial Activity
## Consolidated Statement of Financial Activity Year End to the 31st December 2023
|**Notes**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
**2.1**
Other trading activities
**2.2**
Income from Investment
**2.3**
Income from Charitable activities
**2.4**
Other income
**2.5**
SCA - School Building Works
**2.6**
**Total Income**
**EXPENDITURE ON:**
Raising funds
**3.1**
Charitable activities
**3.2**
SCA - School Building Works
**3.3**
**Total Expenditure**
Net Gains/(losses) on investments
Net income/(expenditure)|**Unrestricted**
**Restricted**
**Total**
£
£
£
6,997,976
-
6,997,976
426,704
-
426,704
422,780
-
422,780
23,699
-
23,699
2,617,808
989
2,618,797
-
-
-
10,488,967
989
10,489,956
717,870
-
717,870
13,895,269
113,822
14,009,091
-
-
-
14,613,139
113,822
14,726,961
-
-
-
(4,124,172)
(112,833)
(4,237,005)
**PAROCHIAL FUNDS**|**Unrestricted**
**Restricted**
**Total**
£
£
£
144,952
208,682
353,634
1,704,190
-
1,704,190
2,359,522
-
2,359,522
1,924,938
-
1,924,938
661,410
93,709
755,119
-
10,661,410
10,661,410
6,795,012
10,963,801
17,758,813
1,878,685
-
1,878,685
8,534,179
371,885
8,906,064
-
10,398,122
10,398,122
10,412,864
10,770,007
21,182,871
925,314
-
925,314
(2,692,538)
193,794
(2,498,744)
**DIOCESAN FUNDS**|**DESIGNATED**
**Total**
£
-
-
-
-
-
-
-
-
-
-
-
-
-|**ENDOWMENT**
**Total**
£
-
-
-
-
-
-
-
-
-
-
-
-
-|**2023**
**2022**
**Total funds**
**Total funds**
£
£
7,351,610
7,274,421
2,130,894
2,125,151
2,782,302
1,413,326
1,948,637
1,828,709
3,373,916
4,799,785
10,661,410
11,187,664
28,248,769
28,629,056
2,596,555
2,440,671
22,915,155
19,485,681
10,398,122
10,531,341
35,909,832
32,457,693
925,314
(4,256,664)
(6,735,749)
(8,085,301)|
|---|---|---|---|---|---|
The notes on pages 33 to 54 form part of these financial statements
31
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Consolidated Statement of Financial Activity
|**Notes**
**Other recognised gains/(losses):**
Gains/(losses) on revaluation of
investment properties
**5**
Gains/(losses) on change in actuarial
movement
**3.8**
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**Restricted**
**Total**
£
£
£
-
(4,124,172)
(112,833)
(4,237,005)
38,633,371
120,780
38,754,151
34,509,199
7,947
34,517,146
**PAROCHIAL FUNDS**
-
-
-
-
-|**Unrestricted**
**Restricted**
**Total**
£
£
£
-
45,000
45,000
(2,647,538)
193,794
(2,453,744)
70,268,895
9,624,672
79,893,567
67,621,357
9,818,466
77,439,823
**DIOCESAN FUNDS**
-
-
-|**DESIGNATED**
**Total**
£
-
(322,000)
(322,000)
(2,890,000)
(3,212,000)|**ENDOWMENT**
**Total**
£
-
-
1,456
1,456
-|**2023**
**Total funds**
£
45,000
(322,000)
(7,012,749)
115,759,173
108,746,424|**2022**
**Total funds**
£
5,500,482
1,010,000|
|---|---|---|---|---|---|---|
|||||||(1,574,819)|
|||||||117,333,993|
|||||||115,759,173|
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 Diocese Trustees Registered has taken advantage of the exemption from the Charities Act 2011 in not presenting as a separate Statement of Finicail Activity.
The surplus/(deficit) for the charity for the year ended 31st December 2023 was (£7.0m), for 2022 (£1.6m).
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Consolidated and Charity Balance Sheet
32
## Consolidated and Charity Balance Sheet As of 31[st] December 2023
|**Notes**
**Fixed assets**
Tangible assets
**4**
Investment Property
**5**
Investments
**6**
**Current assets**
Stocks
**7**
Debtors
**8**
Cash at bank and in hand
**9**
Creditors
Amounts falling due within one year
**10.1**
Care of Clergy Provision
**10.2**
**Net current assets**
Total assets less current liabilities
**Total net assets**
Funds
Unrestricted funds - general
**13**
Restricted funds
**13**
Permanent endowment
**13**
Revaluation Reserve
**13**
Care of the Clergy Provision
**Total funds**|**2023**
**2022**
**2023**
**2022**
**£**
**£**
**£**
**£**
42,734,185
38,187,602
42,589,253
38,016,314
8,014,000
7,969,000
8,014,000
7,969,000
32,788,850
32,971,703
32,788,855
32,971,708
83,537,035
79,128,305
83,392,108
78,957,022
79,539
134,329
-
-
4,497,734
4,667,603
4,375,985
4,594,772
33,795,036
44,906,183
33,139,317
44,251,220
38,372,309
49,708,115
37,515,302
48,845,992
(9,950,920)
(10,187,247)
(9,403,194)
(9,584,771)
(3,212,000)
(2,890,000)
(3,212,000)
(2,890,000)
25,209,389
36,630,868
24,900,108
36,371,221
108,746,424
115,759,173
108,292,216
115,328,243
**108,746,424**
**115,759,173**
**108,292,216**
**115,328,243**
96,585,074
103,401,784
96,130,865
102,970,853
9,826,412
9,745,451
9,826,413
9,745,452
1,456
1,456
1,456
1,456
5,545,482
5,500,482
5,545,482
5,500,482
(3,212,000)
(2,890,000)
(3,212,000)
(2,890,000)
**108,746,424**
**115,759,173**
**108,292,216**
**115,328,243**
**Group**
**Charity**|
|---|---|
The financial statements were approved by the Trustees on 19th September 2024 and signed on their behalf by:
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Trustee
Rt Rev John Arnold, Bishop of Salford
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Consolidated Statement of Cash Flow
33
## Consolidated Statement of Cash Flow Year to 31[st] December 2023
|**Cash flows from operating activities**
Surplus / (Deficit) from the reporting period
**Adjustments to cash flows from non - cash items**
Depreciation
Investment income
Financial instrument (gains) / losses through statement of financial activities
(Profit) / loss on disposal of fixed assets
(Profit) / loss on disposal of fixed assets investments
Increase/(decrease) in Care of Clergy Provision
**Working capital adjustments**
(Increase) / decrease in stock
(Increase) / decrease in debtors
Increase / (decrease) in creditors
**Net cash flows from operating activities**
**Cash flows from investing activities**
Interest received and similar income
Purchase tangible fixed assets
Sale of tangible fixed assets
Purchase of investments
Sale of investments
Reclassification of investment property
Income from dividends
(Increase)/ decrease in Investment properties
**Net cash flows from investing activities**
**Net increase/(decrease) in cash flows and cash equivalents**
Cash flows and cash equivalents at 1 January 2023
**Cashflows and cash equivalents at 31 December 2023**
**Cash flows and cash equivalents Summary**
Cash at bank and in hand
Cash held as part of investment fund|**2023**
**£**
(7,012,749)
1,335,937
(2,782,302)
(699,035)
(189,203)
(226,279)
322,000
**(9,251,631)**
54,790
169,870
(236,327)
**(9,263,297)**
1,592,410
(5,897,781)
204,463
(4,648,019)
5,347,054
-
1,189,892
(45,000)
**(2,256,981)**
**(11,520,278)**
45,513,643
**33,993,365**
33,795,036
198,329
**33,993,365**|**2022**
**£**
(1,574,819)
1,366,573
(1,413,326)
(2,393,558)
(1,716,417)
6,650,222
(1,010,000)|
|---|---|---|
|||**(91,325)**|
|||(25,119)
(1,044,288)
1,828,470|
|||**667,738**|
|||261,653
(2,472,548)
1,991,193
(1,669,818)
4,063,376
(218,518)
1,151,673
(5,500,482)|
|||**(2,393,470)**|
||||
|||**(1,725,732)**|
|||47,239,375|
|||**45,513,643**|
|||44,906,183
607,460|
|||**45,513,643**|
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
34
Notes to the Financial Statements Year to 31[st] December 2023
## **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 have been considered 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 2023 discount rate of 4.5% (2022 20.5%) (Note 10.2)
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
35
## **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 and group 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 there being adequate cash and reserves in place for a period of at least 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 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
36
## **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 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
37
## **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 can 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 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
38
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 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
39
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 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
40
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 to|
||Salford,||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 South, 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, liabilitie the end of the reporting period can be found in note 18.
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
41
## **2. Income and endowments**
## **2.1. Donations and legacies**
|Donations
Legacies
Offertory collections|**Unrestricted**
**Restricted**
**£**
**£**
573,691
-
322,994
-
6,101,291
-
6,997,976
-
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
573,691
-
322,994
-
6,101,291
-
6,997,976
-
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
98,383
56,603
46,103
152,079
466
-
144,952
208,682
**Diocesan funds**|**Unrestricted**
**Restricted**
**£**
**£**
98,383
56,603
46,103
152,079
466
-
144,952
208,682
**Diocesan funds**||**2023**
**Total**
**£**
728,677
521,176
6,101,757
7,351,610|**2022**
**Total**
**£**
366,445
649,925
6,258,051
7,274,421
**2022**
**Total**
**£**
452,941
1,566,864
105,346
2,125,151|
|---|---|---|---|---|---|---|---|
|||||||||
|**2.2. Other trading activities**
**2.3.** **Investment Income**
**2.5. Other Income**
**2.4. Charitable Activities**
Social and fundraising income
S.D.C Trading Limited
Catholic Truth Society
Income from listed investments
Interest on cash deposits
Loan Interest Income
Moston & Wardley cemeteries
Catholic Support Services Limited
Other income
Rental Income
Grant Income
Profit/(loss) on disposal of fixed assets||||||||
|||**Unrestricted**
**Restricted**
**£**
**£**
426,704
-
-
-
-
-
426,704
-
**Parochial funds**||**Unrestricted**
**Restricted**
**£**
**£**
2,000
-
1,593,570
-
108,620
-
1,704,190
-
**Diocesan funds**||**2023**
**Total**
**£**
428,704
1,593,570
108,620
2,130,894||
|||||||||
|||**Unrestricted**
**Restricted**
**£**
**£**
-
-
422,780
-
-
-
422,780
-
**Parochial funds**||**Unrestricted**
**Restricted**
**£**
**£**
1,189,892
-
1,119,630
-
50,000
-
2,359,522
-
**Diocesan funds**||**2023**
**Total**
**£**
1,189,892
1,542,410
50,000
2,782,302|**2022**
**Total**
**£**
1,151,673
211,653
50,000
1,413,326|
|||||||||
|||**Unrestricted**
**Restricted**
**£**
**£**
23,699
-
-
-
23,699
-
**Parochial funds**||**Unrestricted**
**Restricted**
**£**
**£**
516,355
-
1,408,583
-
1,924,938
-
**Diocesan funds**||**2023**
**Total**
**£**
540,054
1,408,583
1,948,637|**2022**
**Total**
**£**
516,895
1,311,814
1,828,709|
|||||||||
|||**Unrestricted**
**Restricted**
**£**
**£**
1,384,059
-
631,543
-
602,206
989
-
-
2,617,808
989
**Parochial funds**||**Unrestricted**
**Restricted**
**£**
**£**
118,362
42,959
340,345
-
13,500
50,750
189,203
-
661,410
93,709
**Diocesan funds**||**2023**
**Total**
**£**
1,545,380
971,888
667,445
189,203
3,373,916|**2022**
**Total**
**£**
1,249,038
771,172
1,063,158
1,716,417
4,799,785|
## **2.6. Other Income – SCA – School Building Works**
|SCA - School Building Works|**Unrestricted**
**Restricted**
**£**
**£**
-
-
-
-
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
-
10,661,410
-
10,661,410
**Diocesan funds**|**2023**
**Total**
**£**
10,661,410
10,661,410|**2022**
**Total**
**£**
11,187,664|
|---|---|---|---|---|
|||||11,187,664|
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
42
## **2.7. Subsidiary companies**
Trading activities within the diocese consist of the subsidiary companies’ activities as follows:
|Catholic Support Services Limited
Catholic Truth Society
S.D.C Trading Limited|**2023**
**2022**
**Income**
**Expenditure**
**Net Income**
**Net Income**
**£**
**£**
**£**
**£**
1,408,583
966,465
442,118
520,184
108,620
178,068
(69,448)
(24,411)
1,593,570
1,736,466
(142,896)
683,800
3,110,773
2,880,999
229,774
1,179,573|
|---|---|
Catholic Building Services Limited is Dormant for 2023.
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 detailed within note 17 to the financial statements.
## **3. Resources expended**
## **3.1. Expenditure on raising funds**
## **3.1.1.** Investment management costs
|Investment Management fees|**Unrestricted**
**Restricted**
**£**
**£**
-
-
-
-
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
142,219
-
142,219
-
**Diocesan funds**|**2023**
**2022**
**Total**
**Total**
**£**
**£**
142,219
152,955
142,219
152,955|
|---|---|---|---|
## **3.1.2.** Fundraising Costs
|S.D.C Trading Limited
Social and fundraising
**Total expenditure on raising funds**|**2023**
**2022**
**Unrestricted**
**Restricted**
**Unrestricted**
**Restricted**
**Total**
**Total**
**£**
**£**
**£**
**£**
**£**
**£**
-
-
1,736,466
-
1,736,466
1,727,083
717,870
-
-
-
717,870
560,633
717,870
-
1,736,466
-
2,454,336
2,287,716
717,870
-
1,878,685
-
2,596,555
2,440,671
**Parochial funds**
**Diocesan funds**|
|---|---|
The notes on pages 33 to 54 form part of these financial statements
43
## Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
## **3.2. Expenditure on charitable activities**
||**Unrestricted**
**Restricted**
**£**
**£**
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
**Diocesan funds**|**2023**
**Total**
**£**|**2022**
**Total**
**£**
19,697,417|
|---|---|---|---|---|
|**Unrestricted**
**Restricted**
**£**
**£**
Clergy allowances
803,078
-
Gross Wages
925,010
-
Employer's NI
29,195
-
Pension Costs
48,006
-
Staff costs - other
520
-
Church & presbytery supplies
6,232,827
94,796
Property Overheads
4,277,977
15,708
Office costs
10,435
-
Parish vehicles
30,172
-
Other costs
728,441
-
Bank charges
60,807
-
Depreciation
740,377
-
13,886,845
110,504
**Parochial funds**
**3.2.1.**Parish Costs
**Total expenditure on charitable activities**
13,895,269
113,822||8,534,179
371,885|22,915,155||
||||||
||**Unrestricted**
**Restricted**
**£**
**£**
803,078
-
925,010
-
29,195
-
48,006
-
520
-
6,232,827
94,796
4,277,977
15,708
10,435
-
30,172
-
728,441
-
60,807
-
740,377
-
13,886,845
110,504
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
**Diocesan funds**|**2023**
**2022**
**Total**
**Total**
**£**
**£**
803,078
699,989
925,010
900,459
29,195
38,189
48,006
16,572
520
23,759
6,327,623
5,038,611
4,293,685
3,711,263
10,435
11,970
30,172
49,649
728,441
-
60,807
34,659
740,377
759,101
13,997,349
11,284,221||
## **3.2.2.** Central & Diocesan Costs
|Gross Wages
Employer's NI
Pension Costs
Staff costs - other
Clergy allowances
Sick & retired clergy costs
Property Overheads
Office costs
Church & presbytery supplies
Other costs
Subsidiary costs
Bank charges
Bad debts provision
Depreciation|**Unrestricted**
**Restricted**
**£**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
2,555,973
26,467
264,673
2,397
187,858
1,314
416,472
839
98,137
-
786,037
-
1,145,109
145,028
452,666
7,353
-
-
354,909
152,342
1,151,028
-
17,303
1
(17,616)
-
532,300
289
7,944,849
336,030
**Diocesan funds**|**2023**
**Total**
**£**
2,582,440
267,070
189,172
417,311
98,137
786,037
1,290,137
460,019
-
507,251
1,151,028
17,304
(17,616)
532,589
8,280,879|
|---|---|---|---|
## **3.2.3.** Governance Costs
|**3.2.3.**Governance Co|sts||||
|---|---|---|---|---|
|Legal & professional
Auditors remuneration
Accountancy services|**Unrestricted**
**Restricted**
**£**
**£**
8,424
3,318
-
-
-
-
8,424
3,318
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
181,092
35,855
61,320
-
18,958
-
261,370
35,855
**Diocesan funds**|**2023**
**Total**
**£**
228,689
61,320
18,958
308,967|**2022**
**Total**
**£**
205,770
39,740
21,970|
|||||267,480|
|**3.2.4.**Grants Payable|||||
|CATEW/NCF - Gross
Survivors Manchester|**Unrestricted**
**Restricted**
**£**
**£**
-
-
-
-
-
-
**Parochial funds**|**Unrestricted**
**Restricted**
**£**
**£**
239,540
-
88,420
-
327,960
-
**Diocesan funds**|**2023**
**Total**
**£**
239,540
88,420
327,960|**2022**
**Total**
**£**
204,234
83,895|
|||||288,129|
## **3.3.** SCA – School Building Work
|SCA - School Building Works|**Unrestricted**
**Restricted**
**Unrestricted**
**Restricted**
**£**
**£**
**£**
**£**
-
-
-
10,398,122
-
-
-
10,398,122
**Parochial funds**
**Diocesan funds**|**2023**
**2022**
**Total**
**Total**
**£**
**£**
10,398,122
10,531,341
10,398,122
10,531,341|
|---|---|---|
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
44
## **3.4. Staff Disclosures**
|**Personnel Costs**
Gross Wages
Employer's NI
Pension Costs
Other
Total Employee Costs|**2023**
**2022**
**£**
**£**
3,507,450
3,329,622
296,265
300,434
237,178
166,879
417,831
212,371
4,458,724
4,009,306|
|---|---|
The average monthly number of staff employed, based on average headcount during the year was as follows:
|Central Diocesan employees
Parish employees (excludes parish clergy)
Cemeteries employees
S.D.C Trading Limited
Catholic Truth Society
Employees receiving remuneration over £60,000
Between £60,000 to £69,999
Between £70,000 to £79,999
Between £80,000 to £89,999
Between £90,000 to £99,999
Between £100,000 to £109,999
Between £110,000 to £119,999
Pension costs to higher paid employees
Contributions to a defined benefits pension scheme
during the year
Key management personnel received salary and pension
contributions|**2023**
**2022**
**No.**
**No.**
75
66
87
91
8
8
76
64
2
2
248
231
**2023**
**2022**
**No.**
**No.**
2
2
1
2
1
-
-
-
-
1
2
1
6
6
60,823
43,137
NIL
NIL
701,657
705,707|
|---|---|
## **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 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
45
## **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 2023: £123 (2022: £543).
## **3.6. Employee Loans**
|At the year end, there were outstanding loans to
employees
The total amount of outstanding loans was:
The total amount of car benefit scheme outstanding
was:|**2023**
**2022**
**No.**
**No.**
4
**£**
**£**
631
664
4,159
4,286
4|
|---|---|
## **3.7. Movement in Net Funds**
||**2023**|**2022**|
|---|---|---|
|This is stated after charging:|**£**|**£**|
|Auditors remuneration:|||
|- Audit|63,581|50,034|
|- Other services|29,509|24,306|
|Profit / (Loss) on disposal of tangible fixed assets|189,203|1,716,417|
|Profit / (Loss) on disposal of investments|(226,279)|6,650,222|
|Depreciation of fixed assets|1,335,937|1,366,573|
|Finance charges payable|94,102|89,475|
## **3.8. Change in Actuarial Movement**
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Increase / (Decrease) Care of Clergy|322,000|(1,010,000)|
The accounts include a creditor for the Care of the Clergy Provision (please see note 10.2 and 17.3) to provide clarity on the ongoing commitment that the Diocese has to those no longer in active ministry.
The Actuarial movement noted above is a result of change in circumstances of priests included within the current provision.
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
46
## **4. Tangible Fixed Assets**
## **Group**
|**Cost**
At 1 January 2023
Additions
Disposals
At 31 December 2023
**Depreciation**
At 1 January 2023
Charge for the year
Disposals
At 31 December 2023
Net book value at 31 December 2023
Net book value at 31 December 2022|**Properties**
**Work In**
**progress**
**Fixtures &**
**Fittings**
**Computer**
**Equipment**
**Motor Vehicles**
**£**
**£**
**£**
**£**
**£**
52,910,458
1,805,486
4,627,798
229,648
18,410
1,854,850
3,917,641
94,576
30,714
-
(60,652)
(9,190)
(93,516)
(23,711)
-
54,704,655
5,713,937
4,628,858
236,651
18,410
17,748,555
23,881
3,420,507
192,845
18,410
1,066,513
-
247,956
21,468
-
(31,034)
(23,881)
(93,457)
(23,437)
-
18,784,034
-
3,575,006
190,876
18,410
35,920,621
5,713,937
1,053,852
45,775
-
35,161,903
1,781,605
1,207,291
36,803
-|**Total**
**£**
59,591,800
5,897,781
(187,069)|
|---|---|---|
|||65,302,511|
|||21,404,198
1,335,937
(171,809)|
|||22,568,326|
||||
|||42,734,185|
||||
|||38,187,602|
## **Charity**
|**Cost**
At 1 January 2023
Additions
Disposals
At 31 December 2023
**Depreciation**
At 1 January 2023
Charge for the year
Disposals
At 31 December 2023
Net book value at 31 December 2023
Net book value at 31 December 2022|**Properties**
**Work In**
**progress**
**Fixtures &**
**Fittings**
**Computer**
**Equipment**
**Motor Vehicles**
**£**
**£**
**£**
**£**
**£**
52,795,767
1,805,486
3,510,167
200,680
18,410
1,854,850
3,917,641
82,443
29,779
-
(60,652)
(9,190)
-
54,589,965
5,713,937
3,592,610
230,459
18,410
17,633,864
23,881
2,472,515
165,526
18,410
1,066,513
-
209,838
20,496
-
(31,034)
(23,881)
18,669,343
-
2,682,353
186,022
18,410
35,920,622
5,713,937
910,257
44,437
-
35,161,903
1,781,605
1,037,652
35,154
-
-
-
-
-
-|**Total**
**£**
58,330,510
5,884,713
(69,842)|
|---|---|---|
|||64,145,381|
|||20,314,196
1,296,847
(54,915)|
|||21,556,128|
||||
|||42,589,253|
||||
|||38,016,314|
## **4.1. Assets not used for charitable purposes**
|All of the tangible fixed assets are used by the Charity for its charitable purposes
with the exception of properties, computer equipment and fixtures and fittings
with a net book value of|**2023**
**£**
144,932|**2022**
**£**
171,288|
|---|---|---|
## **4.2. Capital Commitments**
|Capital commitments authorised and contracted for at 31 December 2023 were
as follows:
Diocesan Projects
School Capital Projects|**2023**
**£**
14,509,297
6,897,033
21,406,330|**2022**
**£**
2,546,892
7,481,885|
|---|---|---|
|||10,028,777|
Funding for Diocesan Projects includes the Cathedral restoring the glory project funded as agreed by Trustees from divesting part of the Investment portfolio.
School Capital projects are in main funded via the School Condition Allowance (SCA).
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
47
## **5. Investment properties**
|**2023**
**2022**
**£**
**£**
At 1 January 2023
7,969,000
2,250,000
Transfer from Fixed Assets
-
218,518
Revaluation Gain
45,000
5,500,482
At 31 December 2023
8,014,000
7,969,000
**Group**|**2023**
**2022**
**£**
**£**
7,969,000
2,250,000
218,518
45,000
5,500,482
**Charity**
-|
|---|---|
||8,014,000
7,969,000|
As at 31 December 2023, the investment properties represent the following:
|**Property**
St Augustine's School All Saints, Manchester
Sacred Heart Infant School, Gorton
Allen Hall (Land), 281 Wilmslow Road, Manchester
St Sebastians, Gerald Road, Pendleton, Salford
Former Our Lady's Primary School, Turf Pit Lane, Moorside
Playing Fields, St Bedes
Key Street Bar of Music, Clitheroe
St Wilfrid's Hall, Hulme, Manchester
Workshop, on Back Palace Street, Bolton, BL1 2DR
Land at Manchester Road Kearsley
Rental of Stydd Lodge Farm
Former St Paul's RC Church, Preston Old Road BB2 5EP
Lee House Farm
St Anthony's Centre, Trafford Park
**Total Investment Property**|**Revalued Amount**
2,250,000
485,000
2,150,000
225,000
300,000
440,000
175,000
150,000
100,000
19,000
555,000
190,000
675,000
300,000
8,014,000|-
**Initial NBV**
**Revaluation Gain**
2,250,000
24,275
460,725
25,526
2,124,474
11,994
213,006
15,015
284,985
22,023
417,977
9,306
165,694
4,206
145,794
501
99,499
951
18,049
25,526
529,474
9,510
180,490
17,518
657,482
52,167
247,833|
|---|---|---|
|||2,468,518
5,545,482|
The historical cost for the property, formally 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.
## **6.1. Fixed Asset investments**
|Subsidiary Undertakings
Participating Interest
**6.1**
Investments listed or traded on a
recognised stock exchange
**6.2**
Cash held as part of investment fund
Total Investments|**2023**
**2022**
**£**
**£**
-
-
1
1
1
1
32,590,521
32,364,242
198,329
607,460
32,788,850
32,971,703
**Group**|**2023**
**2022**
**£**
**£**
5
5
1
1
**Charity**|
|---|---|---|
|||6
6
32,590,521
32,364,242
198,329
607,460|
|||32,788,855
32,971,708|
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
48
## **6.2. Investments listed or traded on a recognised stock exchange**
|**Group and Charity**
**Movement**
Market value at 1 January 2023
Additions at cost
Disposal proceeds
Net gain/(loss)
Market value at 31 December 2023
**Analysed by type**
Bonds
Alternatives & Multi-Asset
UK Equities
Global Equities
North America
European equities
Far East
Rest of the World
**Analysed by fund**
Unrestricted
Restricted|8,330,205
3,567,254
5,507,326
2,893,224
3,171,257
964,003
2,327,823
773,380
**£**
**Cost**|**2023**
**2022**
**£**
**£**
32,364,242
39,014,464
4,648,019
1,669,818
(5,347,054)
(4,063,376)
925,314
(4,256,664)|
|---|---|---|
|||32,590,521
32,364,242|
|||**2023**
**2022**
**Market**
**Market**
**Value**
**Value**
**£**
**£**
8,863,411
4,884,347
3,656,103
5,702,530
6,145,525
8,009,784
4,026,517
3,979,775
5,402,737
4,446,723
1,170,723
1,738,465
2,560,760
2,862,045
764,745
740,573|
||27,534,472|32,590,521
32,364,242|
||27,534,472
-|32,590,521
32,364,242
-
-|
||27,534,472|32,590,521
32,364,242|
The charity had no holdings which comprised more than 5% of the market value of the portfolio at that date
## **7. Stock**
|Stock|**2023**
**2022**
**£**
**£**
79,539
134,329
**Group**|**2023**
**2022**
**£**
**£**
-
-
**Charity**|
|---|---|---|
## **8. Debtors**
|**8. Debtors**|||
|---|---|---|
|Trade debtors
Prepayments
Amounts due from subsidiaries
Other debtors|**2023**
**2022**
**£**
**£**
1,350,101
1,624,280
598,419
606,820
-
-
2,549,214
2,436,503
4,497,734
4,667,603
**Group**|**2023**
**2022**
**£**
**£**
1,324,751
1,730,700
559,991
549,063
-
106,842
2,491,243
2,208,167
**Charity**|
|||4,375,985
4,594,772|
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
49
## **8.1. Loans to Other Charities**
Group and Charity other debtors include the loan to Ushaw £1,669,468 (2022: £1,506,968) which are repayable on demand.
## **9. Cash at bank and in hand**
|Cash at bank and in hand|**2023**
**2022**
**£**
**£**
33,795,036
44,906,183
**Group**|**2023**
**2022**
**£**
**£**
33,139,317
44,251,220
**Charity**|
|---|---|---|
## **10. 1 Creditors: amounts falling due within one year**
|Trade creditors
Social security and taxation
Other creditors
Amounts due to subsidiaries
Accruals & Deferred Income|**2023**
**2022**
**£**
**£**
1,267,634
1,640,253
82,241
82,998
7,045,534
7,802,227
1,555,511
661,769
9,950,920
10,187,247
**Group**
-
-|**2023**
**2022**
**£**
**£**
1,190,873
1,451,609
82,081
73,535
6,986,571
7,747,163
74,977
-
1,068,692
312,464
9,403,194
9,584,771
**Charity**|
|---|---|---|
## **10.2. Care of Clergy Provision**
|Care of Clergy Provision|**2023**
**2022**
**£**
**£**
3,212,000
2,890,000
**Group**|**2023**
**2022**
**£**
**£**
3,212,000
2,890,000
**Charity**|
|---|---|---|
The Care of Clergy Provision 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 that gives rise to a future commitment.
It has been calculated based upon the agreed levels of financial support, age profile, mortality tables, an appropriate discount rate (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.
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
50
## **10.2. Care of Clergy Provision (continued)**
|Provisions at 1 January
Provisions created during the year
Amounts released from previous years
**Provisions at 31 December**|**Care of Clergy**
**Provision**
**Total**
**2023**
**2022**
**£**
**£**
2,890,000
3,900,000
322,000
(1,010,000)
-
-|
|---|---|
||3,212,000
2,890,000|
## **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 2023 the total was £55,000 (2022: £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**
|**Notes**
**Unrestricted Funds**
**15**
**Restricted Funds**
Parishes Special Collections
**13.1.1**
Pleasington Priory
**13.1.2**
Stydd Trust
**13.1.3**
Stanford Trust
**13.1.4**
Ecclesiastical Education Fund
**13.1.5**
SCA - School Building Works
**13.1.6**
Other Restricted Funds
**13.1.7**
**Designated Funds**
Moston & Wardley Cemeteries
**13.2.1**
**Care of Clergy Provision**
**Endowment Funds**
SRCDTR
**13.3.1**
Moston & Wardley Cemeteries
**13.3.2**
**Revaluation Reserve**
**13.4.1**
**TOTAL FUNDS**|**Balance**
**01-Jan-23**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Gains and**
**Losses**
**Balance**
**31-Dec-23**
**£**
**£**
**£**
**£**
**£**
**£**
103,401,784
17,283,979
(25,026,002)
-
925,314
96,585,075
265,612
28,751
(6,760)
-
-
287,603
1,174,502
999
(111,162)
-
-
1,064,339
309,639
-
-
-
-
309,639
385,466
-
-
-
-
385,466
-
165,741
(158,759)
-
-
6,982
7,490,885
10,661,410
(10,398,122)
-
-
7,754,173
119,347
107,889
(209,026)
-
-
18,210|
|---|---|
||9,745,451
10,964,790
(10,883,829)
-
-
9,826,412
-
-
-
-
-
-
(2,890,000)
-
-
-
(322,000)
(3,212,000)|
||(2,890,000)
-
-
-
(322,000)
(3,212,000)
1,000
-
-
-
-
1,000
456
-
-
-
-
456|
||1,456
-
-
-
-
1,456
5,500,482
45,000
5,545,482
-
-
-|
||**115,759,173**
**28,248,769**
**(35,909,831)**
**-**
**648,314**
**108,746,425**|
The notes on pages 33 to 54 form part of these financial statements
51
## Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
## **13. Funds (Continued)**
|**Notes**
**Unrestricted Funds**
**15**
**Restricted Funds**
Parishes Special Collections
**13.1.1**
Pleasington Priory
**13.1.2**
Stydd Trust
**13.1.3**
Stanford Trust
**13.1.4**
Ecclesiastical Education Fund
**13.1.5**
SCA - School Building Works
**13.1.6**
Other Restricted Funds
**13.1.7**
**Designated Funds**
Moston & Wardley Cemeteries
**13.2.1**
**Care of Clergy Provision**
**Endowment Funds**
SRCDTR
**13.3.1**
Moston & Wardley Cemeteries
**13.3.2**
**Revaluation Reserve**
**13.4.1**
TOTAL FUNDS|**Balance**
**01-Jan-22**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Gains and**
**Losses**
**Balance**
**31-Dec-22**
**£**
**£**
**£**
**£**
**£**
**£**
112,117,772
10,789,808
(20,722,328)
(27,286)
1,243,818
103,401,784
199,322
67,444
(1,154)
-
-
265,612
1,208,678
26,588
(60,764)
-
-
1,174,502
309,639
-
-
-
-
309,639
385,466
-
-
-
-
385,466
-
118,363
(166,849)
48,486
-
-
6,834,562
11,187,664
(10,531,341)
-
-
7,490,885
155,898
938,707
(975,258)
-
-
119,347|
|---|---|
||9,093,565
12,338,766
(11,735,366)
48,486
-
9,745,451
21,200
-
-
(21,200)
-
-
(3,900,000)
1,010,000
(2,890,000)
-
-
-|
||(3,878,800)
-
-
(21,200)
1,010,000
(2,890,000)
1,000
-
-
-
1,000
456
-
-
-
-
456
-|
||1,456
-
-
-
-
1,456
-
5,500,482
-
-
-
5,500,482|
||**117,333,993**
**28,629,056**
**(32,457,694)**
**-**
**2,253,818**
**115,759,173**|
## **13.1. Restricted Funds**
## The funds classed 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.
- **13.1.7** Other Restricted Funds includes Laudato Si centre, Thomas Eccles Trust monies which have a restricted purpose.
## **13.2. Designated Funds**
Designated funds are set aside for various purposes. The main areas are as follows:
- **13.2.1** Designated funds are set aside for various purposes. The main areas are as follows: 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.
- **13.2.2** Care of the Clergy, the provision is in place to highlight the continued support from the Diocese for the clergy no longer in active ministry. The value has been derived by an independent Actuarial assessment.
## **13.3. Permanent Endowment Funds**
- **13.3.1** The original endowment funds of the Diocese amount to £1,000 representing the minimum reserve.
- **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.
The notes on pages 33 to 54 form part of these financial statements
52
## Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
## **13.4. Revaluation Reserves**
**13.4.1** Identification and revaluation of investment properties, additional reserves have been identified, verified by independent assessment. Review of the identified investment properties will occur ever 5 years.
## **14. Funds: movement in the year**
|**Unrestricted & Designated**
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
**Restricted**
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
**Permanent Endowment**
Balance at 1 January
Net movements in the year
Transfer between funds
Balance at 31 December
**Revaluation Reserve**
Balance at 1 January
Net movements in the year
Change in revaluation surplus
Balance at 31 December|**2023**
**2022**
**2023**
**2022**
**£**
**£**
**£**
**£**
103,401,784
112,138,972
102,970,853
111,957,328
(6,816,710)
(8,688,702)
(6,839,988)
(8,937,990)
-
(48,486)
-
(48,486)
**Group**
**Charity**|
|---|---|
||96,585,074
103,401,784
96,130,865
102,970,853|
||9,745,451
9,093,565
9,745,452
9,093,566
80,961
603,400
80,961
603,400
-
48,486
-
48,486|
||9,826,412
9,745,451
9,826,413
9,745,452|
||1,456
1,456
1,456
1,456
-
-
-
-
-
-
-
-|
||1,456
1,456
1,456
1,456|
||5,500,482
-
5,500,482
-
45,000
5,500,482
45,000
5,500,482
-
-
-
-|
||5,545,482
5,500,482
5,545,482
5,500,482|
|||
|**Care of Clergy Provision**
Balance at 1 January
Net movements in the year
Change in revaluation surplus
Balance at 31 December
**Total Funds**|(2,890,000)
(3,900,000)
(2,890,000)
(3,900,000)
-
-
-
-
(322,000)
1,010,000
(322,000)
1,010,000|
||(3,212,000)
(2,890,000)
(3,212,000)
(2,890,000)|
|||
||108,746,424
115,759,173
108,292,216
115,328,244|
## **15. Analysis of net assets between funds**
|**Group**|**Unrestricted Funds**|**Designated Funds**|**Restricted Funds**|**Permanent Endowment**|**Total**|
|---|---|---|---|---|---|
||**£**|**£**|**£**|**£**|**£**|
|**Fund balances at 31 December 2023 are represented**||**by:**||||
|Tangible fixed assets|42,734,185|-|-|-|42,734,185|
|Investment assets|40,802,850|-|-|-|40,802,850|
|Current assets|28,544,441|-|9,826,412|1,456|38,372,309|
|Current liabilities|(9,950,920)|(3,212,000)|-|-|(13,162,920)|
|Total net assets at 31 December||||||
|2023|102,130,556|(3,212,000)|9,826,412|1,456|108,746,425|
|**Charity**|**Unrestricted Funds**|**Designated Funds**|**Restricted Funds**|**Permanent Endowment**|**Total**|
||**£**|**£**|**£**|**£**|**£**|
|**Fund balances at 31 December 2023 are represented**||**by:**||||
|Tangible fixed assets|42,589,253|-|-|-|42,589,253|
|Investment assets|40,802,855|-|-|-|40,802,855|
|Current assets|27,687,433|-|9,826,413|1,456|37,515,302|
|Current liabilities|(9,403,194)|(3,212,000)|-|-|(12,615,194)|
|Total net assets at 31 December||||||
|2023|101,676,347|(3,212,000)|9,826,413|1,456|108,292,216|
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
53
## **15. Analysis of net assets between funds (Continued)**
**----- Start of picture text -----**
Group Unrestricted Funds Designated Funds Restricted Funds Permanent Endowment Total
£ £ £ £ £
Fund balances at 31 December 2022 are represented by:
Tangible fixed assets 38,187,602 - - - 38,187,602
Investment assets 40,940,703 - - - 40,940,703
Current assets 39,961,208 - 9,745,451 1,456 49,708,115
Current liabilities (10,187,247) (2,890,000) - - (13,077,247)
Total net assets at 31 December
2022 108,902,266 - 2,890,000 9,745,451 1,456 115,759,173
Charity Unrestricted Funds Designated Funds Restricted Funds Permanent Endowment Total
£ £ £ £ £
Fund balances at 31 December 2022 are represented by:
Tangible fixed assets 38,016,314 - - - 38,016,314
Investment assets 40,940,708 - - - 40,940,708
Current assets 39,099,084 - 9,745,452 1,456 48,845,992
Current liabilities (9,584,771) (2,890,000) - - (12,474,771)
Total net assets at 31 December
2022 108,471,335 - 2,890,000 9,745,452 1,456 115,328,243
**----- End of picture text -----**
## **15.1. Analysis of net funds**
|**Group**
Cash at bank and in hand
Debt due within one year
Net Funds
**Charity**
Cash at bank and in hand
Debt due within one year
Net Funds|**Balance**
**01-Jan-23**
**Financing Cash Flows**
**Balance**
**31-Dec-23**
**£**
**£**
**£**
45,513,643
(11,520,278)
33,993,365
(7,802,227)
756,693
(7,045,534)|
|---|---|
||37,711,416
(10,763,585)
26,947,831|
||**Balance**
**01-Jan-23**
**Financing Cash Flows**
**Balance**
**31-Dec-23**
**£**
**£**
**£**
44,858,680
(11,521,034)
33,337,646
(7,747,163)
760,592
(6,986,571)|
||37,111,517
(10,760,442)
26,351,075|
Cash and cash equivalents are comprised of Cash at bank as well as Cash held as part of the investments
## **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.
The notes on pages 33 to 54 form part of these financial statements
Diocese of Salford Trustees' Annual Report and Accounts 2023 Financial Statements Notes to the Financial Statements
54
## **17. Details of subsidiaries and consolidation**
|Tangible fixed assets
Current assets
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one year
Representing:
Share capital
Profit and loss account||**Catholic**
**Building**
**Services**
**Limited**
**Catholic**
**Support**
**Services**
**Limited**
**S.D.C.**
**Trading**
**Limited**
**Catholic Truth**
**Society (Diocese of**
**Salford)**
**2023 Total**
**2022 Total**
**£**
**£**
**£**
**£**
**£**
**£**
-
1,338
143,588
-
144,926
171,283
11,091
644,077
329,315
103,597
1,088,080
1,015,698|
|---|---|---|
|||11,091
645,415
472,903
103,597
1,233,006
1,186,982
(11,091)
(383,112)
(207,511)
(40,820)
(642,535)
(657,074)|
|||-
262,303
265,391
62,777
590,471
529,908
-
-
(344,124)
-
(344,124)
(313,227)|
|||-
262,303
(78,733)
62,777
246,347
216,680|
|||-
1
2
-
3
7
-
262,302
(78,735)
62,777
246,344
216,673|
|||-
262,303
(78,733)
62,777
246,347
216,680|
|||**Catholic**
**Building**
**Services**
**Limited**
**Catholic**
**Support**
**Services**
**Limited**
**S.D.C.**
**Trading**
**Limited**
**Catholic Truth**
**Society (Diocese of**
**Salford)**
**2023 Total**
**2022 Total**
**£**
**£**
**£**
**£**
**£**
**£**
-
1,408,583
1,593,572
108,620
3,110,775
3,199,659
-
(913,066)
(1,277,581)
(113,915)
(2,304,561)
(2,367,514)
-
495,517
315,992
(5,295)
806,213
832,145
-
(52,392)
(420,827)
(59,067)
(532,286)
(155,653)
-
-
-
(2,197)
(2,197)
(232,620)
-
(306)
-
(2,624)
(2,930)
(30,597)
-
(702)
(38,060)
(265)
(39,027)
(39,938)
-
-
-
-
-
806,236
-
-
-
-
-
-
-
442,118
(142,896)
(69,448)
229,774
1,179,573
-
20,184
64,161
132,224
216,569
512,177
-
(200,000)
-
-
(200,000)
(1,475,076)
-
262,302
(78,735)
62,775
246,343
216,674|
|Turnover
Cost of sales
Gross profit/ (loss)
Administrative expenses
Establishment Costs
Finance charges
Depreciation costs
Other Operating income - grants receivable
Taxation
Net profit
Retained earnings brought forward
Amount gifted to charity
Retained in the subsidiary|||
||||
||||
||||
The individual financial statements of the subsidiary entities included in the consolidation are drawn up on the same accounting date, 31st December 2023. All subsidiary companies are fully consolidated in the Group financial statements.
The notes on pages 33 to 54 form part of these financial statements
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