2021-12-31-accounts

ARUNDEL & BRIGHTON

DIOCESAN TRUST

Registered Charity No. 252878

Annual Report & Accounts

Incorporating Thirty Connected Trusts under Charity Commission Uniting Directions

For the year ended 31 December 2021

The St Philip Howard Centre, 4 Southgate Drive, Crawley West Sussex RH10 6RP

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

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

LEGAL AND ADMINISTRATIVE DETAILS

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

TRUSTEES:

Right Reverend Richard Moth, Bishop of Arundel and Brighton – Chair P Bergin Sr J Bertelsen P Burgess OBE, DL, KSG, KGCHS Reverend Father J How J Lydon K Maloney Reverend Canon J S Martin VG Reverend Canon K J O’Brien C Wordsworth Reverend Deacon MC Thoms (resigned 31 March 2021)

Secretary to Trustees :

Mrs S M Kilmartin

DIOCESAN OFFICE:

The St. Philip Howard Centre 4 Southgate Drive Crawley West Sussex RH10 6RP

FINANCE COMMITTEE:

Reverend Father J How – Chair

Mr P Bergin ACA Mrs N Bryson MA, ACA W Connell FCMA J Cornish FRICS Reverend Deacon P Gately FIA Mr Patrick Gloyens (appointed 23 September 2021) Mrs I Wragg FRICS

KEY MANAGEMENT PERSONNEL:

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

ADVISERS

AUDITORS:

Moore Kingston Smith LLP 6[th] Floor 9 Appold Street London EC2A 2AP

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

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 2021

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 2021.

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, 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 last 2 years of the pandemic). Chaplaincy services are provided for universities, hospitals, hospices and prisons.

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. Support is given to the bereaved through a network of trained bereavement counsellors. 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. A particular impact in recent years has been achieved in the support of refugees and through a project to encourage people in the care of the natural world and its resources.

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 Catholic School 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 2021

Service by Volunteers

Much of the activity of the Diocesan Trust is carried out by volunteers. Typically, between 10% and 20% of any parish community will be actively engaged in such activity, either in parish initiatives or through the service offered by other Catholic organisations that are present across the Diocese and beyond. The Diocesan Trustees, parish clergy and diocesan central staff value this engagement, which is an intrinsic part of the life of the Church.

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

As in 2020, the period covered by this report has been marked by the on-going Covid-19 pandemic. However, with the situation changing in the second part of the year, there has been a slow progression towards greater activity in parish communities, with people returning to Church on Sundays and events taking place once more across the Diocese. The ways in which parishes and schools have continued to respond to the challenges of the pandemic are worthy of recognition, notably through the continuing provision of livestreaming and flexibility in the delivery of formation programmes.

The Diocese has continued to administer a Voucher Scheme, funded through a Charitable Trust that has supported the Catholic Church across England & Wales. This has proved to be a very significant assistance for many families, especially in the more socially challenged parts of the Diocese across the South Coast.

The success of our events and programmes is evaluated in a variety of ways, with attendance and engagement of the faithful a key measure, along with qualitative feedback received from participants. The Diocesan Formation Team provided a very effective on-line Mission in Lent 2021, with a number approaching 10,000 engaging in the webinars and on-line gatherings that were offered. Further reference to this model is made elsewhere in this report.

The development of the two Multi-Academy Trusts continues in a steady way, with appropriate due diligence assured at every stage.

The central staff of the Diocese has continued to make use of on-line forms of training to ensure best practice. The Safeguarding work of the Diocese has responded to changes in national provision for the Catholic Church

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

in England & Wales, including the change from a Safeguarding Commission to the newly-required SubCommittee of the Diocesan Trustees for Safeguarding. Training in safeguarding has continued throughout the time of the pandemic using virtual platforms and is again being offered through regular gatherings.

As was the case in 2020, the Diocesan Pilgrimage to Lourdes unable to travel in 2021, due to the restrictions imposed by the pandemic. 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 surplus of £2.4 million. Income increased in the year to £17.3 million (2020 £13.9 million). The improvement in revenue of £3.5 million compared to 2020 was a result of gains on property disposals, which increased by £1.9 million and a growth in activity income of £0.8 million, legacy income was up by £0.5 million. Offertory: collections increased by £0.6 million. Expenditure increased in the year to £14.9 million (2020 £14.2 million), caused mainly by an increase in grants. The net surplus for the year was £3.1 million (2020 £3.4 million). There was a cash inflow of £3.7 million (2020 £1.2 million) due to the receipts from property sales. Overall Diocesan funds increased to £100.6 million (2020 £97.2 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.

Parishes

The net surplus in funds before transfers was £3.6 million (2020 £3.3 million). Income was £12.1 million compared with last year’s £10.5 million due to improvements in offertory collections, legacies and trading activities, as well as a £0.8 million improvement in gains on property sales. Expenditure increased to £8.7 million (2020 £8.5 million) due to an increase in projects and activities. Parishes contributed £1.7 million to the central costs of the Diocese through transfers (2020 £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 £0.2 million (2020 £1.3 million). The overall surplus at year end was £1.9 million (2020 £1.2 million). Parish

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

funds increased to £71.7 million (2020 £69.8 million). Tangible fixed assets at cost less any depreciation were £41.5 million at year end, a decrease of £0.3 million on last year’s £41.8 mi.

Central Diocese

Income and expenditure in the Central Diocese were broadly consistent with the prior year, with income of £2.9 million (2020 £1.9 million) and expenditure of £4.2 million (2020 £4.4 million) Income transferred in from Parishes at £1.7 million was reduced from last year (2020 £2.1 million). Investments benefitted at the year end with a gain in value of £0.9 million (2020 £2.5 million). The largest cost in the Central Diocese was staffing. The overall funds of the Central Diocese increased to £27.7 million (2020 £26.3 million) with £7.0 million in unrestricted funds excluding designated reserves. Tangible assets accounted for £11.4 million of Central Diocese funds, a reduction from £12.9 million funds at the prior year end. This reduction was mainly due to the sale of St Cuthman’s.

Schools

Sacred Heart Preparatory School in Wadhurst and three Parish pre-schools operated within the Diocesan Trust and their results are reflected in these accounts. Pre-schools operate in the parishes of Chichester, Crawley and Haywards Heath. Total unrestricted funds were negative £0.3 million due to overdrafts at Wadhurst and Crawley (2020 £0.4 million). These overdrafts arose from planned capital works in previous years and are being managed downwards. Tangible assets account for £1.6 million (2020 £1.5 million).

Risk Assessment and Risk Management

During 2021 the Diocesan Trustees continued their oversight of the major risks to which the Trust is exposed. A new Risk Policy was adopted by Trustees to ensure that key strategic risks are reviewed at each meeting. 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 sub-committee. 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 increased average age of clergy. Strategic risk is also recognised in relation to major issues that could cause failure in our MultiAcademy Trusts, and by the risk of abuse. 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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

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, pornography or gambling make up more than 5% of turnover or where contraception makes up more than 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 services or conduct research using foetal matter, and that the investment managers will only invest in companies with responsible lending policies. The ethical investment policy outlined in the SIP precludes 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 £1.1 million arose (2020 £3.4 million). This was in line with the market.

Reserves Policy

The total funds are £100.7 million, of which £13.8 million relate to the connected Trusts.

Restricted funds total £8.3 million (Diocese £2.1 million and Parish and connected Trusts £6.2 million), particulars of which are set out in Notes 18 and 19 to the accounts. Permanent Endowment funds total £12.2 million (Diocese £0.9 million and connected Trusts £11.3 million), with particulars also set out in Notes 18 and 19 to the accounts.

Designated funds, wholly held by the Diocese, are £73.4 million and comprise the general unrestricted funds of the individual Parishes, £54.2 million and other designated funds totalling £19.2 million, of which the most substantial is the fixed asset fund of £12.4 million, followed by the retired priests’ fund of £4.0 million.

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 £215k (2020 £208k). 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.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

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 (£3.9 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 £54.4 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 £6.4 million. Although capable of utilisation across the relevant entities, these reserves were held as to (£0.3 million) by the Schools and £6.7 million by the Central Diocese.

The parish pre-schools reserves are not adequate to ensure their ongoing financial stability, and the three parishes that 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.

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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

While it may be the case that the Covid-19 pandemic is now having a lower impact on daily life, its impact will continue to be felt for some time. Engagement with parish communities regarding future provision will continue, with appropriate steps being taken when necessary.

The work of the Formation Team will continue to be a key element in the support of the Charity’s mission. In addition to the work of the formation, the social action of the Diocese will continue to see a particular focus on the needs of refugees who will be coming to Surrey and Sussex.

Mention has already been made of the Diocesan Lourdes Pilgrimage. This will take place in 2022. In addition, the visit of the Relics of St. Bernadette to this country in the Autumn of 2022 will provide an important focus for the life and mission of the Diocese, with three celebrations taking place in different parts of the Diocese.

The Trustees, having given the matter careful consideration, have taken further the work of bringing the Diocesan Offices onto one site. This will come to fruition in 2022, with all the Diocesan Offices being relocated to The St. Philip Howard Centre during the Summer months. This will bring about much improved communications between the various departments and, in the longer term, a significant cost saving.

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.

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 at a minimum quarterly during the 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 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.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

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 one wholly owned dependent company, 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 2021, the turnover of the company was £Nil (2020: £Nil) and there was a loss of £Nil, (2020: £Nil).

The Diocese also had another subsidiary Arundel and Brighton Lourdes Pilgrimage Limited. The company used to manage the annual pilgrimage to Lourdes each year solely for Diocese parishioners and their helpers. During the year, the company was wound up, and its assets and liabilities were transferred to the Diocesan Trust. The total net liabilities transferred was (£1,938).

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

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;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume the charity will continue.

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 7 July 2022 and 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

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 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 December 2021, and of its incoming resources and application of resources, for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the 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.

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 course of 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

• the charity has not kept adequate accounting records; or

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

• we have not received all the information and explanations we required for our audit.

Responsibilities of trustees

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.

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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.

• We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Date: 26 October 2022

Statutory auditor

6[th] Floor 9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

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Arundel and Brighton Diocesan Trust Registered Charity No: 252878 ARUNDEL AND BRIGHTON DIOCESAN TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021	2020 Total £'000 7,788 906 900 163 1,322 1,431 495 865	13,870	181 - 12,751 1,340	14,272	3,837	3,435	- -	-	3,435 93,748	97,183
	Total £'000 8,181 1,485 797 124 2,094 1,499 404 2,742	17,326	176 - 12,751 2,011	14,938	1,116	3,504	- -	-	3,504 97,183	100,687
	Total £'000 3 - 165 - 2,047 - 2 -	2,217	- - 2,011	2,011	-	206	- -	-	206 1,106	1,312
	Unrestricted Restricted £'000 £'000 3 - - - 165 - - - 2,047 - - - 2 - - - Schools	2,217 -	- - - - 2,011 -	2,011 -	-	206 -	- - - -	- -	206 - 1,054 52	1,260 52
	Total £'000 213 336 570 15 - 139 232 1,453	2,958	61 4,122 -	4,183	888	(337)	1,738 -	1,738	1,401 26,292	27,693
	Central Diocese Unrestricted Restricted Endowment £'000 £'000 £'000 143 70 - 271 65 - 509 61 - - 15 - - - - 139 - - 224 8 - 1,453 - -	2,739 219 -	61 - - - 3,636 486 - - - -	3,697 486 -	800 71 17	(158) (196) 17	1,738 - - - - -	1,738 - -	1,580 (196) 17 23,075 2,358 859	24,655 2,162 876
	Total £'000 7,965 1,149 62 109 47 1,360 170 1,289	12,151	115 8,629 -	8,744	228	3,635	(1,738) -	(1,738)	1,897 69,785	71,682
	Parishes Unrestricted Restricted Endowment £'000 £'000 £'000 7,047 918 - 1,039 110 - 49 13 - 109 - - 47 - - 1,360 - - 99 71 - 1,289 - -	11,039 1,112 -	115 - - 7,719 886 24 - -	7,834 886 24	(19) 31 216	3,186 257 192	(1,738) - 27 (34) 7	(1,711) (34) 7	1,475 223 199 52,686 5,957 11,142	54,161 6,180 11,341
	Note INCOME AND ENDOWMENTS FROM Donations and legacies Collections and donations 2 Legacies Grants 3 Charitable Activities Advancement of RC Faith 4 Education 5 Other trading activities 6 Investment income 7 Net gain on disposal of assets TOTAL EXPENDITURE ON Raising funds 8 Charitable activities Advancement of Roman Catholic Faith 8 Education 8 TOTAL Net gains/(losses) on investments NET INCOME TRANSFERS BETWEEN FUNDS Transfers from parishes Inter fund transfers NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Funds brought forward FUNDS CARRIED FORWARD

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Arundel and Brighton Diocesan Trust Registered Charity No: 252878 ARUNDEL AND BRIGHTON DIOCESAN TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020	2019 Total £'000 8,860 1,362 131 480 1,610 2,574 771 241	16,029	296 - 14,322 1,605 -	16,223	4,524	4,330	- -	-	4,330 89,418	93,748
	Total £'000 7,788 906 900 163 1,322 1,431 495 865	13,870	181 - 12,751 1,340 -	14,272	3,837	3,435	- -	-	3,435 93,748	97,183
	Total £'000 2 - 207 - 1,285 2 - -	1,496	- - 1,340 -	1,340	-	156	- (40)	(40)	116 990	1,106
	Unrestricted Restricted £'000 £'000 2 - - - 207 - - - 1,285 - 2 - - - - - Schools	1,496 -	- - - - 1,340 - - -	1,340 -	-	156 -	- - (40) -	(40) -	116 - 938 52	1,054 52
	Total £'000 307 291 330 88 - 199 289 361	1,865	54 4,308 -	4,362	2,498	1	2,094 65	2,159	2,160 24,132	26,292
	Central Diocese Unrestricted Restricted Endowment £'000 £'000 £'000 206 101 - 291 - - 324 6 - - 88 - - - - 199 - - 289 - - 361 - -	1,670 195 -	54 - - - 4,046 262 - - - - -	4,100 262 -	2,219 224 55	(211) 157 55	2,094 - - 65 - -	2,159 - -	1,948 157 55 21,127 2,201 804	23,075 2,358 859
	Total £'000 7,479 615 363 75 37 1,230 206 504	10,509	127 8,443 -	8,570	1,339	3,278	(2,094) (25)	(2,119)	1,159 68,626	69,785
	Parishes Unrestricted Restricted Endowment £'000 £'000 £'000 6,918 561 - 614 1 - 324 39 - 75 - - 37 - - 1,230 - - 90 116 - 504 - -	9,792 717 -	127 - - 8,383 40 20 - -	8,510 40 20	629 100 610	1,911 777 590	(2,094) - - (25) (19) 19	(2,119) (19) 19	(208) 758 609 52,894 5,199 10,533	52,686 5,957 11,142
	Note INCOME AND ENDOWMENTS FROM Donations and legacies Collections and donations 2 Legacies Grants 3 Charitable Activities Advancement of RC Faith 4 Education 5 Other trading activities 6 Investment income 7 Net gain on disposal of assets TOTAL EXPENDITURE ON Raising funds 8 Charitable activities Advancement of Roman Catholic Faith 8 Education 8 Grant to St Joseph's Specialist Trust TOTAL Net gains/(losses) on investments NET INCOME TRANSFERS BETWEEN FUNDS Transfers from parishes Inter fund transfers NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Funds brought forward FUNDS CARRIED FORWARD

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2021

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 41,464 11,413 1,603 54,480 14,573 23,926 - 38,499 56,037 35,339 1,603 92,979 727 1,098 11 1,836 9,243 74 (117) 9,200 9,970 1,172 (106) 11,036 (636) (2,507) (185) (3,328) 6,311 (6,311) - - 15,645 (7,646) (291) 7,708 71,682 27,693 1,312 100,687 7,006 (343) 6,663 54,161 17,649 1,603 73,413 54,161 24,655 1,260 80,076 6,180 2,162 52 8,394 11,341 876 12,217 71,682 27,693 1,312 100,687	2020 £'000 56,268 36,957
		93,225
		1,960 5,515
		7,475
		(3,517) -
		3,958
		97,183
		4,643 72,172
		76,815 8,367 12,001
		97,183

Approved by the Trustees on 7 July 2022 and signed as authorised on their behalf by:

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

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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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Statement of Cash Flows

For the year ended 31st December 2021

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	2021 £'000		2020 £'000
	(704)		45
	404 (1,279)		495 (915)
Proceeds from sale of property, plant and equipment	5,690		1,579
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	(7,137) 6,711		(8,790) 8,751
	4,389		1,120
	-		-
	3,685 5,515		1,165 4,350
	9,200		5,515
	3,504 119		3,435 -
(Surplus) or Deficit retained in Investment Portfolio	(1,116)		(3,838)
Dividends Net (Gains) on Disposal of Fixed Assets Decrease in Debtors Increase/(Decrease) in Creditors Net cash used in operating activities	(404) (2,742) 124 (189)		(495) (865) (229) 2,037
	(704)		45

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

1.1 Basis of Accounting

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 (FRS102)(including update bulletin 27 (Charities SORP FRS102), and the financial Reporting Standard applicable in the UK and Republic of Ireland (FR102), the Charities Act 2011 and UK generally Accepted Practice

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). The financial statements are prepared in sterling which is the financial currency of the entity. Monetary amounts are rounded to the nearest thousand pounds

1.2 Preparation of the accounts on a going concern basis

Having considered future budgets and cash flows for a period of at least one year from the date of approval of the financial statements, the Trustees confirm that they have no material uncertainties about the entity’s ability to continue as a going concern for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing the financial statements.

1.3 Subsidiary company

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 did not trade during the year and has no material net assets or liabilities. 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 subsidiary company. The charity and its subsidiary are not consolidated. The charity had another subsidiary, Arundel and Brighton Lourdes Pilgrimage Limited. During the year, the assets and liabilities were transferred to the charity and it is the process of being dissolved.

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:

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

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

a distribution has been received from the estate.

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.

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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

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.

An impairment review of buildings is performed annually to confirm whether a charge for impairment should be recognised in the statement of Financial Activities. Parish and Central freehold buildings are maintained to a high standard and depreciation is not provided for, as in the trustees opinion, the residual value is equal to the carrying value in the Financial Statements

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,

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

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.

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 2021 and 2020 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.

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.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2. COLLECTIONS AND DONATIONS

Parish offertory collections Donations Gift Aid tax recovered on collections and donations		2021 2020 £'000 £'000 5,910 5,303 1,083 1,256 1,188 1,303 8,181 7,862 2021 2020 £'000 £'000 150 463 56 58 59 77 174 86 358 216 797 900 2021 2020 £'000 £'000 85 58 39 105 124 163
3. GRANTS
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
5. EDUCATION (INCOME)
Independent preparatory school (Sacred Heart Wadhurst Parish preschools	)	2021 2020 £'000 £'000 1,670 1,285 424 37 2,094 1,322

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

6. OTHER TRADING ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021 6. OTHER TRADING ACTIVITIES
Fund raising events Lettings and sundry income	2021 2020 £'000 £'000 296 630 1,203 801 1,499 1,431
7. INVESTMENT INCOME
Listed investments Bank interest	2021 2020 £'000 £'000 371 463 33 32 404 495

8. CHARITABLE ACTIVITIES (EXPENDITURE) 2021

Fund raising Advancement of Roman Catholic Faith Education	Direct personnel Direct other expenditure Direct grants Allocated support 2021 Total £'000 £'000 £'000 £'000 £'000 47 115 - 14 176 5,907 5,288 472 573 12,240 1,669 342 381 129 2,521
	7,623 5,745 853 717 14,938

CHARITABLE ACTIVITIES (EXPENDITURE) 2020

Fund raising Advancement of Roman Catholic Faith Education	Direct personnel Direct other expenditure Direct grants Allcated 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

9. CHARITABLE GRANTS

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

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	2021 2020 £'000 £'000 381 22 29 33 74 49 22 43 - 103 45 19 31 30 - 44 174 86 97 70 853 499

10. SUPPORT COSTS 2021

Governance Finance Office TOTAL	Fund raising Advancement of RC Faith Education Total 2020 £'000 £'000 £'000 £'000 £'000 14 158 21 193 189 - 415 108 523 510 14 573 129 717 699

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

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: £40,667 (2020 £39,000), fees for other services £6,308 (2020 £5,000).

11. STAFF INFORMATION

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

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		2020 £'000
	1,391 1,521 1,206 60 145 85 109 170 164	4,118 290 443		3,909 264 401
	1,560 1,836 1,455	4,851		4,574
	1,387 332 - 521 318 214	1,719 1,053		1,761 - 924
	3,468 2,486 1,669	7,623		7,259

Key management personnel received salary and pension contributions of £266k (2020 £266k). Included in the staff costs above were redundancy costs of £46k (2020 £29k).

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 £27k (2020 £21k).

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 £62k (2020 £50k) and the contributions outstanding at the year-end amounted to £7k (2020 £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.

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.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

11.3 Staff numbers

11.3 Staff numbers
Clergy & Religious Employees - average weekly numbers	Parish Central Schools Diocese	TOTAL		2020
	134 3 - 162 55 62	137 279		146 327
	296 58 62	416		473

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		2020
	1 2 1 1	1 2 1 1		1 1 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. No Trustee fees or expenses were paid in 2021 (2020 £716).

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

13. TANGIBLE FIXED ASSETS

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 2021 At 1 January 2021	2021			2020
	Freehold Contents £'000 £'000	Total £'000		Total £'000
	73,955 236 1,273 6 (3,612) -	74,191 1,279 (3,612)		73,971 915 (1,258)
	71,616 242	71,858		73,628
	17,802 121 98 21 (664) -	17,923 119 (664)		17,904 - (544)
	17,236 142	17,378		17,360
	54,380 100	54,480		56,268
	56,153 115	56,268		56,067

The Diocese has 44 maintained (voluntary aided) schools constituted as separate charities. In addition, two Multi-Academy Trusts have been established as separate charities. A total of 20 Academies have joined the Trusts. The school properties (land and buildings) are vested in the Diocesan Trustees or the Trustees of three connected charities. Their value is estimated at £800 million. 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. The Diocese leases land and buildings at two of these 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. St Joseph’s Specialist School and College in Cranleigh is held by a separate charity.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

14. INVESTMENTS

14. INVESTMENTS
Listed Investments Cash Deposits TOTAL INVESTMENTS		2021 2020 £'000 £'000 36,848 35,252 1,651 1,705
		38,499 36,957
Summary of investments		2021 £'000 36,957 7,137 (6,711) 1,116 38,499
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

15. DEBTORS

Advances to schools (£440k 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	2021 £'000 576 - 191 174 - 895		2020 £'000 712 - 191 375 230 452
	1,836		1,960

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	2021 £'000 445 185 174 1,066 1,458 3,328		2020 £'000 336 144 375 1,316 1,346
			3,517

17. FUNDS NET ASSET ANALYSIS 2021

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

UNRESTRICTED Parishes Central Diocese Schools RESTRICTED Parishes Central Diocese Schools ENDOWMENT Parishes Central Diocese TOTAL FUNDS	Tangible assets Investments Net current assets 2021 £'000 £'000 £'000 £'000 34,807 7,023 12,331 54,161 10,881 22,198 (8,424) 24,655 1,603 - (343) 1,260
	47,291 29,221 3,564 80,076
	1,926 1,189 3,065 6,180 211 1,173 778 2,162 - - 52 52
	2,137 2,362 3,895 8,394
	4,731 6,361 249 11,341 321 555 - 876
	5,052 6,916 249 12,217
	54,480 38,499 7,708 100,687

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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

18. FUNDS ANALYSIS 2021

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 5,114 2,739 (3,223) 800 1,576 7,006 (471) 2,217 (2,011) - (78) (343)
	4,643 4,956 (5,234) 800 1,498 6,663
	52,686 11,039 (7,834) (19) (1,711) 54,161 4,277 - (383) - 149 4,043 608 - (91) - 149 666 12,364 - - - - 12,364 712 - - - (136) 576 1,525 - - - 78 1,603
	72,172 11,039 (8,308) (19) (1,471) 73,413
	76,815 15,995 (13,542) 781 27 80,076
	2,883 1,062 (830) 2 - 3,117 2,426 6 (17) 19 - 2,434 648 44 (39) 10 (34) 629
	5,957 1,112 (886) 31 (34) 6,180
	625 (87) 29 - 567 - 69 (69) - - - 635 50 (63) - - 622 574 20 - 18 - 612 - 58 (58) - - - 169 5 (198) 24 - - 127 - (11) - - 116 17 17 - - - 34 211 - - - - 211
	2,358 219 (486) 71 - 2,162
	52 - - - - 52
	8,367 1,331 (1,372) 102 (34) 8,394
	1,143 - - 38 - 1,181 9,999 - (24) 178 7 10,160
	11,142 - (24) 216 7 11,341
	418 - - 5 - 423 119 - - 12 - 131 322 - - - - 322
	859 - - 17 - 876
	12,001 - (24) 233 7 12,217
	97,183 17,326 (14,938) 1,116 - 100,687

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

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 donations 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.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021 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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

19. CONNECTED TRUSTS

Trust Beneficiary Nature RESTRICTED Ashburnham Battle Land and investments Elmer Retired priests Land Gaisford Worthing Land Grant St Leonard's Land Hyland Godalming Land Munster Keymer Land Norfolk Dorking Land Norfolk Horsham Land Salvin Sutton Park Land Stacpole Caterham Land PERMANENT ENDOWMENT RESTRICTED INCOME Bedingfeld Duncton Investments Biddulph Education Duncton Investments Buckley Retired priests Land and investments Cemetery Burwash Land and investments Hope Herons Ghyll Land and investments Lang Oxted Land and investments Leslie Slindon Land and investments Norfolk Angmering Land and investments Norfolk 1901 Littlehampton Investments Norfolk Cemetery Arundel Land and investments Norfolk Cemetery Houghton Land and investments Scawen Blunt Crawley Land and investments PERMANENT ENDOWMENT Bedingfeld Duncton Investments Biddulph Duncton Land Biddulph Education Duncton Investments Buckley Retired priests Land Cemetery Burwash Land and investments Hope Herons Ghyll Land and investments Lang Oxted Land and investments Leslie Slindon Land and investments Norfolk Arundel Land Norfolk Littlehampton Land Norfolk 1901 Littlehampton Investments Norfolk Cemetery Arundel Land and investments Norfolk Cemetery Houghton Land and investments Pauling Effingham Land Scawen Blunt Crawley Land and investments TOTAL CONNECTED TRUSTS	Opening balance Income Expenditure Investment gains / (losses) Transfers Closing balance 2021 £'000 £'000 £'000 £'000 £'000 £'000 745 5 (17) 19 - 752 211 211 10 10 135 135 58 58 38 1 39 2 2 934 934 246 246 258 258
	2,637 6 (17) 19 - 2,645
	23 2 (2) 23 55 5 (12) 48 - - - - 45 3 (14) 34 - - 4 8 (7) 5 470 3 (4) 6 475 1 3 4 8 - - 27 27 23 20 (34) 9
	648 44 (39) 10 (34) 629
	264 (1) 10 273 1 1 693 (3) 27 717 322 322 6 6 406 (2) 15 419 1,161 1,161 569 (2) 15 582 799 799 168 168 307 (2) 1 306 881 881 8 1 9 647 647 4,089 (14) 109 7 4,191
	10,321 - (24) 178 7 10,482
	13,606 50 (80) 207 (27) 13,756

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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

20. COMMITMENTS GUARANTEES AND CONTINGENCIES

Capital commitments: At 31 December 2021 there were no capital commitments on Parish properties, maintained or independent schools (2020 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

Arundel and Brighton Lourdes Pilgrimage Limited 2021 2020 £'000 £'000 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 (6) (6) Total Net Assets (6) (6) Aggregate share capital and reserves (6) (6)	2021 £'000 - -		2020 £'000 - -
	-		-
	- (6)		- (6)
	(6)		(6)
	(6)		(6)

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

The wholly aimed trading subsidiary was incorporated in the United Kingdom (Reg no 2998831). 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 in 2021 and its trade, assets and liabilities were transferred to the Diocese trust in the year. The total net liabilities transferred was (£1,938).

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 £'000 107 (64)
	43
	280 (282)
	(2)
	(2)

22. Related party Transactions

Insofar as the trustees are aware, there are no matters required to be reported other than that already shown in the accounts.

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