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2024-12-31-accounts

DIOCESE OF SALFORD Annual Report 2024

TABLE OF CONTENTS Pages 1-4 About us Introduction from Bishop John Report from the Chief Operating Officer Pages 5-13 Yeèr in Numbers Annual Report 2024 Finances at a Glance Page 21 Conclusion Approval Pages 14-18 Alm Objective5 and Purpose Objectives and Activities Structure, Governance and Management Governin4 regulations Relationships with Other Parties Statement of Trustees, responsibilities Statement as to Disclosure of information to Auditors Public Benefit Investment Fundraising Plans for Future Periods Pages 22 - 25 Report of the Independent Auditors Pages 26 - 50 Consolidated Statement of Flnancial Activity Charlty Balance Sheet Con501idated Statement of Cash Flow Notes to the Financial Statements Pages 19- 21 Financial Review Income l Expenditure Statement of Reserves Investment policy and performance Principal Risks and Uncertainties Trading Subsidiarie5

ABOUT US Key Personnel Jenny Clayton - Head of Safeguarding John Corrigan - Director of School Property Nicola Cosens - Director of Finance Charlty Registered Name: The Salford Diocesan Trust (TSDTI commonly known as the Roman Catholic Diocese of Salford and also referred to as Salford Roman Catholic Diocesan Trustees Registered {SRCDTR). Emma Gardner- Head of Environment Lisa McDermott - Director of Property Rachel McGee- Head of Communications and Deputy Chief Operating Officer Simon Smith - Director of Educatlon Clair Watson - Head of Human Resources The diocese includes much of Greater Manchester north of the Mersey and Lancashire including Blackburn and Burnley. The dlocese comprlses of 260, 995 Catholics, with 106 parlshes and 206 schools. Charity Registration Number: 250037 Audltors Auditors Crowe UK LLP, 3rd Floor, St George's House, 56 Peter Street, Manchester, M2 3NQ Bankers Barclays Bank Plc, 8arclays Business Centre, Manchester Clty Offfice, PO Box 357, 51 Mosley Street, Manchester, M60 2AU Re8lStered Address Wardley Hall, Worsley, M28 2ND Publlc Address Cathedral Centre, 3 Ford Street, Salford. M3 6DP Lloyds Bank, PO Box 545, Faryners House, 25 Monument Street, London, EC3R 8BQ Trustees Right Reverend John stanley Kenneth Arnold, Bishop of Salford Reverend Canon Michael Cooke, Vicar General Reverend Christopher Dawson Reverend Peter Hopkin50n, Vicar General Sir Peter Fahy Edward Nally Mary Hunter Reverend Canon Michael Jones Eamonn O'Neal Brendan Mccafferty Elizabeth Lilley Santander, 298 Deansgate, Manchester, M3 4HH Investment Managers Evelyn Partners, 14th Floor, 103 Calmore Row, Birmingham B3 3AG Sollcltors Fieldings Porter, Silverwell House, SilverNell Street, Bolton, BL1 1PP Financlal Secretary Paullne Morgan, Chief Operating Officer and Financial Secretary

IntroduLtion from Bishop John December 2024 marked the 10th anniversary of my installation as the 11th Bishop of Salford. Much has changed both in our diocese and the world since then. Few would have predicted back in 2014 that we would have to 'lockdown' society to deal with a worldwide pandemic. We are also witnessing emerging conflicts around the world, which irnpact our own diocese, In stoking unrest and feeling, and we must acknowledge the continued effect of the cost-of.living crisis. Add to this the climate emergency and the ever- growing need for swift and decisive action from individuals, groups, and governments. Things may seem difficult or challenging but we must remember that, in all things, God is with us. of us in these days, and recognising the opportunities that He give5 us at thi5 time. We are justified in celebrating the outcome of the Diocesan Synod. There was a great diversity in the people engaging in the Synod. l am very grateful for all who ensaged in the process, In different way5. When I was first appointed, l asked several questions of clergy and parishioners concerning liturgical life, sacramental organisation, and the future of the estate in the diocese. This resulted in some changes including the age of Confirmation, the establishment of the permanent diaconate, and the development of a pastoral programme Hope in the Future focussed on mission and outreach, and the 2017 parish restructurins proposal. There is already much to be celebrated In our parishes, and we must share best practlce and encourage each other to ensure we can grow and flourish together as the Body of Christ in Salford. In my introduction to the 2017 restructure proposal, 15aid: "it 15 important that we now make the necessary changes which I believe will strengthen our presence as Church in our world today and help prepare the diocese of Salford for future generations. There are also many people in our parishes who are skilled in different ways, with experience and talent which might help us on this journey. And so, our commitment to synodal thinkfng must continue as a way of discerning how best to work together to build a diocese fit for the future and for the purpose of the Church in the 215t century. l am grateful to the work that has already been achieved. However, keeping in mind our goal whlch is 'to equip ourselves in the best possible way for the continuing rni5sion of the Church,, 7t is now time to ask the question aga7n. Are we best equipped to be missionary parishes building a diocese for our future generations? It is appropriate that we are taking this next step during our Jubilee Year of Hope, during which we would do well to continue wth our diocesan prayer "Stay with us, Lord, on our Journey" ensuring we stay focussed and centred on Christ as we seek to live out and proclaim Gospel values in our ever-changing and challenging world. This question will draw many different answers from people. Our Diocesan Synod has helped us to reflect carefully to see what our prTOrities must be, discovering what God may be asking Stay with us, Lord, on our journey.

Report from our Chief Operating Officer The stewardship of our properties has always been an important aspect of our work. With a wide array of buildings across our diocese, including churches, listed properties, schools, and parish halls, the upkeep of these assets is not only financial responsibility but also our commitment to preserving spaces where faith can thrive for generations to come. Throughout the year, we have made e55ential progress in maintaining and upgrading these properties, ensuring they remain welcoming, safe, and functional for all who use them. But thls progress Is just the start of the journey. There is much more to do. We are mindful of the challenges ahead, but we face them with confidence, knowing that through collaboration and continued support, we can ensure that our properties remain places of worship, community, and service. We are especially mindful of the responsibility we bear in being good stewards of the resources entrusted to us. Our commitment to transparency, accountabilltyi and effective management remains at the heart of all we do, ensuring that we continue to serve our people wlth Integrlty and care. Our resources are more than buildings. The work of the diocese could not continue without the dedication of our clergy, staff, and volunteers who have helped us achieve all that we have been able to do over the past 12 months. Every year they respond with a commitment to the mission of our Church which is invaluable. We are lucky to have so many volunteers who contribute their time and expertise on an unpaid basis In parishes across a ￿de array of diocesan actiwties. 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. We look to the future with a Sense of hope and purpose. We are committed to ensuring that the resources we have are used effectively to support the contlnued growth of our Church. We continue to monitor our donation level and spending to stabilise the diocesan position. As part of this work we are identifying a strategy to increase funding streams for parishes for capital and charitable purposes, enabling us to deliver the diocesan priorities in future years, building upon the foundation laid by prevityjs generations. CLLI

Year in Numbers

----- Start of picture text -----
increase in
Income
total yearly
£28.8M
income £0.56
Increase in
Expenditure parish yearly
£32.4M income of
£1.5M
22% of our
1,477
income from
Confirmations
£163 per
Offertory
parishioner
£0.7M
spent on
reclaimed in
repairs and
Gift Aid
1 maintenance of
churches
Ordination
2,606 Baptisms
2606 Baptisms to the
priesthood
3,630
1,477
First Holy
Confirmations
Communions
2,221
28,423
Weekly
Average
28 423
Communion
Weekly Mass
AverageAttendance At Home
6
Weekly Mass 392 Visits
Permanent
Attendance Weekly Sunday
Deacons
Masses
----- End of picture text -----

Our Faith in a Changing World This year has been marked by significant milestones that celebrate the rich traditions and history of our diocese in the face of a new generation of faith in the 21 st-century. From the centenary of our Diocesan Pilgrimage to Lourdes, to the ongoing restoration of our cathedral, and a Diocesan Synod that engaged with thousands of people of all ages, 2024 has been a year in which we have looked to both the past and to the future to assess how best we preserve, protect, and nurture our faith and traditions for generations to come. As we have celebrated the vibrant legacy handed to us from generations gone by, the challenges and practices of the modern world have called us to question - what 15 the Church In Salford at this next stage of our journey? Celebrating a Legacy of Faith: Lourdes Pilgrimage Centenary In the summer, hundreds of pilgrims from across the diocese travelled to Lourdes to commemorate the 100th anniversary of our diocesan pilgrimage. For over a century, this pilgrimage has been a cornerstone of our faith life, a tradition passed down through generations of families. It remains a vital expression of our devotion to Our Lady and a testament to the power of collectfve prayer and faith in action. Throughout the pilgrimage, generations came together in a spirit of shared faith, with experienced pilgrims handing down the traditions of decades gone by to young aspiring volunteers who came In answer to our Christlan call of love and service. As Blshop John remfnded us as the pllgrfmage drew to a close: "Our Lady came to Ilsten to us, to know us, and to be our intercessor before Her Son. Thls powerful image of Our Lady's presence and intercession reminded us all of the example she calls us to follow. inviting us to walk together in accompaniment, solidarity, and communion in our shared mission to make God's love visible in the world around us. "plOCS

Restoring Our Sacred Spaces Our Cathedral Restoration Project continues to make excbting progress. The scaffolding, which had enveloped our cathedral for months, 15 being removed, revealing the restored stonework and the full glory of the spire. In additlon to the exterlor restoration, the conservation of the Great East Window has been completed. As the sun shines through, the window's beauty is revealed in all its magnificence, vividly enhancing the images of saint5 and martyrs that strengthen and guide us in our own Journey of falth. Inside, the focus shifts to repairing and decorating the nave ceTling, bringing new life to our sacred space. During our progress so far, the restoration has highlighted the true significance of the project, in not only renewing and restoring a treasured historic building, but also its unique role in deepening and enhancing our faith and demonstrating our commitment to preser￿n£ and protecting our shared heritage.

Restoring Our Sacred Spaces: A Parish Case Study In 2024, Saint Mary's Catholic Church-affectionately known a5 "The Hidden Gem"_was recognised as the top hidden gem in the world, bringing international attention to this historfc place of worship in the heart of Manchester. Dating back to 1794, the church remains a sanctuary of silence and prayer amid the city's bustle. This recognition coincides with significant progress in a multi-phase restoration project aimed at preseNing the church, presbytery and sacred space in the centre of the City for its growng congregation and future generations. Phase One, completed in 2023, focused on stopping the ingress of water and making the church watertight. Phase Two included the installation of a new fire detection and emergency lighting system, and the complete rebuild of the 30-year-old church organ, replaclng failed analogue components with modern digital technology. Phase Three, carried after 2024 addressed serious drainage issues by initiating work on a new, independent drainage system-replacing an unsustainable arrangement that previously channelled rainwater through neighbouring properties. This phase also included the re- roofing of the old presbytery, the repair of lead-lined gutters, and improvements to chimney flashings and weatherproofing. These critical works were made possible thanks to generous parlshloner donations and funding from the National Churches Trust, The Benefact Trust, and The Wolfson Foundation. Looking ahead, the parish has launched a new fundraising appeal with a target of £250,000 to continue the restoration journey, ensuring that Saint Mary's remains both a spiritual refuge and an architectural jewel for future generations.

Ensuring Sustainability: A Call to Care for Creation This year, we have taken significant steps toward making our diocese more sustainable, as we strive to become net zero by 2038. Our diocesan property team, alongside our schools, has worked tirelessly to reduce carbon emissions and increase energy efficiency. Through a £3 million govemment allocation, we began installing solar panels across our schools, with Our Lady's RC Primary School in Aspull being the first beneficiary of thls Initiative. To date, 70 schools have had solar panels installed, with more to follow. These initiatives have saved an estimated 150 tonnes of carbon emission5, £60,000 in electricity savings, and generated around 150MW of clean energy. b• 125 of 160 schools have had solar PV Installed funded by £3.3M Total install amounts to 2MW 018o¥ernmeni DFC fundlr Xl¥haois toth pirt the pvolect by radln8 to LED IIAhtln# Savlnq an e5tlmatecl £300k across dlocesan 5choo15 estate •lThts exc￿01 project sends a powerful me5sa8e to our younR people about our responsiblllly to cafe lor G¢d's creatlon and that we can find hope in the knpthrt of attionil co Other schools made ImprovEJnen¢s ¢0 Insulall¢Jn and by fftplael￿ wlndows 11J]O tonnes In 2024 we contfnued to progress decarbonisatlon across our parish estate. A signiflcant milestone was reached with the receipt of 350 building-level energy audits, provlding the foundation for targeted carbon reduction efforts. The diocese's first decarbonised pilot project a parfsh hall, at St Mark's Swlnton, was completed thls year. We also partnered with the Energy Innovation Agency to explore innovative technologies aimed at reducing carbon emissions and improving energy efficiency. Year-on-year energy data reflects ongoing progress, with parish.level carbon dioxide emissions reduced by 10% in 2023. Electricity usage rose slightly (+19%), while gas and oil consumption continued to fall, with reductions of 14% and 35% respectively. These trend5 highlight both the impact of energy-saving initiatives and the need for continued focus on electricity use.

Guardians of Creation: A Global Call to Action Bishop John's commitment to enwronmental sustainability has reached a global platform this year. As part of the 'Guardians of Creation, initiative, Bishop John and representatives from our diocese were invited to showca their work at the Vatican. This project, which aims to equip Catholic dioceses across the UK to respond to Pope Francis, call to care for our common home, prowdes practical guides to decarbonising Catholic institutions. The visit was an opportunity to share our experfences and research-based solutions with the Holy See and global Catholic networks. As Bishop John highlighted, "The Catholic Church is in the unique position to use Its volce, people, and resources to create a dlfferent legacy-one that is built on joy, hope, and renewal. Nurturing the Next GeneratTOn: Laudato Si, Awards and Youth Engagement Our efforts to promote sustainability within our schools were celebrated through the inaugural Laudato Si, Awards. These awards recognized the outstanding enwronmental contributions of our young people. Eleanor, a Year 4 student from St Michael and St John Catholic Primary School, received the primary school award for her dedication to developing gardening projects in her community. Meanwhlle, students f rom Our Lady and St John Catholic College were recognised for creating a wildflower seed dispersal unit, designed to promote native wildflower growth. Bishop John congratulated all the winners and reaffirmed the diocese's commitment to being a leader in care for creation, noting that 'Each and every one of us has our part to play., These young environmental advocates inspire us all to care for our common home and embrace our responsibility as Stewards of God's creation. Additionally, the "A Call to Lead" programme was launched to bridge the gap between confirmation and adult formation. ThTS initiative aims to empower young people to become active leaders in their parish communities. It is an important step in ensuring that the next generation of Catholics remains engaged and inspired to serve others in faith and action. 10

Care, connectivity, and faith in tomorrow's world In the Spring of 2024, hundreds of people representing parishes and clergy from across the diocese gathered together for the latest update in our diocesan synod journey. Our Big Listen exercise, which ended in early 2024, gathered more than 30,000 responses that were explored and presented as four core themes. They were: Nurturing Faith for Tomorrow's World Building Connections Enabling Access Fostering Christ-Like Care The Big Listen inspired many people across the diocese. People reported that they felt encouraged, heard, and that they hoped to see or experience sorne form of change. There was an excltement and an honesty In the responses submitted, generally looklng forward with hope. The four overarching themes were expressed as verbs in order to reflect the dynamism of the Image of the Church as People of God. They carried the implicit recognition that the dSocese is not moving off from a standing stop but Is already engaged on these things, while also suggesting movement into the future. We were challenged to think about how we welcome, look after our clergy, Involve our young people and ensure that we are truly a missionary Church. Respondents overwhelmingly expressed a desire that the Church should be a source of hope for the future. Amid a society that sets up barriers between people, the Church has the potential to help people to negotiate the complex and unstable landscape in which people today find themselves. At our gathering respondents explored the themes. Synoj Members were then tasked to organise and facilitate Theme Gatherings in their parishes and communitie5 to explore these themes in more detail with as many people as possible. This culminated in proposals that were submitted to our Voting Weekend In 2025. "Love for God and neighbour ought to be the centre of anythins we're tryins to achieve ond it is important we recognise that we are one body - not just a communi ty - but the body of Christ on o mission. Bishop John May 2024

Creating Lasting Change As part of our ongoing commitment to creating lasting change we are using our position as a responsible investor to use our influence to drive meaningful change. As a faith based organ7sation, we look beyond financial return to be good steward5 of our resource5 and the common good and our common home. In 2023 this stance was clearly demonstrated when we made the values-driven decision to fully divest from fossil fuel companies. This move reflected our belief that continued investment in businesses that contribute significantly to the climate crisis undermines the very progress we seek to promote. In 2024 we expanded this week and started to conduct regular reviews of our investment portfolio, assessing our impact and adapting to evolving economic, environmental, and social landscapes. We believe that stewardshlp involves not only supporting progress but also recognis7n8 when our involvement is no longer effective. We look to be accountable, transparent, and evidence our commitment to posltlve Impact. This is replicated across our departments and is a clear goal of our safeguardlng work. In 2024, the Safeguarding Department made two developmental changes to further this goal. Firstly, wa5 the introduction of a Welfare Officer, the aim of the post is to provide addltional support for those clergy and volunteers in need. By engaging a proactive post, we are looking to embed care and promote positive connections. The second structural change was agreed in 2024 and will see the establishment of a Survivors Panel in 2025. It speaks to the heart of our alm to be accountable, transparent and hear the voice5 of survivors. Since publishing our flrst diocesan Modern Slavery statement In 2022, we have continued to build on our commitment to ethical practice5 across the diocese. In 2024, our focus shifted to supporting parishes and schools in implementing our Code of Conduct for Suppliers, introduced in 2023. The Finance Department developed a preferred supplier list to help parishes make informed, ethical choices in their procurement processe5. Worklng with Caritas Diocese of Salford, we are also delivering awareness training days to help parish and school communities recognise the signs of modern slavery in a local context. ThT5 work, reflects our ongoing respon5ib7lity to challenge exploitation and promote human dlgnity throughout all diocesan activity.

2024 Finance at a Glance Income Irotal Income of £28.8m (2023 £28.2) IncoD*framCharltib￿Artl￿tI Oih•r lrto SCIL- Sthool $ulkllniWorkt JJ.9% InE•m• fr•m Inv•sfm•nt% 9.1% Olh•rTr•dlniArtt41i￿S PonatlDn$ 4ntt ￿￿¢1•1 Zg.9% Expenditure Total Expendlture of £32.4m (2023 £35.9) SCA- Scl¥Jd BullthTri Wor 2VI CMrltableArtlvldes 63% Ra151ni Fund5

Aims, Objective and Purpose The core mission and purpose of the Diocese of Salford is to respond to and live out Christ's call to "go and proclaim the Good News" Currently, our diocese comprises 106 parishes serving 260,995 Catholics across much of Greater Manchester and East Lancashire. Through these wbrant communities, we seek to realise our mission by providing opportunities and activities undertaken by our parishes and central service5 to help people nurture and live out their faith. These activities are guided by Gospel values and the principle of good stewardship and are grounded in worship, educatlon, charity, and care for our common home. Objectives and Activltles Support to priests durins both their active service and in retTrement 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 Trainlng for those who wish to be priests Malntenance and upkeep of our church and parish buildlngs Providing assistance to governors regarding the upkeep of school bufldings through grant schemes under the DFC and SCA Access to professional advice and support for our communStles Includlng 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 mefflbership of the board is based upon invitation by the trustees to suitably qualified individua15, 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. The diocese employs a Chief Operating Off7cer to oversea the day to day professional support. The Chief Operating Officer also holds the Office of Financial Secretary. 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, detail7ng the delegated authorlties where appropriate.

Trustee committee5 including in the areas of.. Audit Committee Claims Committee Enwronment Committee Finance Committee HR Committee H&S Committee Investment Committee Planning and Resources Committee Property Committee Remuneration Committee Safeguarding Committee Schools & Academles Commlttee Annual pay reviews are approved by either the Remuneration Committee (for senior staff) or the HR Committee, based on external advice and information and recommendations from the Chief Operatlng Officer. The salary for the COO Is also agreed by the Trustees at the Remuneration Committee. In setting overall pay leve15 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 wlth the Dlocesan Trustees as the managing Trustees. Recognlsing the need for expertise, the Trustees have engaged professional adv5sors In the areas of flnance, Investment, Insurance, law and protectlon of minors and vulnerable adults. The Trustees are Ilsted on page 1. The Trustees keep themselves informed of new developments in the above areas and when necessary, rneet to be briefed on particular i5sue5 by their advisors. The Trust has three active wholly owned trading subsidiaries. See Section Trading Subsidiaries on page 21. Relationships with Other Parties The Trustees consider Caritas Dioce* 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 povertyi 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 infom and have a profound Influence on the operating poliaes 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 parishe5 5UPPOrt the activities of other charities such as the Catholic Agency for Overseas Development ICAFODI, the offiaal aid agency of the Catholic Church in England and Wales (Charity no 1160384> and adopts unified pollcies through national bodies for the safeguarding of children and adults at risk of harm. Statement of Trustees, responsibilities The trustees are responslble for preparing the Trustees. Annual Report and the financlal statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountlns Practicel 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 situation of the charity and of the Incoming resources and application of resources of the charity for that pedod. In preparins these financlal statements, the trustees are required to: Select suitable accounting policies and then apply them consistently; Observe the methods and princlples 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 explaTned in the financial Statements. And prepare the financial statements on the going concern basi5 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 any time the financlal position of the charity and enabte them to ensure that the financial statements comply with the Chartties Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provlsions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and 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 infomatSon of which the auditors are unaware. Each of the trustees have confimied that they have taken all the steps that they ought to have taken as trustees 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 benefTt and have (in accordance with Charities Act 20111 had regard to guidance published by the Charity Commission on public benefit when exercising powers or duties where that may be relevant. It Is clear from the detall in the Trustees Report that the Tmst acts In a way whlch beneficially impacts on society. It promotes public services, in dedicated buildings and elsewhere, in accordance with the practices and teachin85 of the Roman Catholic Church, for hearing and appropriating the word of God and for the worship of God both generally and at slgnificant polnts in people's Ifves. In this way It helps form and gives expression to the spiritual dimension of the lives of rnember5 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 Responsfble and Actlve Investor. Gulded by the principle of stewardship, with an authentfc 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. Our investment policy was ratified in 2021 and since then we have Implemented the following changes and actions: Delegated power5 to investment Sub committee Increased fflonitoring 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 We are reviewing the way in which we collect funds, maximising the digital options available to us and revising the funds that we have access to. As part of thi5, new digital solutions are being rolled out across our churches and special collection5 are being restarted. A5 wlth other religious charities in possession of Listed Buildings, we are also reviewing the impact of the announcement by the government on the cap on Listed Buildings of Worship VAT reclaim scheme. We estimate that Tn 2025, th5s ￿ll require us flnding another £2 million towards the cost of our cathedral restoration project. In the flnal quarter of 2024, we employed an external Grants fundralser who Is employed to apply for capital grant funds and create a grant pipeline for future projects. The Trust had no fundraising activitie5 requiring disclosure under S162A of the Charities (Protection and Social Investmentl Act 2016. Plans for Future Periods In 2023 and 2024, we implemented a moratorium of all non.essential property spend in our parishes and all non-essentlal 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. Additionally, the break also allowed time for strategic planning to take place, allowing us to create a property vision to take the diocese into the next decade; creating parishes that can respond and adapt to the challenges they face. The planning stage of this property strategy is now complete, and we are beginning to consult vAth individual parishes and deaneries to assess their ongoing needs. In our ￿der plans we will focus on: Implementing the Priority Recommendations of the Diocesan Synod. Supporting our clergy continually reviewing our support services to best support our parishes and schools. Implementing a property strategy that recognises the future needs of our build7ngs. Adapting to a new landscape of fundraising in the Church. Completing our Cathedral Restoration. Leading by example to care for our common home. Using our voice to champion for dialogue, change and action as a Responsible and active investor.

Financial Review The financial statements reflect the activities with our parishes, all aspects of the central professional Support Services (curia) and 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 2024 Is set out on pages xx. Total incoming resources amounted to £28.8 million In 2024 (2023 £28.2 million). Most of the parochlal 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 2024 Total income figures above include £9.7 million in 2024 (2023 £10.7 million)received from School Bufldlng Projects as set out In accountlng policy note 2.6. Total overall Donations and Legacies have increased during 2024 by E1.1 million. Our Parish Income is still well below pre-pandemic levels but has increased £2.5 million above Inflation from 2020. Our average weekly Mass attendance also increased from 26,417 in 2023 to 28,423. This repeats the pattern of yearly increases since the pandemic. We have witnessed a 42% rise slnce our lowest attendance in the pandemic. During the year collections in the parishes for speclflc purposes including those for other charities totalled £0.1 million (2023 £0.2 million). The investment portfolio achieved Income of £2.6 mlllion in 2024, slightly lower than the £2.8 mlllion achieved In 2023. Thi5 is expected due to the divestment of funds to fund our Cathedral Restoration Project. Expenditure 2024 Total expenditure amounted to £32.4 mlllion in 2024 (2023 £35.9milllon). Total expenditure figures above Include £ 9.3 million In 2024 (2023 10.4 million)SCA school building works income and subsequently the related expenditure as referenced above. Summary The net result for the year was a deficit £2.1 million {2023 deficit - £7.Om>, leaving retained funds of E106.6 millTon {2023 £108.8million) 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 rnedium tenm. This included a moratorium on non essential building spend in 202312024. '& The Diocese made contributions of £177k in 2024 {2023 - £173k) to National Bodies of the ,Roman Catholic Church.

Statement of Reserves The total reserves of the Charity• includlng parochial reserves, amounted to £106.6 million at 31 December 202412023 £108.8 million). The unrestricted free reserves i.e. current assets including bank deposits less current liabilities amounted to £21.8 million (2023 £25.2 million). At 31 December 2024 the free reserves of the diocese are equivalent to approximately 14 months of recurring expenditure 12023 14 rnonthsl. The Trustees are currently assessing what the current minimum free reserves should be in the current economic climate. Restrlcted reserves as at 31 December 2024 were E10. 3 million (2023 E9.8 million). The major project that will affect future reserves is the Cathedral Project, as this wtll be funded from the liquldation of Investments. £13 mlllion has been released to date and based on current Indicative cashflow, we estimate that we will release a further £9 million during 2025, subject to any external funding possibilities and the balance at the end of the defects liability period in 2026, The diocese has not committed to any other major projects at this time and are reviewing any in the pipeline. The demand for servlces both centrally and within our parishes continues to Increase, as do the associated costs and it is within this setting that the trust has to operate. The diocese, as part of the 2030 vision, is looklng at the whole estate to ensure that this is fit for future PLJrpose and sustainable going forward. By managing assets and resources the Trustees are confident that the Trust has sufflclent available funds to maintain its activities over the medium term. Investment policy and performance The Diocesan Trust deed authorfses the Trustees to invest the general funds of the cha￿tY in stocks, shares, investment5, and property, in accordance with charity law. The Trustees have engaged Evelyn Partners Investment Managers, as ad￿sor5. 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 pastp 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 Tnjstees on a regular basi5. The Investment5 are held for the long term. The overall portfolio value decreased in the year by £4.9 million, mainly as a result of divestment in relation to the planned capital works for the cathedral, the dividend yield increased slightly by 0.5% resulting is an increase in income of £5k from 2023. The Trustees will continue to Tnvest as appropriate with the aim of providlng a secure financial and ethical platform for the d7ocese. 20

Principal Risks and Uncertainties

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

An Audit Committee was established by the Trustees during 2017. Risks currently include reducing the structural deficit, managing properties, ensuring Health and Safety Compliance in all our properties and reducing the burden of our empty properties.

Subsidiaries

The Trust has four active wholly owned subsidiaries.

Catholic Support Services Limited 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.

Catholic Building Services Limited is responsible for the development and management of construction and building projects within the diocese.

SDC Trading Limited the Charity’s subsidiary company responsible for the commercial activities of parish social clubs within the diocese, is currently in a surplus position, of £62.2k in 2024 (2023 £78.7k deficit).

Catholic Truth Society ceased trading in February 2024. Trustees are now exploring options on how to make best use of the space moving forward.

Conclusion

Our financials for the year indicate that our planned actions, a moratorium on non-essential spending and a strategic focus on property management have begun to stabilise our position. Additionally, an increase in donations has further strengthened our financial outlook. While these developments are encouraging, we remain alert to the changing needs of the diocese and we are using the time of stability to implement further strategic measures looking to the future.

Approval

This report was approved by the Trustees on 8th July 2025 and signed on their behalf:

Trustee ........................

Rt Rev John Arnold, Bishop of Salford Date: 8th July 2025

Diocese of Salford Trustees' Annual Report and Accounts 2024

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 2024 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:

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.

22

Diocese of Salford Trustees' Annual Report and Accounts 2024

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

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.

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

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:

23

Diocese of Salford Trustees' Annual Report and Accounts 2024

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, 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 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 ministr ~~y.~~

24

Diocese of Salford Trustees' Annual Report and Accounts 2024

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

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

The Lexicon Mount Street Manchester M2 5NT

Date: 18th September 2025

25

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Consolidated Statement of Financial Activity

Consolidated Statement of Financial Activity Year End to the 31st December 2024

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)
Transfer between Funds		 Unrestricted
Restricted
Total
£
£
£
7,618,020
5,208
7,623,228
453,492
-
453,492
483,725
-
483,725
63,471
-
63,471
2,967,683
362,538
3,330,221
-
-
-
11,586,391
367,746
11,954,137
1,028,875
-
1,028,875
11,776,101
242,295
12,018,396
-
-
-
12,804,976
242,295
13,047,271
-
-
-
(1,218,585)
125,451
(1,093,134)
-
-
-
PAROCHIAL FUNDS		 Unrestricted
Restricted
Total
£
£
£
452,290
506,406
958,696
1,550,518
-
1,550,518
2,146,504
-
2,146,504
1,999,781
-
1,999,781
485,457
33,496
518,953
-
9,677,941
9,677,941
6,634,550
10,217,843
16,852,393
1,655,535
-
1,655,535
7,995,640
190,152
8,185,792
-
9,504,078
9,504,078
9,651,175
9,694,230
19,345,405
1,251,235
-
1,251,235
(1,765,390)
523,613
(1,241,777)
-
-
-
DIOCESAN FUNDS		 DESIGNATED
Total
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 ENDOWMENT
Total
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2024
2023
Total funds
Total funds
£
£
8,581,924
7,351,610
2,004,010
2,130,894
2,630,229
2,782,302
2,063,252
1,948,637
3,849,174
3,373,916
9,677,941
10,661,410
28,806,530
28,248,769
2,684,410
2,596,555
20,204,188
22,915,156
9,504,078
10,398,122
32,392,676
35,909,833
1,251,235
925,314
(2,334,911)
(6,735,750)
-
-

26

The notes on pages 30 to 50 form part of these financial statements

Diocese of Salford Trustees' Annual Report and Accounts 2024 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		 DESIGNATED
ENDOWMENT
2024
2023
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Total
Total
Total funds
Total funds
£
£
£
£
£
£
£
£
£
£
-
-
-
-
-
-
-
-
-
45,000
-
-
-
-
-
-
213,000
-
213,000
(322,000)
(1,218,585)
125,451
(1,093,134)
(1,765,390)
523,613
(1,241,777)
213,000
-
(2,121,911)
(7,012,750)
34,509,199
7,947
34,517,146
67,621,357
9,818,466
77,439,823
(3,212,000)
1,456
108,746,424
115,759,173
33,290,614
133,398
33,424,012
65,855,967
10,342,079
76,198,046
(2,999,000)
1,456
106,624,513
108,746,423
PAROCHIAL FUNDS
DIOCESAN FUNDS

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 Financial Activity.

The surplus/(deficit) for the charity for the year ended 31st December 2024 was (£2.1m) for 2023 (£7.0m).

27

The notes on pages 30 to 50 form part of these financial statements

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Consolidated and Charity Balance Sheet

Consolidated and Charity Balance Sheet As of 31[st] December 2024

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		 2024
2023
£
£
48,917,324
42,734,185
8,014,000
8,014,000
27,885,675
32,788,850
84,816,999
83,537,035
50,494
79,539
9,854,011
4,497,734
22,294,467
33,795,036
32,198,972
38,372,309
(7,392,458)
(9,950,920)
(2,999,000)
(3,212,000)
21,807,514
25,209,389
106,624,513
108,746,424
106,624,513
108,746,424
93,601,100
96,585,074
10,475,475
9,826,412
1,456
1,456
5,545,482
5,545,482
(2,999,000)
(3,212,000)
106,624,513
108,746,424
Group		 2024
2023
£
£
48,809,330
42,589,253
8,014,000
8,014,000
27,885,680
32,788,855
Charity
84,709,010
83,392,108
-
-
9,715,920
4,375,985
21,853,615
33,139,317
31,569,535
37,515,302
(7,015,220)
(9,403,194)
(2,999,000)
(3,212,000)
21,555,315
24,900,108
106,264,325
108,292,216
106,264,325
108,292,216
93,240,911
96,130,865
10,475,476
9,826,413
1,456
1,456
5,545,482
5,545,482
(2,999,000)
(3,212,000)
106,264,325
108,292,216

The financial statements were approved by the Trustees on the 8th July 2024 and signed on their behalf by:

Trustee Rt Rev John Arnold, Bishop of Salford

The notes on pages 30 to 50 form part of these financial statements

28

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Consolidated Statement of Cash Flow

Consolidated Statement of Cash Flow Year to 31[st] December 2024

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
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 2024
Cashflows and cash equivalents at 31 December 2024
Cash flows and cash equivalents Summary
Cash at bank and in hand
Cash held as part of investment fund		 2024
£
(2,121,911)
1,341,108
(2,630,229)
(225,477)
(725,322)
(1,025,758)
(213,000)
(5,600,589)
29,045
(5,356,276)
(2,558,462)
(13,486,283)
1,545,294
(7,562,312)
763,387
(7,268,661)
13,494,139
1,084,935
-
2,056,781
(11,429,502)
33,993,365
22,563,863
22,294,467
269,396
22,563,863		 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

The notes on pages 30 to 50 form part of these financial statements

29

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

Notes to the Financial Statements Year to 31[st] December 2024

1. Significant Accounting policies

1.1. Basis of preparation of financial statements

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

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

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

1.2. Basis of consolidation and scope of the financial statements

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

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

1.3. Areas of Judgement or Estimation

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

The notes on pages 30 to 50 form part of these financial statements

30

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

1.4. Foreign exchange

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

1.5. Going concern

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

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast a significant doubt on the ability of the Charity 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 30 to 50 form part of these financial statements

31

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

1.7. Expenditure

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

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

1.7.1. Raising funds

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

1.7.2. Charitable activities

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

1.7.3. Governance costs

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

1.7.4. Grants Payable

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

1.7.5 SCA – (Schools Building Works)

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

1.8. Taxation

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

1.9. Fixed asset investments

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

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

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

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

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

The notes on pages 30 to 50 form part of these financial statements

32

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

1.10. Tangible fixed assets – other than property

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

Fixtures and fittings 10%

Motor vehicles 25%

Computer equipment 25%

Central freehold land and buildings 2%

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

1.11. Tangible fixed assets – inalienable school property

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

Land and buildings legally owned by the Charity and occupied rent free by Catholic voluntary aided schools and academies, which are exempt charities and publicly funded, are valued at £nil for the purposes of these accounts. The Trustees consider that no meaningful value 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 30 to 50 form part of these financial statements

33

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

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

Church and Presbytery contents etc

1.13. Investment property

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

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

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

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

1.14. Stock

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

1.15. Trade debtors

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

1.16. Cash and cash equivalents

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

1.17. Trade creditors

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

The notes on pages 30 to 50 form part of these financial statements

34

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

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

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

1.18. Pensions

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

1.19. Funds accounting

Funds held by the Charity are either:

1.20. Financial Instruments

1.20.1. Classification

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

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

1.20.2. Recognition and measurement

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

The notes on pages 30 to 50 form part of these financial statements

35

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

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

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

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

1.21. Subsidiary/associated bodies

The Charity has interests in the following undertakings:

Name, nature of business Registered Class and number % Held
Office 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
Charity no. 218951 Salford, common trusteeship
Lancashire. and nature of Diocesan
M3 6DP control over assets and
decision of making of
the organisaiton.

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, liabilities and funds at the end of the reporting period can be found in note 18.

The notes on pages 30 to 50 form part of these financial statements

36

Diocese of Salford Trustees' Annual Report and Accounts 2024

Financial Statements Notes to the Financial Statements

2. Income and endowments

2.1. Donations and legacies

2.2. Other trading activities
2.3. Investment Income
2.5. Other Income
2.4. Charitable Activities
Donations
Legacies
Offertory collections
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		 Unrestricted
Restricted
£
£
853,557
5,208
550,756
-
6,213,707
-
7,618,020
5,208
Parochial funds		 Unrestricted
Restricted
£
£
85,535
136,505
366,755
369,901
-
-
452,290
506,406
Diocesan funds		 2024
Total
£
1,080,805
1,287,412
6,213,707
8,581,924		 2023
Total
£
728,677
521,176
6,101,757
7,351,610
Unrestricted
Restricted
£
£
453,492
-
-
-
-
-
453,492
-
Parochial funds		 Unrestricted
Restricted
£
£
4,394
-
1,516,583
-
29,541
-
1,550,518
-
Diocesan funds		 2024
Total
£
457,886
1,516,583
29,541
2,004,010		 2023
Total
£
428,704
1,593,570
108,620
2,130,894
Unrestricted
Restricted
£
£
-
-
483,725
-
-
-
483,725
-
Parochial funds		 Unrestricted
Restricted
£
£
1,084,935
-
780,693
-
280,876
-
2,146,504
-
Diocesan funds		 2024
Total
£
1,084,935
1,264,418
280,876
2,630,229		 2023
Total
£
1,189,892
1,542,410
50,000
2,782,302
Unrestricted
Restricted
£
£
63,471
-
-
-
63,471
-
Parochial funds		 Unrestricted
Restricted
£
£
519,062
-
1,480,719
-
1,999,781
-
Diocesan funds		 2024
Total
£
582,533
1,480,719
2,063,252		 2023
Total
£
540,054
1,408,583
1,948,637
Other income
Rental Income
Grant Income
Profit/(loss) on disposal of fixed assets		 Unrestricted
Restricted
£
£
1,263,694
-
699,655
-
276,241
25,247
728,093
337,291
2,967,683
362,538
Parochial funds		 Unrestricted
Restricted
£
£
69,317
16,496
418,151
-
760
17,000
2,771
-
-
485,457
33,496
Diocesan funds		 2024
Total
£
1,349,507
1,117,806
319,248
1,062,613
3,849,174		 2023
Total
£
1,545,380
971,888
667,445
189,203
3,373,916
2.6. Other Income – SCA – School Building Works
Unrestricted
Restricted
£
£
SCA - School Building Works
-
-
-
-
Parochial funds		 2023
Total
£
10,661,410
10,661,410
Unrestricted
Restricted
£
£
-
-
-
-
Parochial funds		 Unrestricted
Restricted
£
£
-
9,677,941
-
9,677,941
Diocesan funds		 2024
Total
£
9,677,941
9,677,941

The notes on pages 30 to 50 form part of these financial statements

37

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

2.7. Subsidiary companies

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

Catholic Support Services Limited
Catholic Truth Society
S.D.C Trading Limited		 2024
2023
Income
Expenditure
Net Profit /
(Loss)
Net Profit /
(Loss)
£
£
£
£
1,708,168
868,731

839,437
442,118
29,541
41,519
(11,977)
(69,448)
1,516,583
1,375,760
140,823
(142,896)
3,254,294
2,286,011
968,283
229,774

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.

Catholic Building Services Limited remains dormant for 2024.

3. Resources expended

3.1. Expenditure on raising funds

3.1.1. Investment management costs

Investment Management fees Unrestricted
Restricted
£
£
-
-
-
-
Parochial funds		 Unrestricted
Restricted
£
£
97,557
-
97,557
-
Diocesan funds		 2024
2023
Total
Total
£
£
97,557
142,219
97,557
142,219

3.1.2. Fundraising Costs

S.D.C Trading Limited
Social and fundraising
Total expenditure on raising funds		 Unrestricted
Restricted
£
£
-
-
1,028,875
-
1,028,875
-
1,028,875
-
Parochial funds		 Unrestricted
Restricted
£
£
1,555,661
-
2,317
-
1,557,978
-
1,655,535
-
Diocesan funds		 2024
Total
£
1,555,661
1,031,192
2,586,853
2,684,410		 2023
Total
£
1,736,466
717,870
2,454,336
2,596,555

The notes on pages 30 to 50 form part of these financial statements

38

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

3.2. Expenditure on charitable activities

3.2.1. Parish Costs

Clergy allowances
Gross Wages
Employer's NI
Pension Costs
Staff costs - other
Church & presbytery supplies
Property Overheads
Office costs
Parish vehicles
Other costs
Bank charges
Depreciation		 Unrestricted
Restricted
£
£
892,791
-
1,075,123
-
55,649
-
24,416
-
29,532
-
5,111,469
14,850
3,219,340
227,295
24,581
-
27,265
-
441,938
150
23,176
-
840,171
-
11,765,451
242,295
Parochial funds		 Unrestricted
Restricted
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Diocesan funds		 2024
2023
Total
Total
£
£
892,791
803,078
1,075,123
925,010
55,649
29,195
24,416
48,006
29,532
520
5,126,319
6,327,623
3,446,635
4,293,685
24,581
10,435
27,265
30,172
442,088
728,441
23,176
60,807
840,171
740,377
12,007,746
13,997,349

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
£
£
2,583,197
40,589
273,404
2,672
180,319
1,726
340,738
4,098
90,421
-
888,703
-
1,042,473
57,042
442,667
8,876
983
-
335,570
67,876
910,250
-
57,353
-
(52,655)
-
460,936
888
7,554,359
183,767
Diocesan funds		 2024
2023
Total
Total
£
£
2,623,786
2,582,440
276,076
267,070
182,045
189,172
344,836
417,311
90,421
98,137
888,703
786,037
1,099,515
1,290,137
451,543
460,019
983
-
403,446
507,251
910,250
1,151,028
57,353
17,304
(52,655)
(17,616)
461,824
532,589
7,738,126
8,280,879

3.2.3. Governance Costs

3.2.4.Grants Payable
Legal & professional
Auditors remuneration
Accountancy services		 Unrestricted
Restricted
£
£
1,200
-
-
-
9,450
-
10,650
-
Parochial funds		 Unrestricted
Restricted
£
£
64,541
6,385
69,042
-
23,217
-
156,800
6,385
Diocesan funds		 2024
Total
£
72,126
69,042
32,667
173,835		 2023
Total
£
228,689
61,320
18,958
308,967
2023
Total
£
239,540
88,420
327,960
CATEW/NCF - Gross
Survivors Manchester		 Unrestricted
Restricted
£
£
-
-
-
-
-
-
Parochial funds		 Unrestricted
Restricted
£
£
202,761
-
81,720
-
284,481
-
Diocesan funds		 2024
Total
£
202,761
81,720
284,481

3.3. SCA – School Building Work

SCA - School Building Works Unrestricted
Restricted
£
£
-
-
Parochial funds		 Unrestricted
Restricted
£
£
-
9,504,078
Diocesan funds		 2024
Total
£
9,504,078
9,504,078		 2023
Total
£
10,398,122
-
-		 -
9,504,078		 10,398,122
Total expenditure on charitable activities 11,776,101
242,295		 7,995,640
190,152		 20,204,188 22,915,156

The notes on pages 30 to 50 form part of these financial statements

39

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

3.4 Staff disclosures

3.4
Staff disclosures
Restated
Personnel Costs
Gross Wages
Employer's NI
Pension Costs
Other
Total Employee Costs		 2024
2023
£
£
4,293,080
4,132,376
362,228
330,962
218,481
249,965
367,549
476,089
5,241,337
5,189,393

2023 costs have been restated to include subsidiary costs not consolidated of £1,180,017

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		 2024
2023
No.
No.
63
75
90
87
8
8
60
76
-
2
221
248
2024
2023
No.
No.
2
2
1
1
1
1
-
-
-
-
2
2
6
6
48,474
60,823
NIL
NIL

731,899
701,657

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 30 to 50 form part of these financial statements

40

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

3.5. Trustees

The Board of Trustees is made up of members of clergy and laity of the faithful. The priests receive income for their office together with living accommodation, living expenses and reimbursement of costs incurred on the same basis as other Diocesan priests. No Trustee receives any remuneration or benefits from his/her trusteeship other than cover under the indemnity insurance purchased by the charity. One (2023: One) Trustee received reimbursement for travel expenses in the year 2024: £994 (2023: £123).

3.6. Employee Loans

The total amount of outstanding loans was:
The total amount of car benefit scheme outstanding
was:		 2024
2023
No.
No.
£
£
-
631
5,771
4,159

3.7. Movement in Net Funds

. Movement in Net Funds
2024 2023
This is stated after charging: £ £
Auditors remuneration:
- Audit 63,236 63,581
- Other services 38,337 29,509
Profit / (Loss) on disposal of tangible fixed assets 725,322 189,203
Profit / (Loss) on disposal of investments (1,025,758) (226,279)
Depreciation of fixed assets 1,341,108 1,335,937
Finance charges payable 83,758 94,102

3.8. Change in Actuarial Movement

8. Change in Actuarial Movement
2024 2023
£ £
Increase / (Decrease) Care of Clergy (213,000) 322,000

The accounts include a creditor for the Care of the Clergy Provision (please see note 10.2)

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

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

The notes on pages 30 to 50 form part of these financial statements

41

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

4. Tangible Fixed Assets

Group

Cost
At 1 January 2024
Additions
Disposals
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
Disposals
At 31 December 2024
Net book value at 31 December 2024
Net book value at 31 December 2023		 Properties
Work In
progress
Fixtures &
Fittings
Computer
Equipment
Motor Vehicles
Total
£
£
£
£
£
£
54,704,655
5,713,937
4,628,858
236,651
18,410
65,302,511
1,346,976
5,962,297
212,756
-
40,284
7,562,312
(68,988)
-
(110,662)
-
-
(179,650)
55,982,643
11,676,233
4,730,952
236,651
58,694
72,685,173
18,784,034
-
3,575,006
190,876
18,410
22,568,326
1,082,882
-
236,894
16,497
4,835
1,341,108
(30,923)
-
(110,662)
-
-
(141,585)
19,835,994
-
3,701,238
207,373
23,245
23,767,849
36,146,649
11,676,233
1,029,714
29,278
35,449
48,917,324
35,920,621
5,713,937
1,053,852
45,775
-
42,734,185

Charity

Cost
At 1 January 2024
Additions
Disposals
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the year
Disposals
At 31 December 2024
Net book value at 31 December 2024		 Properties
Work In
progress
Fixtures &
Fittings
Computer
Equipment
Motor Vehicles
£
£
£
£
£
54,589,965
5,713,937
3,592,610
230,459
18,410
1,346,976
5,962,297
210,556
-
40,284
(63,395)
-
-
-
-
55,873,547
11,676,233
3,803,166
230,459
58,694
18,669,343
-
2,682,353
186,022
18,410
1,082,882
-
197,756
16,497
4,835
(25,330)
-
-
-
-
19,726,896
-
2,880,109
202,519
23,245
36,146,651
11,676,233
923,057
27,940
35,449		 Total
£
64,145,381
7,560,113
(63,395)
71,642,099
21,556,128
1,301,970
(25,330)
22,832,769
48,809,330
Net book value at 31 December 2023 35,920,622
5,713,937
910,257
44,437
-		 42,589,253

4.1. Assets not used for charitable purposes

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		 2024
£
107,994		 2023
£
144,932

4.2. Capital Commitments

Capital commitments authorised and contracted for at 31 December 2024 were
as follows:
Diocesan Projects
School Capital Projects		 2024
2023
£
£
10,049,534
14,509,297
7,928,036
6,897,033
17,977,570
21,406,330

Funding for Diocesen Projecrts includes the Cathedral resoring 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 Capital Allowance Grant from the Department for Education (DfE)

The notes on pages 30 to 50 form part of these financial statements

42

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

5. Investment properties

At 1 January 2024
Revaluation Gain
At 31 December 2024		 2024
2023
2024
2023
£
£
£
£
8,014,000
7,969,000
8,014,000
7,969,000
-
45,000
-
45,000
8,014,000
8,014,000
8,014,000
8,014,000
Charity
Group

As at 31 December 2024, 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 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		 2024
2023
£
£
-
-
1
1
1
1
27,616,278
32,590,521
269,396
198,329
27,885,675
32,788,850
Group		 2024
2023
£
£
5
5
1
1
Charity
6
6
27,616,278
32,590,521
269,396
198,329
27,885,680
32,788,855

The notes on pages 30 to 50 form part of these financial statements

43

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

6.2. Investments listed or traded on a recognised stock exchange

Group and Charity
Movement
Market value at 1 January 2024
Additions at cost
Disposal proceeds
Capital payments
Net gain/(loss)
Market value at 31 December 2024
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		 6,694,578
2,916,508
3,143,038
2,084,961
3,238,142
711,401
1,494,033
705,674
£
Cost		 2024
2023
£
£
32,590,521
32,364,242
7,268,661
4,648,019
(7,494,139)
(5,347,054)
(6,000,000)
-
1,251,234
925,314
27,616,278
32,590,521
2024
2023
Market
Market
Value
Value
£
£
6,191,110
8,863,411
4,726,635
3,656,103
4,743,139
6,145,525
2,760,901
4,026,517
5,892,536
5,402,737
846,409
1,170,723
1,761,223
2,560,760
694,325
764,745
20,988,336 27,616,278
32,590,521
20,988,336
-		 27,616,278
32,590,521
-
-
20,988,336 27,616,278
32,590,521

The charity had no holdings which comprised more than 5% of the market value of the portfolio at that date

7. Stock

Stock 2024
2023
£
£
50,494
79,539
Group		 2024
2023
£
£
-
-
Charity

8. Debtors

Trade debtors
Prepayments
Other debtors		 2024
2023
£
£
1,442,060
1,350,101
625,646
598,419
7,786,305
2,549,214
9,854,011
4,497,734
Group		 2024
2023
£
£
1,372,777
1,324,751
590,852
559,991
7,752,291
2,491,243
Charity
9,715,920
4,375,985

Within Other Debtors is a balance of £5.0m (2023 £0) relating to expenditure on behalf of the Diocesan schools funded by the government RAAC and Basic Need funding which is claimed in arrears.

The notes on pages 30 to 50 form part of these financial statements

44

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

8.1. Loans to Other Charities

Group and Charity other debtors include the loan to Ushaw £1,937,844 (2023: £1,669,468) which are repayable on demand.

9. Cash at bank and in hand

Cash at bank and in hand 2024
2023
£
£
22,294,467
33,795,036
Group		 2024
2023
£
£
21,853,615
33,139,317
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		 2024
2023
2024
2023
£
£
£
£
737,566
1,267,634
700,417
1,190,873
95,550
82,241
82,774
82,081
4,394,048
7,045,534
4,339,648
6,986,571
-
-
235,297
74,977
2,165,294
1,555,511
1,657,084
1,068,692
7,392,458
9,950,920
7,015,220
9,403,194
Group
Charity

10.1.2 Deferred Income

Deferred income in the Charity includes rental income invoiced in advance for the lease year, this has reduced in 2024 due to move to quarterly invoicing.

Group includes annual subscriptions paid by schools for education and property services which has increased by both inflation and volume in year and payments for club events in advance. All deferred income is relased in the following year.

Deferred Income opening balance
Released in Year
Income Deferred in year
Deferred income closing balance		 2024
2023
£
£
381,060
327,832
(381,060)
(327,832)
432,447
381,060
432,447
381,060
Group		 2024
2023
£
£
65,233
38,263
(65,233)
(38,263)
35,946
65,233
Charity
35,946
65,233

10.2. Care of Clergy Provision

Group Charity
2024 2023 2024 2023
£ £ £ £
Care of Clergy Provision 2,999,000 3,212,000 2,999,000 3,212,000

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 30 to 50 form part of these financial statements

45

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

10.2. Care of Clergy Provision (continued)

Care of Clergy Provision
Provisions at 1 January
Increase/(decrease) during the year
Provisions at 31 December		 2024
2023
£
£
3,212,000
2,890,000
(213,000)
322,000
2,999,000
3,212,000

10.3. Operating lease commitments

10.3. Operating lease commitments 10.3. Operating lease commitments 10.3. Operating lease commitments
At 31 December 2024 the company had annual commitments under non-cancellable operating leases:
Group
Charity
2024
2023		 2024
2023
Operating Leases which expire:
Within One year
Within two to five years		 £
£
2,009
2,009
1,494
3,503
3,503
5,511		 £
£
2,009
2,009
1,494
3,503
3,503
5,511

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 2024 the total was £55,000 (2023: £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

3. 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 Fund
13.1.6
Other Restricted Funds
13.1.7
Designated Funds
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-24
Incoming
resources
Resources
expended
Transfers
Gains and Losses
Balance
31-Dec-24
£
£
£
£
£
£
96,585,075
18,220,941
(22,456,151)
-
1,251,235
93,601,100
287,603
178,420
-
-
-
466,023
1,064,339
358,953
(248,195)
-
-
1,175,097
309,639
-
-
-
-
309,639
385,466
-
-
-
-
385,466
6,982
199,233
(74,585)
-
-
131,630
7,754,173
9,677,941
(9,504,078)
-
-
7,928,036
18,210
171,041
(109,667)
-
-
79,584
9,826,412
10,585,588
(9,936,525)
-
-
10,475,475
(3,212,000)
-
-
-
213,000
(2,999,000)
(3,212,000)
-
-
-
213,000
(2,999,000)
1,000
-
-
-
-
1,000
456
-
-
-
-
456
1,456
-
-
-
-
1,456
5,545,482
-
5,545,482
108,746,425
28,806,529
(32,392,676)
-
1,464,235
106,624,513

The notes on pages 30 to 50 form part of these financial statements

46

Diocese of Salford Trustees' Annual Report and Accounts 2024 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
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

13.1. Restricted Funds

The Restricted funds are held for the following purposes:

13.2. Designated Funds

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

13.3. Permanent Endowment Funds

13.4. Revaluation Reserves

The notes on pages 30 to 50 form part of these financial statements

47

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

14. Funds: movement in the year

Unrestricted & Designated
Balance at 1 January
Net movements in the year
Balance at 31 December
Restricted
Balance at 1 January
Net movements in the year
Balance at 31 December
Permanent Endowment
Balance at 1 January
Balance at 31 December
Revaluation Reserve
Balance at 1 January
Net movements in the year
Balance at 31 December
Care of Clergy Provision
Balance at 1 January
Change in revaluation
Balance at 31 December
Total Funds		 2024
2023
2024
2023
£
£
£
£
96,585,074
103,401,784
96,130,865
102,970,853
(2,983,974)
(6,816,710)
(2,889,954)
(6,839,988)
Group
Charity
93,601,100
96,585,074
93,240,911
96,130,865
9,826,412
9,745,451
9,826,413
9,745,452
649,063
80,961
649,063
80,961
10,475,475
9,826,412
10,475,476
9,826,413
1,456
1,456
1,456
1,456
1,456
1,456
1,456
1,456
5,545,482
5,500,482
5,545,482
5,500,482
-
45,000
-
45,000
5,545,482
5,545,482
5,545,482
5,545,482
(3,212,000)
(2,890,000)
(3,212,000)
(2,890,000)
213,000
(322,000)
213,000
(322,000)
(2,999,000)
(3,212,000)
(2,999,000)
(3,212,000)
106,624,513
108,746,424
106,264,325
108,292,216

15. Analysis of net assets between funds

Permanent
Group Unrestricted Funds Designated Funds Restricted Funds Endowment Total
£ £ £ £ £
Fund balances at 31 December 2024 are represented by:
Tangible fixed assets 48,917,324 - - - 48,917,324
Investment assets 35,899,675 - - - 35,899,675
Current assets 21,722,040 - 10,475,475 1,456 32,198,971
Current liabilities (7,392,458) (2,999,000) - - (10,391,458)
Total net assets at 31 December
2024 99,146,581 (2,999,000) 10,475,475 1,456 106,624,512
Permanent
Charity Unrestricted Funds Designated Funds Restricted Funds Endowment Total
£ £ £ £ £
Fund balances at 31 December 2024 are represented by:
Tangible fixed assets 48,809,330 - - - 48,809,330
Investment assets 35,899,680 - - - 35,899,680
Current assets 21,092,603 - 10,475,476 1,456 31,569,535
Current liabilities (7,015,220) (2,999,000) - - (10,014,220)
Total net assets at 31 December
2024 98,786,393 (2,999,000) 10,475,476 1,456 106,264,325

The notes on pages 30 to 50 form part of these financial statements

48

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

15. Analysis of net assets between funds (Continued)

Permanent
Group Unrestricted Funds Designated Funds Restricted Funds 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 1,456 108,746,424
Permanent
Charity Unrestricted Funds Designated Funds Restricted Funds 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

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-24
Financing Cash
Flows
Balance
31-Dec-24
£
£
£
33,993,365
(11,429,502)
22,563,863
(7,045,534)
2,651,486
(4,394,048)
26,947,831
(8,778,016)
18,169,815
Balance
01-Jan-24
Financing Cash
Flows
Balance
31-Dec-24
£
£
£
33,337,646
(11,214,635)
22,123,011
(6,986,571)
2,646,923
(4,339,648)
26,351,075
(8,567,712)
17,783,363

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

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

The notes on pages 30 to 50 form part of these financial statements

49

Diocese of Salford Trustees' Annual Report and Accounts 2024 Financial Statements Notes to the Financial Statements

Teachers’ Pension Scheme

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

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

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

17. 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)
2024 Total
2023 Total
£
£
£
£
£
£
-
637
107,351
-
107,987
144,926
-
454,327
408,345
73,518
936,189
1,088,080
-
454,963
515,695
73,518
1,044,177
1,233,006
-
(415,525)
(212,113)
(22,719)
(650,357)
(642,535)
-
39,438
303,582
50,800
393,820
590,471
-
-
(241,492)
-
(241,492)
(344,124)
-
39,438
62,090
50,800
152,328
246,347
-
1
2
-
3
3
-
39,437
62,088
50,800
152,325
246,344
-
39,438
62,090
50,800
152,328
246,347
Turnover
Cost of sales
Gross profit/ (loss)
Administrative expenses
Establishment Costs
Finance charges
Depreciation costs
Net profit
Retained earnings brought forward
Amount gifted to charity
Retained in the subsidiary		 Catholic
Building
Services
Limited
Catholic
Support
Services
Limited
S.D.C.
Trading
Limited
Catholic Truth
Society
(Diocese of
Salford)
2024 Total
2023 Total
£
£
£
£
£
£
-
1,708,168
1,516,476
29,541
3,254,186
3,110,775
-
(849,664)
(1,151,431)
(30,119)
(2,031,214)
(2,304,561)
-
858,505
365,045
(577)
1,222,973
806,213
-
(18,199)
(185,892)
(10,570)
(214,661)
(532,286)
-
-
-
(447)
(447)
(2,197)
-
(167)
-
(383)
(550)
(2,930)
-
(702)
(38,437)
-
(39,139)
(39,027)
-
839,437
140,716
(11,977)
968,176
229,774
-
262,302
(78,626)
62,776
246,452
216,569
-
(1,062,302)
-
-
(1,062,302)
(200,000)
-
39,437
62,090
50,798
152,326
246,343

The individual financial statements of the subsidiary entities included in the consolidation are drawn up on the same accounting date, 31st December 2024. All subsidiary companies are fully consolidated in the Group financial statements.

The notes on pages 30 to 50 form part of these financial statements

50

11 www.dloceseofsalford.org.uk @SalfordDiocese @SalfordDiocese DIOCESE OF SALFORD