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2020-12-31-accounts

ARUNDEL AND BRIGHTON DIOCESAN TRUST Registered Charity No. 252878

ANNUAL REPORT AND ACCOUNTS

Incorporating Thirty Connected Trusts under Charity Commission Uniting Directions

for the year ended

31 DECEMBER 2020

Bishop’s House The Upper Drive Hove East Sussex BN3 6NB

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

CONTENTS PAGE
Report of the Charity Trustees 3
Report of the Auditors 12
Statement of Financial Activities 15
Balance Sheet 17
Statement of Cash Flows 19
Accounting Policies 20
Notes to Accounts 24

CONNECTED TRUSTS UNDER CHARITY COMMISSION UNITING DIRECTIONS

Trusts Linked to Diocesan Trust on Charity Commission website Battle Ashburnham 252878 - 1 Diocese Buckley 252878 - 2 Slindon Leslie 252878 - 3 Littlehampton Norfolk 252878 - 4 Littlehampton Norfolk 1901 252878 - 5 Diocese Education 252878 - 6 Duncton Bedingfeld 252878 - 7 Herons Ghyll Hope 252878 - 8 Crawley Scawen Blunt 252878 - 9 Duncton Biddulph 252878 - 10 Arundel Norfolk 252878 - 11 Houghton Norfolk Cemetery 252878 - 12 Arundel Norfolk Cemetery 252878 - 13 Duncton Biddulph Education 252878 - 14 Angmering Norfolk 252878 - 15

Other Trusts

Burwash Cemetery Caterham Stacpole Dorking Norfolk Effingham Pauling Godalming Hyland Hastings Fairlight Shadwell Cemetery Horsham Norfolk Keymer Munster Oxted Lang St Leonards Grant Sutton Park Salvin West Byfleet Marist School Worthing Gaisford

The following Trusts consolidated their accounts with the Diocese’s by resolution of their Trustees: Diocese Elmer Haywards Heath St Joseph’s School

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

LEGAL AND ADMINISTRATIVE DETAILS

TRUSTEES:

Right Reverend Richard Moth, Bishop of Arundel and Brighton – Chair T W Allen (resigned 2 April 2020) P Bergin (appointed 2 April 2020) Sr J Bertelsen (appointed 2 April 2020) P Burgess OBE, DL, KSG, KGCHS A Campbell OBE KSG (resigned 2 April 2020) Reverend Father J How J Lydon (appointed 2 April 2020) K Maloney Reverend Canon J S Martin VG Reverend Canon K J O’Brien Reverend Deacon M C Thoms (resigned 31 March 2021) C Wordsworth (appointed 2 April 2020)

Secretary to Trustees :

Mrs S M Kilmartin

DIOCESAN OFFICE:

ADVISERS

Bishop’s House The Upper Drive Hove East Sussex BN3 6NB

AUDITORS:

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

FINANCE COMMITTEE:

Reverend Father J How – Chair T W Allen FCA (resigned 2 April 2020) Mr P Bergin ACA (appointed 2 April 2020) Mrs N Bryson MA, ACA W Connell FCMA J Cornish FRICS Reverend Deacon P Gately FIA Mrs I Wragg FRICS

SOLICITORS:

DMH Stallard Gainsborough House Pegler Way Crawley West Sussex RH11 7FZ

INVESTMENT MANAGERS:

Joh. Berenberg, Gossler & Co. KG 60 Threadneedle Street London EC2R 8HP

KEY MANAGEMENT PERSONNEL:

Chief Operating Officer: Mrs S M Kilmartin BA ACA Director, Education Service: Ms M Ryan BA, MA, MCIL

BANKERS:

HSBC Bank plc 69 Pall Mall London SW1Y 5EY

INSURANCE MANAGERS:

Catholic Insurance Service Ltd Suite 5, Oxford House Oxford Road Thame OX9 2AH

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

The Arundel and Brighton Diocesan Trust is a charity established by a Trust deed dated 19th May 1967 as amended 14th November 1967 and 4th December 1998. The charity is registered with the Charity Commission of England and Wales (No. 252878).

The Trustees present their report and financial statements for the year ended 31 December 2020.

OBJECTIVES AND ACTIVITIES

The Diocese is a portion of the People of God, defined by its territories – in this case, the city of Brighton & Hove and the counties of East and West Sussex, and Surrey outside the London Boroughs. The Diocese serves its people through our 85 Parishes, 64 schools and the Diocesan central agencies. The aim of the Diocese is, in accordance with the objectives of the charity, the advancement of the Roman Catholic religion and education.

The Diocese gathers principally through the worship of God and through prayer. This is the foundation of its work and, built on this foundation, the Diocese brings its people together for formation in the Roman Catholic religion. This work of formation is carried out in a number of ways: in Parishes; at diocesan level through conferences and courses and Cathedral liturgies; through the provision of retreats; through the work of its schools. This formation enables the people of the Diocese to exercise the mission of the church. This is carried out in myriad ways through social outreach, especially to the poor and disadvantaged – often at Parish and local level; through provision of courses for those who may wish to explore Faith; through support of the work of the Church in other parts of the world.

In order to achieve these aims, a number of strategies are put in place by the Trustees. These include support for 85 Parishes and 64 Catholic schools serving some 30,000 pupils. A large diocesan pilgrimage to Lourdes is undertaken each year (subject to travel restrictions during the pandemic), and chaplaincy services are provided for universities, hospitals, hospices and prisons. The St. Philip Howard Centre in Crawley hosts the Diocesan Education Service, the Formation Team and the Lourdes Pilgrimage Team. The Curial Offices, based in Hove, accommodate the Chancery, Financial, Canonical and Safeguarding services for the Diocese. The Bishop’s residence contains offices for the secretarial staff that supports the Bishop’s ministry to the whole Diocese. During 2021, the decision has been taken to relocate the Hove teams and the Bishop’s staff to The St Philip Howard Centre. It is anticipated that this move will take place in 2022.

The achievement of these aims fulfils the legal purposes of the charity and impacts on society at a number of levels. The young are enabled to take a responsible place in society, enriching it through their way of life; care is provided to those who are in hospital, elderly or housebound; to those in prison and to those who live with disability. Family life is fostered and supported. The outreach of the Diocese enables many others to avail themselves of the social support offered by the Church. The effect of the Diocese’s work beyond its boundaries has a deep impact on those living in the poorer parts of the world.

The Bishop has oversight of the whole Diocese, achieved through visitations of Parishes, schools and the various operations of the Diocese referred to above. He is aided in this through the work of a number of consultative bodies and by Deans who have pastoral oversight of groupings of Parishes.

The schools of the Diocese are subject to both OFSTED and Section 48 inspections and are very well supported by the Diocesan Education Service.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

Service by Volunteers

Special mention should be made of the considerable number of volunteers who participate in all aspects of the work of the Diocesan Trust as they seek to live out their Christian vocation. Without their active participation our Parishes, in particular, would not function. The Diocesan Trustees, Parish clergy and our employees are most grateful to our volunteers for giving the Church and the world so much time and effort. A typical Parish has between 10% and 20% of its Parishioners actively helping in all manner of voluntary roles from altar servers to financial accountants. Parishes do not only look inwardly to their own needs. Many Parish volunteers give help to the sick, elderly, homeless and disadvantaged in their local areas, and further afield, through their Parish organisations.

Grant making policy

The Diocesan Trust is not primarily a grant making charity. Most grants are of modest size. Occasional larger grants are made by The Trustees, most often to Catholic schools to assist with capital projects.

Public benefit

The Trustees confirm that they have complied with the duty in the Charities Act 2011 section 17 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity. The public benefit provided by the Charity includes the provision of religious ceremonies (such as baptisms, weddings and funerals), maintaining religious burial grounds, celebrating public Masses, and providing and maintaining places of worship. There is also a benefit to the general public as churches can be accessed by people of all faiths and none, for personal spiritual contemplation. Catholic schools and parishes are communities which contribute to the moral and spiritual wellbeing of those who participate. From these centres educational, social and pastoral work is carried out as a practical expression of faith. All of these contribute to the wellbeing of civic society in our country.

ACHIEVEMENTS AND PERFORMANCE

The period covered by this report has been marked by the impact of the Covid-19 pandemic. While this has imposed a hiatus on some aspects of the Diocesan Pastoral Plan, notably the Weeks of Guided Prayer and the possibilities for parish and school visitations on the part of the Bishop, the schools and parishes of the Diocese have responded with agility to the many challenges of the last year.

The great majority of parishes have made provision for livestreaming, enabling people to continue to share in the celebration of Mass and other occasions of prayer. Formation of those preparing for the Sacraments has been able to take place using Zoom and other similar platforms and these have been used for virtual social gatherings also. Parishes worked hard to make their venues and activities Covid-secure and to open for private prayer and acts of worship where Government guidance permitted this.

The continuing growth of a team of Bereavement Counsellors across the Diocese has been especially timely, given the impact of the pandemic on the lives of so many families. The Diocese has been able to administer a significant Voucher Scheme, funded through a Charitable Trust that has supported the Catholic Church across England & Wales. This proved a great support to families who have been affected by significant economic challenge. Schools and parishes supported local communities in myriad ways, including the development of a community hub in East Brighton parish.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

The provision of the CCRS continues in the Diocese and the Formation Team planned an online Mission that was delivered in Lent 2021. The work to develop School Chaplaincy, begun in in previous years, has continued and one of the Multi-Academy Trusts has now developed a Chaplaincy Apprenticeship Scheme that is beginning to bear fruit beyond the school itself.

The development of the Multi-Academy Trusts continues in a measured fashion, with a particular focus on the growth of the Bosco Catholic Education Trust in Sussex. The Academies Partnership Committee works with the two Catholic Education Trusts to review and approve school applications to join the Trust, carrying out due diligence to ensure the ongoing strength and capacity of the MATs.

Staff at diocesan and parish level responded well to the challenges of the pandemic. Some staff were furloughed (supported by the Central Government Scheme) during periods when it was not possible for their work to continue. However, the use of cloud-based systems and provision of equipment to staff working at home enabled the essential work of teams to continue remotely, so that schools, parishes and clergy received necessary support throughout the pandemic. Training and formation continued, with online platforms replacing face to face meetings. The use of online training modules and Zoom allowed the Safeguarding team to continue to provide mandatory clergy refresher training during the year. The Safeguarding team also introduced the capability for applicants to complete a fully online process for obtaining checks from the Disclosure & Barring Service and cloud-based systems were established for volunteer administration and case management.

The Diocesan Pilgrimage to Lourdes was unable to travel in 2020, due to the restrictions imposed by the pandemic. In response to this, a ‘virtual pilgrimage’ was arranged, drawing many people from across the Diocese together in prayer and in support for the life of the Shrine in Lourdes.

FINANCIAL REVIEW

Before taking into account the investment gains, there was a deficit of £0.4 million. Income decreased in the year to £13.9 million (2019 £16.0 million). The drop in revenue of £2.1 million compared to 2019 was a result of Covid: collections fell by £1.0 million and lettings and activity income were significantly impacted. Expenditure decreased in the year to £14.3 million (2019 £16.2 million) as projects were put on hold. The net surplus for the year was £3.4 million (2019 £4.3 million). There was a cash inflow of £1.2 million (2019 outflow of £2.0 million) due to the receipt of public funds for school improvement. Overall Diocesan funds increased to £97.2 million (2019 £93.7 million).

The income and expenditure of the Diocesan Trust is set out in three principal components: Parishes, Central Diocese and Schools. The basis of charitable expenditure is made by reference to the objectives of the charity: the advancement of the Roman Catholic religion and education. The thirty connected Trusts are incorporated into the results for the area of the Diocese to which they relate. Twenty-eight of the connected Trusts provide the land and church buildings for Parishes who maintain the properties and two are linked to activities of the Central Diocese (care for retired priests).

The financial statements comply with the Charities Act 2011, the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019), and are in accordance with the accounting policies of the Diocese.

The majority of funds in the charity are raised and expended within each individual Parish or centre activity in support of its work. In addition to financing their own activities, Parishes also support the Diocese through the transfer of funds to cover both general and specific activities of the Diocese.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

Parishes

The net surplus in funds before transfers was £3.3 million (2019 £3.7 million). Income was £10.4 million compared with last year’s £12.4 million due to the closure of churches and halls during the pandemic, which had a direct impact on collections and income from lettings. Expenditure reduced to £8.5 million (2019 £10.2 million). Parishes contributed £2.1 million to the central costs of the Diocese through transfers (2019 £2.1 million).

Most of the costs incurred in the Parishes were attributed to the primary activity of the Diocese: advancement of the Roman Catholic faith.

Parish net assets benefitted from a positive year end valuation of investments, which increased in value by £1.3 million (2019 £1.5 million). The overall surplus at year end was £1.2 million (2019 £1.6 million). Parish funds increased to £69.8 million (2019 £68.6 million). Tangible fixed assets at cost less any depreciation were £41.8 million at year end, a decrease of £0.1 million on last year’s £41.9 million.

Central Diocese

Income and expenditure in the Central Diocese were broadly consistent with the prior year, with income of £2.0 million (2019 £2.1 million) and expenditure of £4.5 million (2019 £4.5 million) Income transferred in from Parishes at £2.1 million was consistent to last year (2019 £2.1 million). Investments benefitted at the year end with a gain in value of £2.5 million (2019 £3.0 million). The largest cost in the Central Diocese was staffing. The overall funds of the Central Diocese increased to £26.3 million (2019 £24.1 million) with £5.2 million in unrestricted funds excluding designated reserves. Tangible assets accounted for £12.9 million of Central Diocese funds.

Schools

Sacred Heart Preparatory School in Wadhurst and four Parish pre-schools operated within the Diocesan Trust and their results are reflected in these accounts. The pre-school in Thames Ditton parish closed in July 2020. Pre-schools continue to operate in the parishes of Chichester, Crawley and Haywards Heath. Total unrestricted funds were negative £0.4 million due to overdrafts at Wadhurst and Crawley (2019 £0.5 million). These overdrafts arose from planned capital works in previous years and are being managed downwards. Tangible assets account for £1.5 million (2019 £1.5 million).

Risk Assessment and Risk Management

During 2020 the Diocesan Trustees continued their oversight of the major risks to which the Trust is exposed. The risk register was extensively updated during 2020 to take account of the significant ongoing challenge from the coronavirus pandemic. The measures that have been put in place by Trustees and through the work of the Bishop and Episcopal Council maintain a careful watch on areas of risk.

The Safeguarding team continues training and monitoring activities to address the risk of safeguarding failures in relation to children and vulnerable adults. Their work is overseen by Trustees through the Safeguarding sub-committee. Health and Safety risks are overseen by a Health and Safety subcommittee. A cloud-based Health and Safety system is in use, allowing monitoring and support of parish compliance in this area.

The Trustees have focused particular attention on the key strategic risks facing the Diocese. These relate to the increasing burden on priests and Deans due to their greater responsibilities, and the

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

increased average age of clergy. Strategic risk is also recognised in relation to major issues that could cause failure in our Multi-Academy Trusts, and by the risk of abuse. The Pastoral Plan launched in 2018 is a direct response to the risks arising from the increasing demands on clergy and from reduced engagement from lay people. The ongoing oversight of the Education Service and Safeguarding team addresses the risks relating to schools and the risk of abuse.

Investment Policy and Performance

The Trust deed authorises the Trustees to make and hold investments using the general funds of the Diocese. The investment objective is that the real value of the Trust’s assets should be maintained and enhanced over the long term to service the needs of the Trust. The overall risk is assessed to be medium, when viewed with the property and cash assets of the Trust.

The investment managers (Berenberg) manage the day to day management of the various Trust funds on a discretionary basis in line with the Diocesan Statement of Investment Principles (SIP). The SIP outlines the features of the Trust’s two investment portfolios, the Multi Asset Investment Fund 1 (MAIF 1) and the Multi Asset Investment Fund 2 (MAIF 2). These differ in risk profile, with the first MAIF taking a medium/high approach to risk, balancing income and capital growth. MAIF 2 takes a low/medium approach to risk, with a focus on capital preservation. Target investment returns have been set at CPI+ 3.0% per annum for MAIF 1 and CPI+ 1.5% per annum for MAIF 2.

The ethical policy expressed in the SIP stipulates that investments will not be purchased in companies where arms, tobacco, contraception, pornography or gambling make up more that 10% of turnover. This restriction ensures that the Diocese will not be invested in companies dedicated to these products and services but allows investment in sectors such as retail, where a low percentage of trading may relate to these items. The SIP requires that no investments can be held in companies that perform abortion service, and that the investment managers will only invest in companies with responsible lending policies. In 2020 the SIP was updated to preclude holdings in companies engaged with the extraction or refining of Fossil Fuels.

The investment objectives for the connected Trusts are the same as those for the Diocese, and their portfolios are managed by Berenberg according to the risk approach of individual Trustees, with some preferring the low/medium risk profile of MAIF 2.

During the year an investment gain of £3.4 million arose (2019 £4.5 million). This was in line with the market.

Reserves Policy

The total funds are £97.2 million, of which £13.6 million relate to the connected Trusts.

Restricted funds total £8.4 million (Diocese £2.4 million and Parish and connected Trusts £6.0 million), particulars of which are set out in Notes 18 and 19 to the accounts. Permanent Endowment funds total £12.0 million (Diocese £0.9 million and connected Trusts £11.1 million), with particulars also set out in Notes 18 and 19 to the accounts.

Designated funds, wholly held by the Diocese, are £72.0 million and comprise the general unrestricted funds of the individual Parishes, £52.7 million and other designated funds totalling £19.3 million, of which the most substantial is the fixed asset fund of £12.4 million, followed by the retired priests’ fund of £4.2 million.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

In Canon Law the Parishes have the right to acquire, retain, administer and alienate temporal goods. While the unrestricted funds of the individual Parishes could therefore be regarded as restricted at the Diocesan level, this might not be consistent with the civil law status of the Diocese as a single entity . In order to respect the special nature of these funds, the Trustees have designated these funds as relating to the individual Parishes from which they are derived.

The funds held by each of the 85 Parishes need to be held in order to provide working funds, to meet future expenditure (particularly on property maintenance) that will not be met by future income and, in some cases, to accumulate funds for a building programme. The properties held by Parishes comprise the Parish church or churches and, in most cases, a hall and presbytery. The maintenance costs of these properties can be substantial and frequently unpredictable. Excluding tangible fixed assets, the average amount of unrestricted funds held by Parishes is £208k (2019 £210k). The actual amounts held vary significantly above and below this average, but Parishes with funds surplus to immediate foreseeable requirements are able to provide support to Parishes in need of assistance, either directly or through the Diocese.

The unrestricted funds of the Trust are also utilised to provide land and buildings for both Central Diocese and the Schools. These funds are held in designated Fixed Asset funds of £12.4 million and £1.5 million respectively.

As stated in note 21, the Trustees consider that there is a constructive obligation to support priests in their retirement, but the provision required cannot be measured with sufficient reliability. The Trustees consider, however, that it is necessary to designate funds based on their best estimate of the possible future requirement. The designated fund for retired priests (£4.2 million at the year-end) is intended to provide (i) a fund to meet the cost of support of already retired priests and (ii) a fund that, with future transfers to the fund, will meet the cost of support in retirement for all currently serving priests, in both cases allowing for future inflation and interest. With further replenishment, the fund is projected to be expended over the lifespan of currently serving and retired priests.

The fund designated for Ecclesiastical Education is largely derived from donations from Parishes for the express purpose of ecclesiastical education. As these are intra-Trust donations they cannot be treated as restricted but, in order to respect the special nature of these funds, the Trustees have designated them accordingly. The fund was £0.6 million at year-end and is adequate, at present levels of expenditure, to cover the relevant costs for approximately five years.

The total of funds that can be realised only by disposing of tangible fixed assets is £56.3 million. These amounts are reflected in restricted, endowment and designated funds (i) as part of the overall funds of Parishes that are designated at Diocesan level and (ii) by a designated fund of the Central Diocese.

The reserves held after making allowance for any restricted funds, and the amount of designations, commitments (not provided for as a liability in the accounts) or the carrying amount of functional assets totalled £4.7 million. Although capable of utilisation across the relevant entities, these reserves were held as to (£0.5 million) by the Schools and £5.2 million by the Central Diocese.

The parish pre-schools reserves are not adequate to ensure their ongoing financial stability, and the three parishes that will continue to run pre-schools will underwrite their liabilities with parish reserves. The overdraft at Sacred Heart School has been incurred in relation to property projects approved by the Diocesan Finance Committee, with a repayment schedule agreed.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

The net costs of the Central Diocese are met in part by levies on parishes. Reserves are required to meet shortfalls in the income needed to meet current levels of expenditure. They are also needed to provide funding, by way of loans and/or grants to parishes and schools, principally for building and other development projects.

The Trustees have not determined a fixed amount of general reserves that are needed but consider that the reserves need to be maintained at least at the present level in order to meet possible shortfalls in income. The reserves need to be increased in order to be able to respond to requests from schools and Parishes for building and development funding, which is at present constrained by the level of reserves.

FUTURE PLANS

The impact of the Covid-19 pandemic is likely to be felt for some time into the future and the Mission of the Diocese will need to adapt to new circumstances. It is likely that a small number of parishes will not, as a result of the financial impact of the pandemic, be financially viable. This will result in further engagement with parish communities that will lead to amalgamations with other parish communities and, perhaps, the closure of a small number of churches.

In the face of such challenges, the work of the Formation in Faith, that is at the heart of the Charity’s work, will continue to grow in importance. Indeed, the time of the pandemic has brought many in society to re-examine their lives and the life and mission of the Diocese will need to respond in new ways to the needs of the wider society.

The Charity Trustees will need to consider the future central structures and plans are being developed to move all the Diocesan Offices onto one site. This will bring about economies of scale and also contribute to the work of the Diocese through improved communications and collaborative working. It is envisaged that the experience of the last year will also lead to a blended working model.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The fixed assets and investments of the charity are vested in a Trust corporation as nominee for the charity with the Diocesan Trustees as the managing Trustees. There are ten managing Trustees. The Trust Corporation is the Arundel & Brighton Roman Catholic Diocesan Corporation Limited incorporated on 20th January 1969. The corporation is registered under the Companies Acts (No. 0946255) as limited by guarantee and not having share capital; the Diocesan Trustees are its members and directors.

Trustees The Bishop is empowered to appoint and remove all Trustees. The Trustee body comprises four clergy, one religious, and five laity of the faithful. The clergy Trustees are appointed for their expertise in parochial, spiritual and pastoral matters. Lay Trustees are selected for specialisms in business and education. Further lay Trustees would be chosen to match any perceived skill requirement and would be recruited on the recommendation of, inter alia, Trustees, the Finance Committee and Parish priests. New Trustees are provided with terms of reference and information relating to the constitution, governance and operation of the Trust. Trustees are expected to visit the central departments as well as being familiar with the work of Parishes. All decisions affecting the Trusts are made by the board of Trustees. The board has established various committees to advise it on aspects of the Trust's activities.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees receive training in charity governance and receive updates relating to the Charity Commission periodically.

Finance Committee The committee comprises two Trustees and five others who have expertise in financial, property and management matters. The committee meets eight times a year. The role of the committee is advisory to the Trustees on financial governance and asset management. The committee also acts as the Trustees’ audit committee.

Education Committee The committee comprises the Bishop and ten others who have expertise in school education provided through the maintained and independent sectors. Members comprise governors, headteachers, clergy and a Trustee of the Diocese. The committee advises the Trustees on education policy issues, and meets three times a year.

Council of Priests and College of Consultors The priests in these two bodies advise the Bishop on strategic issues affecting the Parishes and Diocese.

Episcopal Council The Council comprises three Episcopal Vicars and the Vicar General, and meets with the Bishop monthly.

Pastoral Commissions There are several committees advising the Trustees on the wide range of pastoral activities undertaken by the Trust. These committees meet between one and four times a year.

Parishes The day to day administration of our Parishes is carried out by Parish clergy who are advised by their Parish finance committees. Significant matters are authorised by the Trustees, for example major property or capital expenditure.

The voluntary aided (maintained) schools and Academies of the Diocese are exempt charities that co-operate with the Trust in providing education in partnership with the UK Government.

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. Remuneration for key management roles is benchmarked against market rates when appointments are made and considered annually.

Fundraising approach

The Diocese does not engage in fundraising telephone or email campaigns. Funds are raised through collections at services and events, or through donations received via post, bank transfer or online giving. The Diocese is regulated by the Fundraising Regulator. No complaints about fundraising were received this year or during the prior year.

Subsidiary Companies

The Diocese has two wholly owned dependent companies: -

1) Diocese of Arundel & Brighton (Building Services) Ltd. The company was established to facilitate the management of building contracts for the Diocese. Its sales are only to the Diocese. The company provides its services approximately at cost, and therefore makes a minimal profit or loss. For the year ended 31 December 2020, the turnover of the company was £Nil (2019: £Nil) and there was a loss of £Nil, (2019: £Nil).

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

2) Arundel and Brighton Lourdes Pilgrimage Ltd The company manages the annual pilgrimage to Lourdes each year solely for Diocese parishioners and their helpers. The Diocese is the ultimate controlling party of the company. For the year ended 31 December 2020 the turnover of the company was £121,000 (2019 £469,000) and there was a profit of £45,000 (2019 loss of £39,000). During 2021 Arundel and Brighton Lourdes Pilgrimage Ltd was wound up, and its assets and liabilities transferred to the Diocesan Trust.

STATEMENT OF THE TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the net movement in funds of the charity for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the Trust deed dated 19th May 1967. They 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.

Approved by the Diocesan Trustees on 21 July 2021and signed as authorised on their behalf by:

The Right Reverend Richard Moth Bishop of Arundel & Brighton Chairman of Diocesan Trustees

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Independent auditor’s report to the trustees of Arundel and Brighton Diocesan Trust

Opinion

We have audited the financial statements of Arundel and Brighton Diocesan Trust for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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Independent auditor’s report to the trustees of Arundel and Brighton Diocesan Trust (continued)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Canon law, employment law and health and safety regulations, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Canon Law, the Charities Act 2011, The Statement of Recommended Practice for Charities (SORP 2015), FRS102 and payroll taxes.

Page | 13

Independent auditor’s report to the trustees of Arundel and Brighton Diocesan Trust (continued)

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

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

2021

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

Page | 14

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2020

Note
FIXED ASSETS
Tangible assets
13
Investments
14
CURRENT ASSETS
Debtors and prepayments
15
Cash at bank and on deposit
LESS LIABILITIES
Creditors - amounts falling due
within one year
16
PARISH LOAN ACCOUNTS
Due to Parishes
NET CURRENT ASSETS
TOTAL NET ASSETS
FUNDS OF THE CHARITY
Unrestricted funds
General funds
17/18
Designated funds
17/18
17/18
Restricted funds
17/18
Permanent endowment
17/18
TOTAL CHARITY FUNDS		 Parishes
Central
Diocese Schools
Total
£'000
£'000
£'000
£'000
41,847
12,896
1,525
56,268
13,788
23,169
-
36,957
55,635
36,065
1,525
93,225
285
1,650
25
1,960
8,671
(3,009)
(147)
5,515
8,956
(1,359)
(122)
7,475
(793)
(2,427)
(297)
(3,517)
5,987
(5,987)
-
-
14,150
(9,773)
(419)
3,958
69,785
26,292
1,106
97,183
5,114
(471)
4,643
52,686
17,961
1,525
72,172
52,686
23,075
1,054
76,815
5,957
2,358
52
8,367
11,142
859
12,001
69,785
26,292
1,106
97,183		 2019
£'000
56,067
33,080
89,147
1,731
4,350
6,081
(1,480)
-
4,601
93,748
2,418
72,541
74,959
7,452
11,337
93,748

Approved by the Trustees on 21 July 2021 and signed as authorised on their behalf by:

The Right Reverend Richard Moth Bishop of Arundel and Brighton Chairman of Trustees

Page | 17

ARUNDEL AND BRIGHTON DIOCESAN TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2019

Note
FIXED ASSETS
Tangible assets
13
Investments
14
CURRENT ASSETS
Debtors and prepayments
15
Cash at bank and on deposit
LESS LIABILITIES
Creditors - amounts falling due
within one year
16
PARISH LOAN ACCOUNTS
Due to Parishes
NET CURRENT ASSETS
TOTAL NET ASSETS
FUNDS OF THE CHARITY
Unrestricted funds
General funds
17/18
Designated funds
17/18
17/18
Restricted funds
17/18
Permanent endowment
17/18
TOTAL CHARITY FUNDS		 Parishes
Central
Diocese
Schools
Total
£'000
£'000
£'000
£'000
41,873
12,719
1,475
56,067
12,274
20,806
-
33,080
54,147
33,525
1,475
89,147
319
1,375
37
1,731
9,095
(4,377)
(368)
4,350
9,414
(3,002)
(331)
6,081
(671)
(655)
(154)
(1,480)
5,736
(5,736)
-
-
14,479
(9,393)
(485)
4,601
68,626
24,132
990
93,748
2,955
(537)
2,418
52,894
18,172
1,475
72,541
52,894
21,127
938
74,959
5,199
2,201
52
7,452
10,533
804
11,337
68,626
24,132
990
93,748		 2018
Total
£'000
53,716
28,390
82,106
1,837
6,327
8,164
(852)
-
7,312
89,418
1,544
70,503
72,047
6,794
10,577
89,418

Page | 18

ARUNDEL AND BRIGHTON DIOCESAN TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of Cash Flows

For the year ended 31st December 2020

Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of property, plant and equipment		 2020
£'000		 2019
£'000
45 (472)
495
(915)		 771
(2,880)
Proceeds from sale of property, plant and equipment 1,579 770
Purchase of investments
Proceeds from sale of investments
Net cash (used in) provided by investing activities
Net cash provided by financing activities
Change in cash & cash equivalents in reporting period:
Cash & cash equivalents at beginning of reporting period:
Cash & cash equivalents at end of reporting period:
Reconciliation of net incoming resources to cash flow
from operating activities
Net income/(expenditure) for reporting period (as in SOFA)
Adjustments for:
Depreciation		 (8,790)
8,751		 (14,167)
14,001
1,120 (1,505)
- -
1,165
4,350		 (1,977)
6,327
5,515 4,350
3,435
-		 4,330
-
(Surplus) or Deficit retained in Investment Portfolio (3,838) (4,524)
Dividends
Net (Gains) on Disposal of Fixed Assets
Decrease in Debtors
Increase/(Decrease) in Creditors
Net cash used in operating activities
ANALYSIS OF CHANGES IN CASH AT BANK AND IN HAND
Cash at Bank and in Hand		 (495)
(865)
(229)
2,037		 (771)
(241)
106
628
45 (472)
2020
Cash flow
£'000
£'000
5,515
1,165		 2019
£'000
4,350

Page | 19

ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

1.1 Basis of Accounting

The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019).

Arundel and Brighton Diocesan Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2 Preparation of the accounts on a going concern basis

Having considered future budgets and cash flows, the Trustees confirm that they have no material uncertainties about the entity’s ability to continue as a going concern for the foreseeable future.

1.3 Subsidiary companies

All the turnover of the Diocese’s wholly owned dependent company, the Diocese of Arundel & Brighton (Building Services) Limited, represents sales of building construction to the Diocese. The subsidiary has no material net assets or liabilities. Arundel & Brighton Lourdes Pilgrimage Limited arranges an annual pilgrimage to Lourdes for Diocesan faithful and has no material net assets or liabilities at the year end. There is no significant difference between the Statement of Financial Activities and the Balance Sheet of the charity by itself and those of the group comprising the charity and its subsidiaries. The charity and its subsidiaries are not consolidated.

1.4 Income

All income is included in the SOFA once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following specific policies apply to categories of income:

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Collections and fundraising income is recognised upon receipt.

Government grant income represents the total amount claimed from HM Revenue & Customs under the Coronavirus Job Retention Scheme (CJRS). The income is accounted for in the period in which the associated salary payments are made to furloughed staff.

For legacies, entitlement is considered to be the earlier of when either:

notification has been received from the executor that probate has been granted and the Charity is expected to receive a distribution; or

Receipt of a legacy is only considered probable when the executors have indicated that there are sufficient assets in the estate to make a distribution. Where legacies have been notified to the Charity, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Life interests are not recognised until the cessation of the life interest; they are then valued as for residuary legacies.

Page | 20

ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Income from charitable activities is recognised as earned as the related services are provided. Investment income is credited to income when it is 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 dividend due.

Details of trading activities that the Diocese undertakes in the furtherance of its charitable objectives are set out in the notes. Fees receivable and sales of goods are accounted for in the period in which the relevant services or goods are provided or supplied.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as 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 obligation can be measured reliably.

Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.

Charitable activities are advancement of the Roman Catholic Faith and education.

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional on the recipient satisfying performance or other discretionary requirements to the satisfaction of the Board, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to such conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

Support costs are certain Finance Office costs which cannot be directly apportioned and are allocated on the basis of Trustees’ estimates of time spent on relevant functions. Irrecoverable VAT is included with the category of expense to which it relates.

Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of external audit, legal fees and other professional advice.

1.6 Tangible Fixed Assets

Buildings held for use by the charity are included in the financial statements at original cost, where known, or at an estimate of original cost where actual figures are unavailable (see note 13). All new functional buildings and major improvements are capitalised where the cost of construction is greater than £100,000. Certain school properties owned by the Diocese are occupied and run by independent charities in the form of voluntary aided (maintained) schools. There are significant legal restrictions on the disposal of these properties under education legislation. The Trustees consider their ownership to be in the nature of custodianship of the assets and these are therefore not capitalised in the financial statements. The estimated original costs of furniture, equipment and motor vehicles are included in the financial statements.

Page | 21

ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2020

An impairment review of buildings is performed annually to confirm whether a charge for depreciation should be recognised.

Realised gains/(losses) on disposal of fixed assets for charity use are included in the Statement of Financial Activities as income/expenditure. Unrealised gains and losses on fixed assets for charity use are included in the Statement of Financial Activities under gains and losses on revaluations and investment asset disposals.

1.7 Investments

Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently valued at their fair value at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

1.8 Voluntary Aided (Maintained) Schools Building Programme

The Diocese administers some projects on behalf of the Governors of voluntary aided schools which are exempt charities. The financial responsibility remains with the Governors. The income and expenditure is conduit funding and as such is excluded from the Financial Statements of the Trust. Any contributions from the Diocese or its Parishes are recorded as grants to the Governors.

1.9 Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

For the purpose of the civil administration of the charity, Parishes are not distinct legal entities but branches forming part of the administrative machinery of the main Diocesan charity, albeit that they have a degree of independence (see page 7). Parish funds and assets, unless held under distinct and express special Trusts evidenced in law, will be part of the Diocesan charity and will be the responsibility of the Diocesan Trustees. The Trustees may under normal legal principles delegate their management to Parish priests with limited authority. Such Parish funds are designated funds within the unrestricted funds.

In Canon Law the Parish is firmly set within the context of the Diocese C515(1) and the Parish priest exercises his ministry under the authority of the Bishop C519. A Parish erected in accordance with the law possesses public juridical personality by the law itself C515(3). In canon law the Parish has the right to acquire, retain, administer and alienate temporal goods C1255 which as ecclesiastical goods are subject to the norms of Canon Law C1257(1).

Restricted funds are funds that are used in accordance with specific restrictions imposed by donors or that have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page | 22

ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The capital of permanent endowment funds (see Notes 18 and 19) must be maintained intact with any income arising being available for restricted or general charitable purposes of the Diocese, according to the terms of the original gift.

Income from commercial activities is included in the period that the charity is entitled to receipt.

1.10 Collections for Third Parties

Where the charity does not have any discretion in collection and distribution of donations, and has no entitlement to the donation, then these amounts are conduit funding. Amounts and balances relating to conduit funding are not included in the accounts and balances of the charity.

1.11 Recognised gains or losses

All recognised gains or losses for year ended 31 December 2020 and 2019 are derived from continuing activities and are included in the Statement of Financial Activities.

1.12 Debtors

Debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.13 Cash at bank and in hand

Cash at bank and in hand includes bank accounts, cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.14 Creditors and provisions

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.

1.15 Estimation uncertainty

In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. No depreciation charge was recognised in relation to Diocesan properties during the year. By comparing recent market valuations on a number of properties to their holding value, the Trustees formed the judgement that the book value of properties was recoverable, and that it was not necessary to recognise any impairment.

1.16 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page | 23

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2. COLLECTIONS AND DONATIONS
Parish offertory collections
Donations
Gift Aid tax recovered on collections and donations		 2020
2019
£'000
£'000
5,303
6,634
1,256
803
1,303
1,423
7,862
8,860
3. GRANTS 2020
2019
£'000
£'000
463
-
58
50
77
42
86
-
216
39
900
131
Government Grants
Friends of Arundel Cathedral
Parishes various
Food Voucher Scheme
Other
4. ADVANCEMENT OF THE ROMAN CATHOLIC FAITH (INCOME)
Publications and repository sales
Other including courses and events		 2020
2019
£'000
£'000
58
162
105
318
163
480
5. EDUCATION (INCOME)
Independent preparatory school (Sacred Heart Wadhurst)
Parish preschools		 2020
2019
£'000
£'000
1,285
976
37
634
1,322
1,610

Page | 24

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

6. OTHER TRADING ACTIVITIES

6. OTHER TRADING ACTIVITIES
Fund raising events
Lettings and sundry income		 2020
2019
£'000
£'000
630
666
825
1,908
1,455
2,574
7. INVESTMENT INCOME 2020
2019
£'000
£'000
463
702
32
69
495
771
Listed investments
Bank interest

8. CHARITABLE ACTIVITIES (EXPENDITURE) 2020

Fund raising
Advancement of Roman Catholic Faith
Education		 Direct
personnel
Direct other
expenditure Direct grants
Allocated
support
2020 Total
£'000
£'000
£'000
£'000
£'000
40
127
-
14
181
6,114
5,596
482
559
12,751
1,105
92
17
126
1,340
7,259
5,815
499
699
14,272

CHARITABLE ACTIVITIES (EXPENDITURE) 2019

Page | 25

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9. CHARITABLE GRANTS

Schools
Retired priests and housekeepers
UK Poor and sick
Overseas missions
Youth and pilgrimages
Ecumenical
Bishop's conference
St John's Seminary Wonersh
Food Vouchers Scheme
Other		 2020
2019
£'000
£'000
22
105
33
37
49
92
43
51
103
60
19
8
30
-
44
24
86
-
70
67
499
444

10. SUPPORT COSTS 2020

Governance
Finance Office
TOTAL		 Fund raising Advancemen
t of RC Faith
Education
Total
2019
£'000
£'000
£'000
£'000
£'000
14
154
21
189
192
-
405
105
510
522
14
559
126
699
714

SUPPORT COSTS 2019

The Finance Office provides advice and help to Parishes, departments within Central Diocese and Schools. Services include accounting, banking, payroll, investment management, property, legal compliance, HR support and Health and Safety support. Costs have been allocated to activities based on the Trustees' estimate of staff time spent on these activities. Governance costs included fees paid to auditors as follows: audit fees: £39,000 (2019 £39,000), fees for other services £5,000 (2019 £5,000).

Page | 26

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

11. STAFF INFORMATION

11.1 Staff costs

11.1 Staff costs
Employee Salaries
Social Security
Pension Costs
Total Employee Costs
Clergy & Religious Costs
Travel & Office Costs
TOTAL		 Parish
Central
Schools
Diocese
£'000
£'000
£'000		 TOTAL
£'000		 2019
£'000
1,498
1,543
868
60
145
59
114
175
112		 3,909
264
401		 3,987
256
379
1,672
1,863
1,039		 4,574 4,622
1,368
393
-
506
352
66		 1,761
924		 1,196
-
1,261
3,546
2,608
1,105		 7,259 7,079

Key management personnel received salary and pension contributions of £266k (2019 £258k). Included in the staff costs above were redundancy costs of £29k (2019 £35k).

11.2 Pension payments

The Diocese operates two pension schemes, a closed scheme where it contributes 15% of gross salary to a group personal pension scheme for staff members in the Parishes and Central Diocese and the auto-enrolment scheme whereby the employer contributes 5% and the employee contributes 4%. The scheme is a defined contributions scheme for which the Diocese is neither liable to finance any funding shortfall nor entitled to benefit from any over-funding. There were contributions outstanding at the year-end of £21k (2019 £25k).

The Diocese participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £50k (2019 £54k) and the contributions outstanding at the year-end amounted to £5k (2019 £5k).

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The previous actuarial valuation of the TPS confirmed an employer contribution rate for the TPS of 16.4% from 1 September 2015. The employers rate following the March 2016 actuarial valuation has now risen to 23.68%, this rise was implemented in September 2019.

Page | 27

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

There are also indications that the protections in the new cost cap mechanism required by the Public Service Pensions Act 2013 mean public sector workers will get improved pension benefits for employment over the period April 2019 to March 2023.

11.3 Staff numbers

Clergy & Religious
Employees - average weekly numbers		 Parish
Central
Schools
Diocese		 TOTAL 2019
143
3
-
192
61
74		 146
327		 137
343
335
64
74		 473 480

11.4 Employee emoluments


Between £60,001 and £70,000
Between £70,001 and £80,000
Between £80,001 and £90,000
Between £90,001 and £100,000
Between £100,001 and £110,000		 Parish
Central
Schools
Diocese		 TOTAL 2019
1
1
1
1		 1
1
1
1		 2
-
1
1

12. TRUSTEES INFORMATION

The Trustees comprise four priests, one religious and five lay people as shown on page 2 of the Report. 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 Trustee received fees of £680 (2019 £860). Trustee expenses of £36 were reimbursed during the year (2019 £571).

Page | 28

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

13. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 January
Additions
Disposals
At 31 December
DEPRECIATION
At 1 January
Charge for year
Disposals
At 31 December
NET BOOK VALUE
At 31 December 2020
At 1 January 2020		 Freehold
Contents
£'000
£'000		 Total
£'000		 2019
Total
£'000
73,571
400
915
-
(858)
(400)		 73,971
915
(1,258)		 72,283
2,880
(1,192)
73,628
-		 73,628 73,971
17,504
400
-
(144)
(400)		 17,904
-
(544)		 18,567
-
(663)
17,360
-		 17,360 17,904
56,268
-		 56,268 56,067
56,067
-		 56,067 53,207

The Diocese has 50 maintained (voluntary aided) schools constituted as separate charities. In addition two Multi-Academy Trusts have been established as separate charities. A total of 18 Academies have joined the Trusts. The school properties (land and buildings) are vested in the Diocesan Trustees or the Trustees of three connected charities. These Trustees cannot take a unilateral decision to dispose of these properties. Disposal can only occur if the school governors and the Secretary of State for Education decide that all or part of a school site is no longer required for education. In most circumstances, where a disposal occurs, the Secretary of State or the local authority may be entitled to recoup grant. Although no rights of ownership vest in the school governing body, most other rights and obligations, such as for the maintenance and repair of the school and its facilities, are passed to the governors. The Trustees consider that, for the purposes of these Financial Statements, the nature of their ownership is that of a custodianship and therefore these properties have not been capitalised. In addition, the Diocese leases two maintained schools from Religious Orders. A further school is a joint Anglican/Roman Catholic foundation. The Diocesan Directory lists all 65 maintained schools and Academies owned, leased or jointly administered by the Diocese. Apart from a small proportion used for management and administration, all fixed assets are used in direct furtherance of the charity's objects. Assets of Trusts are consolidated with the Diocesan accounts under Charity Commission uniting directions.

Page | 29

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

14. INVESTMENTS

14. INVESTMENTS
Listed Investments
Cash Deposits
TOTAL INVESTMENTS		 2020
2019
£'000
£'000
35,252
31,586
1,705
1,494
36,957
33,080

Summary of investments

Summary of investments
OPENING VALUATION 1 Jan 2020
Acquisitions at Cost
Proceeds of Sales less fund management fees
Gains/(Losses) during the year
CLOSING VALUATION 31 Dec 2020		 2020
£'000
33,080
8,790
(8,751)
3,837
36,956

15. DEBTORS

Advances to schools (£693k due after one year)
School Fee debtors
Gift Aid Small Donations Scheme grant
Inter Diocese Balances
Lourdes Pilgrimage Trust donation to be received
Other Debtors and Prepayments		 2020
£'000
712
-
191
375
230
452		 2019
£'000
842
4
191
-
322
372
1,960 1,731

16. CREDITORS – AMOUNTS FALLING DUE WITHIN ONE YEAR

Parish Collections, Supplies and Accruals
Fees Paid in Advance
Inter Diocese Balances
Other Creditors
Government capital funding for allocation to schools		 2020
£'000
336
144
375
1,316
1,346		 2019
£'000
432
143
-
905
-
3,517 1,480

School condition funding is now held and allocated by the Diocese (previously this was held by Local Authorities).

Page | 30

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

17. FUNDS NET ASSET ANALYSIS 2020

UNRESTRICTED
Parishes
Central Diocese
Schools
RESTRICTED
Parishes
Central Diocese
Schools
ENDOWMENT
Parishes
Central Diocese
TOTAL FUNDS		 Tangible
assets Investments
Net current
assets
2020
Total
£'000
£'000
£'000
£'000
35,030
6,456
11,200
52,686
12,364
20,427
(9,716)
23,075
1,525
-
(471)
1,054
48,919
26,883
1,013
76,815
1,926
1,163
2,868
5,957
211
2,205
(58)
2,358
-
-
52
52
2,137
3,368
2,862
8,367
4,891
6,169
82
11,142
321
537
1
859
5,212
6,706
83
12,001
56,268
36,957
3,958
97,183

FUNDS NET ASSET ANALYSIS 2019

Page | 31

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

18. FUNDS ANALYSIS 2020

UNRESTRICTED GENERAL FUNDS
Parishes (see note)
Central
Schools
UNRESTRICTED DESIGNATED FUNDS
Parishes (see note)
Central
Retired priests
Ecclesiastical education
Fixed Assets
Advances
Schools
Fixed Assets
TOTAL UNRESTRICTED FUNDS
RESTRICTED FUNDS
Parishes
Parishes within Diocesan Trust
Trusts connected with Parishes
Endowment trusts restricted income
Central
Poor
Retired Priests
Lourdes Pilgrimage
Foundation Masses
Ecclesiastical Education
Education
UBS Chaplaincies
Others
Trusts connected with Central
Schools
Catholic Education promotion
TOTAL RESTRICTED FUNDS
ENDOWMENT FUNDS
Parishes
Parishes within Diocesan Trust
Trusts connected with Parishes
Central
Episcopal administration
Ecclesiastical education
Trusts connected with Central
TOTAL ENDOWMENT FUNDS
TOTAL ALL FUNDS		 Opening
balance
Income
Expenditure
Investment
gains /
(losses)
Transfers
Closing
balance
£000s
£000s
£000s
£000s
£000s
£000s
2,955
1,670
(3,542)
2,219
1,812
5,114
(537)
1,496
(1,340)
-
(90)
(471)
2,418
3,166
(4,882)
2,219
1,722
4,643
52,894
9,792
(8,510)
629
(2,119)
52,686
4,536
-
(409)
-
150
4,277
607
-
(149)
-
150
608
12,187
-
-
-
177
12,364
842
-
-
-
(130)
712
1,475
-
-
-
50
1,525
72,541
9,792
(9,068)
629
(1,722)
72,172
74,959
12,958
(13,950)
2,848
-
76,815
2,187
635
-
20
41
2,883
2,383
5
(4)
54
(12)
2,426
629
77
(36)
26
(48)
648
5,199
717
(40)
100
(19)
5,957
530
6
-
89
-
625
-
101
(101)
-
-
-
661
77
(103)
-
-
635
515
-
-
59
-
574
55
3
(58)
-
-
-
93
-
-
76
-
169
127
-
-
-
-
127
9
8
-
-
-
17
211
-
-
-
-
211
2,201
195
(262)
224
-
2,358
52
-
-
-
-
52
7,452
912
(302)
324
(19)
8,367
1,041
-
-
102
-
1,143
9,492
-
(20)
508
19
9,999
10,533
-
(20)
610
19
11,142
375
-
-
43
-
418
107
-
-
12
-
119
322
-
-
-
-
322
804
-
-
55
-
859
11,337
-
(20)
665
19
12,001
93,748
13,870
(14,272)
3,837
-
97,183

Page | 32

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted designated funds

The Trustees have set aside designated funds out of unrestricted funds to ensure that certain activities or responsibilities of the Trust are adequately financed.

Parishes - in Canon Law each parish has a distinct legal personality and is administered by the parish priest under the authority of the Bishop. In Canon Law a parish can acquire and dispose of assets in its own right. The Trustees regard parish unrestricted funds as designated funds. Parishes transferred £1.7 million to the Central Diocese to support Central activities.

Retired Priests - to support priests in retirement with accommodation and nursing needs.

Ecclesiastical Education - for the education of students to the priesthood and continuing formation.

Fixed Assets – for the provision of land and buildings for use in the activities of the Diocese. A separate fund is designated for fixed assets used by Schools.

Advances – to provide long-term loans to schools to finance development programmes.

Restricted funds

In the Parishes these mainly relate to funds raised for specific parish building projects.

In the Central Diocese funds are restricted for the following purposes: Poor - Aid to poor religious orders and laity

Foundation Masses - Clergy stipends for Masses celebrated on the anniversary of the deceased Ecclesiastical Education - created from legacies for training priests and promoting vocations to the priesthood

Universities of Brighton & Sussex Chaplaincies - created from donation from Trust to maintain Chaplaincy building and facilities

Lourdes Pilgrimage – for promoting and organising pilgrimages to Lourdes

Permanent endowment funds

Eight parishes have connected permanent endowment trusts for their support. See note 19.

In the Central Diocese permanent endowment trusts exist for Episcopal Administration – the support of the Bishop’s establishment and office and Ecclesiastical Education – the training of students to the priesthood. The Buckley Trust provides support for retired priests.

Page | 33

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

18. FUNDS ANALYSIS 2019

Page | 34

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

19. CONNECTED TRUSTS

Note 19 Funds analysis of Connected Trusts
Investment Closing
Opening gains / balance
balance **Income ** Expenditure (losses) Transfers 2020
£'000 £'000 £'000 £'000 £'000 £'000
Trust Beneficiary Nature
RESTRICTED
Ashburnham Battle Land and investments 702 5 (4) 54 (12) 745
Elmer Retired priests Land 211 211
Gaisford Worthing Land 10 10
Grant St Leonard's Land 135 135
Hyland Godalming Land 58 58
Munster Keymer Land 38 38
Norfolk Dorking Land 2 2
Norfolk Horsham Land 934 934
Salvin Sutton Park Land 246 246
Stacpole Caterham Land 258 258
2,594 5 (4) 54 (12) 2,637
PERMANENT ENDOWMENT RESTRICTED INCOME
Bedingfeld Duncton Investments 14 18 (9) 23
Biddulph Education Duncton Investments 55 9 (9) 55
Buckley Retired priests Land and investments - -
Cemetery Burwash Land and investments - -
Hope Herons Ghyll Land and investments 42 3 45
Lang Oxted Land and investments - -
Leslie Slindon Land and investments 8 11 (15) 4
Norfolk Angmering Land and investments 442 5 (3) 26 470
Norfolk 1901 Littlehampton Investments 3 3 (5) 1
Norfolk Cemetery Arundel Land and investments - -
Norfolk Cemetery Houghton Land and investments 27 27
Scawen Blunt Crawley Land and investments 38 28 (43) 23
629 77 (36) 26 (48) 648
PERMANENT ENDOWMENT
Bedingfeld Duncton Investments 238 (2) 28 264
Biddulph Duncton Land 1 1
Biddulph Education Duncton Investments 636 (3) 60 693
Buckley Retired priests Land 322 322
Cemetery Burwash Land and investments 6 6
Hope Herons Ghyll Land and investments 364 (2) 44 406
Lang Oxted Land and investments 1,161 1,161
Leslie Slindon Land and investments 527 42 569
Norfolk Arundel Land 799 799
Norfolk Littlehampton Land 168 168
Norfolk 1901 Littlehampton Investments 287 (2) 17 5 307
Norfolk Cemetery Arundel Land and investments 876 5 881
Norfolk Cemetery Houghton Land and investments 7 1 8
Pauling Effingham Land 647 647
Scawen Blunt Crawley Land and investments 3,775 (11) 311 14 4,089
9,814 - (20) 508 19 10,321
TOTAL CONNECTED TRUSTS 13,037 82 (60) 588 (41) 13,606

In addition, the following trusts comprise land holdings only for schools and/or cemeteries: St Joseph’s primary school trust in Haywards Heath

Fairlight cemetery trust near Hastings (permanent endowment) Marist primary school trust in West Byfleet Education trust for Diocese

Norfolk trust for school and cemetery in Angmering

Page | 35

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

20. COMMITMENTS GUARANTEES AND CONTINGENCIES

Capital commitments: At 31 December 2020 there were no capital commitments on Parish properties, maintained or independent schools (2019 Nil).

Contingent Liability: The Diocese provides support to its retired priests, in line with established Diocesan practice and in accordance with Canon Law requirements. In the opinion of the Trustees, this constitutes a constructive obligation, as defined by the Charities SORP (FRS 102). The amount of this obligation cannot be measured with sufficient reliability as the support required by individual priests will vary considerably, particularly depending on whether any third-party care is needed.

21. SUBSIDIARY COMPANIES

DIOCESE OF ARUNDEL & BRIGHTON (BUILDING SERVICES) LIMITED

The wholly owned trading subsidiary was incorporated in the United Kingdom in 1991 (Reg No 2576444). The company manages building contracts on behalf of the Diocese. The Diocese owns all the issued share capital of two ordinary shares. A summary of the trading results is shown below.

All the turnover of the Diocese’s wholly owned subsidiary, the Diocese of Arundel & Brighton (Building Services) Limited, represents sales of building construction to the Diocese. The subsidiary has no material net assets or liabilities and there is therefore no significant difference between the Statement of Financial Activities and the Balance Sheet of the charity by itself and those of the group comprising the charity and its subsidiary. The charity and its subsidiary are not consolidated.

SUMMARY ACCOUNTS

Turnover
Less: Cost of Sales and Administrative Expenses
Retained Profit/(Loss) for the Year
The assets and liabilities of the subsidiary were:
Tangible Assets
Current assets
Creditors - amounts falling due within one year
Total Net Assets
Aggregate share capital and reserves		 2020
£'000
-
-		 2019
£'000
-
-
0 0
-
(6)		 -
(6)
(6) (6)
(6) (6)

Page | 36

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

ARUNDEL AND BRIGHTON LOURDES PILGRIMAGE LTD

The wholly owned trading subsidiary was incorporated in the United Kingdom (Reg No 2998831). The company manages the annual pilgrimage to Lourdes each year solely for Diocese parishioners and their helpers. The Diocese is the ultimate controlling party of the company. A summary of the trading results is shown below.

All the turnover of the Diocese’s wholly owned subsidiary, the Arundel and Brighton Lourdes Pilgrimage Ltd, represents income from the pilgrimage to Lourdes including accommodation, flights and nursing care for the pilgrims. The subsidiary has no material net assets or liabilities and there is therefore no significant difference between the Statement of Financial Activities and the Balance Sheet of the charity by itself and those of the group comprising the charity and its subsidiary. The charity and its subsidiary are not consolidated.

The pilgrimage to Lourdes was unable to proceed in 2020 and 2021 because of travel restrictions arising from the coronavirus pandemic. The company directors resolved to wind up the company during 2021, passing its trading, assets and liabilities to the Diocesan Trust.

SUMMARY ACCOUNTS

Turnover
Less: Cost of Sales and Administrative Expenses
Retained Profit/(Loss) for the Year
The assets and liabilities of the subsidiary were:
Tangible Assets
Current assets
Creditors - amounts falling due within one year
Total Net Assets
Aggregate share capital and reserves		 2020
£'000
121
(76)		 2019
£'000
469
(508)
45 (39)
2
265
(267)		 3
288
(324)
0 (33)
0 (33)

Page | 37