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2021-12-31-accounts

Registered Charity No: 278742 (England and Wales)

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2021

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

CONTENTS

Page
Reference and Administrative Details 3
Report of the Trustees 4 - 14
Statement of Trustees' Responsibilities 15
Auditors' Report 16 - 18
Statement of Financial Activities 19
Balance Sheet 20
Statement of Cash Flows 21
Notes to the Financial Statements 22 - 39

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

REFERENCE AND ADMINISTRATIVE DETAILS

CHARITY NUMBER BOARD OF TRUSTEES:

278742 (England and Wales)

The trustees who have served during the year and since the year end are as follows:

Bishop Alan Hopes Rev David Bagstaff Mgr Anthony Rogers Rev Peter Leeming (Resigned 23 September 2021) Mrs Moira Goldstaub Mrs Marie Roberts Rev Nicholas Greef (Resigned 12 April 2021) Mr Edward Acton Rev James Hurst Mrs Christine Quinn Mrs Lauretta Pilch (Appointed 21 September 2021)

All the Trustees are also directors for The East Anglia Roman Catholic Diocese Trustee.

FINANCIAL SECRETARY: Matthew Fernandez-Graham (resigned 2 February 2022) Paul Raynes (appointed 12 September 2022) ADVISORS: Mr Nick Saffell (Property - Retired 31 March 2021) Mr Mark Little (Property – From 1 April 2021) Mrs Julie O’Connor (Schools) (Retired 30 September 2022) Mr Andy Stone (appointed 1 September 2022) ADMINISTRATIVE CENTRE: The White House 21 Upgate Poringland Norwich Norfolk NR14 7SH BANKERS: National Westminster Bank Plc 45 London Street Norwich NR2 1HX SOLICITORS: Mills and Reeve 1 St. James Court Whitefriars Norwich NR3 1RU AUDITORS: Price Bailey LLP Tennyson House Cambridge Business Park Cambridge CB4 0WZ INVESTMENT MANAGEMENT: Rathbones 1 Curzon Street London W1J 5FB

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

CONSTITUTION AND COMPOSITION

On March 13th 1976, by decree “Quod Ecumenicum”, Pope Paul VI formed the Roman Catholic Diocese of East Anglia serving people living in the Counties of Cambridge, Norfolk and Suffolk, and the City of Peterborough, from the Diocese of Northampton.

For the purposes of civil law, the Roman Catholic Diocese of East Anglia was established under a Deed of Revocation and Appointment dated 2 October 1979. It is a registered charity (Reg. No. 278742) and is made up of 51 parishes in the counties of Cambridgeshire, Peterborough, Suffolk and Norfolk. It also encompasses 24 Catholic schools and 2 inter-denominational church schools. A new primary school, St John Henry Newman, received permission and opened in September 2022.

The East Anglia Roman Catholic Diocese Trustee was incorporated on 1 February 1979 and was appointed as the Custodian Trustee of the Diocese on 2 October 1979 under the terms of a Deed of Revocation and Appointment.

OBJECTIVE

The objective of the Diocese is set out in its Deed of Revocation and Appointment as

The advancement of the Roman Catholic Religion in the Diocese and for the service and support whether in the Diocese or outside the Diocese of charitable works and objects promoted by the Roman Catholic Church.

This overall objective is accomplished through the network of parishes and schools throughout the Diocese, seeking to involve the community as a whole, and furthering ecumenical relationships.

KEY OBJECTIVES FOR 2021

The key aims for the year were:

The achievement of these aims furthers the progress of the Diocese by increasing the number of clergy able to support the Catholic population of East Anglia, increasing the number of children able to access Catholic education and reaching out to the wider community, particularly the marginalised and vulnerable.

Measures used to assess success include monitoring the numbers of people served by the Cathedral and parishes, the performance of Catholic schools, the numbers of clergy in training, and progress on parish projects for improving facilities and for social outreach.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisation and Control

The Diocesan Board of Trustees

The governing document of the Diocese during 2021 was a Deed of Revocation and Appointment dated 2 October 1979. The Diocese is governed by its Board of Trustees, which consists of 9 Trustee members presently comprising the Bishop of East Anglia, 2 Priests, 1 Permanent Deacon (who is also the Vicar for Finance) and 5 Lay Trustees. These members meet at least quarterly, under the chairmanship of the Bishop. The Board of Trustees is responsible for formulating the strategies and policies for the Diocese as a whole, including the approval of significant parish expenditure and building works, parish loans, the appointment of Diocesan staff and advisors and the exercise of financial management of its own income and expenditure.

The Board of Trustees is assisted in its decision-making process by five other bodies:

1. The Finance Sub-Committee chaired by the Vicar for Finance, meeting at least quarterly, to assess and monitor all major financial policies and activities, oversee the work of the auditors and our investment advisors and advise the Board on appropriate action as required.

2. The Buildings Sub-Committee , which is chaired by the Vicar for Finance and includes members of the Board of Trustees and advisors, deals mainly with curial and parochial property matters. The SubCommittee meets quarterly and reports directly to the Board. Its main function is to agree, monitor and review the details of parish building and repair projects through its agreed expenditure approval procedures and to oversee the process of Quinquennial Inspections of all church buildings, along with matters such as health and safety and to advise on the rental, purchase or sale of property.

3. The Clergy Welfare Group is chaired by the Vicar General and includes the Vicar for Finance, the Vicar Judicial and two Diocesan Priests. It is advised by the Clergy Welfare Coordinator, the Director of Safeguarding and the Director of Finance and Resources. Its role is to advise the Trustees on the management and care for Retired Diocesan Priests and with particular reference to the application of funds raised for Retired Priests by the Alive in Faith campaign. It has established the paid post of Clergy Welfare Coordinator, which was first appointed in June 2020.

4. The Diocesan Schools’ Service Commission oversees education and schools’ matters on behalf of the Trustees. This Commission is chaired by a member of the Clergy, includes the Bishop and the Diocesan Director of Schools and reports directly to the Board of Trustees.

5. The Trustees’ Safeguarding Sub-Committee was set up in the wake of the IICSA Royal Commission and held its inaugural meeting on 6 October 2021. This committee deals with the strategic elements of safeguarding and is chaired by Trustee Ms Chris Quinn.

The majority of our Catholic Schools in the Diocese belong to one of two multi-academy trusts (MATs), designed to ensure the best future for Catholic schools and learners within the ever-changing educational policy landscape. In Norfolk and north Suffolk, the St John the Baptist Catholic Multi-Academy Trust became operational in 2016. In Suffolk and Cambridgeshire, Our Lady of Walsingham Multi-Academy Trust was formed in 2017. At present there continue to be a number of Voluntary Aided Schools in the Diocese and it is hoped that they will be able to join one of the MATs in the future.

In addition, expenditure on churches involving reordering requires consultation with the Arts and Architecture Committee of the Liturgy Commission, whilst expenditure on the fabric of churches which are listed requires a Faculty from the Diocese’s Historic Churches Committee, which acts as a planning body under the Ecclesiastical Exemption Order.

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Diocesan Commissions

The following Commissions assist the Trustees in the furtherance of the charity’s objectives:

The Safeguarding Commission

This is a professional body that implements national procedures regarding the safeguarding of children, young people and adults at risk within the Diocese. It has an independent chair. A Diocesan Trustee has been appointed as a member to provide a link to the Board of Trustees. The Commission oversees the work of the Diocesan Director of Safeguarding.

In October 2019, the Bishops of England and Wales commissioned an independent review of the Catholic Church’s Safeguarding Structures and Arrangements in England and Wales. Published on 20 November 2020, the final report and recommendations of this review were accepted by the Bishops of England and Wales. The Diocese is in the process of reviewing its own safeguarding structures and arrangements in the light of this report.

The Liturgy Commission

This body advises the Diocese and individual parishes on matters relating to the celebration of Sacred Rites in churches, including musical, artistic and architectural matters pertaining to the Sacred Liturgy. It organises liturgical courses throughout the Diocese. Its members are advised by the Diocesan Director of Music and the Diocesan Architect.

The Commission for Catechesis and Formation

This body has particular responsibility for Sacramental Preparation, covering parish sacramental programmes including Rite of Christian Initiation of Adults, Baptism, First Reconciliation and First Communion, Confirmation & Marriage, training and ongoing formation of catechists and co-ordination of key catechists. It supports adult religious education, the formation of teachers in Catholic schools and organises the annual Newman Lectures on aspects of Catholicism.

The Commission for Dialogue and Unity

This Commission is appointed by the Bishop to advise him on all ecumenical matters relating to the Diocese. Members of the Commission are appointed on a Deanery basis with one lay and one clerical member from each of the seven Deaneries. Members of the Commission represent the Diocese on a number of inter-church bodies at local, county and national level. The Commission has an important educational role and organises days of reflection and of study on a diocesan and deanery basis.

Justice and Peace Commission

This Commission was established to advise the Bishop and the Diocese on matters of justice and peace. It organises study days and vigils of prayer to encourage all to seek justice and peace and to exchange relevant information.

The Diocesan Youth Service Commission

The Director of the Diocesan Youth Service works with the Bishop to coordinate and organise a variety of diocesan youth events including the World Youth Day pilgrimage every two years and diocesan youth days, festivals, celebrations and camps. This work is supported by a Diocesan Youth Services Commission. The work of the Director of the Diocesan Youth Service has been augmented by a Youth Mission entitled “Ignite” with the aim of enhancing the development of youth activity throughout the Diocese. This latter group is intended to be developed with the mission of taking the Catholic message out to the youth of the Diocese using events within the Diocese as a whole, within individual parishes and in the diocesan schools.

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New Evangelisation Commission

This Commission aims to support the strengthening and development of the Catholic Faith within the Diocese. In addition to encouraging and facilitating the return of Catholics who have lost contact with the Church to regular communion, the Commission is also engaged in promoting the Church amongst non-Catholics.

Caritas East Anglia

This group has been formed to promote Catholic Social Teaching by administering the Social Outreach aspects of the money raised for this purpose by the Alive in Faith campaign. It is a member of the Caritas Social Action Network (CSAN) which is an agency of the Catholic Bishops’ Conference of England and Wales.

Management

Day to day control of the charity is exercised by the Bishop, supported during 2021 by the Director of Finance and Resources ~~who is~~ a paid member of staff with responsibility for implementing and managing the strategies and policies agreed by the Diocesan Board of Trustees. In addition, the Director of Schools is responsible for day-to-day control of the schools’ programme.

At parish level, the Parish Priest, assisted by his Finance Committee, is responsible for all aspects of administration.

Appointment and Training of Trustees

The power to appoint trustees is vested in the Bishop of the Diocese. Trustees are recruited following recommendations received from existing trustees and/or other members of the Diocese. Procedures are in place to ensure that new trustees have appropriate skills to fulfil their legal duties as trustees and are adequately informed of their responsibilities prior to appointment. All trustees are provided with opportunities for further training and development.

ACHIEVEMENTS AND PERFORMANCE FOR 2021

Significant charitable activities undertaken to achieve these objectives include:

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By the end of 2021, 80% of our parishes have begun to draw down funding for projects established as a result of the Alive in Faith appeal. These range in scope from refurbishment and repairs for church buildings, to installation of photovoltaic panels in schools, to supporting our young people and the elderly, to helping the homeless or to support family life. The total amount pledged to Alive in Faith stands at over £6.3 million.

Although churches were reopened during 2021, Covid precautions remained in place and the Sunday Mass obligation was not imposed during the year. Nevertheless, active church attendance and provision of the Sacraments recovered strongly in the course of the year, with the number of baptisms up 81%, and the number of marriages more than doubling year-on-year. Total in-person Mass attendance rose by over a third to 12,611; figures for online participation are not available.

The total Catholic population in the area covered by the Diocese is estimated to be some 140,000.

Through its parishes, funds are raised by way of voluntary collections and donations to assist the work of charitable organisations such as CAFOD (Catholic Fund for Overseas Development), the Apostleship of the Sea and the Catholic Association for Racial Justice. During 2021, total funds raised in this way exceeded £250,000.

Twinning arrangements are in place with churches in Cambodia and the Holy Land, providing funding to assist in the development of projects for the needy and underprivileged. These overseas relationships continue to develop as more individual parishes have established twinning relationships with particular overseas localities.

The Diocese could not meet its objectives without the significant contribution provided by its volunteers. “Volunteer Agreements” have been in place since 2006, particularly to highlight and clarify the roles undertaken by so many willing parishioners. Such roles include catechists, stewards, parish treasurers, committee members, flower arrangers and lay ministers. The numbers of volunteers far outweigh paid employees and are essential to the continued health and mission of the Catholic Church. For the first time this year, parishes were asked to provide figures for the number of volunteers in their parish and the estimated number is 1,900.

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At the start of 2021, there were 94 active priests, 28 active permanent deacons, 8 seminarians in training and 3 students for the permanent diaconate.

Work is ongoing to provide appropriate retirement properties for priests due to retire in the coming years. The Clergy Welfare Coordinator supports the Clergy Welfare Group in ensuring that the material and spiritual welfare needs of our clergy, particularly those who are sick or retired, continue to be met.

PLANS FOR THE FUTURE

Future Developments

Priests

Efforts across the Diocese have resulted in an increase in the number of vocations to the priesthood, the permanent diaconate and the religious life and the number of priests available comfortably exceeds the number of parishes. Meeting the needs of the increasing numbers of priests reaching retirement age or retiring on the grounds of ill health is, however, a significant challenge for the Diocese. A diocesan retirement policy which takes account of the diverse needs of retiring priests in terms of both accommodation and income has been agreed. In the longer term, provision for residential care of individual priests who require it must also be planned. The success of this will rely heavily on individual priests making personal arrangements in their financial affairs to ensure that in the event of a need for residential care, the transition is made smoothly. The retirement policy takes account of individual priests’ personal financial resources and ensures that all and any State benefits to which individuals may be entitled are factored in on a case by case basis. The formation of the Clergy Welfare Group is designed to monitor and operate the diocesan Retirement Policy and the appointment of a permanent Clergy Welfare Coordinator is helping to ensure ongoing day to day support to our Retired Priests.

In addition to diocesan resources, the East Anglia Diocese Dependent Priests’ Fund is an independent charity designed to provide additional financial assistance where required which is beyond the scope of either State Benefits or the diocesan policy.

Buildings

There is a continuing need to review the demographic location of the Catholic population in the Diocese and the availability of priests to ensure that churches are best situated to serve their needs. Annual reviews of mass attendance in parishes are an important tool in measuring which churches and buildings may need expansion or new buildings and those where a church or building may be underutilised.The diocesan estate is therefore kept under review to ensure that buildings are put to best use. A further consideration is the number of priests available to provide pastoral care in the existing parishes and the need for suitable accommodation where the number of priests increases in a parish as a result of growing congregations.

Particular attention is being given to those churches that are presently on Historic England’s “Heritage At Risk” register. Grants for three such churches were received in 2021 and further funding opportunities are being explored. The Historic Churches Officer is focused on securing improvements to the condition of listed churches, especially those whose condition has led to their inclusion on the “at risk” register. We remain grateful to all those who are generous in giving to the church for projects including building works and to those who remember the church in their wills.

Mission

The Trustees remain focused on their core purpose, as set out in the Trust Deed, to advance the Catholic faith in East Anglia and will continue to seek to do that through preserving the Catholic ethos of schools, through youth work, through ensuring the continued provision of liturgy and the sacraments, through social outreach and communication. Beyond 2021, the Trustees have supported parishes and schools in recovering from the restrictions imposed on church activity during the pandemic and have seen that bear fruit in a renewal of events

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and pilgrimages, increases in Mass attendance, and a fuller provision of activities in schools.

Safeguarding

The Trustees continue to place safeguarding at the heart of their responsibilities and will continue to receive regular updates to ensure that safeguarding provision and training in the diocese is appropriate.

CONNECTED CHARITIES

The Diocese is connected to two independent charities whose objectives are complementary to the diocesan objectives. These are the Cathedral of St John the Baptist Trust (Reg No 1152820) and the East Anglia Diocese Dependent Priests’ Fund (Reg No 1102707). Both of these charities can receive donations from the Diocesan Trust.

A number of Diocesan Trustees are also Trustees of the Walsingham Trust (Reg no 1180690).

PUBLIC BENEFIT

The Trustees confirm that they comply with the duty in Section 17 of the Charities Act 2011 to have regard to public benefit guidance published by the Charity Commission when exercising any powers or duties to which the guidance is relevant.

The Catholic Church in East Anglia not only provides for the religious needs of the Catholic population but plays a full role in participating with other churches, faiths and public organisations in promoting an ethos and attitude among the general population which are designed to encourage and develop mutual cooperation, social cohesion and dialogue for the benefit of the community as a whole and in particular the poor and most vulnerable. It is part of the Canon Law of the Catholic Church that the church is at the service of the entire community. Within the Christian community, the Diocese and parishes are active in inter-faith activities working to increase the common interest.

The Diocese makes a significant contribution to education in East Anglia by its financial contribution, fundraising and voluntary contributions as governors and in other roles. This programme includes two interdenominational schools. Our Catholic schools are successful and popular with parents. Many non-Catholic students – more than a third of the total - attend these schools and the teaching staff are by no means exclusively Catholic. Across England, Catholic schools are amongst the most ethnically diverse in the country; some 22% more pupils come from minority ethnic backgrounds than the national average. In the East Anglia Diocese’s schools, 34% of pupils are from BAME backgrounds. Diversity of faith is found in our schools and they also reflect the cultural diversity of Catholicism which is present across the world and can be a place of refuge for children and families who have sacrificed and endured much to come to East Anglia.

The Diocese preserves and maintains a range of historic buildings for future generations, and puts them to good use for public worship and other uses that serve the community. It also provides parish halls and other buildings that are available for community use.

The Diocese and the individual parishes directly support social action to help homeless and vulnerable members of the community regardless of their faith or background.

We believe that every single person in East Anglia is a beneficiary of our work. We believe in the power of prayer to make a difference in every life, even for those who would never think of asking for our help or assistance. Through the grace of God, we hope to play our part in bringing souls to heaven. There can be no greater public benefit.

REMUNERATION OF KEY MANAGEMENT PERSONNEL

The key management personnel consist of the Trustees, the Director of Finance and Resources and the Director of Schools. Senior Education Staff are paid on a scale with increments based on performance assessment, which is in line with national practice within the education sector. The charity’s other key management personnel have been recruited by public advertising at a salary fixed by local market forces at the time of recruitment. Annual increases for Curia Staff have been granted on a discretionary basis, informed by

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budgetary planning, data from the Office for National Statistics on inflation and average earnings across the economy.

PRINCIPAL RISKS

A Risk Assessment is presented to the Trustees each year for review and approval. This covers all perceived risks, not just financial ones. The Risk Register is reviewed by the Finance Sub-Committee at each of its quarterly meetings.

Risk Review

The Trustees have assessed the major risks to which the Diocese is exposed and are satisfied that systems are in place to mitigate our exposure to the major risks.

The major risks and strategies for managing these risks are as follows:

i. Overspend on unrestricted funds

The Diocese has an annual budgeting process that forecasts income and sets expenditure plans in line with what is affordable. The budgeting process is led by the Finance Committee and the budget is agreed annually by the Trustees. New procedures have been introduced to ensure more effective in-year budget monitoring. Advice has been offered to parishes in managing increased costs such as energy bills.

ii. Inadequate financial controls in parishes leading to fraud or misappropriation of funds

Updated guidance on financial controls has been issued to all parishes in the form of a revised Parish Handbook. Specific guidance in relation to preventing and identifying fraud was issued to all Parish Priests and Parish Treasurers in October 2020. Training sessions have been held annually, with the next due in November 2022. The annual audit includes a risk-based approach to identifying parishes for audit.

iii. Reduction in the real value of offertory collections.

A Diocesan Stewardship and Fundraising Coordinator is supporting all parishes to undertake a Stewardship campaign in their parish over the next 3 years, asking all parishioners to reflect on their call to be “Faithful Stewards of God’s Gifts.” The Gift Aid coordinator continues to promote best practice in encouraging all donors to gift aid their contributions to maximise revenue. The budgeting process includes cautious and realistic forecasting of likely future revenue.

FINANCIAL REVIEW

Funding of Diocesan Activities

Although it benefits from enthusiastic and faithful volunteers, priests and members of religious orders, the Diocese of East Anglia is not financially well off. It has limited reserves or investments of its own, receives relatively small amounts through legacies and donations and has historically been reliant on raising income from its parishes. This it does by levying charges or quotas based on a percentage of parish offertory collections. The income which it receives is used to pay for the organisation and administration of all diocesan activities, for the repairs and adaptations to its schools, for the training of future diocesan priests and for all those services which are given to parishes without charge. Comments on some of these diocesan activities, which are highlighted in the SOFA under “General Funds”, “Designated Funds”, or “Parochial Funds”, are included below.

The activities of the Diocese are largely undertaken through its parishes. Of the overall diocesan finances for 2021, parishes accounted for over 77% (2020: 72% ) of income and some 62% (2020: 57%) of expenditure. The work of the parishes involves amongst other things the pastoral care of the Roman Catholic and general community of the parish and maintenance and upkeep of places of worship.

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Alive in Faith

This fund-raising campaign started in February 2015 supported by the professional fund-raising company, CCS. The actual campaign phase ended in June 2017 when the administration of funds raised passed to a newly formed Alive in Faith Supervisory Committee which controls and administers the continued inflow of funds from pledges as well as the disbursement of funds to the stated objectives.

There are four primary aims to provide funding for the following:

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Financial Performance during the year

The total income of the Diocese increased from £6.08m to £6.38m during the year. Total expenditure for the Diocese also increased, from £6.06m in 2020 to £6.3m in 2021. Costs of raising funds increased from £56k in 2020 to £68k in 2021. An analysis of all income is shown in notes 2 to 6 of these accounts. An analysis of all expenditure is given in note 7.

General Diocesan Funds

The bulk of the expenditure in 2021 classified under this heading relates to the activities of the various Diocesan commissions, the work of the Diocesan Marriage Tribunal, the upkeep of the Bishop’s residence and Central Administrative Offices and the funding of the chaplaincy costs at the University of East Anglia.

The main sources of funding for these expenditures are from investment and bank interest, quota charges to parishes based upon a percentage (8%) of offertory collections and administration charges to parishes and funds for handling investments and recovering tax on gift aid and covenants.

Designated Funds – General Comments

The main funds included under this heading are the Schools’ Consortium Funds. The balances on these funds at the end of December 2021 are shown in Note 15 to the financial statements. The Schools’ Consortium Funds obtain most of their income from levies on parishes. The majority of the expenditure on the designated funds relates to the schools’ activities. Comments on the activities of the Schools’ Consortium Funds are included below.

Designated Funds - Schools

The schools’ levy has historically stood at 20% of offertory collections. This system has been reviewed as part of an overall analysis of diocesan expenditure designed to reduce the deficit on the overall diocesan current account. A review of budgetary procedures was part of the overall financial review and has resulted in a rolling budget for schools over a 3 year period being used to allocate funds as agreed by the Trustees.

Surplus funds have been transferred to a Schools Reserve Fund to meet contingencies and any future adverse changes in funding legislation by central government. In view of the rising expenditure in other areas of the Diocese, a rigid application of the 20% levy has been reviewed along with the other levies, to ensure that diocesan income is applied to meet expenditure in all areas of the diocesan operation.

At the beginning of 2021, there was £705k held in the Schools’ Consortium Fund. During 2021 the net movement in the fund amounted to approximately -£155k, leaving a balance on the fund of £0.55k. The Trustees will continue to review the allocation of designated funds to ensure that there is a proper balance of income to expenditure. In the future, this will need to take into account the changed arrangements for funding capital in the majority of the Diocese’s schools, which are now part of Multi-Academy Trusts and receive direct capital funding from the Department for Education as a consequence.

Designated Funds – Priests’ Training Fund, Ministerial Training Fund and Clergy Pension Fund

During 2017, a review of the previous restrictions on these funds was carried out and as a result, a transfer from restricted funds to designated funds took place. The balances now held in designated funds can be seen in note 15a to the accounts.

Restricted Funds

The main funds represented under this heading and their respective fund balances are outlined in Note 16 to the accounts. This note shows that at the end of December 2021, the total of the Diocese's restricted funds was £5.0m compared with £4.4m at the end of 2020.

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Unrestricted Parochial Funds

As can be seen from the SOFA, the bulk of the Diocese's activities are undertaken through its parishes whose work principally takes the form of the provision of religious services and the maintenance and upkeep of presbyteries, churches and parish halls.

The financial statements show total unrestricted parochial income of £4.97m (2020: £4.3m), with the bulk of monies, amounting to £4.2m (2020: £3.8m), from "donations, legacies and grants". On the expenditure side, Note 7 to the accounts provides an analysis of charitable expenditure. This shows total costs of £3.93m (2020: £3.4m).

Investment Performance

The performance target required by the Trustees is that the portfolio should perform in line with the relevant indices. During the year the overall value of the charity’s quoted portfolio increased from £6.3m to £8.8m, partly thanks to a £0.9m unrealised gain as markets recovered, and partly thanks to a further investment by the diocese.

Equity markets performed strongly over the year as economies and corporate profits recovered from the depths of the pandemic. Fixed interest assets were weak, however, as concerns shifted to high inflation and rising interest rates. Over 2021 the charity’s portfolio achieved a total return of 15.30%. In the prevailing economic circumstances this level of return is deemed to be satisfactory by the Trustees considering their level of risk appetite and the present extremely low interest rate environment.

For comparison, the total return on the FTSE All Share was 18.32% and for the FTSE UK Gilts (UK government bonds) it was -5.16%. The Bank of England Base Rate for interest rates was 0.1% at the start of 2021. In the light of low interest rates on cash, the Trustees found alternative secure counterparties for the investment of short-term cash, with security of the investment remaining the most important criterion.

Investment Powers and Policy

The Trustees are empowered to invest any monies authorised by law for the investment of trust monies from time to time with the consent of the Bishop. This means that the provisions of the Trustees' Act 2000 apply. In 1999 an Order was made under Section 26 of the Charities Act 1993 which empowered the Trustees to appoint an investment manager and to appoint a corporate body as the Trustees' Nominee to hold the investments of the charity. By using a Nominee, transfers of stock can be dealt with more rapidly with the advent of reduced settlement periods. The Diocese's Investment Managers, are currently Rathbones.

The Trustees intend that the real value of the investments be maintained and enhanced over the long term. The Trustees have selected a balanced portfolio of overall medium risk.

Reserves Policy

The Trustees reviewed the Reserves Policy during 2019. The policy of the Trustees is to ensure that the level of reserves are sufficient to deal with the risks faced by the Trust, but not so high as to bring into question why charitable income is not being spent in a timely manner. For parishes, individually and as a whole, the level of reserves should aim to be sufficient to cover at least one year’s expenditure. For the Diocese centrally, the level of reserves should be sufficient to cover one year’s expenditure, excluding schools’ service expenditure (which could be supported from the designated schools fund in an emergency). They should be no higher than two years’ expenditure. The Trustees apply these targets not only to the current actual level of reserves, but to predicted reserves looking up to 7 years’ ahead for the Diocese centrally. The Trustees monitor actual and predicted reserves against this target at least annually when it reviews the annual accounts and take corrective action where necessary.

Notes 15 to 17 of the financial statements set out details of the various funds of the Diocese and an analysis of the assets attributable to them. These assets are sufficient to meet the charity's obligations on a fund by fund basis. At 31 December 2021 the Diocese's reserves stood at £34.7m compared to £33.8m at 31 December 2020. Of this, £4.9m (2020: £4.4m) is restricted to particular uses and £3.5m (2020: £3.5m) has been designated by the Trustees for certain specific purposes.

General unrestricted reserves were flat at £3.4m.

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TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Annual 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 incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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 Board of Trustees on October 2022

………………………………….. Rt Rev Alan Hopes Trustee

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

FOR THE YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the financial statements of The Roman Catholic Diocese of East Anglia (the ‘charity’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 trustees’ 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

FOR THE YEAR ENDED 31 DECEMBER 2021

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement in the Trustees’ Report, 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 1443 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We gained an understanding of the legal and regulatory framework applicable to the Charity and the sector in which it operates and considered the risk of the Charity not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

FOR THE YEAR ENDED 31 DECEMBER 2021

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.

This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

PRICE BAILEY LLP

Chartered Accountants Statutory Auditors

Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Date: 31 October 2022

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

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||||||||| |---|---|---|---|---|---|---|---| |Unrestricted| |Unrestricted Designated|Restricted|Parochial|2021|2020| |funds|funds|funds|funds|Total|Total| |Notes|£|£|£|£|£|£| |Income:| |Donations, legacies and grants|2|164,532|-|1,049,627|4,217,623|5,431,782|5,006,275| |Charitable activities|3|-|-|2,075|146,983|149,058|132,337| |Income from other trading| |activities|4|-|-|63,421|96,015|159,436|235,536| |Investments|5|97,560|18,387|17,233|322,842|456,022|351,931| |Other income|6|-|-|-|181,616|181,616|353,517| |──────|──────|──────|──────|────── ───────| |Total income|262,092|18,387|1,132,356|4,965,079|6,377,914|6,079,596| |──────|──────|──────|──────|────── ───────| |Expenditure:| |Raising funds|-|(5,188)|52,630|20,481|67,923|55,906| |Charitable activities:| |Provision of worship|236,573|19,690|-|1,343,685|1,599,948|1,433,690| |Clergy and parish support|299,048|160,298|373,848|2,541,265|3,374,459|3,095,386| |Pastoral care and| |community support|230,789|-|49,611|28,028|308,428|-| |Schools programme|295,757|651,018|-|-|946,775|1,475,701| |──────|──────|──────|──────|────── ───────| |Total expenditure|7|1,062,167|825,818|476,089|3,933,459|6,297,533|6,060,683| |──────|──────|──────|──────|────── ───────| |Net (expenditure) / income| |for the year before investment| |gains / losses|(800,075)|(807,431)|656,267|1,031,620|80,381|18,913| |Net gains / (losses) on investments|505,506|125,681|145,263|99,754|876,204|(173,434)| |──────|──────|──────|──────|────── ───────| |Net (expenditure) / income| |for the year|(294,569)|(681,750)|801,530|1,131,374|956,585|(154,521)| |Transfers between funds|18|301,999|664,493|(222,695)|(743,797)|-|-| |──────|──────|──────|──────|────── ───────| |Net movement in funds|7,430|(17,257)|578,835|387,577|956,585|(154,521)| |Reconciliation of funds:| |Total funds brought forward|3,369,849|3,516,751|4,409,184|22,486,294|33,782,078|33,936,599| |──────|──────|──────|──────|────── ───────| |Total funds carried forward|3,377,279|3,499,494|4,988,019|22,873,871|34,738,663|33,782,078| |══════|══════|══════|══════|══════ ═══════|

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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 22 to 39 form part of these accounts.

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

BALANCE SHEET AS AT 31 DECEMBER 2021

2021 2020
Notes £ £
Fixed assets
Tangible fixed assets 11 15,468,447 15,514,519
Investments 12 12,655,896 10,183,361
─────── ───────
Total fixed assets 28,124,343 25,697,880
Current assets
Debtors 13 1,154,783 1,489,800
Cash at bank and in hand 6,939,340 7,615,530
─────── ───────
Total current assets 8,094,123 9,105,330
Liabilities
Creditors: amounts falling due within one year 14 (1,479,803) (1,021,132)
─────── ───────
Net current assets 6,614,320 8,084,198
─────── ───────
Total assets less current liabilities 34,738,663 33,782,078
─────── ───────
Total net assets 34,738,663 33,782,078
═══════ ═══════
The Funds of the Trust:
Unrestricted:
General 3,377,279 3,369,849
Designated 15 3,499,494 3,516,751
─────── ───────
6,876,773 6,886,600
Restricted:
Diocese Permanent Endowment 16 128,018 118,785
Diocese restricted 16 4,860,001 4,290,399
─────── ───────
4,988,019 4,409,184
Unrestricted Parochial funds 22,873,871 22,486,294
─────── ───────
Total funds 34,738,663 33,782,078
═══════ ═══════

The notes on pages 22 to 39 form part of these financial statements.

The financial statements were approved by the Board of Trustees on

and signed on their behalf by:

…………………………………………………… Bishop Alan Hopes (Trustee)

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2021

2021 2020
Notes £ £
Cash flows from operating activities:
Net cash provided by / (used) in
operating activities 19 1,007,945 423,782
─────── ───────
Cash flows from investing activities:
Dividends, interest and rent from investments 456,022 351,931
Proceeds from sale of investments 898,205 637,355
Proceeds from sale of fixed assets (181,616) 329,689
Purchase of investments (2,409,147) (588,497)
Purchase of tangible fixed assets (397,849) (871,016)
─────── ───────
Net cash used in investing activities (1,634,385) (140,538)
═══════ ═══════
Cash flows financing activities:
Repayments of borrowing - (40,000)
Net movement on interest free loans to clergy (4,417) 133
─────── ───────
Net cash used in financing activities (4,417) (39,867)
═══════ ═══════
Change in cash and cash equivalents in the year (630,857) 243,377
Cash and cash equivalents at the beginning of
the reporting period 7,750,891 7,507,514
─────── ───────
Cash and cash equivalents at the end of
the reporting period 20b 7,120,034 7,750,891
═══════ ═══════

The notes on pages 22 to 39 form part of these financial statements.

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES

(a) Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective from 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Charity constitutes a public benefit entity as defined by FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The financial statements are prepared in pounds sterling and rounded to the nearest pound.

(b) Going Concern

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. In view of the Covid-19 pandemic, the Trustees have carefully considered future cash flows and the projected reserves position in detail for 2022 and 2023, with further projections up to 2026. In the light of these considerations, the Trustees continue to adopt the going concern basis in preparing these financial statements.

(c) Funds structure

Restricted Funds and Permanently Endowed Funds

The Charity has a number of restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose or where funds have been raised for a specific purpose. Details of funds subject to legal restriction are set out in note 15.

Unrestricted and Parochial Funds

Each parish is considered by canon law to be a juridical person with corresponding rights and obligations, including the holding and use of funds. The use of these parochial funds is the responsibility of the Parish Priest, Diocesan Finance Board, College of Consultors and the Bishop in varying ways depending on the amount and significance of the funds. Whilst they have certain characteristics of restricted funds, they are considered to be unrestricted, but designated.

Unrestricted income funds comprise funds which the Trustees are free to use for any purpose in the furtherance of the charitable objectives.

Designated Funds

Details of the funds designated by the Trustees are set out in note 14.

(d) Income

All income is recognised 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.

22

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES (continued)

Legacies, donations and grants

For legacies, entitlement is taken on a case by case basis as the earlier of the date on which:

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor’s intention to make a distribution. If the legacy is in the form of an asset other than cash or an asset listed on a recognised stock exchange, recognition is subject to the value of the asset being able to be reliably measured and title to the asset has passed to the Charity. Where legacies have been notified to the Charity or the Charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Grants are recognised when receivable.

Investments and investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the investment advisor of the dividend yield of the investment portfolio. Income from Government Securities is recognised when it is received. Income accrued and not received on these securities at 31 December is included in the market value of the investments held.

Rental income under operating leases is charged to the profit and loss accounts on a straight line basis over the terms of the lease.

(e) Expenditure

Expenditure is recognised once there is a legal or constructive obligation committing the Charity he expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Gains and losses

Unrealised gains/losses on investments are calculated as the difference between opening market value and closing market value after adjusting for additions and disposals during the year.

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES (continued)

Schools Building Programme

The Diocese assists schools undertaking major projects by meeting the costs and claiming grants on behalf of the schools. These grants are netted off against the cost and only the net costs to the Diocese are included in the financial statements.

(f) Allocation of support costs

Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Charity’s activities. These costs are apportioned between charitable activities on the basis of the Trustees' estimate of time spent on the relevant functions.

(g) Taxation and irrecoverable VAT

The Diocese is a registered charity and is exempt from corporate taxes, to the extent of operating within its charitable objectives. Irrecoverable VAT is charged against the expenditure type for which it was incurred.

(h) Tangible fixed assets

Depreciation is calculated by the straight line method to write off the cost/value less anticipated residual value, over the expected useful lives of assets as follows:-

Freehold buildings 50 years Furniture, equipment and motor vehicles 5 years

The need for any impairment of a fixed asset write-down is considered if there is concern over the carrying value of an asset and is assessed by comparing that carrying value against the value in use or realisable value of the asset when appropriate.

The Diocese has 23 voluntary aided and 2 inter-denominational church schools, which are constituted as separate charities. This number will change as two senior schools have opted for Academy status and are now self-financing. It is likely that some other schools may also opt for free school status. The school properties (land and buildings) are vested in the name of the Diocesan Trustees and for this reason will continue to contribute to capital improvement costs. The Diocesan 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 therefore consider that, for the purposes of these financial statements, the nature of their ownership is that of a custodianship, however these properties have been purchased and written off in the Diocesan accounts for the amounts that the Diocese contributed in the past and the costs involved have not been separately identified and are not considered material in the overall context of the accounts.

Investment properties

Investment properties are valued by the Trustees at fair value and are not depreciated. The Statement of Financial Activities includes the net gains and losses arising on the revaluation and disposals throughout the year.

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24

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES (continued) .

(i) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the mid-market quoted price (the difference between mid-market and bid price is deemed not to be material). The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

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

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

(j) Debtors

Sundry debtors are recognised at the settlement amount due. Prepayments are valued at the amount repaid net of any trade discounts due.

(k) Cash at bank and in hand

Cash at bank and in hand includes 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.

(l) 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.

(m) 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Fixed assets are recorded at depreciated historical cost or revaluation, investments are recorded at their fair value which is the market value as disclosed in note 11 and all other assets and liabilities are recorded at cost which is their fair value.

(n) Pension

Pension contributions to a defined contribution pension scheme are charged to the Statement of Financial Activities as they occur. These contributions are invested separately from the Charity’s assets. Certain staff are members of a Pensions Trust personal pension scheme growth plan to which they make contributions. The Diocese contributes an additional amount to the employee's contribution. The scheme has been treated as a defined contribution scheme as disclosed in note 23.

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

2a. INCOME FROM DONATIONS AND LEGACIES – CURRENT YEAR

Unrestricted Funds Restricted Parochial 2021
General Designated funds funds Total
£ £ £ £ £
Legacies
Donations including plate - - 16,000 597,908 613,908
collections 164,532 - 649,347 3,508,572 4,322,471
Grants - - 384,260 111,143 495,403
────── ────── ────── ────── ──────
Total 164,532 - 1,049,607 4,217,623 5,431,782
══════ ══════ ══════ ══════ ══════

Included within restricted grant income is £298,132 (2020 : £285,480) from Historic England. There were no unfulfilled conditions at the year end (2020 : nil).

2b. INCOME FROM DONATIONS AND LEGACIES – PRIOR YEAR

Unrestricted Funds Restricted Parochial 2020
General Designated funds funds Total
£ £ £ £ £
Legacies - - - 242,584 242,584
Donations including plate
collections 143,732 - 1,033,818 3,165,784 4,343,334
Grants - - 285,480 134,877 420,357
────── ────── ────── ────── ──────
Total 143,732 - 1,319,298 3,543,245 5,006,275
══════ ══════ ══════ ══════ ══════

3a. INCOME FROM CHARITABLE ACTIVITIES – CURRENT YEAR

Unrestricted Funds Restricted Parochial 2021
General Designated funds funds Total
£ £ £ £ £
Altar society and repository sales - - - 72,459 72,459
Chaplaincies - - - 19,435 19,435
Other - - 2,075 55,089 57,164
────── ────── ────── ────── ──────
Total - - 2,075 146,983 149,058
══════ ══════ ══════ ══════ ══════

3b. INCOME FROM CHARITABLE ACTIVITIES – PRIOR YEAR

Unrestricted Funds Restricted Parochial 2020
General Designated funds funds Total
£ £ £ £ £
Altar society and repository sales - - - 14,028 14,028
Chaplaincies - - - 62,917 62,917
Other - - 23,442 31,950 55,392
────── ────── ────── ────── ──────
Total - - 23,442 108,895 132,337
══════ ══════ ══════ ══════ ══════

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

4a. INCOME FROM OTHER TRADING ACTIVITIES – CURRENT YEAR

Unrestricted Funds Restricted Parochial 2021
General Designated funds funds Total
£ £ £ £ £
Parish hall and other rents received - - 26,078 22,402 48,480
Fundraising events - - 37,343 73,613 110,956
────── ────── ────── ────── ──────
Total - - 63,421 96,015 159,436
══════ ══════ ══════ ══════ ══════

4b. INCOME FROM OTHER TRADING ACTIVITIES – PRIOR YEAR

Unrestricted Funds Restricted Parochial 2020
General Designated funds funds Total
£ £ £ £ £
Parish hall and other rents received - - 16,348 117,462 133,810
Fundraising events - - 26,168 75,558 101,726
────── ────── ────── ────── ──────
Total - - 42,516 193,020 235,536
══════ ══════ ══════ ══════ ══════

5a. INVESTMENT INCOME – CURRENT YEAR

Unrestricted Funds Restricted Parochial 2021
General Designated funds funds Total
£ £ £ £ £
Arising on quoted investments 83,016 18,387 17,233 - 118,636
Income from investment properties 14,159 - - 316,989 331,148
Bank interest 385 - - 5,853 6,238
────── ────── ────── ────── ──────
Total 97,560 18,387 17,233 322,842 456,022
══════ ══════ ══════ ══════ ══════

5b. INVESTMENT INCOME – PRIOR YEAR

Unrestricted Funds Restricted Parochial 2020
General Designated funds funds Total
£ £ £ £ £
Arising on quoted investments 92,743 20,043 1,604 - 114,390
Income from investment properties 13,439 - - 212,136 225,575
Bank interest 5,191 - - 6,775 11,966
────── ────── ────── ────── ──────
Total 111,373 20,043 1,604 218,911 351,931
══════ ══════ ══════ ══════ ══════

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27

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

6a. OTHER INCOME – CURRENT YEAR

Unrestricted Funds Restricted Parochial 2021
General Designated funds funds Total
£ £ £ £ £
Profit arising on sale of fixed assets - - - 181,616 181,616
────── ────── ────── ────── ──────
Total - - - 181,616 181,616
══════ ══════ ══════ ══════ ══════
6b.
OTHER INCOME –PRIOR YEAR
Unrestricted Funds Restricted Parochial 2020
General Designated funds funds Total
£ £ £ £ £
Profit arising on sale of fixed assets 9,250 - - 327,689 336,939
Job Retention Scheme 16,578 - - - 16,578
────── ────── ────── ────── ──────
Total 25,828 - - 327,689 353,517
══════ ══════ ══════ ══════ ══════
7a.
EXPENDITURE – CURRENT		 YEAR
General Designated Restricted Parochial 2021
Funds Funds Funds Funds Total
£ £ £ £ £
Cost of raising funds
Fundraising and social - - 8,127 20,481 28,608
Alive in Faith charges - - 44,503 - 44,503
Investment management fees - (5,188) - - (5,188)
Investment property repairs - - - - -
-────── ────── ────── ────── ──────
- (5,188) 52,630 20,481 67,923
Provision of Worship
Upkeep of buildings 91,981 - - 919,455 1,011,436
Depreciation - 19,690 - 424,230 443,920
Support costs (note 8a) 144,592 - - - 144,592
────── ────── ────── ────── ──────
236,573 19,690 - 1,343,685 1,599,948
Clergy and parish support
Clergy and church costs 120,230 141,863 318,066 1,006,042 1,586,201
Education and training 34,226 18,435 1,006 - 53,667
Parish administration - - 54,776 1,535,223 1,589,999
Support costs (note 8a) 144,592 - - - 144,592
────── ────── ────── ────── ──────
299,048 160,298 373,848 2,541,265 3,374,459
Pastoral Care and
Community Support
Child protection 64,690 - - - 64,690
Youth service 67,489 - - - 67,489
Other commissions 26,314 - - - 26,314
Pilgrimages - - - 4,189 4,189
Donations to charity - - 49,611 23,839 73,450
Support costs (note 8a) 72,296 - - - 72,296
────── ────── ────── ────── ──────
230,789 - 49,611 28,028 308,428

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28

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Schools programme
Building programme - 336,606 - - 336,606
Direct support costs - 314,412 - - 314,412
Support costs (note 8a) 295,757 - - - 295,757
────── ────── ────── ────── ──────
295,757 651,018 - - 946,775
────── ────── ────── ────── ──────
────── ────── ────── ────── ──────
Total Expenditure 1,062,167 825,818 476,089 3,933,459 6,297,533
══════ ══════ ══════ ══════ ══════

7b. EXPENDITURE – PRIOR YEAR

General Designated Restricted Parochial 2020
Funds Funds Funds Funds Total
£ £ £ £ £
Cost of raising funds
Fundraising and social - - 26,325 20,844 47,169
Alive in Faith charges - - 16,380 - 16,380
Investment management fees - (7,643) - - (7,643)
Investment property repairs - - - - -
-────── ────── ────── ────── ──────
- (7,643) 42,705 20,844 55,906
Provision of Worship
Upkeep of buildings 152,341 - - 688,011 840,352
Depreciation - 23,894 - 420,953 444,847
Support costs (note 8a) 148,491 - - - 148,491
────── ────── ────── ────── ──────
300,832 23,894 - 1,108,964 1,433,690
Clergy and parish support
Clergy and church costs 94,058 140,462 300,189 936,544 1,471,253
Education and training 45,172 12,536 2,410 - 60,118
Parish administration - - 48,789 1,366,735 1,415,524
Support costs (note 8a) 148,491 - - - 148,491
────── ────── ────── ────── ──────
287,721 152,998 351,388 2,303,279 3,095,386
Pastoral Care and
Community Support
Child protection 64,381 - - - 64,381
Youth service 59,080 - - - 59,080
Other commissions 30,545 - - - 30,545
Pilgrimages - - - 1,857 1,857
Donations to charity - - 67,278 29,212 96,490
Support costs (note 8a) 74,245 - - - 74,245
────── ────── ────── ────── ──────
228,251 - 67,278 31,069 326,598
Schools programme
Building programme - 538,108 - - 538,108
Direct support costs - 307,263 - - 307,263
Support costs (note 8a) 303,732 - - - 303,732
────── ────── ────── ────── ──────
303,732 845,371 - - 1,149,103
────── ────── ────── ────── ──────
────── ────── ────── ────── ──────
Total Expenditure 1,120,536 1,014,620 461,371 3,464,156 6,060,683
══════ ══════ ══════ ══════ ══════

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29

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

8a. SUPPORT COSTS – CURRENT YEAR

Pastoral
care and
Provision Support community
Schools		 2021
of worship of clergy support programme Total
£ £ £
£		 £
Office administration 101,640 101,640 50,820
207,900		 462,000
Rates, insurance and utilities 3,424 3,424 1,712
7,003		 15,562
Maintenance and repairs 9,230 9,230 4,615
18,880		 41,955
Gift Aid expenses 602 602 301
1,231		 2,736
Professional fees 16,607 16,607 8,304
33,969		 75,487
Governance costs 8,305 8,305 4,153
16,988		 37,750
Other 4,784 4,784 2,392
9,786		 21,747
────── ────── ──────
──────		 ──────
144,592 144,592 72,296
295,757		 657,237
────── ────── ──────
──────		 ──────

8b. SUPPORT COSTS – PRIOR YEAR

Pastoral
care and
Provision Support community
Schools		 2020
of worship of clergy support programme Total
£ £ £
£		 £
Office administration 101,222 101,222 50,611
207,044		 460,099
Rates, insurance and utilities 3,832 3,832 1,916
7,837		 17,417
Maintenance and repairs 11,330 11,330 5,665
23,176		 51,501
Gift Aid expenses 484 484 242
990		 2,200
Professional fees 8,150 8,150 4,075
16,670		 37,045
Governance costs 10,652 10,652 5,326
21,789		 48,219
Other 12,821 12,821 6,410
26,226		 58,478
────── ────── ──────
──────		 ──────
148,491 148,491 74,245
303,732		 674,959
────── ────── ──────
──────		 ──────
9. GOVERNANCE COSTS
2021 2020
Total Total
£ £
Auditors remuneration – audit services (incl VAT) 35,000 35,000
Auditors remuneration – other / accountancy (incl VAT) 2,750 13,219
────── ──────
37,750 48,219
────── ──────

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30

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. STAFF

The average number of employees of the Diocese during the year and their aggregate emoluments are shown below:

shown below:
2021 2020
Staff costs: £ £
Wages and salaries 885,669 810,763
Social security 54,335 55,584
Pension costs 61,590 77,496
────── ──────
1,001,594 943,843
══════ ══════
The average number of employees during the year was:
2021 2020
No No
Administration 21 19
Parish employees 43 43
────── ──────
64 62
══════ ══════

In the year ended 31 December 2021, there were 2 employees (2020: 3 employees) who earnt salaries within the range of £60,001-£70,000. Employer’s pension costs for these employees was £15,144 (2020: £22,145).

The Charity considers its key management personnel to comprise the Trustees, the Financial Secretary and the two Schools Officers. No Trustee received any remuneration or benefits during the year, except as disclosed in note 20. The total employee benefits of key management personnel during the year were £294,655 (2020: £247,621).

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31

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Freehold Furniture and Motor
Buildings equipment vehicles Total
£ £ £ £
Valuation and cost
As at 1 January 2021 20,889,408 1,241,316 78,368 22,209,092
Additions 366,044 31,805 - 397,849
Disposals - - - -
──────── ──────── ──────── ────────
At 31 December 2021 21,255,452 1,273,121 78,368 22,606,941
════════ ════════ ════════ ════════
Depreciation
As at 1 January 2021 5,594,622 1,047,908 52,043 6,694,573
Charge for year 401,850 33,296 8,775 443,921
Eliminated on disposal - - - -
──────── ──────── ──────── ────────
At 31 December 2021 5,996,472 1,081,204 60,818 7,138,494
════════ ════════ ════════ ════════
Net book value
At 31 December 2020 15,294,786 193,408 26,325 15,514,519
════════ ════════ ════════ ════════
At 31 December 2021 15,258,980 191,917 17,550 15,468,447
════════ ════════ ════════ ════════

The Diocese also owns a number of schools of which the Trustees consider that their ownership is that of a custodianship however these properties have been purchased and written off in the Diocesan accounts for the amounts that the Diocese contributed in the past. The costs involved have not been separately identified and are not considered material in the overall context of the accounts. For insurance purposes, the Diocese's insurers allow a notional reinstatement value of £520,000 for each school, irrespective of size. This sum purports to represent 10% of the Governors' responsibilities for the external fabric of school buildings, based upon a notional value of £3m plus for each school's buildings.

Apart from a small proportion used for management and administration, all fixed assets are used in direct furtherance of the charity's objects.

12. INVESTMENTS

INVESTMENTS
2021 2020
£ £
Balance at 1 January 10,183,361 10,359,399
Additions 2,409,147 588,497
Disposals at opening market value (898,205) (637,355)
Unrealised (losses) / gains during year 916,260 (137,709)
Movement in cash balances 45,333 10,529
Property revaluation - -
─────── ───────
12,655,896 10,183,361
Analysis of investments: ═══════ ═══════
Investment properties 3,716,000 3,716,000
Quoted investments 8,759,371 6,332,000
Cash 180,525 135,361
─────── ───────
12,655,896 10,183,361
═══════ ═══════

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

12. INVESTMENTS (continued)

2021 2020
£ £
Cost of quoted investments at 31 December 6,536,168 4,873,612
═══════ ═══════

All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. The basis of fair value for quoted investments is equivalent to the market value. Investment sales and purchases are recognised at the date of trade cost (that is their transaction value). Investment properties were valued in September 2020 by Nick Saffel, FRICS FAAV, from Brown & Co and the Trustees consider the value provided in September 2020 not to be significantly different to investment property values as at 31 December 2021. Therefore the revaluation has been used in these accounts as the Trustees consider that this is a realistic value for the properties. The original cost of the properties is unknown due to the length of time that these have been owned by the Diocese and therefore the original cost value is not disclosed in these accounts.

13. DEBTORS

DEBTORS
2021 2020
£ £
Grants due on school projects 137,999 402,307
Gift aid receivable 554,735 666,426
Interest free car loans to clergy and staff 37,853 33,436
Other debtors and accrued income 424,196 318,093
Monies due from third parties - 69,538
─────── ───────
1,154,783 1,489,800
═══════ ═══════

The interest free car loans to clergy and staff are repayable over a term of 3 years.

14. CREDITORS

CREDITORS
2021 2020
£ £
Due within one year
Collections to be paid out 52,483 2,384
School project monies received in advance and
Devolved Formula Funding held on behalf of schools 873,359 584,272
Due to The East Anglia Diocese Dependent Priests’ Fund 122,041 37,907
Other creditors and accruals 431,920 396,569
─────── ───────
1,479,803 1,021,132
═══════ ═══════

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33

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

15a. DESIGNATED FUNDS – CURRENT YEAR

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance at|Net|Balance at| |1 January|Income /|Gain / (Loss) on|31 December| |2021 (Expenditure)|Transfers|Investments|2021| |£|£|£|£|£| |Schools Consortium Fund|705,316|(637,278)|424,623|58,269|550,930| |Ministerial Training Fund|351,467|(8,699)|-|67,412|410,180| |Clergy Pension Fund|1,274,531|(141,863)|3,957|-|1,136,625| |Fixed assets|1,152,573|(19,690)|235,913|-|1,368,796| |Other funds|32,864|99|-|-|32,963| |───────|─────── ───────|───────|───────| |3,516,751|807,431|664,493|125,681|3,499,494| |═══════|═══════ ═══════|═══════|═══════|

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15b. DESIGNATED FUNDS – PRIOR YEAR

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance at|Net|Balance at| |1 January|Income /|Gain / (Loss) on|31 December| |2020 (Expenditure)|Transfers|Investments|2020| |£|£|£|£|£| |Schools Consortium Fund|1,545,093|(828,399)|-|(11,378)|705,316| |Ministerial Training Fund|362,723|(1,822)|-|(9,434)|351,467| |Clergy Pension Fund|1,407,664|(140,462)|7,329|-|1,274,531| |Fixed assets|1,169,177|(61,807)|45,203|-|1,152,573| |Other funds|32,864|37,913|(37,913)|32,864| |───────|─────── ───────|───────|───────| |4,517,521|(994,577)|14,619|(20,812)|3,516,751| |═══════|═══════ ═══════|═══════|═══════|

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Schools Consortium Funds

This represents the running costs of the Diocese's Schools Building Programme and other schools costs. Transfers represent the funds share of investment income.

Ministerial Training Fund

Income is used to help pay diaconate training costs and related expenses and training costs of lay ministers. In the prior year, a transfer has been made between restricted and designated funds (note 17b).

Clergy Pension Fund

Contributions from parochial funds to fund pensions for clergy. In the prior year, a transfer has been made between restricted and designated funds (note 17b).

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THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

16a. RESTRICTED FUNDS AND PERMANENTLY ENDOWED FUNDS – CURRENT YEAR

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance at|Net|Gains/|Balance at| |1 January|income /|(losses) on|31 December| |2021 (expenditure)|Transfers|Investments|2021| |£|£|£|£|£| |Restricted Funds| |Vocations Fund|140,858|18,483|-|-|159,341| |Trust Funds|66,234|318|-|11,122|77,674| |Parochial restricted funds|1,952,836|563,762|-|-|2,516,598| |Alive in Faith|1,669,862|33,249|(222,695)|100,802|1,581,218| |Other Funds|460,609|40,455|-|24,106|525,170| |───────|─────── ───────|───────|───────| |4,290,399|656,267|(222,695)|136,030|4,860,001| |Permanently Endowed| |Trust Funds|118,785|-|-|9,233|128,018| |───────|─────── ───────|───────|───────| |4,409,184|656,267|(222,695)|145,263|4,988,019| |═══════|═══════ ═══════|═══════|═══════|

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16b. RESTRICTED FUNDS AND PERMANENTLY ENDOWED FUNDS – PRIOR YEAR

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance at|Net|Gains/|Balance at| |1 January|income /|(losses) on|31 December| |2020 (expenditure)|Transfers|Investments|2020| |£|£|£|£|£| |Restricted Funds| |Vocations Fund|108,101|32,757|-|-|140,858| |Trust Funds|93,251|-|-|(27,017)|66,234| |Parochial restricted funds|1,238,472|714,364|-|-|1,952,836| |Alive in Faith|1,522,225|172,238|(24,601)|-|1,669,862| |Other Funds|459,343|6,130|-|(4,864)|460,609| |───────|─────── ───────|───────|───────| |3,421,392|925,489|(24,601)|(31,881)|4,290,399| |Permanently Endowed| |Trust Funds|120,584|-|-|(1,799)|118,785| |───────|─────── ───────|───────|───────| |3,541,976|925,489|(24,601)|(33,680)|4,409,184| |═══════|═══════ ═══════|═══════|═══════|

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Vocations Fund

Income is used to help pay seminarians’ college fees and training expenses.

Trust Funds

These funds consist of donations and other income which have been invested, the income generated being spent on the relevant specific purposes.

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35

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

16b. RESTRICTED FUNDS AND PERMANENTLY ENDOWED FUNDS (continued)

Clergy Pension Fund

This consists of contributions from parochial funds to fund pensions for clergy

Parochial Restricted Funds

This fund consists of donations received by parishes towards specific projects. Transfers represent amounts spent on fixed assets.

Alive in Faith and Other Funds

This fund consists of donations and other contributions for specific purposes other than those listed above.

Permanently Endowed Trust Funds

Certain parish and other funds are permanently endowed. The income arising on these funds is credited to General or Restricted Funds in accordance with the terms of the original endowment.

17a. ALLOCATION OF THE CHARITY NET ASSETS – CURRENT YEAR

Fixed Net current Long term 2021
Assets Investments Assets Creditors Total
£ £ £ £ £
Unrestricted funds - 5,882,810 (2,505,531) - 3,377,279
Designated funds 1,368,796 1,197,502 933,196 - 3,499,494
Parish funds 14,099,651 1,636,090 7,138,130 - 22,873,871
Permanently endowed funds - - 128,018 - 128,018
Restricted funds - 3,939,494 920,507 - 4,860,001
─────── ─────── ─────── ─────── ────────
Total net assets 15,468,447 12,655,896 6,614,320 - 34,738,663
═══════ ═══════ ═══════ ═══════ ═══════

17b. ALLOCATION OF THE CHARITY NET ASSETS – PRIOR YEAR

Fixed Net current Long term 2020
Assets Investments Assets Creditors Total
£ £ £ £ £
Unrestricted funds - 4,912,793 (1,542,944) - 3,369,849
Designated funds 1,152,573 1,074,914 1,289,264 - 3,516,751
Parish funds 14,361,946 3,799,640 4,324,708 - 22,486,294
Permanently endowed funds - - 118,785 - 118,785
Restricted funds - 396,014 3,894,385 - 4,290,399
─────── ─────── ─────── ─────── ────────
Total net assets 15,514,519 10,183,361 8,084,198 - 33,782,078
═══════ ═══════ ═══════ ═══════ ═══════

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36

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

18a. TRANSFERS – CURRENT YEAR

General Designated Restricted Parochial
Fund Funds Funds Funds
£ £ £ £
Interest allocation between
parishes and funds (27,639) 3,957 - 23,682
Clergy pension charges 166,439 - - (166,439)
Levy on offertory income
of parishes 176,417 424,623 - (601,040)
Fixed assets (13,218) 235,913 (222,695) -
──────── ──────── ──────── ────────
Total net assets 301,999 664,493 (222,695) (743,797)
════════ ════════ ════════ ════════
18b. TRANSFERS – PRIOR YEAR
General Designated Restricted Parochial
Fund Funds Funds Funds
£ £ £ £
Interest allocation between
parishes and funds (39,500) (30,584) - 70,084
Clergy pension charges 208,151 - - (208,151)
Levy on offertory income
of parishes 760,681 - - (760,681)
Fixed assets (394,873) 45,203 (24,601) 374,271
──────── ──────── ──────── ────────
Total net assets 534,459 14,619 (24,601) (524,477)
════════ ════════ ════════ ════════

19 RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

2021 2020
£ £
Net income / (expenditure) for the reporting period
(as per the Statement of Financial Activities) 956,585 (154,521)
Adjustments for:
Depreciation charges 443,921 482,761
Decrease / (Increase) in debtors 339,434 59,874
Increase / (Decrease) / increase in creditors 458,671 579,579
Dividends, interest and rents from investments (456,022) (351,931)
(Loss) / gain on sale of fixed assets 181,616 (329,689)
Unrealised gain / (loss) on investments (916,260) 137,709
──────── ────────
Net cash provided by / (used in) operating activities 1,007,945 423,782
═══════ ═══════

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37

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

20a ANALYSIS OF CHANGES IN NET DEBT

1 January Cash 31 December
2021 Flows 2021
£ £ £
Cash at bank and in hand 7,750,891 630,857 7,120,034
Interest free loans to clergy 33,436 4,417 37,853
─────── ─────── ───────
7,784,327 635,274 7,157,887
─────── ─────── ───────
20b ANALYSIS OF CASH AND CASH EQUIVALENTS
2021 2020
£ £
Cash in hand 6,939,340 7,615,530
Cash held in investment portfolio 180,694 135,361
──────── ────────
Total cash and cash equivalents 7,120,034 7,750,891
═══════ ═══════

21. TRANSACTIONS WITH TRUSTEES

The majority of Trustees of the Diocese are also parish priests in the Diocese. As priests they receive income from their parishes together with living accommodation, living expenses and reimbursement of costs incurred on behalf of their parish and the Diocese on the same basis as other priests within the Diocese. They do not receive any remuneration or benefits from their trusteeship.

During the year expenses were paid to third parties on behalf of Bishop Alan Hopes in relation to travel and subsistence and health insurance amounting to a total of £26,916 (2020: £10,618). The Bishop is a member of the Vatican’s Congregation for Divine Worship, which necessitates travel to Rome and other cities abroad.

22. COMMITMENTS

2021 2020
£ £
Contracted for building works in parishes 8,959 164,266
Authorised but not contracted for
(Schools Buildings Programme) 476,346 767,600
──────── ────────
485,305 931,866
═══════ ═══════

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38

THE ROMAN CATHOLIC DIOCESE OF EAST ANGLIA

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

23. CONNECTED CHARITIES

The Cathedral of Saint John the Baptist Trust (Registered Company No. 8491913, Registered Charity No. 1152820) was incorporated on 27 February 2013 and took over the running of the Narthex at the Cathedral from July 2013.

The East Anglia Diocese Dependent Priests' Fund is a registered company (1102707) and charity (no 5055534) and its main activity is to provide financial support to sick and dependent priests in the diocese of East Anglia. Administrative support is provided to The East Anglia Diocese Dependent Priests’ Fund free of charge, and funds of The East Anglia Diocese Dependent Priests' Fund are held by the Diocese on their behalf. Interest is receivable on these funds held. The balance due to The East Anglia Diocese Dependent Priests' Fund at the year end is £122,041 and is included in creditors (2020: £37,907).

24. PENSIONS

The Diocese participates in the Pensions Trust’s Growth Plan. The scheme is a multi-employer pension plan which is a money purchase scheme with guaranteed benefits. The Diocese would have a liability if it ceased to participate in the scheme, which at 31 December 2021 was calculated as approximately £35,570 (2020: £59,122). The Diocese currently has no plans to leave the scheme, so this contingent liability has not been provided for in the accounts. The Diocese is committed to making contributions into the scheme up to 31 January 2025 calculated at 31 December 2021 to total £10,767 (2020: £19,645). This is a commitment and not a creditor and therefore is not provided for in the accounts but has been recognised as a defined contribution scheme when the payments are made.

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39