2022-12-31-accounts

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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 2022

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 2022


CONTENTS		PAGE
Report of the Charity Trustees	3
Report of the Auditors	14
Statement of Financial Activities	17
Balance Sheet	19
Statement of Cash Flows	21
Accounting Policies & Notes to Accounts	22

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 2022

LEGAL AND ADMINISTRATIVE DETAILS

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 G Melly (appointed 12 January 2023)

Secretary to Trustees

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 (resigned 30 June 2022) W Connell FCMA (resigned 23 March 2023) J Cornish FRICS (resigned 8 February 2023) Reverend Deacon P Gately FIA Mr Patrick Gloyens Mrs I Wragg FRICS (resigned 30 June 2022)

KEY MANAGEMENT PERSONNEL

Chief Operating Officer Mrs S M Kilmartin Director, Education Service Mrs J Oldroyd Clergy Welfare Officer Ms Annie Condon Safeguarding Coordinator Mrs Angela McGrory Head of Communications Ms Laura Maydew Gale

ADVISERS

AUDITOR

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 2022

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 2022.

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 75 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 75 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 2022

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

The year 2022 saw the life of the Diocese emerging from the Covid Pandemic, with steadily increasing attendance at Mass in most parishes. While the increase was gradual, there were strong signs of a return to pre-pandemic attendance. It has become clear that the pandemic has had a major impact on lay faithful and clergy alike, with many clergy left tired by the experience of serving their parishes in difficult and uncertain times. The progress towards a mentoring scheme for clergy, the preliminary work for which took place in 2022, will bring about an important support for priests and deacons, assisting them in their ministry.

The levels of poverty so present during the pandemic years, especially in some parishes along the South Coast, continue as a result of economic downturn and increasing prices. The demand for food banks operated by parishes, often in collaboration with other churches, continues. A number of parishes have been making halls available as ‘warm spaces’ for those unable to maintain heat in their homes. Parishes’ concern for the community and environment has led to further engagement with LiveSimply programmes and other initiatives. Our communities responded with generosity to the crisis in Ukraine, giving financial support via established charitable partners and working with organisations providing practical help.

The success of on-line opportunity for faith formation continues and will remain a feature of Diocesan life. “Invited”, the online Mission run in 2021 took place again in 2022 – this time in the Easter Season – and is planned to continue in both 2023 and 2024. This is an effective way for the Diocese to reach out to large numbers at a time that is convenient and avoids the financial and environmental impact of travel.

Other formation activities have returned in person, notably the Catholic Certificate in Religious Studies, which attracts teachers in particular, as well as those seeking to share their faith in parish settings.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

The progress in the development of the two Multi-Academy Trusts has continued at a deliberate pace, as is required by the need for due diligence on the one hand and and the capacity of the trusts themselves on the other. The Trust in Surrey, begun first, is now engaging effectively in the formation and training of teachers.

In September 2022, the Diocesan Offices gathered together on one site, at The St. Philip Howard Centre in Crawley. Members of the central teams in the Diocese supported this move and the provision for everyone to work in one location is proving very successful, with improved communications across departments and a greater sense of cohesion developing.

The Diocesan Pilgrimage to Lourdes was able to travel in 2022, albeit with somewhat reduced numbers, with some 500 pilgrims making the journey. The smaller number reflected the continuing restrictions required in the wake of the pandemic, but the return of the Pilgrimage was greatly welcomed by all who travelled, with assisted pilgrims, medical staff and helpers, youth group and family group gaining much from the experience.

FINANCIAL REVIEW

Before taking into account the investment losses, there was a surplus of £2.3 million. Income increased in the year to £20.3 million (2021 £17.3 million). The improvement in revenue of £3.0 million compared to 2021 was mainly as a result of increases in collections and donations of £4.0 million, a growth in activity income of £1.0 million, an increase in legacies of £1.0 million partially offset by a reduction in asset disposal proceeds £2.1million. Expenditure increased in the year to £18.1 million (2021 £14.9 million), caused mainly by project costs at the Crawley centre £0.9 million and increase in property expenditure at parishes of £1.9 million. The net deficit for the year was £(5.0) million (2021 £3.5 million surplus). There was a cash inflow of £1.9 million (2021 £3.7 million) due to the receipts from property sales. Overall Diocesan funds decreased to £95.6 million (2021 £100.7 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.

Parishes

The net Surplus in funds before transfers was £0.3 million (2021 £3.6 million). Income was £14.1 million compared with last year’s £12.1 million due to improvements in offertory collections, legacies and trading activities, offset by a £0.8 million reduction in gains on property sales. Expenditure increased to £11.0 million

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

(2021 £8.7 million) due to an increase in projects and activities. Parishes contributed £2.2 million to the central costs of the Diocese through transfers (2021 £1.7 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 sufferred from a negative year end valuation of investments, which decreased in value by £2.8 million (2020 increase of £0.2 million). The overall deficit at year end was £1.9 million (2021 surplus £1.9 million). Parish funds decreased to £69.8 million (2021 £71.6 million). Tangible fixed assets at cost less any depreciation were £41.5 million at year end, steady with last year’s £41.5 mi.

Central Diocese

The Central Diocese comprises the office of the Bishop and Curia, including the Chancery and Tribunal, as well as the Formation Team, the Education Service and Safeguarding Team and the officers providing support with Finance, Health & Safety, Property, HR, Communications and IT. The Central office in Crawley is maintained to accommodate these staff and to provide facilities for meetings and training for a wide range of participants from schools and parishes. The net deficit for the year was £(1.1) million compared to a deficit of £(1.2) million last year. Income has been boosted by a donation following the closure of Wonersh Seminary of £2.7 million offset by a reduction in disposals of Fixed Assets of £1.2 million. Expenditure has increased this year due to project work at The St Philip Howard centre in Crawley of £0.9 million. Investments suffered a loss in year end valuation of £(4.6) million (2021 surplus £0.9 million). The overall funds of the Central Diocese decreased to £24.2 million (2021 £27.7 million) with £1.7 million in unrestricted funds excluding designated reserves. Tangible assets accounted for £11.4 million of Central Diocese funds, in line with the prior year end

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 positive £0.1 million (2021 £(0.3) million. Tangible assets account for £1.5 million (2021 £1.6 million).

Risk Assessment and Risk Management

During 2022 the Diocesan Trustees continued their oversight of the major risks to which the Trust is exposed. 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. Challenges around clergy numbers and the average age of priests are significant. The Bishop and Trustees recognise the increasing burden on priests and deans and have ensured that clergy support and wellbeing is a developing focus. The Bishop is engaging with deaneries to discuss greater collaboration across parish boundaries and the importance of the full participation of lay people as we move forward with the number of priests serving our parishes reducing. The Communication and Formation teams are key in addressing risks around

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

stakeholder engagement and the impact of secular culture. The Education and Safeguarding teams report their management of risk quarterly to Trustees.

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, 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 loss of £7.4 million arose (2021 gain £1.1 million). This performance reflected challenging market conditions.

Reserves Policy

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 £1.7 million. Although capable of utilisation across the relevant entities, these reserves were held as to £0.1 million by the Schools and £1.6 million by the Central Diocese.

The total reserves are £95.6 million, of which £12.5 million relate to the connected Trusts.

Restricted funds total £8.3 million (Diocese £1.8 million and Parish and connected Trusts £6.5 million), particulars of which are set out in Notes 18 and 19 to the accounts. Permanent Endowment funds total £10.8 million (Diocese £0.8 million and connected Trusts £10.0 million), with particulars also set out in Notes 18 and 19 to the accounts.

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Designated funds, wholly held by the Diocese, are £74.8 million and comprise the general unrestricted funds of the individual Parishes, £53.2 million and other designated funds totalling £21.5 million, of which the most substantial is the fixed asset fund of £12.4 million, followed by the retired priests’ fund of £3.8 million. Following the closure of Wonersh Seminary and the donation of £2.7 million into Diocese funds two new designated funds hve been created £1.5 million for Clergy formation and £1.2 million for Mission path.

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 75 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 £157k (2021 £169k). 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, usually 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 (£3.8 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 £0.7 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 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

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

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

2022 saw the publication of the second edition of the Diocesan Pastoral Plan, ‘The Word Who is Life.’ Since its publication, meetings have been taking place across the Diocese as preparation for changes to Deanery and Parish dispositions. These changes will serve to ensure the ongoing work of the Charity in the years ahead, through greater involvement in the mission of the Diocese. The Synod journey progressed in 2022 with a period of national discernment and reflections shared across the Continent. The process will culminate in October 2023 with the Synod of Bishops in Rome on the theme of “a synodal Church: communion, participation and mission”.

The Diocese will celebrate the 150[th] Anniversary of the building of Arundel Cathedral in 2023. This will provide an excellent focus for all in the Diocese and in addition to celebrating the event, will provide a further focus on the mission of the Church and the ongoing work of the Charity. During 2023, the Cathedral will receive many additional visitors as there will be a series of special events, including music concerts and a Discovery Day for children. The Cathedral will also be the chosen venue for all Confirmations and for the annual Good Shepherd celebration, which is attended by representatives from all our primary schools.

Social Outreach continues to be an important element of Diocesan life, with a particular focus on the needs of refugees, particularly in the Brighton area. In addition, outreach to the bereaved is provided through a wellestablished Ministry of Consolation. The young people of the Diocese are involved in an increasing number of initatives, including a three-year programme of formation for those who will be future leaders in the community of the Diocese and the youth programme that takes place on the annual pilgrimage to Lourdes. These initiatives will continue to play an important part in the work of the Charity.

The coming years will see a number of priests retire from active ministry. Provision for retired priests is provided effectively and it will be incumbent upon the Charity Trustees to ensure the continuing care of an increasing number of retired.

The Diocese continues to strengthen its approach to safeguarding, introducing internal Parish safeguarding audits during 2023, and preparing for external audit by our new regulator the Catholic Safeguarding Standards Agency.

STRUCTURE, GOVERNANCE AND MANAGEMENT

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

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 eleven 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.

The Diocese is working with the Charity Commission with the aim of appointing the Corporation as the Sole Corporate Trustee of the Diocese. Trustees will exercise their oversight of the Charity in their continuing roles as Directors of the Corporation.

Trustees

The Bishop is empowered to appoint and remove all Trustees. The Trustee body comprises four clergy, one religious, and six 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, education and pastoral work. 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 supported to understand the constitution, governance and operation of the Trust, and are encouraged 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.

Trustees are supported by a number of subcommittees. Membership and leadership of these committees is directed by the Bishop.

Finance Committee

The committee comprises two Trustees and two 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 Education Committee provides a vehicle for collective planning, advice and decision-making in conjunction with the Diocesan Education Service and in relation to diocesan schools and academies.

The membership reflects a broad range of interests, including those of Headteachers in academies, maintained and independent schools, Governors and Clergy, alongside the Diocesan Bishop, a Trustee and Diocesan staff within and beyond the Education Service. Members advise on and monitor the setting and operation of a range of policies and guidelines for diocesan schools and academies. (Examples may include areas such as admissions; religious education and worship; Section 48 inspection framework; criteria for diocesan building priorities, etc).

Where appropriate, the committee will make strategic decisions on the basis of advice from diocesan officers and the outcomes of consultation. Occasionally, recommendations and/or proposed decisions taken by the

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Education Committee will be subject to ratification by the Bishop and Trustees, for example if they relate to policies of the Bishops’ Conference or are regulated in Canon Law.

The committee advises the Trustees on education policy issues and meets three times a year.

Academies Partnership Committee

The Academies Partnership Committee meets to support the two Catholic Education Trusts for our academies. It provides a vehicle for collective advice and recommendation in relation to the academies programme.

The Committee membership reflects an appropriate skill set and professional experience. It includes the Bishop, Headteachers in academies, maintained and/or independent schools, Foundation Governors and two Diocesan Trustees. It is attended and supported by diocesan staff within and beyond the Education Service.

Committee Members participate by virtue of their appointment, bringing to the role their own professional and lay experience and expertise. They are not representatives of a particular group.

When appropriate, Committee Members determine, advise on and/or monitor the setting and operation of a range of policies and guidelines relating to the diocesan academies programme. The Committee scrutinises applications from schools wishing to convert to academy status. Their recommendations to the Bishop are based on due diligence presented by the Catholic Education Trusts, the outcome of consultations undertaken, discussion with the CEO and Chair of the Trust Board and advice from diocesan officers. Recommendations and/or proposed decisions taken by the Committee will be subject to ratification by the Bishop and Trustees where they relate to the conversion of a school to academy status.

Some proposed decisions may require the express consent of the Bishop, for example if they relate to the policies of the Bishops’ Conference or are regulated in Canon Law.

The committee meets a minimum of three times a year, but more often if required.

Safeguarding Subcommittee of Trustees

This purpose of this Subcommittee of Trustees is to support, assist and advise the Diocesan Trustees in discharging their duties in safeguarding, in accordance with the trustees legal and regulatory duties, Trust Deed, Canon Law of the Catholic Church, Charity Commission guidance, and operating within the standards, policies and procedures of the Catholic Safeguarding Standards Agency. The Subcommittee will make a regular report to be shared at each meeting of Trustees. In turn the Trustees will feed back comments (if appropriate), and, if required, will direct the Subcommittee to consider safeguarding matters where Trustees require additional information, explanations or guidance.

The Subcommittee is chaired by an independent safeguarding professional. There shall be at least four further members and must include two or more Trustees as members. After consulting with the Bishop of Arundel & Brighton the Chair will ensure that representatives from other agencies such as Police, Probation, Local Authority, Healthcare or others are invited as members to attend meetings. It is expected that the Diocesan Clergy Lead and Judicial Vicar are in attendance as members of the subcommittee.

Council of Priests and College of Consultors

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

The Council of Priests assists the Bishop, on accordance the prescriptions of Canon Law, as a consultative body relating to the governance of the Diocese and the pastoral welfare of both clergy and lay faithful.

The College of Consultors, whose members are drawn from the Council of Priests, has responsibilities enunciated in the Code of Law and has a particular role when the Diocese is without a Bishop.

Episcopal Council

This Vicar General and the three Episcopal Vicars form this Council, as a group of close advisors to the Bishop in the governance and pastoral provision of the Diocese. It meets 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. The company has not traded actively for a number of years and for the year ended 31 December 2022, the turnover of the company was £Nil (2021: £Nil) and there was a loss of £Nil, (2021: £Nil).

Page | 12

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

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 13 July 2023 and signed as authorised on their behalf by:

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

Page | 13

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 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 2022, 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
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.

Page | 14

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.

Page | 15

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.

Statutory auditor

Date: 25 September 2023

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.

Page | 16

----- Start of picture text -----
2021 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 12,074 2,484 320 227 1,697 2,497 405 628 20,332 177 - 16,120 1,756 18,053 (7,368) (5,089) - - - (5,089) 100,687 95,598
Total £'000 13 - 209 - 1,650 8 - - 1,880 - - 1,597 1,597 - 283 - - - 283 1,312 1,595
Restricted £'000 - - - - - - - - - - - 89 89 (89) - - - (89) 52 (37)
Schools Unrestricted £'000 13 - 209 - 1,650 8 - - 1,880 - - 1,508 1,508 - 372 - - - 372 1,260 1,632
Total £'000 2,914 266 51 28 - 598 266 221 4,344 62 5,224 159 5,445 (4,598) (5,699) 2,226 - 2,226 (3,473) 27,693 24,220
Endowment £'000 - - - - - - - - - - - - - (110) (110) - - - (110) 876 766
Restricted £'000 138 43 - - - 15 - 196 - 356 - 356 (234) (394) - - - (394) 2,162 1,768
Central Diocese
Unrestricted £'000 2,776 223 51 28 - 598 251 221 4,148 62 - 4,868 159 5,089 (4,254) (5,195) 2,226 - 2,226 (2,969) 24,655 21,686
Total £'000 9,147 2,218 60 199 47 1,891 139 407 14,108 115 10,896 - 11,011 (2,770) 327 (2,226) - (2,226) (1,899) 71,682 69,783
Endowment £'000 - - - - - - - - - - 19 - 19 (1,252) (1,271) (22) (22) (1,293) 11,341 10,048
Restricted £'000 947 746 1 - - 31 61 - 1,786 - 1,250 1,250 (206) 330 - (50) (50) 280 6,180 6,460
Parishes
Unrestricted £'000 8,200 1,472 59 199 47 1,860 78 407 12,322 115 9,627 - 9,742 (1,312) 1,268 (2,226) 72 (2,154) (886) 54,161 53,275
Note 2 3 4 5 6 7 8 8 8
Collections and donations Legacies Grants Advancement of RC Faith Education Advancement of Roman Catholic Faith Education Transfers from parishes Inter fund transfers
INCOME AND ENDOWMENTS FROM Donations and legacies Charitable Activities Other trading activities Investment income Net gain on disposal of assets TOTAL EXPENDITURE ON Raising funds Charitable activities TOTAL Net gains/(losses) on investments NET INCOME TRANSFERS BETWEEN FUNDS NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Funds brought forward FUNDS CARRIED FORWARD
----- End of picture text -----

Page | 17

----- Start of picture text -----
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
Restricted £'000 - - - - - - - - - - - - - - - - - - 52 52
3 - - - 2 - - - - - - -
Schools Unrestricted £'000 165 2,047 2,217 2,011 2,011 206 206 1,054 1,260
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
Endowment £'000 - - - - - - - - - - - - - 17 17 - - - 17 859 876
Restricted £'000 70 65 61 15 - - 8 - 219 - 486 - 486 71 (196) - - - (196) 2,358 2,162
Central Diocese
Unrestricted £'000 143 271 509 - - 139 224 1,453 2,739 61 - 3,636 - 3,697 800 (158) 1,738 - 1,738 1,580 23,075 24,655
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
Endowment £'000 - - - - - - - - - - 24 - 24 216 192 7 7 199 11,142 11,341
Restricted £'000 918 110 13 - - - 71 - 1,112 - 886 886 31 257 - (34) (34) 223 5,957 6,180
Parishes
Unrestricted £'000 7,047 1,039 49 109 47 1,360 99 1,289 11,039 115 7,719 - 7,834 (19) 3,186 (1,738) 27 (1,711) 1,475 52,686 54,161
Note 2 3 4 5 6 7 8 8 8
Collections and donations Legacies Grants Advancement of RC Faith Education Advancement of Roman Catholic Faith Education Transfers from parishes Inter fund transfers
INCOME AND ENDOWMENTS FROM Donations and legacies Charitable Activities Other trading activities Investment income Net gain on disposal of assets TOTAL EXPENDITURE ON Raising funds Charitable activities TOTAL Net gains/(losses) on investments NET INCOME TRANSFERS BETWEEN FUNDS NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Funds brought forward FUNDS CARRIED FORWARD
----- End of picture text -----

Page | 18

ARUNDEL AND BRIGHTON DIOCESAN TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2022

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
2021
£'000
£'000
£'000
£'000
£'000
41,467
11,466
1,527
54,460
54,480
12,083
18,661
-
30,744
38,499
53,550
30,127
1,527
85,204
92,979
507
1,481
16
2,004
1,836
9,457
1,539
152
11,148
9,200
9,964
3,020
168
13,152
11,036
(753)
(1,905)
(100)
(2,758)
(3,328)
7,022
(7,022)
-
-
-
16,233
(5,907)
68
10,394
7,708
69,783
24,220
1,595
95,598
100,687
1,685
29
1,714
6,663
53,275
20,001
1,514
74,790
73,413
53,275
21,686
1,543
76,504
80,076
6,460
1,768
52
8,280
8,394
10,048
766
10,814
12,217
69,783
24,220
1,595
95,598
100,687

Approved by the Trustees on 13 July 2023 and signed as authorised on their behalf by:

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

Page | 19

ARUNDEL AND BRIGHTON DIOCESAN TRUST

BALANCE SHEET

AS AT 31 DECEMBER 2021

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

Page | 20

ARUNDEL AND BRIGHTON DIOCESAN TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Cash flows from operating activities: Net cash provided by (used in) operating activities (see below) Cash flows from investing activities Dividends, interest and rents from investments Purchase of property, plant and equipment	2022 £'000	2021 £'000
	597	(704)
	405 (889)	404 (1,279)
Proceeds from sale of property, plant and equipment	1,449	5,690
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 (expenditure)/income for reporting period (as in SOFA) Adjustments for: Depreciation	(7,195) 7,581	(7,137) 6,711
	1,351	4,389

	-	-
	1,948 9,200	3,685 5,515
	11,148	9,200
	(5,089) 89	3,504 119
Deficit or (Surplus) retained in Investment Portfolio	7,368 (405) (628) (168) (570)	(1,116)
Dividends Net (Gains) on Disposal of Fixed Assets Decrease in Debtors (Decrease) in Creditors Net cash used in operating activities		(404) (2,742) 124 (189)
	597	(704)

Page | 21

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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. In 2021, 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.

Page | 22

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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

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.

Page | 23

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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

Depreciation is provided on Schools contents at a rate of 25% per annum on a reducing balance method.

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.

Page | 24

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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 2022 and 2021 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.

Page | 25

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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.

2. COLLECTIONS AND DONATIONS

3. GRANTS Parish offertory collections Donations Gift Aid tax recovered on collections and donations		2022 2021 £'000 £'000 6,449 5,910 4,464 1,083 1,161 1,188 12,074 8,181


Government Grants Friends of Arundel Cathedral Parishes various Food Voucher Scheme Other		2022 2021 £'000 £'000 - 150 51 56 60 59 - 174 209 358 320 797

4. ADVANCEMENT OF THE ROMAN CATHOLIC FAITH (INCOME)
Publications and repository sales Other including courses and events		2022 2021 £'000 £'000 142 85 85 39 227 124

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

5. EDUCATION (INCOME)

----- Start of picture text -----
2022 2021
£'000 £'000
Independent preparatory school (Sacred Heart Wadhurst) 1,314 1,670
Parish preschools 383 424
1,697 2,094
6. OTHER TRADING ACTIVITIES
2022 2021
£'000 £'000
Fund raising events 438 296
Lettings and sundry income 2,059 1,203
2,497 1,499
7. INVESTMENT INCOME
2022 2021
£'000 £'000
Listed investments 372 371
Bank interest 33 33
405 404
----- End of picture text -----

8. CHARITABLE ACTIVITIES (EXPENDITURE) 2022

Fund raising Advancement of Roman Catholic Faith Education	Direct personnel Direct other expenditure Direct grants Allocated support 2022 Total £'000 £'000 £'000 £'000 £'000 47 115 - 15 177 6,332 8,769 400 618 16,120 1,499 98 28 131 1,756
	7,878 8,982 428 765 18,053

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

Page | 27

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

9. CHARITABLE GRANTS

10. SUPPORT COSTS 2022 Schools Retired priests and housekeepers UK Poor and sick Overseas missions Youth and pilgrimages Ecumenical Bishop's conference Food Vouchers Scheme Other	10. SUPPORT COSTS 2022 Schools Retired priests and housekeepers UK Poor and sick Overseas missions Youth and pilgrimages Ecumenical Bishop's conference Food Vouchers Scheme Other	2021 £'000 381 29 74 22 - 45 31 174 97
		853

Governance Finance Office TOTAL	Fund raising Advancement of RC Faith Education Total £'000 £'000 £'000 £'000 15 170 23 209 - 448 108 556 15 618 131 765	2021 £'000 193 523 716

SUPPORT COSTS 2021

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: £49,800 (2021 £45,000), fees for other services £690 (2021 £6,308).

11. STAFF INFORMATION

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

11.1 Staff costs

----- Start of picture text -----
Parish Central Schools TOTAL 2021
Diocese
£'000 £'000 £'000 £'000 £'000
Employee Salaries 1,407 1,517 994 3,918 4,129
Social Security 64 154 75 293 279
Pension Costs 104 179 127 410 443
Total Employee Costs 1,575 1,850 1,196 4,621 4,851
Clergy & Religious Costs 1,602 422 - 2,024 1,719
Travel & Office Costs 536 394 303 1,233 1,053
TOTAL 3,713 2,666 1,499 7,878 7,623
----- End of picture text -----

Key management personnel received salary and pension contributions of £415k (2021 £410k). Included in the staff costs above were redundancy costs of £13k (2021 £46k).

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 £26k (2021 £27k).

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 £73k (2021 £62k) and the contributions outstanding at the year-end amounted to £7k (2021 £7k).

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 23.68% from 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.

11.3 Staff numbers

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ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
Parish Central Schools TOTAL 2021
Diocese
Clergy & Religious 97 3 - 100 137
Employees - average weekly numbers 164 47 64 275 279
261 50 64 375 416
----- End of picture text -----

11.4 Employee emoluments

----- Start of picture text -----
Parish Central Schools TOTAL 2021
Diocese
Between £60,001 and £70,000 1 1 1
Between £70,001 and £80,000 2 2 2
Between £80,001 and £90,000 1 1
Between £90,001 and £100,000 1 1 1
Between £100,001 and £110,000 1
Between £110,001 and £120,000 1 1
----- End of picture text -----

12. TRUSTEES INFORMATION

The Trustees comprise four priests, one religious and six 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 2022 (2021 £Nil).

Page | 30

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

13. TANGIBLE FIXED ASSETS

----- Start of picture text -----
2022 2021
Freehold Contents Total Total
£'000 £'000 £'000 £'000
COST OR VALUATION
At 1 January 71,616 242 71,858 74,191
Additions 876 13 889 1,279
Disposals (848) (28) (876) (3,612)
At 31 December 71,644 227 71,871 71,858
DEPRECIATION
At 1 January 17,236 142 17,378 17,923
Charge for year - 89 89 119
Disposals (27) (28) (55) (664)
At 31 December 17,208 203 17,411 17,378
NET BOOK VALUE
At 31 December 2022 54,436 24 54,460 54,480
At 1 January 2022 54,380 100 54,480 56,268
----- End of picture text -----

The Diocese has 41 maintained (voluntary aided) schools constituted as separate charities. In addition, two Multi-Academy Trusts have been established as separate charities. A total of 23 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.

Page | 31

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

14. INVESTMENTS

----- Start of picture text -----
2022 2021
£'000 £'000
Listed Investments 27,671 36,848
Cash Deposits 3,073 1,651
TOTAL INVESTMENTS 30,744 38,499
Summary of investments
2022 2021
£'000 £'000
OPENING VALUATION 1 Jan 2022 38,499 36,957
Acquisitions at Cost 7,195 7,137
Proceeds of Sales less fund management fees (7,581) (6,711)
(Losses)/Gains during the year (7,369) 1,116
CLOSING VALUATION 31 Dec 2022 30,744 38,499
----- End of picture text -----

15. DEBTORS

15. DEBTORS
Advances to schools (£292k due after one year) Gift Aid Small Donations Scheme grant Inter Diocese Balances Other Debtors and Prepayments	2022 £'000 442 - 239 1,323		2021 £'000 576 191 174 895
	2,004		1,836

16. CREDITORS – AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
2022 2021
£'000 £'000
Parish Collections, Supplies and Accruals 508 445
Fees Paid in Advance 100 185
Inter Diocese Balances 239 174
Other Creditors 734 1,066
Government capital funding for allocation to schools 1,177 1,458
2,758 3,328
----- End of picture text -----

17. FUNDS NET ASSET ANALYSIS 2022

Page | 32

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

E YEAR ENDED 31 DECEMBER 2022	BER 2022
FUNDS NET ASSET ANALYSIS 2021 Tangible assets Investments Net current assets 2022 £'000 £'000 £'000 £'000 UNRESTRICTED Parishes 34,651 6,044 12,580 53,275 Central Diocese 10,934 17,278 (6,526) 21,686 Schools 1,527 - 16 1,543 47,112 23,322 6,070 76,504 RESTRICTED Parishes 1,926 979 3,555 6,460 Central Diocese 211 939 618 1,768 Schools - 52 52 2,137 1,918 4,225 8,280 ENDOWMENT Parishes 4,890 5,060 98 10,048 Central Diocese 321 444 1 766 5,211 5,504 99 10,814 TOTAL FUNDS 54,460 30,744 10,394 95,598	Tangible assets Investments Net current assets 2022 £'000 £'000 £'000 £'000 34,651 6,044 12,580 53,275 10,934 17,278 (6,526) 21,686 1,527 - 16 1,543 47,112 23,322 6,070 76,504 1,926 979 3,555 6,460 211 939 618 1,768 - 52 52 2,137 1,918 4,225 8,280
	4,890 5,060 98 10,048 321 444 1 766
	5,211 5,504 99 10,814
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

Page | 33

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

18. FUNDS ANALYSIS 2022

UNRESTRICTED GENERAL FUNDS Parishes (see note) Central Schools UNRESTRICTED DESIGNATED FUNDS Parishes (see note) Central Retired priests Ecclesiastical education Clergy formation Mission fund 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 Lourdes Pilgrimage Foundation Masses 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 7,006 1,175 (4,602) (4,254) 2,360 1,685 (343) 1,880 (1,508) - - 29
	6,663 3,055 (6,110) (4,254) 2,360 1,714
	54,161 12,322 (9,742) (1,312) (2,154) 53,275 4,043 151 (397) - 3,797 666 151 (90) - 727 - 1,500 - - 1,500 - 1,170 - - 1,170 12,364 - - - 12,364 576 - - - (134) 442 1,603 - (89) - 1,514
	73,413 15,295 (10,229) (1,312) (2,288) 74,790
	80,076 18,350 (16,339) (5,566) 72 76,504
	3,117 1,724 (1,222) (40) - 3,579 2,434 5 (5) (104) - 2,330 629 57 (23) (62) (50) 551
	6,180 1,786 (1,250) (206) (50) 6,460
	567 - (32) (113) - 422 622 134 (146) - - 610 612 15 - (121) - 506 116 35 (172) - - (21) 34 12 (6) - - 40 211 - - - - 211
	2,162 196 (356) (234) - 1,768
	52 - - - - 52
	8,394 1,982 (1,606) (440) (50) 8,280
	1,181 - - (222) - 959 10,160 - (19) (1,030) (22) 9,089
	11,341 - (19) (1,252) (22) 10,048
	423 - - (110) - 313 131 - - - 131 322 - - - - 322
	876 - - (110) - 766
	12,217 - (19) (1,362) (22) 10,814
	100,687 20,332 (17,964) (7,368) - 95,598

Page | 34

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 £2.2 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.

At the end of 2022, St John’s Seminary CIO donated £2.67 million to the Diocese following the sale of the seminary. Two new funds have been designated to receive this donation. Trustees determined that £1.5 million should be ringfenced strictly for clergy formation (including ongoing formation) and the fostering of vocations. The remaining receipt has been allocated to a new diocesan Mission fund, which will be used for projects that support the implementation of the Pastoral Plan, with its emphasis on lay formation and evangelisation.

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
Universities of Brighton & Sussex Chaplaincies - created from donations 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.

The Trustees have adopted a total return approach to the Scawen Blunt permanent endowment investment portfolio. The brought forward value of investments at 1 Jan 2022 of £2,948,960 was analysed between capital £775,138 and unapplied total return £2,173,822. During the year £28,760 of the unapplied total return was allocated to the income fund and withdrawn from the investment fund to be used for charitable purposes. At the year end the fund was valued at £2,808,936, comprising capital of £775,138 and unapplied total return of £1,533,798.

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 | 35

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

18. FUNDS ANALYSIS 2021

----- Start of picture text -----
Investment gains Closing
Opening balance Income Expenditure / (losses) Transfers balance
£000s £000s £000s £000s £000s £000s
UNRESTRICTED GENERAL FUNDS
Parishes (see note)
Central 5,114 2,739 (3,223) 800 1,576 7,006
Schools (471) 2,217 (2,011) - (78) (343)
4,643 4,956 (5,234) 800 1,498 6,663
UNRESTRICTED DESIGNATED FUNDS
Parishes (see note) 52,686 11,039 (7,834) (19) (1,711) 54,161
Central
Retired priests 4,277 - (383) - 149 4,043
Ecclesiastical education 608 - (91) - 149 666
Fixed Assets 12,364 - - - - 12,364
Advances 712 - - - (136) 576
Schools Fixed Assets 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
TOTAL UNRESTRICTED FUNDS
RESTRICTED FUNDS
Parishes Parishes within Diocesan Trust 2,883 1,062 (830) 2 - 3,117
Trusts connected with Parishes 2,426 6 (17) 19 - 2,434
Endowment trusts restricted income 648 44 (39) 10 (34) 629
5,957 1,112 (886) 31 (34) 6,180
Central Poor 625 (87) 29 - 567
Retired Priests - 69 (69) - - -
Lourdes Pilgrimage 635 50 (63) - - 622
Foundation Masses 574 20 - 18 - 612
Ecclesiastical Education - 58 (58) - - -
Education 169 5 (198) 24 - -
UBS Chaplaincies 127 - (11) - - 116
Others 17 17 - - - 34
Trusts connected with Central 211 - - - - 211
2,358 219 (486) 71 - 2,162
Schools Catholic Education promotion 52 - - - - 52
8,367 1,331 (1,372) 102 (34) 8,394
TOTAL RESTRICTED FUNDS
ENDOWMENT FUNDS
Parishes Parishes within Diocesan Trust 1,143 - - 38 - 1,181
Trusts connected with Parishes 9,999 - (24) 178 7 10,160
11,142 - (24) 216 7 11,341
Central Episcopal administration 418 - - 5 - 423
Ecclesiastical education 119 - - 12 - 131
Trusts connected with Central 322 - - - - 322
859 - - 17 - 876
TOTAL ENDOWMENT FUNDS 12,001 - (24) 233 7 12,217
TOTAL ALL FUNDS 97,183 17,326 (14,938) 1,116 - 100,687
----- End of picture text -----

19. CONNECTED TRUSTS

Page | 36

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022 £'000 £'000 £'000 £'000 £'000 £'000 752 5 (5) (104) - 648 211 211 10 10 135 135 58 58 39 39 2 2 934 934 246 246 258 258
	2,645 5 (5) (104) - 2,541
	23 3 26 48 8 (12) 44 - - - - 34 4 38 - - 5 7 (7) 5 475 4 (4) (62) (12) 401 8 2 10 - - 27 27 9 29 (38) -
	629 57 (23) (62) (50) 551
	273 (1) (56) 216 1 1 717 (3) (146) 568 322 322 6 6 419 (2) (84) 333 1,161 1,161 582 (1) (86) 495 799 799 168 168 306 (1) (42) 263 881 (11) 870 9 (5) 4 647 647 4,191 (11) (600) (22) 3,558
	10,482 - (19) (1,030) (22) 9,411

	13,756 62 (47) (1,196) (72) 12,503

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 | 37

ARUNDEL AND BRIGHTON DIOCESAN TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

20. COMMITMENTS GUARANTEES AND CONTINGENCIES

Capital commitments: At 31 December 2022 there were no capital commitments on Parish properties, maintained or independent schools (2021 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. This company is dormant and has not traded since 2016.

Arundel and Brighton Lourdes Pilgrimage Limited

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) in 2021. It is anticipated that this company will be struck off during 2023.

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.

Page | 38

ARUNDEL & BRIGHTON DIOCESAN TRUST

Annual Report & Accounts

For the year ended 31 December 2022

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

CONTENTS

CONNECTED TRUSTS UNDER CHARITY COMMISSION UNITING DIRECTIONS

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

LEGAL AND ADMINISTRATIVE DETAILS

TRUSTEES

Secretary to Trustees

DIOCESAN OFFICE

FINANCE COMMITTEE

KEY MANAGEMENT PERSONNEL

ADVISERS

AUDITOR

SOLICITORS

INVESTMENT MANAGERS

BANKERS

INSURANCE MANAGERS

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

OBJECTIVES AND ACTIVITIES

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Service by Volunteers

Grant making policy

Public benefit

ACHIEVEMENTS AND PERFORMANCE

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

FINANCIAL REVIEW

Parishes

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Central Diocese

Schools

Risk Assessment and Risk Management

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Investment Policy and Performance

Reserves Policy

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

FUTURE PLANS

STRUCTURE, GOVERNANCE AND MANAGEMENT

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees

Finance Committee

Education Committee

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Academies Partnership Committee

Safeguarding Subcommittee of Trustees

Council of Priests and College of Consultors

ARUNDEL AND BRIGHTON DIOCESAN TRUST

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

Episcopal Council

Pastoral Commissions

Parishes

Remuneration Policy

Fundraising approach

Subsidiary Companies

REPORT OF THE CHARITY TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF THE TRUSTEES’ RESPONSIBILITIES

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF ARUNDEL AND BRIGHTON DIOCESAN TRUST