Dromore Diocesan Trust Registered Charity Number 105046 Report and Financial Statements For the year ended 31 December 2020
Dromore Diocesan Trust Contents Page Legal and adminislralive informatk?n Report of the Trustee Slalement of TnJ8tee's responsibilities 18 Indèpendent audi(ofs' report 19 Statement of financial &tivilte$ 24 Balance sheet 25 Statement of cash tlTh8 26 Note8 on and fcrming part of the finan¢ial gtat¢monts 27
Dromore Diocesan Trust Legal and administrative infomation TNst0e Diocese of Dromore Trustee la company limited by guarante8, registration number N16099681 Registered Office, Bishop's House, 44 Amiagh Road. Newry, B T35 6PN Dlrectors and Officern of Dlo¢•se of Dromore Ttu8¢•0 Most Reverend Eamon Marb"n. Apostolic Administrator Very Reverend Liam Stevenson (reswned 28 October 20201 Reverend Feidhlimidh Magennis Reverend Tony Corr lappoinled 17 January 2020, dec8awJ 6 June 2021} Mr Brendan Jackson Mrs Nuala McKeagney Mr Michael Gillen Mr Mark McNalty Iresigned 28 October 20201 Mr Tony Mccusker (appointed 10 February 20211 Mrs Oonagh Murtagh lappoinled 14 April 2021 Reglitored Offl¢• Bishop's House, 44 Am)agh Road, Nv4Yry, BT35 6PN Company Secrntary Reverend F8idhlimKlh Magennis Flnan¢• and Cornpllance Offl¢•r Mrs Rosaleen Conway FCA Audltor Hill Vellacott. Chartered Accountants. 22 Great Victoria Stree( Balfrast. BT2 78A 8ankern AIB INII, 4244 Hill Street Newry. BT34 1AU Invo8tment Managorn Davy Asset Management. Davy House, 49 Dawson Street, Oublin 2 Sollcltorn Napier & Sons. 1-9 Castl6 Arcade, Hh St, Beltsst BT15DF Luke Curran & Co, 6 Marcus Square, Newry. Co. Down. BT34 1AY BLM, 51 Adelaide Street. Belfast, BT2 8FE
Dromore Diocesan Trust ort of the Trustee The Trustee presents its Annual Report and Ihe audited financkql statement$ of the charity. Dromore Diocesan Twst. for the year ended 31 December 2020 Conslltutlon and aims The Roman Catholic Di¢xg39 of DrMore Was established through tha reorganisation of Ihg Irish Church in the late Nvelfth century. 11 is one of the $malK8r dioceses in Ireland and covers portion8 of Counties Down. Armagh and Anlrim wf(h its cathedral located In the city of Newry, The Drom0 Dioeesan Trust is a eharitabl6 Irusl, aslablished by a trust daed dated 1 November 2010. On 217h April 2016, Dromore De$an Tw¥1 was registered a8 a eharily with the Charity Commission for Northern Ireland and given the regislratKin number NIC105046. Fortax purposes, Oromor8 Diocesan Tnjsl is also registed with HM Revènue arKI Custom8 - refefence number XT27177. The sole Injslee of the Charrty rs a corporatn, 08$e of Dromofe Tnjslee. Tha Company is limited and was registered on 17th November 2011 registration number N1609968 On 13th January 2012 the Lord Ch1 Justice of Northern Ir8Lqnd authonsed Diocese of Dromore Tru8le8 lo act in any Charitable or ECClastal Trust as a Tru$l Corporation. Obl•ctl¥es and actlvltles Tho prin¢ipal obja¢t$ of tho Chanty are.. Tho advancement of th8 Roman cathol religion in the Roman Catholic Dioceso of Dromor8 gubiect lo any future curtailment or addrtion of area made in accordance th tho laws and r¢gutatn$ of tho Roman cathol Churctt. The advancement of any Charrtab purpose supported by the Roman Catholi Church throughout the wodd or In any part of the worfd. The Diocesa ol Dromore. in union with the call1 Church wortdwde, 9o¢k$ lo achieve 113 objectives through actiwties including the foll¢)wing'. Proclamatn of the Gospd Worship of G¢>J Provision of clergy and paslofal personnel Fomalion and development of parish eommunibgs Support for18milies Prowsion of educational. pasthl and youth mini8tr Provision and maintenance of places of worship Aid ts impovgrished and n8gdy ¢CmUnitIeS worldwide The means used lo fuffil the purposes of the Oromore Di¢xesan Trust are constantly monitored and reviewed in order lo ensure that the principal aims arKI objectNes of the charity a adhered to.
Dromore Diocesan Trust Report of the Trustee (continueo) ststèment that the Tru$t•8 has had rn9anl to tho Charity Commi$slon for Northom lrnland publlc b8n•flt rgqulrnment statutory guldancg The Trustee conffmis rt has eomplied with the requirements of Section 4161 of the Charities Act (Northem Ireland) 2008 to have due ward lo the puts1 benefit guidance published by the Charrty Commission for Northem Ireland in delemining the xtivilwts Ltndertaken by the Charrty Throughout this Annual Report the Trustee seeks to dlonstrate that the Chari5 aims and objectives are for the publi¢ benefil. Structur•, Govomancg and Managam8nt ECClastl Law requir88 Cèrtain slnjctures to be in place within the Di¢xes8. Slructurgs in the Diocese of Dromore include.. Oilxesan Consullors Ifuffiljed by th8 Cathedfal Ch8plorl. a Council of Prig$1s and a Finan¢9 Council. The 8i$hop is also assisted in ecclesiaslieèl governance by a Chan¢elloi. a Vicar General and a Finance Administrator. In the absencè of a bishop Isede V8canlel. th8 di¢xese 18 under the governance of a Diocesan Admini$tralor I8clad by the Diocesan C¢nsullorg1 or an Apostol Admiftistralor (appointed by tho Holy Falh8rl. The overall operation of the Charity, including financial and leg?1 responsibility in civil law, 18 overseen by the Trusl8e. the direct¢)rn ol which are appointed by the Bishop, who is Chair of the oard. Recrurtmenl of the directors i¥ based on their knowjedge of th8 l¢xal Church and their having the professional skills and experiences nessary for overs88ing the affairg of the Charity by ensunng Il 18 Solvent, well-run. and that rt delivers the outcomes f¢r which il was established. The 8oard is composed ol a Mture of cbrgy and Lgy MberS of the Church. On appoinlmenl, new directors receNe induction and are inlrodu¢od lo thair role and responsibilities by the Chancellor. the Finance Adminislraior and the Finance and Complianca Offic&r of the Diocese. They are provided with copies of the Trust Deed and th6 lalesl financial information and repjrts. Directors attend fomial and infomial training 8eg8ion$ as required. Th8 day.l04ay business of the Dtocese is managed through the Diocesan Curia. The Bishop referg ecclesiastical related matters lo the Chancellor and other appropriate official8. Civil administrativ& matters are referred fo the Finance Adminislralor and th8 Finance and Compliance Officer. The Council of Priests also assists the Bishop in the govemanee ofihe Dhxase according lo the norm of law '50 that the pastoral weffare of that portKin of the people of God entrusted lo the 8i$hop may be most effectively piomoled, IC¢>Je ofcanon Law. canon 4951. Reflecting Canon Law. the activities of the Charity are separated in Ihis Report into Parish and Cuna functM)n8. On 151* April 2019, Archbishop Eamon Martin. Archbishop of Armagh, bme Apostolic Adminislralor of the Diocese. An Apostol Adminislralor is appointed lo lempor8ri1y govern a diocese when special ¢X servJus circumstances waryant such an appointment. Archbishop Martin governs in th8 name of the Holy Father and has all the powers and duties of a dK)ce8an bishop.
Dromore Diocesan Trust Report of the Trustee (continued) Parlshos The Diocese is divided into parish eommunrties. The parishes in the Di¢xese a established and operate under the Church's Code of Canon Law which bestows on them separate canonical slalus which explains their treatment In the lollo¥Mng financial accounts specifically through tha olumnar layout. Under Canon Law. exh parish must have a finan Committee lo advise tha parish priest in regafd lo the adminislralion of the parish. Parish finance committees include parishioners wrth kn¢ythedgè and exper in finance, property management and adminislralion. Parish PrreslslAdministralors arKI Curates are appointed by thé Bishop lo prowde pastoral cèr for parish communities and lo manage parishe9 in all iundical affairs thus ensuring that pari$he8 are adminislared in aec¢Jrdance wrth tho nom$ of Canon arKI CNII Law whila fUillIng the aim8 of the Charrty. AS gncouraged by The DirKlory fcy the Pasloral Ministry of Bishops IApostolonJm Succ8ssomsI, the Bishop, in consurtalion with priests and larty, vI on a regular basis thé parish structure 10 8n8ure thè long-16m pa8i¢yal $u$tsinabilty of tho pari8h88. Curla The Diocesan Curia consists of those institutions and person8 wtth furnish a88181anc8 to th? Bishop in the governance of the entire Di¢x8se. especially, in directing pa8loral activty, in providing lor the adminislralion of the diocese and in èxercising jurK1ical power. It also includes all who partcipal? In the ¢)verall adrnini$tralion of Ihe di¢xese. 83pacially those who direct diocesan aclivrties such as pastoral 8UPPOrt, yo(rth education. farnily ministry, liturgy, and other faceis of the l¢xal Church's life. Tha Trustèe Board delagales oversHJhl of tho Dwxe$e's day to day financial, propety and adminislralion matters lo the pgr50nnel wrthin thé Curia. Under the leadership Df Chb13h0p Martin, the commrttee $lru¢lure ol the Trustee Board wa8 wsed lo prov& grgal8T oversight of the areas of Finance. Buildings and Property. and Personnel. Th8 r¢muneralion of key per3onno1 is disckised in the Financial Slalements. All employment matters and remuneral)n Issues are Ove09n by Ihe Trustee 8oard and reviews are undertaken penodicalty. The remunaration of the key management personnel 1$ di8 in the Financial Slalements Inole 231. All employment mattefs and r8muneralh?n issues are overseen by the Trustee Board and reviews are undwtaken penc¥ttKally Rlsk Manag•ment The Trustee Board, through the corwrale govemance fr*nth¥o Klentify and managg the risks lo which the charty is exposed. The Tru$lee Board. aware ol the various risks to whh the Dic¢esan Trust is exposed. particularfy those relating lo the operation and finances of the Trust, has established a comprehensiv planning process, together wrth established systems and procedures which enables them lo assess and address risks. They have published and promUated intemal controls for use throughout the Diocese. The Impmenta.0n of these controls continues lo be monitored and an ongeing assessment is being undertaken to ensure that $y3tems are in place to manage the exposure lo major risks.
Dromore Diocesan Trust Report of the Trustee (continu8d) Tho main areas of risk h4enlified and monrt¢yed by the Board include.. Safeguarding Complianee with Health & Safety, empb)yment and cher legislation Reduction in artive clergy numbers Reduction in voluntary Income Inerèasing $t$ for the care of sick and rth.red clergy Re¢Juclion in reserves due lo capital projects and other long-lerm Cnmlent5 Cornpliance with data protection regulation$. Achl•v•m•nts ond wrfornian The territory covered by the 0888 of Dromore has a total popuklion of approximately 190,000 people of whom approximately 90.¢XKI are Catholics. Thg Diocese consists of entY-¥0 parishe8, clustéred Into five pastoral areas. Each pastoral area consists of a number of adjoining parishes united in the interests of pr¢)moling and rgaltting the objects and the mission ol the Diocese of Oromoffj within their bcal eommunitio¥. Proclamatlon of thg Go¥po1 and Wor8hlp of God Wrthin the Diocese. reluion is advanced Ihrough the provision of places of worship. the facilrtalion of religiou8 practic8. and in particulaf the communty ce{alK}n3 of Ma$$. In most parishes, there 18 a public celebrali¢)n of Mass every day.. and on every weakend thgre are gev8ral Community Ma88es celebrated in each parish over Saturday evening and Sunday morning. All such celebrations are open lo the public wilhoul any raslrictions on attendanc6. In some parishe8, wherg there is a declining number ol el6rgy available, other foms ¢1 worship hav8 be¢n introduced such as Liturgies of the Word and EucharislK Adoration. led by memtérs of rgligH)us communities or lay personnel. Othor a¢iivities of the Charity in this cal890ry Inc8 the Ceknbr8In of olhar relHJious cer8monK$ (including baptisms, weddings and funerals). running programmes In relation lo spiritual fomialion and development, and èneouraging and supporting inter<huh relationships. AS many of the plaee8 of worship within the Dvxese are listed and some Contain significant rèligious Works of art and other artefacts which fcKm part of our national heritage. these plac6s are open lo the genoral public and provide a puts1 benefit lo the whole community. They offer spaces for quiet reflection and spirrtual con1gmplaln. 11 is wrthin the parish cthnmunty that peopL9 experience what it is lo be a member of tho Catholic Chureh. 11 is in this ntext that farth is nurtured and given expression. Hence panshes provide, in various ways. for the m¢xal and spintual wellbeing of all parishKJner¥. Opportunty is given practical manifeslalions of larth in vanou$ pastoral. sccial and educational activities many of which rely wholly on the voluntary involvement of parishionws. In the last year for whh slalislics are currently available 120201. there were 1.022 Baptisms IdThYn 25Qhl. Reports from parishes ¥ugge$l that the baptisms were defeed during b¢kdowns and are being Cebrated in 2021. 1,434 children made their First Holy communi and 1.503 young people received the Sacrarnenl of Confimation. fhese figures are very sinilar lo 2019, an indication that the C0MOnieS were successfully adjusted for s¢xial distancing. A total of 123 marriages (down 48.hl were officiated in the same period. A total of 741 funerals were cdebraled lup 5% on 20191. which suggests Ihal the parishos were spared the worst of the lethal impa¢1 of the Pandem during 2020.
Dromore Diocesan Trust Report of the Trustee (continued) AS well as pasloial Ca and the provish)n of the sacraments lo tho memberg of parish communiti.es. the Diocese offers chaplaincy $eMS to those who cannot be part of 8 regular parish community A Hospital Chaplain Is assigned lo CTrigavon Area Hospital, while other clergy and lay pastoral visitors regulady visit ottr hospitals and nursing homes in the area froqU8nled by members of the Dicc8s8. Each year. priests and people of Drom¢xe journey lo ancBnl pilgrimage sites within the dioces8 and beyond The annual Di¢xesan pilgrimage lo Lourdes did not take place in May 2020 due lo the Covid-19 pandemie, nor did the annual pilgnmage lo Knwk look place in June. In their place. events were held within the Oiocese and shared via slxial media wrth Ihosa w15hing to participate. The year 2020 was mat*8d by the onset ol the Covid-19 global pandern From late January 2020. actions were taken across th6 di¢eesè lo limf( the possible spr8ad of th8 vinjs during worship and al other gatherings. In mid-march. Publ worship ceased as part of the ILk-down across the Island ol Ireland. Exceptions wer8 made lor lunerals, and for prig$1s lo broadeast masses from their closed churches. With great crgalmty and t8ehnical support, the elergy maintained a pattem of worship lo provida scffié limrted consolation lo the Church community. By mid-may, some lenlaliva steps werg made lo -open plaees of %rshIp. for privatè prayer only al first, bul eventually in July 2020 publK worship was pemitted for greatly reduced nurnbers in adherence with S¢xial dislancing guidance. 11 is eslimaled that these regulations rgduced tha potential congregations lo 15-20% of church capacity. These severe reslriclion8 ¢onlinued for thè rgmaindor ol the year until. followng Chri8tma8 2020, Ihe Church d8eided to suspend publi worship once more in support of th8 new lrtkdovm measure8 lo curb the second major surge of the vinjs. Provl#lon of cl•ffJy and pastoral p•rnonn•l Central lo parish life is the rèlationship b8th8n the priests. deacons and people. Clergy are not employee9 cf the Dioces6. However. in Canon Law the care and welfare of ineardinaled priests of th8 Di¢X8se 1$ mandatory and is, therefore. part of thé Charity's on-going commilmenl8. Fof the main part, priests minwteriftg in parishes organise. animate and molwale the Ial fai(h eommunilies. They constantly strive lo be witnesses of hope and authentic ¥hepherds for théir people The provision of dedicated. w8114ualified and ccynpetent clergy lo serve in parishes and other ministries remains a pnority for the Diocese. Through means of regu18r eonfergnce8. retrea13, courses, workshops antj sabbatal$ the PrSt$ of the Diocese are kept inlomed and provided with guidance in regard lo current bssue3 and developments in all aspects of ministry and mission. A key lo sustaining the advancement of the Catholic religion is the prtrmotion and support of vocations lo the Priesthood. Tho Vocatsons Director works closely with the l(x81 branches of Sl Joseph's Young Priests Society, 8 national lay organisalion for the promotion and support ol candidates for the priesthood. After several years when there were no students in fomalion for th8 priesthood, in September 2018 candidates enlgred the first year of their fornialion and one continuas in fcffrnatn in tho academic year 2020-21. The important role played by the many volunteers who are actNe in their parishes cannot be overslaied, and their contribution is vital lo enabling the DiKese lo continue lo fulfil and develop its slated obje¢tNes. Volunteers gwe generously of lime and energy. serving in various ministries as part of the worshipping cc¥y)munity and also caring for and visrting the sick. the housgbound and those on the margins of our society. They pL4y a significant role in helping lo maintsin parish
Dromore Diocesan Trust Report of the Trustee Icontinueo) properties and assisting in financial al other adminislrdbve duties such as through membefghip of pansh and di¢xesan pastoral. finance and safeguarding c¢>mmittees. Such volunteers are often the lifeblood of Iheif communilies.11 is not possible lo quantfy the number and range of volunteers active throughout the Oioc88e. nor is (( possible lo pul a financial value on their InVO9M&nI. With the lockdown in response lo the Cowd-19 pandern, thinistralion and other support activities were greatly curtailed across the dhxese. Tho Diocese made use of the Government's Job Retention Scheme lo furlough the majorty of ils employees during the'lockdown, pori¢)d and began a gradual return lo work as churches and parishes SuMed activities In the summer. The Diocese has taken a eaulious approach throughout the pandemK h¢)Iding the haallh and safety of parishioners, volunteer3 and employoes as a firsi priority. Although the Charity relies on the donatn$ parishh)ners for its fiJnding, access lo rgligh?us $eNic8s is never reslricled on the grounds of ability lo pay. In addition. members of the Catholic community ara èncouraged, as a eonsequence of their faith cnm11Menl. lo contribute towards ¢realing a better $¢xiely by bewiing active promoters of the Common G&>)d within their lo¢al area through membership of other chantlg$. Iccal societies ard community groups and by volunteering in all sorts of ways lo tenefrt society in general. 8e8id¢s the work a¢c¢mplished at pari$h 18vel, tho Curia (the central administration of th8 Diocèsél eo¢rdinafe$ and ¢arries out a nurnr of essential function8 necessary lo the advancement of the Catholic religion al hxal, national and inlemalional 18v81. In ordor lo do $0, the Curia operates through a range of diocesan commissions, committo¢$ and through various personnel charged %Mth gP8crfic responsibilities. The Dkx68an CommissM)ns indudè th6 Dioc8san Ecumani¢al C¢)mmi88ion, th8 Oioce8an Liturgy Commission, th• Diocesan vocatn$ Commission and the DKesan Youth Commission. The Dioce3an Committees include the Diocesan Educaiion Commrttee. the Diocesan Farth Development Commrttee, the Diocesan Safeguarding C¢Jnmrttee and tha Diocesan Spocial Needs Commrttee. Personnel with specffic re8ponsibilrti88 include the Dxosan C¢Jordinalor of Adurt Faith Development, the Diocesan Pilgrimages Director. the Co-otdinalor of Pa8loral Caro for MvJranl8, the C(0dInator ol the Pem)anenl Diaconate and the Dn v¢)Ca$ Directof. During the lockdown (March - June 20201. the work of these cwimigsions and Committees was gfeally curtailed. The was minimal activty lo be managed and meetings. where they did occur, were condueled online. In recent years, the DKcese introduced the Permanent Oiaconale. Tho rokn of the Pennanenl Deacon is lo be a helperlo the bishop and priests, lo proclaim by his lrfe the Church's call to seNe the needs of others, lo procLiim the Gospel rnessage, to livg a lrfe of fK1elrty lo Christ and tho Chureh and lo lead the communrty in building a Kingdom of grace. faith. justice and compassion. The Di¢xe$e commenced a cycl8 of discernm8nl and training in September 2017 for candidates for the Pemanenl Diaeonate. and in 2020 the were ndIdateS in the phase ol thIlogICal fomation.
Dromore Diocesan Trust Report of the Trustee Iconlinued) The general well-being and care of clergy in active ministry is coordinated by the Diocesan Curia. Priests, stipends and related rnatters are overseen and regulated by a Clergy Remuneration Committee. Equally important is the wellar8 of priests who are $ick or retired. Their welfare is the responsibility ol a commfftee that administers th8 Clencal Provident Fund. During 2020, 10 priest$ received assislan¢g from th8 Fund whh necessrtaled a lolal spend of £74,252. The Oi¢xese continues to èngage wrth men and ¥4t)m8n who h to undertake discernment in regard to vtxalions lo the priesth¢)od, the pemianenl diae¢nato and the ligIouS and consecrated life. The Diocesan Vocations Director. aiong vKth the Oi¢xesan V¢Jcalions Commi$s10n, coordinatés this essential rnissi( mostly through Ihg means of discemmenl groups, prayer vigils, discernment retreats and chaplaincy work in tho posl-primary Sch1¥ of the Di¢xa38. The objectives of the Charity are greatly supported. and the life of the Dioces8 is onriched, by tha contribution made by the many members of Reljgious Institutions, Secular Institutions andlor Sociéties ol Apostol Life serviry in the Diocesè. The OlSe of Dromore expres88S rts Sincere gratitude lo these men and women of larth lor Ihw'r ministries of generous service and sacrifice Support for famlll•8 Family Ministry wtthin the Diocese is dedicated to $lrenglhefting mamage and famili85 by coordinating programm88 and ministries that have farth as Ihe¢r foundalH)n and Chri81 a$ their goal. By responding lo the needs of today's families, as they strive to live in a vèry challenging culture and a rapidly changing world, Family Ministry $8Thfes as a resource fof familias. clergy and parish communrties. In collaboratwJn wrth other groups, Family Ministry offèrs services and Pfaclical resourees lo assist people. at all stages of lifa, In ¢yder lo help thom gxperienca morg fully the love and compassKJn of Gc#J in the ordinary events of lif8. Among ihe various $orvice$ provided with the DieSe are. ACCORD Catholic Marriage Cara Service, Marn89a Encounter. Engaged Encounter, Famil3 First (Pargnling Skills). Due lo the Covbd-19 pand•mic, mLKh Lrf this pastoral WO %*dS impeded as hcthe vi8ilalion and gatherings warg Curtailed. The dieSan bodie3 Posrtively 8UPPOrted the aims of protecting the m¢yJl vulnerable in our saciety and sought allgmative means lo offèr support and eare lo those in need. However, all involved considered the aftemalives a po)r subslrtuta for the phy$ical pra$8neo required to offer care and support. Provlglon of educatlonal. pastoral and youth mlnl8tri8s Cathollc schoots wlthln th• Dioc•se A key aspect of the contribution of the DK>cese to the k¢al eommunty is the large netsvork ol Catholic Schools. The are nine nursery sehools, thity-seven primary schools and e1ve po81- primary schools in the Diocesewrth a total enrolrnenl ofapproximalely 22.000 pupils. The DKx898 participates in celebrating this contributh in Catholic S¢hcols Week, an evént hekt throughout Iraland in JanuarylFebruary of eh year. The Diocese of Dromore remains fulty eommrtted. through its cathol &h(J)Is, to maintaining, by way of a holislrc methcyjology, the highest standards in learning and thus contsnuing lo offer academic excellence and faith-filled education lo all young people. Many nonLatholic panIS choose lo educate their children in Catholic Schools, not least. beuse of the excellent education
Dromore Diocesan Trust Report of the Trustee Iconlinueo) on offer but also the identifiable ethos of trust. mutual respect and recognition of responsibilty lo those in need. The Diocese offered support lo hCo1 co%mmunrt a$ they struggled wrth the impact of closure and the difficumies of distance learning. From the inability lo make pastoral visrts lo schools lo the interruption of the public celebration of key rnoments the lives of the children le g. the sacramental celebrations of First Communion and ConfimiatAl. the pandemic had a significant impact on young people and their spinlual development which 1$ still hard lo quantify. Parish communi118S are lo be praised for the provision of aemative arrangements for these key 8vents under greatly re$lricliv8 cireum$lance8. Youth Mlnlsty The Oromor8 Youth Commission devel¢)ps farth seivices lo young peopla across th8 Di¢XOS0. Oevoloping and nurtunng leadership skills is a key lacet of rts work. as the leaders of Itjnorrow are lo be found in the ranks ol today s young pecple. Parental participation and contribution 18 encouraged as drawing the family into this youth work. draws Iheni clos6r lo God. Th8 organisation of this ministry 1$ leil by the Diocesan Youth Director who coordinates over 75 volunlggrs across the Diocese. Volunteers undergo appropri818 ¥afeguarding vgtling and training lo Ppare them for ministry. ag well as specialist preparation for partieular programmes hosted by the Commi$si¢n. The Dmxesan Youth Director maintains aclive 8ngaggmenl with the schools of the Dioc639 lo support their work in the spiritual development of pupils. The Dio¢esan Youth Commission maintains active ¢ollaboralion wrth oth¢f agenc9 such as the Edueatjon Authority Youth Service. YoulhLink and the Dominican Cc4nmunrty Youth Camp in Co. Cork. Key programmes offered by Ihe Ycxrth C¢ynmissian are.. 'Grthving in Farth Togethel IGIFTI offered lo pupils after receiving th8 Sacrament of Confimalion. the Pope John Paul 11 Award offered lo scht)ol-leavers. The activrties of the Youth Commission for 2020 wafe pul on hold in an affort lo protect young people and limrt the $pre&J ol the viN$. Saloguardlng The Oioces¢ Is commrtted morally and legally lo upholding the nghts of childn, young peop and vulnerable aduts. Tho DKxesan Safeguarding Office continues to co-ordinate and build upon Ihg existing good wofk of safeguar(fing throughout the drfUIt circumstances of 2020. The Diocesan Safeguarding Office is led by Mrs Palrieia Carville (Director of Safeguarding and Diocesan Liaison Pergonl. Safeguarding infomiatson is readily &cessible through the Diocesan website. The rolo of the safUardin9 OffKe is to develop and oversee the implementation ofsafeguarding practi¢g$ for the Diocese, for both child prtsteCtn and &ault saf¢guarding, and lo liaise wth tho 8lalulory agencies in relation lo the management of cases and the development of best practice. All th8 safeguarding personnel in the Diocese work lo a Cc*Je of practi In line hwlh the National Board lor Safeguarding Chiklren in the Catholic Church in Ireland INBSCCCII Standards and Guidance Document. The impact of the panderntrc on administration al parochialjovels meant that only some parish safeguarding audits were returned in 2020 and the impLgmentation of a development plan wrrtten lo ensure that parishes were complkqnl with the Standards for Safeguarding has still to be fvlly rolled out. 10
Dromore Diocesan Trust Report of the Trustee Icontinu8d) The Diocesan Safeguarding C¢>nmrttee meets regularfy to review and support the work of the Safeguarding Office and is accountable lo the Apostolic Adminislralor. The Dioc8s8 has opted tc Use, as its Advisory Panel. the National Case Management Committee of the National Board for Safeguarding Childn (based in Maynoothl because of the expertise of the group and the fact that Ihey were independent of the Dhxese and objective in their perspgclive.. tha Di¢xesan Liaison Person meets with them lice each yoar lo discuss case rnanagemenl. Much has been achieved. PartUlaY. by having so many d8dicat8d people providing exemplary support. 11 15 important lo note that the Diocese of Dfomore 8af8guarding parish structures cornprise of Local Safeguarding Councils made up of represantalives who Ihemselvgs are vetted and trained. These dedicated volunteers continue lo maintain a unique and robust safeguarding structure designed lo ensure Ihal best practice is dnven and maintained al parish level whero ¢hildren, young peopl8 and vulnerable adults partieipale in parish a¢ts"vilies. In May 2018, a pnesl stood aside from ministry following receipt of an allegation against him, The Di¢xese and the Safèguarding Commrttee co-cyeraled fully wlh the polica investigation. In August 2019, thé Publi¢ Prowulion Seryice decided that no prosecution would be taken against the prkqsl. The Diocese commenced the internal (canontcall church pre¢dIng8 to review this casg. That review ended in April 2020 and the prièst relumed lo ministry. Throughout 2020, the diocesan authofrtro$ have been worf(ing ¥th legal adM8OfS to devi8e Redress Schem8 for survivor¥ and vicbms of child sexual abuse perpelraled by members of the clergy and other ropresenlatives acting under the authority of the Dioeège ol Dromore. The planning group considered other red8$ schemes and Cornparab provision8 as (( devised a scheme appropriate lo the circumstances of th6 DK>cese. It also sought input from victims and Ihair reprgsentativeg. The sch8 was initted on 29th September 2021. ProYl8Son and malnt?nanc• of pla¢•s ol worJhlp Churches play a central role in the Spiritual lrfe of ParishK>ners and along with parochial houses and other as8oeiated parish building$ they are often significant landmaf1(s wrthin the wider local eommunily. Public benefit is prwded through the provision of safe and worthy places of worship and assembly for not only the cathol eommunty bul for those who wish lo make use of them for personal or spiritual contemplation. Many of the Churches and a$sl818d buildings are listed as being of or historical archrtectural Intet. The proper eare of these buildings can be onerous bul they are essenti81 for the on4oing lisation of the principal th'ect of the Charity, the advancement of the Calholie religion. General maintenance. minorand major schemes of renewal and prciecls ofconslruclion in regard lo church buildings and pr¢Jperties often require major outlays whb are essential if these important slruetures, which form part ol our nabonal heritagg. are lo be maintained not just for prn1 use bul lor future generalsons. The management of this fegponsibility is on-gcing and 1$ carefully reguled and professionally monitored so that legitimate requests for new works, renovations and adaptations can be readily assessed and pn)3ressed. The Diocese has in place insurance cover in SpeCt of all rts buildings so that public access should not be unduly restricted by lack of funds lo repair or restore buildings hamied as a resu of accidental or ¢Xher damage 11
Dromore Diocesan Trust Report of the Trustee IGontinu80) No major schemes of work were undertaken in 2020. Fundralsing The Trust weives a large proportK)n of ils income from donaliong. bequests and legacies from ils supporters who are generally parishh)ftets or those who have Close cgnneclK?ns lo th8 Church. W(£houl this valuable support the Trust would not be able lo earry out most of rf(s mission. Th8 Trust 1$ Mindful of ils duly of care lo those who support il Including vulnerabl8 people, and therefore ensures that fundraising Is done in a responsible and caring manner, aayS bearing in mind that the people themselves afe integral lo the Church. The Trust does not require its Parishioners lo donate in order lo Share in the generous fesources that God ha8 provided for their usa. 11 rather encourages a eurtuie of giwng Whe this is possibK8 and therèfore plac8s no pressure on Ils donors lo give more than is affordable. Our aim is to1¢3ok after our parishioners and continue lo engage with them in interesting. Informative and innovative ways. We continue to strive lo r8ach out to new potential donors and divérsify revenue slr6Jn$. The closure ol churches for public worship in mah- June 2020, and the re8lrietions gn capacity for Worship in the remaining months of the year had a 8eriou$ impact on the abilty of parishes lo raise fund8. Efforts were made lo engage parishion8rs wrth ¢Jnline donali¢)n$ and standing ordèrs. Ald to Impov•rfshfjd and n••dy communltlo8 worldwldo Trocaire is the offKial ¢ver$eas development agency ol the Catholic Church in Ireland. It was 88lablished by the Iri$h Bishops, Conference in 1973 as a means through which people eC•ntn'bule lo overge88 emergency reliet and development aKI programmeg. Ils dual mandate is lo support the most vulnerable people in the developing worfd while. al80, raising awareness of iftjuslice and global povety. The Diocese of Dromore. de8Prte its small size. is a signrficanl conlribulor lo tho charrtable work of Tthairg. and in the year under review contributed ovaf £90.532 Iwlh additional funds sent diroGlly by parishioners lo Tiocairol. Management of Regourc•# Dromore Dwesan Trust is governed by the Dse of Dromore Tnjslee through ils Board of Directors. The Oireclof$ meel wularty throughout tho year to attend lo the financial, property, building, *al and adminislfatNe affairs of Ihg Thocese. There are eight director5 01 the Diocese of Dfomore Tru$lee. The Archbishop is Chair ol tha Trust Board. The Vicar General is ex officio member of the &)ard. There are four lay and four priest membgr5 of the Trustee Board chosen by the Archbishop lor their inlegrty. experience and experth'se The Secretary for the Trustee Board, appointed by the Archbishop, is the Dittesan Financ1 Adminislralor. The Trustee Board has in$tiluled a number of committees lo assist and advise rt in the proper performance ol Its dUts. including the Diocesan Building and Property Commrttee, The Di¢xesan Finance Committee and the Diocesan Personnel Commrttee. 12
Dromore Diocesan Trust Report of the Trustee {continued) The 8uilding and Propety CoMMee provides oversight al mak8s wommendalk)ns in relation lo the area of building and property development and considers all eapilal expenditure budget requests. This includes acquisitions, disposals. letting, leasing. licensing and any other form of alienation which af(ers the value of a propety The Committee mee15 on a Nvo-monlhly basis and the Chair of this Comrnittee reports its deliberation3 and makas retommendalions lo thg TnJste8 Board. Thé Diocesan Finance Commrtteè prowdes oversight and makes fecommendalions in relation lo the area of finance within the Oi¢xese and parishes as sel out in the Adminislralive and Financial Guidelines. This includes strategic planning, fundraising, audit and reporting requirements, controls, invgslmenls. budgets etc. The CMte8 also meets on a Nyo-monlhly basis and tha Chair of this Committee reports rt$ deliber*b)ns and makes reccmm6ndatr.ons lo the Trustoe 8oard The Personnel Committee makes slralegie recommendations on behalf of and lo tho Trust Board in relation lo the area of parish and Diocesan personnel and human resource management. Thg Commitleo meets on a -MOnthlY basis lo consider all issues relating lo personnel. employmgnl and remuneration. The Chair o( this Committee reports directly to the Trustee Board. Impact of Covld-19 Pandemlc In March 2020. the vinjs conlfol measur05 implemented by Government led lo the Suspension of public worship in all churchè$ of tho Diocese until the end of June 2020, when significantly reduced congregations were pgmirtted lo relum lo worship under social di8lancing restrictions. The Dioc888 made use of the Govemmenl's Jckn Retention Schem¢ to lurfough the majority of ils 8mployees during the initial 'leKkdown' period and began a gradual retum lo work as churches and parishes resumed aclivrties. Tha Di¢xese continued lo avail of ihe govèmment's furtough and flexible furfough scheme fora small number of staff until Soplembef 2021. The OK)cese has taken a cautiou8 approach throughout the pandem holding the health and Safety of parishioners, volunteers and employoes as a first prx?rity. Th8 pandemic has had a significant impa¢t on the acttvities of the Diocese in 2020 Parish income has fallen lo approximately 72% of 2019 levels. The Board of Director5 continues lo monitor the situation and conswjer the implut$ for the ongoing resourcing of dioeasan and pari$ aclivrties. The Tru8tee Board considers the effect of the pandemic on 2020 a¢tiwlies and into 2021 does not impact on the asselslliabililies and gn9 concorn basis of the accounts. 13
Dromore Diocesan Trust Report of the Trustee (continu80) Rfrview of Financial Performanc• The detailed financial re3Urts for the year ended 31 Deeember 2020 are set out in the financial slalemenls that accompany this pOrt. The table below summarises the financial activrties of the Diocesa". 2020 £'ooo 2019 £'ooo Parishes Income Expèndi(ure 3,117 18651 4,334 13,4751 Nel incorne before assessment and transfers Diocesan Assessment and other transfers Fixed as881 gain 2,2S2 15381 859 183SI 68 Increase in rtrseThas 1,714 292 Curla Income Expenditure Diocgsan a58888ment and other transfers 85 18301 538 78 11.1731 635 {Deficitl before Investment gain$ Not gain on investments 12071 51 14621 90 (Decrease) in resarves 11581 13721 Total Incr•a•• I Id•¢rg$91 In prl$h and Curla 1,558 1801 Complete details of the income and expeThJiturn are shown in the slatement of financial activitie3 on page 24 and in the notes lo the aecounls. Revlew of iransactlons and financlal posltlon of the Charlty The principal funding Sour for parishes has continued lo be donations frc¥n parishioners through the Sunday offertory and gther donations which have been used primarily lo fund the costs of pastoral aclivily. maintenance of buildings and administration in the particular parishes in which the donalK)ns were recewed. This source of income is 81% of the parish total. This decreased from £3.3m in 201910 £2.Sm in 2020. 11 was anli¢ipaled th parish envelope incom8 would be down by around 30% on 2019 figures due lo periods of prolonged Church ¢1gsures and Ihe cessation of the public celebrh)n ol masses during 2020. In the end this figure was down around 25'kn. which was slightly better than expected. Those panshes wf(h halls also saw signifan1 impact on income as these MaIn closed for most of 2020. Correspondingly, 14
Dromore Diocesan Trust Report of the Trustee (continued) total parish expenditur8 drea3 trun £3.5m in 2019 10 £0.9m in 2020. Total Curia income rosa freffl EO.76m in 2019 10 £0.85m in 2020. Total 8xpendilure decreased frcffl £1.2m in 2019 10 £0.83m in 2020. Tha serveS of the Charity al 31 December 2020 total £29.8m12019 £28.2ml and of this lotsl £28.2m rglate solely lo the assets and activrties of indiwdyal panshes and are not available for the non-parish general purposes of the Chanly. Curia reserves lolal £1.6m al th8 year-end. The Curia has a negativ8 unreslncted reseryes balance which has arisen du8 a further Increase in our provision for liabilities and charges in the year of £356k. The Tnjsl regularly reviews its potential liabilities in relation to gafeguafding issues. As these have grown in fecenl years, r8sulling frc¥n an increase in th6 number ol ckims brought again¥1 the Diccese, the curial unreslrieled ffjseNes havo moved fvrther inio deficrt. The Trust considers the rgsolLrtion of Safeguarding issues as of highest priority and is actively ccmmittad lo seeking a resolution that brings some level of Closure and rèslitulion lo the victims. Th¢ Trust regularly reviews rts potential li8bililhqs and 115t$ them on the balance sheet. 11 has also engaged in a process of Nlenlrfying assets that ¢an be realised lo meet those liabilrtie8. The Tru81 recogni888 that, the in lin8 its fixed assets p1¢y. the carrying value of ils fixed assets on the balance 8heel is staled al cost le$$ depreciation which considerably less than the realisable valu8 of those a$sels. The Trustee Board have identified unrestrted assets that could be sold lo redress the negative reseryes balanee. The Trust has detennined that. onc8 resolved, its future inlemal incomeg and expendilufe$ be managed in the medium 18mi to accumulate sufficient a88813 to off881 any rèmaining deficit in thage rg¥erve8. Inv••tm•nt Pollcy and Perfomianc• The Tru$l Dood aulhorr8es the TfUSte8 lo make and hold investments. The Trustee has appointed Davy Charities as Investment Managers. The managers have lull discralion lo Invest, subject lo tha parametèrs laid down by the Trustee. There is a regular review of inlomalion Ir(M) the Investment Managers which monitors the perfonnance of tha portfolio and the invo$lmonl strategy. Further detai18 are set (xrt al note 14. Al present the Diocesan Finance Committee liaises with tho ¢Ltrrenl investmont managers. monitors Ihg performance and reports lo the Tru81 Board. Under Charity Law the Trust Board must $88k lo obtain the b8$1 financial return po$sible consislenl with commercial prudence. Inyostment Oblectlveg rhe Trustee 8oard has adopted investment (leCtIVeS that seek to protect and enhance the real value of the Di¢xesan Assets over the long tem) while also aching agreed rates of income generation. In fUillIng these objectives. the Trusle8 Board adhem to an gthical policy that pwludes investment in asset classes directly or mainly inVoed in the manufacturg andlor supply of goods and servi¢8s which are not in accordance with the teachings of the Roman Catholic Church. Enwronmental issues a also a factor wrth the Trustee Board seeking lo invest in low 15
Dromore Diocesan Trust Report of the Trustee {continu8d) carbon or carbon neutral invéstments. In March 2020, the Trustee Board approved lo dive81 from all companies dir8Ctly involved in fossil fijds in the Oic¢esan Tnjsfs Investment Portfolio. The Diocesan Trust Investment Portfditi 1£1.027m) 1rrenvY managed by Davy Investment Managers is invested over the mèdiurn lo long lemi with emphasis on Jrrent income with low-medium risk profile. In the year, investrnenls have perfomied as èxpect8d given the ongoing pandemic. Resepies Pollcy The Trust recognis8s that its ineome arises primarity from w)lunlary donations and that accordingly il ig important lo Seek lo cary adequate levels of rrVeS lo ensure ils ability lo meet futura expenditure commrtmenls as they anse Parishes are encouraged lo maintain adequatg $hort-18rm resefves lo ensure that they can meet operating costs in the short.lerni and lo build longer-lemi mserves that will be availabK8 rf substantial commitments, such a8 building refurbishment projects, èrise in the fviure. The Diocese centrally aims lo maintain adequate levels of reserves lo meet Dioc08an operating co$1$ in the short lo medium lenn and lo pro)vide lor any significant expendrtures and contingeIeS Ihat may aris6 ai future dales Unreslri¢t•d funds are not all freely av4ilabfe. should the chanty n*J immediate acco¥5 10 reserves. In order lo ensure that the organitIon has accesg lo funds r( is necessary lo adjust unrestricted ServeS as recornmended by SORP 2019 by excluding Fixed As$g1s as il would be unlikely that the organisalion would be able to liquidatg the fixed asgats in a timely mannar. Our raseN68 PQSrtion is heawly impacted by our high asset base which in¢ludes Churches which the 8oard have no inlenlK)n of selling. Thg Trustee Board monrtors our reserves position and the cash in bank balances on a regular ba$1$ to ensure there is no immediate risk lo the Trust. The Charity recognises that by excluding Fixed Assets rt ha$ a negalNe unreslrided r88eryes balance. The Charity ha$ been impacted by an inciease in ils prwsion for liabilrties this year. The Trust ha¥ a Strong cash posi(ion at the year•nd 2020 of £3.3m which equates to enty- four months ofplanned operating èxpeftdrturo going forward. Th6 Charrty will cDnlinue lo monitor this position and actively lake steps lo address this pgsrtron by realising a$$els and radueing costs. The Charity's targeted policy is to maintain 6 months unrestn.ded expenditurè a$ free reserves and it wll continue to work to achieve this pogrtion of liquidity Financlal ManagemgTrt Wi(h the pro4clive involvement of the Trust Committees. Diocesan sOurceS are managed lo lightly control all eo$ls In particular property and human re$ourceslemployrngnl costs. The Tru51 Committees pursue a policy of obtaining value for money and protection of Diocesan assets. The management of the Trust property buildings. with input from the Building and Propety Committee, 18 lime consurning and costly. However. the resOue ol propety is key lo engaging with the Charity's stakehokrfers and essential lor the public benefrt It prowdes. The Personnel Committee fc¢uses on the costs of gmptoyments and compensating employees fairly The Finance committ monitors ggneral ovetheads, one-off expenditurg and the financial implications of the Building and Property Committee decisK)ns as well as acling as a sounding board for all th& Tru$lee Commrtlees. Targeted fundraising is empbyed when major expendi(ure proj.ects are being planned which would otherwise put loo much strain on existsng r8sources. 16
Dromore Diocesan Trust Report of the Trustee (continuea) Future plans This brief overview reflects the work of the charity in thè current year and also indicat88 i(s on- going comrnitment in regard lo fulfilling the principal aims and objecb'ves of tha CharilabL9 Trust into the future. The Oioces& of Dr(vnore will continue lo tyuild upon and develop the inilialives and activities outlined in the narrative above and so continue lo fulfil the principal aims of the Charity. In addition, a primary focus of the Twslee is to secure the long-lenn financial stability of the Dioc8so. Th8 appointment ol Archbishop Eamon Martin. as Apostolic Adminislralor, m8an8 that the Diocese continuas lo manage the Issu8$ lacing the d1¢X. Periodically th8 Trustee undertakes a review exereise in respect of all aspects of the ¥livili8s of the Charty through reports from Parish Priests, Parish Adminislralors and th6 various bodies whieh aro consliluenl part$ of thg Diocese. The Trust will continu8 lo build upon the work undartaken lo dale and will onlinue to losler strategic stakeholder engagement. The TN81 will work to ljuild revenu8 partnerships and drive traditional and new income streams. In support of our work, excdlénl organisalional govemance wll remain a priority focu$, sUring compliance and delivenng required assurances lo all our stakeholders. The pandemic has had a significant impxt on the a¢tivth'e8 of the Di¢xo$e in 2020 and into 2021, The Tru8118 continually monitoring thé finar¢ial impact of Covid-19 on the Charty dua lo the curtailment of activiti65. Ineom6 for the p8nod January lo Sèptgmber 2021 is down 3% on the Same period in 2020. Parishes have managed lo limit the impact on nel income to a fall of 3% lor tha pari¢)d lo Seplember 2021. The majonty of parishe8 have managèd to maka a net positiv6 conlnbulion lo reserves wrth hatf recording an increase in nel income over the sama period in 2020. The Trust has continued a moratoriurn on all but egsenlial expgndilur8 in order lo consolidate re8eNe$. The 808rd of Directors continues lo monitor the situation and egnsider thé impliealions for the ongoing resourcing of dicwan and parish aclivilie9. Pansh¢s and Curial activities arg encouraged to review their budgets and plan their expendilura in line with reduced revenue. New revenue glreams c¢)ntinue lo be explored as well as the promotion of online regular giving by way of an online donations fa¢ilily. It is likely Ihal the chaInge8 posed by Covhd 19 are with u$ for sorne Iwne to come and the Truslae 8oard will continue lo work on new and innovative ways lo minimi8e the impact on the ongoing Coeratn5 of the Trust. Signed on behaN ol the Tru$lg0 on 27 October 2021 Most Reverend Eamon Martin, Apostolic Administrator Reverend Feidhlimidh Magennis 17
Dromore Diocesan Trust Statement of Trustee's responsibilities The is rèsponsible forpreparing the Trustee's Annual Report and the financial statements of the Dromore Diocesan Trust in accordance with applicable law and Unrted Kiftgdun Accounting Standards (United Kingdom Generally Accepted Aecounling Practice). The law applicable lo ¢hanties in Northern Ireland requires the Trustee lo prepare financial slalomenls for each financial year whh give a true and fair view of the slate of affairs of the Charity and of the inc¢Jming resources and applI110n of rèsources of the Charty for that period. In preparing these financial slalements, the Trustee is required to". select surtable accounting policies and then appty them cixsistentty., observe the melhtsys and principles in the charit8 SORP 2019 IFRS1021', make judgements and 881imale8 Ihal are reasonabLg and prudent: stale whether appIlble accounting Standards have boen lollowed, subj'ect lo any material departures disclosed and explained in the financial slalements.. preparg the financial $lalamenls on the going concern basis unle88 it 1$ inapproprialo 10 prosume that the chanty 11 continue in ¢¥eralion. The Truste8 is r93ponsible ILY keeping proper accounting records that disc108e with rea8onabla accuracy al any lime the financial posrtion of the Charity and enabla the Tru81ee lo gnsure that tha financial slalamenls comply wi(h thè Chanties Act (Northern Ireland) 2008. the Ch8ri1108 (Accounts and Reports) Regulations (Northwn Ireland) 2015 and the provi$ion$ ofihe trust deed The Trusteo 1$ also rgspon8ible for safeguarding the asset$ Of the charty and hence for taking reasonablg 8leps for the prevention and detection of fraud and otherirregularilies. SKJned on Behaff of the Tnjslee on 27 October 2021 Most Reverend Eamon Martin, Aposloli¢ AdmintratOr Reverend FeidhlirnKlh Magennis 18
Independent auditors. report to the Trustee of Dromore Diocesan Trust Opinion We have audited the financial stslement$ of Dromore Diocesan Trust {Ihe"charity'l for the year ended 31 December 2020 which C¢)mpnse the $talement of financial aclivilies, the balance sheet. the cash flow slalemenl and notes lo the finala1 statements, including a surnmary of significant ac¢ounling policies. The financial reporting framework that has been applied in their preparation is applicable law and Unrted Kingdom Accounting Standards. including Financial Reporting Standard 102 The Financial Rewrting Standard applble in the UK and Republic of Ireland Iuniled Kingdt)m Generally Accepted Accounting Practice) In our opinion the financ41 stat8menl$.' give a true and fair view of the slate of the charity's affairs as at 310ec8mber 2020, and of ils total incoming resources and 6XP8ndilure of resourcas. for the year thon ended, have been properly prepared in aeLordance with United Kingdom G8n8rally Accepted Ac¢ounts'ng Pracli¢o,' and h8ve begn prepared in accordance with tha requirements of thé ChantK?s Act (Northern Ireland) 2008. Basls for oplnlon Wa ¢onducled our audit in accordsnee with Inlemational Standards on Auditing IUKI IISAS IUKII and applKable law. Our re8pon$ibililies under those Standards are further described in the Auditor's ffj8ponsibiliti.es for the audrt of the finaneial slalements sects'on of our report. We are ndependenl ol the charity In aordance with tha h1¢al requirements that are relevant lo our audit of the financial statements in the UK. InclLtding the FRC'S Ethi1 Standard, and we havo fulfilled our other ethical responsibilities in accofdance with these requirements. We beliavè that the audr( evidence we have oblaingd is 8UffKnt and appropriate lo provide a basis for our opinion. Conclu•lon# rglatlng to golng concern Wa have nothing lo report in respect of the IlOVing matters in ffjlation lo whh the ISA$ IUKI roquire u8 to report lo you We.. the Trustee's use ofthe going con¢om basis of a¢untIng in the preparation ofih8 financial 8ts18mgnls is not appropriate.. or the Truslse ha8 not disdosed in the financial ststements any Klenlffied material uncertainties that may ca$1 signfficant doubl about the charity's abiif(y lo continue to adopt the going concem basis of accounting for a period of al least ¥81¥0 months from the date when the financial slalemenls are aulh0ri8ed for issue. Other Inforniation The Tru$lee 18 responsible for the other information. The other informalK)n comprises the inforniation included in the Truste8s' annual report. other than the finan¢ial statements and our audilorfs report Ihereon. Our opinion on the financial Statements does not cover the other infomalion and. except lo tho extent othemse explicrtty slated in our report. we do not expres$ any fom of assurance conclusion there. 19
Independent auditors, report to the Trustee of Dromore Diocesan Trust Icontinueo) In connection wth our 8udil of the financial ststements, our responsibilty is lo read the other information and. in doing so, consider whether the other infomiatron 1$ materially ineonsi$lenl with the financial slalemenls or our knthedge obtained in the audit or otherwise appears lo be malenally misslaled. If we idenlrfy such material inconsislencie$ or appargnl material mis51atemenls, we ale required lo detemine whether there is a material misstalernenl in the financial statements or a material misslalement of the other information. If, based on the work we have perfomed. we conclude that ther8 is a material misstalemenl of this other informM)n, we are r8quired lo report that fact. We have nothing lo report in this regard. Matt0ry4 on whlch we arn r•qulrgd to r•port by •xceptlon We have nothing lo report in resp8 of the follchving matters in rglalion lo which the Charities (Aecounls and Reports) Regulations INorthem Iland) 2015 r8quire us lo raport lo you if, in OUT opinion". the information given in the financial slalements is inconsistent in any material respe¢t with the Trustee's report., or sufficient accounting reccwdg have not been kept.. or the financial slalemenls are not in agreement with the accounting re¢ord8,' Wo have not received all the information and explanations we require for our audit. Rasponslbllltles of Trusto• As explained more fully in the Tru81ee'g r8spon$ibillt stslemgnt out on page 18, the Trustee is responsible lor the preparation of financial slalemenls which give a true and fail view. and for such internal control as the Trustee dotennines is necg$sary to enable the preparation of financial statements that are free from material misslalemenl, whether due lo fraud or error. In pparIng the financial $temenls, the Trustee is responsible for assessing 117e charity's ability to cenlinue a8 a going ¢oncem. discbsing. as applicable, matterg related lo going concern and using the going mncem basi$ of accounting unless the Tnjslee either intend8 10 liquidate tha charty or to cea98 operations. or have no realislK artemative but lo do so. Audliorfg rmpon¥ib511tl for th• audlt of thè flnanclal statements We have been appointéd as auditor under section 65121 of the Charrt$ Act INorthem Ireland) 2008 and port In accordanee with regulaliong made undef section 66 of that Act. Our objeelives are lo obtain reasonable assurance about whether the financial $lal8menls as a whole a free frcffl material misstatement. whelherdue lo fraud or error, and 10 183ue an auditols report that includes our opinion. Reasonable assurance 18 a high level of assurance bul is not a guarantee that an audi( conducted in accordance with ISA$ IUKI will alay8 detect a material migslalemenl when il exists Misstatements can arise In)m fraud or error and are consid8rgd material if. individually or in the aggregate. they eould wsonably be expecled lo influence the economic decisions of ugers taken on the basis of these financial statements. 20
Independent auditors. report to the Trustee of Dromore Di0san Trust (continued) As part of an audf( in accordance with ISAS IUKI, we exercise Professnal judgment and maintain professional scepb'cism throughout the audrt. We also.. Idenlrfy and assess the ri$k$ of material misstatement ol the financial slalem8nl$, whether due to fraud or error. design and perfom) audit procedures responsive lo those risks, and obtain audit evence that is sUffiCnI and appropriate lo prowde a basis lor our opinion. The risk of not d818Cting a material misststement r8sulling from fraud 1$ higher than for one resulting from error, as fraud may invo8 collusion, forgery, intentional omiss?n8. misrepresentalh)ns, or the override of inlemal control. Obtain an understanding of inlemal control relevant lo the audit in order lo design audit procodures that are appropriate in the c1m$tancs. but not for the purpose of exprg$sing an opinion ¢)n the 8ffeclivenes5 of the chartys inl8mal ¢onlrol. Evaluate the approprial8ness of accounb.ng polici88 used and the reasonableno88 of accounting eslimale8 and related discbsurg5 made by the TN$tg8$. Conclude on tho appropiiateness of the Trustee'¥ use of the going concem b88is of aceounling and, based on the audrt 8vidence obtained. wh8th8r a matenal uncertainly 8xisI$ related lo events or conditions that may cast ¥ignrficanl doubl on the charity's ability to continue as a going corKem. If we eon¢lude that a matérial uncertainly exists, w8 are required lo draw atteftlion in our aLtdrtorf$ report lo the reled disclosures in the financial statements or, if such diselosures ar8 inadequate. lo modfy our opinn. Our Conclusions ara based on the autjil evidence obtained up lo the datg ol our auditols report. However, lulure avents or conditions may cause the charity lo cease lo continue 88 a going conc8m. Evaluate the overall presentats'on. stnJ¢turg and content of financial 8talam8nl$, including the disclosures, and whether the financial slalemenls r¢pr88enl the underlyiftg Iran8aclion8 and events In a manner that achieves fair pSentation. We communicate wlh those charged th governancè regarding. among gther matterg, tha planned scope and liming of th8 audrt and Slgnrficant audrt findings, induding any significant deficiencies in internal control that we idenlrfy during our audrt. Our approa¢h wa$ as lollovrJ'. We obtained an understanding of the *al and regulatory frameworks that aré applicable lo the entity and dglennined that the most 8vJntficanl are Iho$e that ielale to.. the charitable slalus of the Chanty and its registration th The Charity Commission for Northem Ireland under tho Charrties Acl (Northern Irolandl 2008 and Ihg Charilieg Act (Northem Ireland) 2013.. C¢Jmpliance with the Charities SORP IFRS 1021 (second edrtion - October 20191- Accounting and Reporting by Charities. Statement of Re¢CMended Practice applicable lo charities preparing their accounts in xcordance wrth the Financial Reporting Standard applicable in the UK and RepublK of Ireland IFRS 1021 leffecltve 1 January 20191, dats protection laws (including UK Genwal Data Protect#)n Regulation IGDPRII., and safeguarding of children. young people and adults in need of protection. 21
Independent auditors. report to the Trustee of Dromore Di0san Trust {continu8d) We assessed the risks material misstatement in res1 of fraud with the consideration of.. the Charity's own assessment ofthe risks that itregularilies may occur either because of fraud or error that was approved by the directors of th8 Tnjstee.. the resuf(s ol our enquiries of management and the Audit Committee about their own idenlificalion and assessment ol the risks of irregularities". any matters we identified having obtained and wewed the Chaiitls dumentatIOn of their policies and procedures relating lo.. idenlfyng. evaluating and complying vrith laws and wulations and whether they wera aware of any instsnces of non-complonce". detecting and responding lo the iisks offraud and whether thay have knowledge olany actual. suspeded Of alleged fraud. the inlemal ¢ontrols established lo mtyal8 ri8k3 of Iraud or non<omplianc8 with laws and rUlations.. and the matters discussed among the audit engagement team regarding how and whar• fraud might accur in the financial slalemenl¥ and any potonlBI indicatorn of fraud. Based on th6 rgsulls of our risk assessment we designed our audit proceduros to identfy non- compliance wrth such laws and regulations identified above. we conSided the opportunities and in¢enlives that may exist within the organisalion for fraud and identified the grealegt polanlial for fraud in the areas of tha controls covering the receipt of donations and offerings that are recerved in cash and in which management is requir8d lo axe158 significant judgment. such a8 dis¢losure of adjusting items. In common with all audits under ISAS IUKI. we are also requiréd lo perfom) specific procadur88 lo respond to the risk of managemenl override. we al80 obtained an undeislanding of the legal and fegulatory framework that the Charity operates in. flxusing on provisKJns of Ih¢)sa laws and wulalion9 that had a direct effo¢1 on the delerninalion of matefial amounts and disclosurag In the finaneial stalemenls. The k8y Laws and regulations we considered in this context included Nl Charty legislation (including the rggulalor, The Chanlies Commission for Northem Ireland) and the Charity SORP. in addition, we considered provBions ol other18ws antj wulatn$ that do not have a direct effect on the finaneial statements but Compliance wrth which may be fvndamenlal lo the Group's ability lo operate Of lo avoKi a matenal penaAy. This indudgd data prote¢lion and safeguarding we made enquirias of management and those charged wrth governance and reviewed minutes of the 8oard of the Trustee and Parish Finance Commrttee$ and enquired about any CsJmmunicatKJns with the charrty regulator.
Independent auditors. report to the Tnjslee of Dromore Diocesan Trust (continued) Audit procedur8s designed to rnspond to the risks of fraud we considered the risk of ftaud through management oveffide and, in response, w8 incorporated lesling of manual journal entries into our audit approach. we considered the risk of fraud through transactions out$hae the nomal course of transactions by noting anything that was unusual in nature or ¥iz8 and enquired a{ut such transaction lo gain an understanding of their nalure". based on the re¥utts of our risk assessment we désigned our audit prwedures lo Nlenlify and lo address merial misstalemenls in relation lo fraud and other irregularrties. We revwed tha opervJn of the controls within the Pari8he8 ¢)ver the coll8clion8, donations and offerings and the segregation of duties within those ¢onlrols and those controls within the Curpa. together with substantive 18sling and analytical review and incorporating an element of unpredictabilrty in the selectn of the nature. liming and extent ol audit pr¢xedure8. we evalu818d the selection aThJ applicion of accounting policies by the Charity, particularly those related lo subjective measurements and ¢omplex transactions. that may be indi¢alivo of fraudulent financial reporting. U•• of our r•port This report is made solely lo the eharills Trustee. a8 a body. In accordance with Part 4 of the Charitigs (Accounts and R8portsl Regulations (Northem Ireland) 2015. Our audit work has been undertaken so that we might state to tho charity's Tnjstee those matters we aro requir8d Ic) glale lo the Trustee in an auditor's report an¢J for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilrty lo anyone other than the charrty and the charity's Trustee as a btrjy, for our audr( Irk, for Ihm report. or for the opinion$ ¥4p have fomied. Hlll Vellacott Chartered Accixjntanls 8nd Statutory Auditor 22 Gfeat vtoria Slreot. 8eifast. 8T2 78A 27 October 2021 Hill vaGott is elwibl• to ad 8$ an auttorin lern Olsecti 1212 ¢Ylhe cwnPaTh A¢r 2CQ6. 23
OLL U) o pl¢0 • I'%1 ED (Ju
13 uoL)
Dromore Diocesan Trust Statement of cash flows 31 December2Q20 2020 £'ooo 2019 £'ooo Cash flow from 0rating actlyltles Nel expendrf(ure Investment ineome Compensalron costs Bank interest Depreciation Ilncreasel in debtors Increase in crgdilors Increase in provisions (Gainl on investrmenls IGainl on disposal ol assets 1.558 151 1131 1801 191 1751 45 688 181 27 609 11581 12851 11.6641 1221 98 356 Nel cash from cperaling actNities Ca•h flows from Inv•stlng aGtlvltles Investment income reeewed Interg$1 paid Purchase of tangible assets Pr¢xeeds from 8ak8 of tangible assets 1431 1271 145} 1681 402 Nel cash from investing activiti8$ {671 296 Net in¢rease in cash and cash equivalents Cash and cash equivalents al 31 Dernber 2019 233 3,099 1,068 2.031 Cash and ¢•sh qqulval¢nts at 31 D•rnb•r 2020 3,332 3.099 Cagh and cash equivalonls CO1$ts ol: Cash al bank and in hand Bank overdrafts 7,568 14.2361 7.371 {4.2721 21 3.332 3.099 26
Dromore Diocesan Trust Notes Accountlng policies Surnrnary ot Significant accounting policlos Gen•ral Inforniatlon and basis of preparntion Dromore Diocesan Tnjsl is a registered chanty in the United Kingd¢)m. The address of the registered office is given in the charity infornatson on page 2 of these financial slatem8nls. The nature of the charrty's operati¢JnS and principal adivilies aro". The advancement of the Roman Catholic religion in the R¢)man Catholic Dromor8 Diocesan Trust subject lo any future curtailment or addth'on of area made in accordance with tho laws and regulations of the Rt>man Catholic Church. The advancement of arry charrtable purpo supw)rt8d by tha Roman Catholic Church throughout the worfd or in any part ol the wodd. The charity conslrtute8 a Publ benefrt entty a$ defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommendèd Pract8 applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued In October 2019. the Financial Reporting Standard applicabb in th8 United Kingdom and Republ ol Ireland IFRS 1021. th8 Charities Act 2008 and UK Generally Acceplod Accounting Prxbce. The financial gtslemenls are prepared on a going concern basis under the historical co$1 convention. modified lo incl[8 ¢ertain rterns al fair value. The financial 91alemenls are prepared in slerfing which is the functional currency of the charity and roundad lo the near881 £000. The significant accounting policies applied in tho prgparalion of these financial statements are sel out below. These polici89 havè been ¢onsi8lently applied 10 all year8 pre88nled unless otherwise ytated. Judgements and k•y sourc•s of •stlmatlon unc•rtalnty The preparation of the financial slalements requires the Trustee to make judgements, 8$1imates and assumptions that affect the amounts reported. These estimates and judgements are continually eWed and are based on experience and other factors, including exp&tations of future events that arg believed to be reasonab under th6 eircumstancés. SlgnlficantJudg•m•nts The judgments (apart fr Iho3e invofving eslimatN)nsl that management has made in the prtxess ol applying the entity's accounting policies and that have the most sNJnrficanl effect on the amounts recogni3ed in the financhgl sLitements arg asfolbws.. Tangibl8 assets Church property wrthin the parishes and curia propety is stated al cost le88 accumulated daprecialion and the Trustee will exercise iudgemenl when Kdentifying the useful life and the residual value of those assets. 27
Dromore Diocesan Trust Notes (conhnu8d) Kay sources 018st5mation un¢ertalnty Accounting eslimales and assumptions are made concerning the future and. by their nature. 11 ralY equal the related actual outcome The key as$urnplions and other sources of eslimalion uncertainly that have a Signifan1 risk of causing 8 material adjuglmenl lo the carrying amounts of assets and liabiliti88 Within the next financial year are 88 follows.. Rgvaluation of investmenlproperties The charity earries the investment properties al fair value with chang8s in fair value being rec¢4ni8ed in the SOFA. The Trustee has used available expertise lo del8min8 the lair value, based on maiket vaiije of the investment proFertiès. Further infornat¥)n is available al nola 13. Provisions forli0brfitS and &lJaryes-18gal claims The charity has provided for the valu6 of Claims and the assocpled legal costs that have been notified lo the Tru$lee. The Trustee has taken advice from the solicrtors engaged in the claims lo arrive al the amount provided. The details of the amount provided is included in nolo 18. Funds Unrestricted funds are available for Use al the discretion of the Tru$lees in lurth8ranc8 of the general objectives of the charity and which have not been desunaled for other purposes. Oesignaled fund$ comprise unrestrict¢d fvnds that ha¥m been $81 a$Klo by the Trustees for particular purpose8. The aim and use of each designated fund 1$ set out in th6 notes lo the financial slalemenls. Restricted funds are funds whieh ar9 to be used In accordanc8 with specrfic r9strictn3 imposed by donors or whieh have been raised by the charity for particulai purposes. The co81 ol raising and adminislaring such lunds affj eharged against the specific fund. The aim and use of each ffjslriclod fund is set out in tho notes lo the financ1 stslemonts. Endowment funds represent those assets musl be held pemanenlly by the charity. Income arising on the endowment funds be used in accordance with the objeds of the charrty and is included as unre$lri¢led income. Any capital gains or losses arising on the investrnenl8 lorm part of the fvnd. Investment management ¢harges and18gal advice relating to the fund are charged against the lund. Income re¢ognltk)n All incoming resources are in¢luded in the Slalemenl of Financial Activities ISOFAI when the ¢hanty is legally enlrtled lo the income after any perfomance condi(ions have been mgt. the amount can k measured reliably and tt ts probable that the incom8 will be received. For donations lo be renised the chanty will have been notffied of the amounts and the settlement dale in wnting. If the are conditn$ att&hed lo the donation and this requireg level of performance before entrtlemenl can be obtained. then inwne is deferred until those conditions are fully met or the fuffilmenl of those condit$ is within the control of the charity and It is probable that they will be fulfilled. Donated facilities and donated professional services are ognIsed in incorne al their fair value when their economie benefft 1$ probable, Ti can be measured reliabty and the charrty 28
Dromore Diocesan Trust Notes (continuedj has eonlrol over the item. Fair value is detemiined on the bais of the value of the grft lo the harity For example, the amoLtnt the charity would willing to pay in the open mart(al for such facilities and Serv¥. A correswnding amount is rwnised in expenditure. No amount is included in the financial $temants lor volunteer lime in line wrth the SORP IFRS 1021. Further detail is given in the Trusleg's Annual ReporL Where practicable, grfts in kind donated for distribution lo the benefi¢iarias of the charty are included in stock and donations in the financial stalemeftts upon receipt. If il Is impracticable to assess the fair valLte al recwpl or if the costs to undertake such a valuation outsveigh any benefits, than the lair valu& is recognised as a ccwmponenl of donations when il is distributed and an equivalent amount recognised as eharilable expenditure. Gift8 in kind donated for resaL9 are included at fair valu8, bging the expeetod proceed8 from gale 18s8 the expected costs of sal8. Where eslimaling the faif valug 18 practicable upon receipt it i¥ recL¥nised in sl¢xk and 'lncom8 frcyr other trading activities,. Upon sale, the value ol the Stock is charged against 'ln¢ome fr(Jn other trading acliwti8s' and thé prtxeeds ar8 recognised ag 'lnc¢yne frG¥n other trading actiwtie$'. Where rt 1$ impracticable lo fair value tho items due lo the volume of low valu8 Ilemg thèy are not r8eognised in the financial slalamanls until they aTr sold. Thi8 income ¢8 rectsJni$ed wrthIn'lne frcr other trading aclivilies.. Fried a88et gfft8 in kind are rQgnised when r¢¢oivable and arg included al fair value. They are not deferred over Iholrfo of the asset. For legacies, enlitlemenl is the aadr of the charty being notified of an impending di8lribulion or Ihelggacy being received. Al this point income 1$ recognised. On occasion legacie8 will b8 notified to the charfity h¢)wgver it is not possible lo measure the amount expected lo bo di81ributed. On these cccasvJn8, the legacy 1$ treated as a ¢onts'ngenl asset and di8closod. Income from trading activilies includes income earned from lundraising evgnls and trading activitie8 to raise funds lor the charity. Income is receivèd in exchangè for supplying good8 and $8Ni¢es in order lo raise lunds and 1$ recognised when enli(lemènl has occurrad. Tho charrty re¢oives govemment grants in r¢sm of running c0818 and upkeep of propartie$. Incom6 frt>n govemmenl and other grant$ are recognised al fair value when the charity has entitlement after any performance condrtions have been met, it is probable that the income will be received and the amount can be measured reliably. If enlillemenl is not met, then thes0 amounts are doferred. Investment Inc¢yne is eamed through holding assets for investment purposes such as shares and propety. 11 includes diwdends, interest and rent. Where rt Is not practicable lo identify investment management co$t$ incurred wrthin a scheme wtth rea90nabl¢ accuracy tha investment income is reported net of these costs. 11 is included when th8 amount can be measured reliably. Interest income is rerngnised using the effective interest method and dividend and rent ineorne is recc*3ni5od as the charitys nghtto receive payThenl1$ established. Other income includes the conversion of 0ndnent fvnds into income which arises when capital furKl$ are leaSed lo an income fLtnd fr¢Jn expondable endowTnents or when a charity has aulhorty to adopt a totsl retum approach lo ils pemanenl endowment fvnd. It also includes other ineorne such as gains on disp05als of tangible fixed assets. 29
Dromore Diocesan Trust Notes (continuedj Expondlturè recognition All expenditure is aeeounled lor on an accruals basis and ha$ been classified under headings that aggregat8 all costs related lo the category Expendilur& is rec¢yJnised where there is a legal or conslruetive obligalK)n to make payments to third partT'es. rt Is probable that the settlement will be required and th8 amount of the obligalion can be measured reliably. 11 Is calegorised under the following headings". Cost8 of raising lunds incJud8s $1 ol fundraising frryn wthin the Parish and Curia. Expenditure on ehantable activities includes adminislralion c08t3, bank fees. depreciation and premises expenses. Other expenditure represents Ih¢Me rterns not fallirJ into the cegories abovo. Irrecoverable VAT 18 ¢harged a5 an expgnse against the acbvty for whKh 8xpendilure aro88. Gran15 payable to Ihirrl parties are within the charitable objectives. Whers uncon4ilion81 grants are offered, this 1$ accrued as soon as the recipient is nolrfied of the grant, as this gives ri98 10 a reasonable expectation that the fecipiènt will receive the grants Where grants are conditional relating lo perfomanc8 then the grant is only a¢¢rued when any unfvlfilled condilkins arg outside of the control of the charrty. Re8ourcM 0xnd•d Rasourca oxpended are included in th8 $tstement of financial affairs on the ba$1$ of the amounts payable for work done and seThice$ prowded in the yoar. The c0813 ol a¢tivitte8 in the lurtherance of th8 ¢hantyg rt>jective$ consist of all exp8ftditure directly related lo the oty'ectNe8 of the Ditt858. Th8 costs of generating lunds consist of eyperdrture incurred by tho charity in encouraging others lo make contributions to it. Governance costs include those incurred in the govefnance of rt$ as8018 and ar8 primari associated wrth conslrtulional and Stalulory requirements. Tanglble fixed a$s8ts Cufla bulldlngs The Trusleg's view was that a reasonable approximation of the net book value of the curial property held al 31 December 2014 woutd bg establishthj through discounting tho insurance values of Ihv3e assets by 90%. Depreciation is providéd al rates cakulated lo wnte off the cost less residual value of ea¢h asset over its eslimatgj usefvl economic lrfe at 0.67% straight line.
Dromore Diocesan Trust Notes (continued) Parlsh land Parish land 1$ divided into different categories and has ben valued by the Trustee using a value per acre. depending upon the type of laThJ that is held, lo arrive al deemed eo$t. Church property and conl•nts Prr lo 2015. the accounting policy applied was for caprtal expendrture lo b8 wntten off in full as incurred. As a resuk of that policy. the onginal costs and accumulated depreciation ol all church property and contents held then was not available. The Trustee's wew was that raasonable approximation of the net book value of the church property and eonlenls h8ld at 31 December 2014 would be established Ihrou9h diOunting the insurance values of Ihe¥e assets by 90%. This was thè policy employed lo include tha assets on the balanc8 sheet al eslimaled historic CO81 net of xcumulated depreciation. Of the 22 parishes, all will have church antj a presbytery and 8om8 wll have oratories and halls. Church propety and contents depreciatson is provided al rates calculated lo writ8 off the co81 le88 residual value of each asset over its expacted useful life al 0.67% pa 8lraighl line. Oth•r tanglble Ilxod a•s•ts Other tangible fixed assets are 8tsled at cosl less depreciation. Addition$ are capitsli58d where the value 8xceeds £1.Cl)O. Depreciation is provided at rates calculatod lo write off the CO81 k8s8 r8sidual value of e&h asset over its expected usefvl life, a$ ftlows.' Fixture8. fittings and oquipment 10% reducing balanc8 Icurial 10% reducing balanca Iparishesl Investment prowrtl•s Investrnenl properties for whi¢h fair value can be measured reltably wrthout undue eosl or effort ar8 measured * fair value al each reporting date ¢hange8 in fair value re¢ogni8ed in 'nel gains I Ilossesl on investments, in the SOFA. Invgstments Inveslmonls are recognised initially at market value al the batar Sheet dal• which 1$ nOarty the transaction price excluding Iransaclh)n eosls. Current ass81 inv8strnents are short Iwm highty IKiuid invesiments and are hgld at fair value. These include cash on deposrt and cash equivalent$ wth a malunty of less than one year 31
Dromore Diocesan Trust Notes {conlinuedJ DebtoryJ and creditors r9celvable I payable wlthin one y•aT Debtor$ and CllerS with no staled interest rale and receivable or payable within one year are recorded al transaction price. Any IDsse$ arising from Impairnient are recognised in 8xpendilure. Ca$h and cash equlvalents Cash and cash equivalents in the balance sheet cL¥npnse cash al banks and in hand and short term deposits with an onginal matunty dale of three months or less. For the purpose of the cash flow statement. cash and cash eqyivalenls consist ol cash and ea¥h equivaleftts as defined above, nel ol oulslanding bank overdrafts. Loan8 and borTowlngs Loans and borrowings are initially r¢¢oJnised al the transaction price including transaction costs. Subsequently, they are measured al amorti$ed cost using the effective interg$1 ral8 method, less impaimienl. 11 an arrangement con$lrtul8s a financé transaction il 18 mea8ured al present value. C¢nGo¥slonary loans Con¢988ionary loans include those receivable I payable which are interest free or below market interest rates and are made lo 8dvanc& chanlable purp08e8. Wherg the loan is repayable rn¢ than one year. the loan Is Initially measured al fair value and subsequèntly measured al amortised cost using the offecbve inl8ré$l ralo method.1883 Impairment. Impalrniont Assets not measured al lair value aré owewed for any indication that the asset may be impaired at oach balance sheet date. If such indicatr.on exists. the recorable amount of the assgt, or tho asset's cash generating unit. is estimated and ccmpared lo the Carng amount. Where the carrying amount exceeds rts recovwable amtyjnt, an impairment loss is recognised in the SOFA unless the asset is carried al a revalued amount where the impaimenl loss is a revaluation decr8a8e. Provl$lons Provisions are rec(>Jni8ed when Ihe charity has an obligation al the balance shetrl date as result of a past event, Il 1$ probable that an ¢wfflow of econom benefits will be required in settlemént and the amount can be relrably estimated. L•as•s Assets acquired under finance leases are c8Prtali$ed and depreated over the shorter of the lease lemi and the expected useful lrfeof the asset. Minimurn lease payments arg apportioned between the finance charge and the reduclw)n of the oulslanding lease liabilty using the effective interèst method. The related obligat*)ns, net of fvIL¢re finance eharges. are included in creditor5. Ronlals payable and receNable under operating leases are Charg lo the SOFA on a 8lraight- line basis over the period of the lease. 32
Dromore Diocesan Trust Notes (continued) Forelgn currency Forgrgn currency transactions are Initially recognised by applying lo the foreign curreney amount the spot exchange rate beN¥een the functional cuffency and the foreign currency at the date of the transaction. Monetary assets and liabilitie¥ derK>minat&J in a I01gn currency al the balance sheet data are Ifanslaled using the ¢hJsing rate. Tem?Inatlon b•no11ts Teminalion bonefits are payable when (*nPtynent 18 t8minated before the nomal r81iremenl dale. or whenever an 8mployee accepts voluntary redundancy in exehango lor these benefits The charty recognises lèmiinalion bengfits when il is demonstrably ¢ommitted lo either lil lerminaling the employment of eurr8nl employee8 aecording lo a detailed formal plan wrthoul pos$ibilty of withdrawal or lill providing lemiinatvjn benefits as resu of an offer made lo encourage voluntsry redundancy. Tax The Trustees consider that thé Charity 1$ larg8ly exempl Irom income lax under the prov18ions of the Inc¢yne and Corporation Taxès Act 1988 and the Taxation of Taxablo Gains Act 1992. Recovery is made of lax dedu¢l8d from Income and frcyrt receipt$ under Gift Aid. Th6 chairty is not able to recover Value Added Tax. Expenditure is recorded In the a¢counl$ inclusive of VAT. Golng conc•rn Tho financial slalements have been prepared on a going basis as tha Trustees believe that no material uncertainli68 èxist. The Trustees have considered Ihe18vel of funds held and the expected level of Income and expenditure for 12 months from authorising these financial stalemèn15. The budgelod inc(xne and gxpendilure is Sufficient with the le1 of re$eNos for the charity lo bo able lo continua as a going ¢on¢ern. 33
Dromore Diocesan Trust Notes (continuedj Voluntary income Parishes Vnrestrict8d R•$tricted lund$ funds £'ooo £'ooo Total 2020 £'ooo Off8rtories, dtsnatn$ and legaaes 533 2,479 533 2.479 Unrestnthd fvnds £'ooo Restricted funds £'ooo Total 2019 £'ooo Offertories, donatnS and legaci&s 2,PJ)9 3,298 2.609 887 3,296 Curlal and pastoral Unrnstrlct•d Rostrlct•d funds funds Total 2020 £'ooo Donation$ and grf¢s 35 35 Unreslrtted lunds £'ooo Restn'cted funds £'ooo Total 2019 £'ooo Oonalions and gift$ 21 23 21 23
Dromore Diocesan Trust Notes (Gonfinu8dJ Investmont Income Parlsha8 Unrnstrictad Rtrstrlctgd funds funds £'ooo Totsl 2020 £'ooo Bank int8rrft Unrestricted fvnds £'O¢ R881ricl8d funds £'ooo Total 2019 £'ooo Bank interest Curlal and pastornl Unrnstrlctod R•strlcted fund• funds £'ooo £'ooo Total 2020 £'ooo Listed investments Unrestricted lunds £'ooo Reslricled funds £'ooo Total 2019 £'ooo Listed investments 35
Dromore Diocesan Trust Notes (continuedj Other Incom8 Parfshe¥ Unrestrlct•d funds £'ooo Rgstrlct•d funds £'ooo Total 2020 £'ooo Govemment Grants Insufance Claims 71 71 125 125 Unrestricted funds £'ooo Restricted funds £'ooo Total 2019 £'ooo Govornmenl Grnnts Insurance Claims Curtal and pastoral Unmtrlctod RtrIcted funds funds £'ooo £'ooo Total 2020 £'ooo Govemmenl Grants Insurance Claims 19 24 19 24 Unfftstneted funds £'ooo Reslrictad funds £'ooo Total 2019 £'ooo Govemmenl Grants Insuranee Claims
Dromore Diocesan Trust Notes (continued) Incoming r•sourc•s Irom charftabl• actfvltles Parlshos Unrestrlcted R•$trlct•d funds funds £'ooo £'ooo Total 2020 £'ooo Fundraising Booklets and pilgrimages Other incoming re8OUfces from charitable activ((ies Youth Ministry Capital Grants Received 256 157 92 256 157 92 513 Unreslncted funds £'ooo Reslricled funds rooo Total 2019 £'ooo Fundraising 8¢)oklels and pilgrimages Other incoming resources from charitable activi(ies Youth Ministy 358 255 358 255 140 140 13 13 753 13 37
Dromore Diocesan Trust Notes (conlinuedj Incoming rgsourcm from charftablé a¢tlvltlos (continued) Curlal Unrestricted Restrlctsd lund$ funds £'ooo Total 2020 £'ooo Fundraising Youth CommissK)n Income Other donalrons Bank Interest received Dromore Diocesan Cbrical Provident Society Gain on foreign exchange Rent receivab 13 21 Unrnslricted fvnds £'ooo Reslrictad funds £'ooo Total 2019 £'ooo Fundraising Youth ComMissn Income Other donations Gain on loreign ex¢hange Dromore Di¢xesan Clertsl ProvKlent Soc 31 31 35 38
Dromore Diocesan Trust Notes fcontinu8d) Net galns on dlsposals ol flx8d ass&ts Unrosti1ct R8Stri¢ted funds funds £'ooo £'ooo Total 2020 £'ooo Gain on sal8 of tangible fixed as$ets Parishes Curial Unr¥stricted fvnds £'ooo Restr8 funds E'OOO Totsl 2019 £'ooo Gain on sale of tangibla fixod as¥ets Parishe8 Curial 265 265 265 39
Dromore Diocesan Trust Notes (continuedj Costs of generating lunds Parl$hes Unrestrlcted Reslrl¢tgd funds funds £'ooo £'ooo Total 2020 £'ooo Fundraisin9 costs 52 82 52 S2 Unre$lnded fiJnd$ £'ooo ReslrKted fvnds £'ooo T¢)tal 2019 £'ooo Fundraising costs 49 49 49 49 Curfal and pastoral Unr•8trlct•d Rgstrlctèd funds funds £'ooo £'ooo Total 2020 £'ooo Fundraising costs Unreslrict•J fvnds £'ooo Reslricled lund$ £.0) Total 2019 £'ooo Fundraising costs
Dromore Diocesan Trust Notes (continued) Costs of actlvltles In lurtheranc• ol charitable actlvltles Parfshés Uni•stri¢tgd R•strlctsd funds funds £'ooo Total 2020 £'ooo Administration cosls Pafish centre co¥1¥ Bank interest School payments Priest welfare payment$ Premigès COSt3 including insurance Rèpairs and maintenance Gross salaries and employ8¢s national insurance costs Votives and liturgal co$1$ Depreciation Cemètery maintenance Other costs 140 140 43 22 433 624 351 22 624 3S1 144 11.6441 175 128 144 11.6441 175 128 433 813 unrestrted funds £'ooo R8$lrictgd funds £'ooo Total 2019 £'ooo Adrnini¥lration costs Parish ¢gnlre costs Bank Interest School payments Priest welfare payments Premises Costs including insurance Repairs and maintenance Gross salane$ and employerfs national insurance costs Votives and liturgul costs Depreciation Cemetery mainlonance Other costs 87 13 45 23 87 13 45 23 482 689 367 482 367 414 218 414 218 243 162 243 162 3,426 41
Dromore Diocesan Trust Notes (continued) Costs of •cti¥ltlos In furtheranc• of charilable activities (contlnued) Curial and pastoral Unrgstrlctèd Rwstrlctsd nds fund$ £'ooo £'ooo Total 2020 'ooo Gross salaries and employers, NIC costs DCPS Payments Adminislralion costs Child protection ¢osls Other c08ts Legal and $imilar co818 122 41 74 163 74 23 17 75 156 374 373 197 830 Unr9StriclwJ fvnds £'ooo Reslri¢ted funds £'ooo Total 2019 £'ooo Gross salaries and 8mpioyèrs' NIC ¢osls DCPS Payments Admini8lralion costs Child protection costs Other ¢osls Legal and similar costs 121 42 72 163 72 20 53 248 617 13 53 130 616 118 933 240 1,173 42
Dromore Diocesan Trust Notes (continued) Galns I110¥s8s1 on SnY•stmènts Parlshos Unrg8trlct•d lunds R•¥tr5ctod funds Total 2020 £'ooo Increase in inveslmenl$ value Unr&stricted fund8 £'ooo R8Strict8d funds £'ooo Total 2019 £'ooo In¢rease in investments vye 68 68 Curlal and pastoral Unr••lrlct•d RMtrlctsd lunds funds £'ooo Total 2020 £'ooo Increase in inve$tmonls value 11 61 11 51 Unrestricted fvnds £'ooo Rested funds £'ooo Total 2019 £'ooo In¢rease in investments value 19 71 90 19 71 90 43
Dromore Di0san Trust Notes (continu8d) 10 Govomanco c08ts Curial and pastoral Unre8trfcted Restricted funds funds £'ooo £'ooo Total 2020 £'ooo Fees paid to exlemal auditors for audit 16 16 16 16 Un$trted funds £'ooo Reslricled funds £'ooo Total 2019 £'ooo Fees paid lo extemal auditors for audit 14 14 14 14 11 NBt Income I l•xp•ndftur•) Nel income I lexpendilurel is staled after charging.. 2020 £'ooo 2019 £'ooo Auditors, remuneration - audit Oepreciats'on- unreslricled funds Depwialion adiustrnenl- unrestricted funds Gain on fair value of investments Gain on revaluation of investment propety Gain on disposal of fixed assets 16 342 12,0061 51 14 686 90 68 265 The Trustee's esbmalion of the usefvl lives and the residual values of church propertie5 in both the parishes and the curia has been reviewed and changed this year lo reflect longer useful lives of the assets and updated residual values. The impact of the change in these ests'mates has resulted in a credit of £2,OC6,000 to the depre¢iab'on charge this year and an increase in the nel book value of Church property of the same arnount.
Dromore Diocesan Trust Notes {continu8d) 12 Staff numbers. costs and pension conlributlong The averagè numb&r of employees during the year was.. 2020 Numb•r 2019 Number Curia employees Parish employees 58 59 65 The aggregalo pa1 co818 for the above were as foll¢)w8.' 2020 £'ooo 2019 £'ooo Wages and salaries Social security costs Empkjyèr pension contribution8 525 22 25 553 877 Thero are no empbyee812019- no ompbyeesl who rK8ived emoluments of more than £60,000 in the year. 45
Dromore Diocesan Trust Notes (continuedj 13 Tanglbh fugd assets Parlshes Church 8uilding & Contènts £'ooo Land Fixturos, fittings and 8quipment £'ooo Total Froehold Investment proport18$ £'ooo £'ooo E'DOO Cost or cal¢ulatlon Al 1 January 2020 Additions Disposals Revaluation 21.787 2.220 3.626 27 27,613 27 1,715 At 31 Oec•mb•r 2020 21.787 2,200 3.853 27.640 1,715 Dgprgclatlon Al 1 January 2020 Charg8 for year Eliminated on disposals 2,562 11.8681 1,413 224 3,975 11,6441 At 3108c•mber 2020 1.637 2,331 N•t Ix>ok valu• At 31 O•c•mber 2020 21.093 2,21X) 2,016 25.309 1,715 At 31 Da¢ember 2019 19.228 2,200 2,212 23.638 1,715 The Inv88knont propernès have t>een valu•a by the Trust¢0 on the baw olmath•i value. ba8•d on Valuats'o) roports on tha vanou¥ prwrti68 by Lefin Esiai88 Best Prwrty Servw.
Dromore Diocesan Trust Notes (conlinued) 13 Tangible fixod a$80ts (conllnuqd) Cufla Land and bulldings Fixturgs. fittings and equlpment £.0 Total £'ooo Cost or calculatlon Al 1 January 2020 Additions Oi8po$al$ 1,147 1,150 At 31 Dgcomber 2020 1,147 1.150 O•pre¢latlon Al 1 January 2020 Charge for year 21 (211 1201 At 31 t>•c•mb•r 2020 N•t book value At 31 December 2020 1,147 1,147 Al 31 December2019 1.126 1.127 47
Dromore Diocesan Trust Notes fcontinued) 14 InvgStm•nts 3020 £'ooo Al Maet valu8 2019 £'ooo {As restaledl UK government bonds Corporate and other bonds UK listed investments European listed investments International listed investments Absolute retum Cash 189 160 180 206 240 79 339 183 32 373 1.027 974 2020 £'ooo Movemonls 2019 £'ooo IA8 reslaledl Opening Net cash Realised gains Unrealised gains l {108sesl Incom8 received 974 880 51 1,027 974 15 O•btorn 2020 Curla 2019 Total £'ooo Parishes £'ooo Total £'ooo Gift aid recover8ble Trade deblofs Other debtors and prepaymènts 260 20 120 311 10 109 21 51 52 452 430
Dromore Diocesan Trust Noles (continued) 16 Creditors - arnounts lalllng duè wTthin on• yeai 2020 Curia £'ooo 2019 Total £'ooo Parl$hes Total £'ooo Aecruals and deferred income Trade creditors Other credi(ors Other18xes and social security costs Schools creditor 52 128 180 197 15 169 182 134 134 35 279 297 576 478 17 Statoment of control The charity is controlled by tho Di¢xese of Dromor? Trustee, a ¢ompany limi(ad by guarantee. registered In Northern Ireland 18 Provlslon• Thé Iru$l has m•de a provision in thoso financ1 statements of £2.608,600 12019.. £2,264,500) lo cover legal elaims and costs The Trusteg has made thi¥ provision in this year's financial statements based upon bgal advice on the likely oulcLNne of Ihesè¢a$e8. £'ooo Opening balance Paymgnls made in the year Increase in prowsion 1131 356 Closlng balance 2.807 49
17>p<y P4 11 t
Dromore Diocesan Trust Notes (contsnuedj 19 Movfrm•nt in funds {¢ontinuodl The curia unrestneled funds ar8 overdrawn by £743,COJ and this has arisen from the increased provision this year as sel out in note 18. The Charity is developing plans lo address this deficf( in the medium leffti and entfy sources of income lo rectify the posIIion. The prior year adjuslmenl artses from.. The derecognilion of fixed asset investments when the charity identified il did not have the rlqhls of ownership The comparatives have been reslaled, reducing nel assets by £1C6.000 The details ol thè restricted funds aro as followg.. Parlsh Thi$ fijnd reffects collections taken by the parishes for specrfic purpo$e5. Cl•ryy Support This fund r¢prgsenl¥ the surplus of monies collected for the sijpport of pri8$ls of the Di¢X8Se. The policy is lo maintain a reserve for the long-lerm provision for prig$¢s' support which represents al least six months of expenditure. Dloco•an Clorlcal Pro¥ld•nt Soclety This fund provides support for Sick and rntirgd secular prie$l$ oflhe Oixese who may need financial assistance. Youth Commlsslon This fund is used to SUPF4)rt thè operalft of th& Dromoro 08¥aft Youth Commission Famlly Car• This fund is used lo supp1 agencies involved in famify ministy within the Dioc888 and at a national ve1. edu¢atlon of Prlests This fund is u$ed lo support the educatwJn. training and INing costs of seminarians and clergy of the Oiocese. Bequests These fund$ are *acy bequests and are restricted for the purposes Slipulaied in the will of the t85ts1or or lestslrix. Goneral These funds are small donathS received for purposes to defray costs incurred. 51
Dromore Diocesan Trust Notes (contsnuedj 20 Amounts hd as a9gnt There are various collections taken up during the year thin the Diocgse that ar8 collections undertaken as agent on behalf of other organisalions. These funds are lodged lo the bank and then paid lo the indivKlual organisations. The asset and liability are not reeognised within these financial Stalemenls. The amount of funds held by the trust as at 31 Dernber 2020 was £52,08712019 . £56,900). 21 Aftalysl¥ ot change¥ In not dobt At Start of Ca$hflow* yèar At end of ygar £'ooo £'ooo Cash Overdraft facility repayable on demand 7.371 (4.2721 197 7,568 14,2361 Total 3.099 233 3,332 52
o £T>¢0 SO f¥ P4 ¢0 1 OO¢X' ov ¢ow vfftOO i rtcto 11 ¢n i fC
Dromore Diocesan Trust Notes (conlinuedj 23 Truslw remungrntlon The Tru8t88 norther received nor waiv•d any emoluments nor made a claim for expenses incurred relating to duties carried out for the Injsl. Three directors of the Trustee received stipends, in aggregate. lotaling £45,000 for the year lo 3191 December 2020 12019 £25.2001. These stipends were paid lo them in SpeCt of their role as serving Ministers of the Church in Dromore and not as a result of their Trustee role. No pension contnbulions were paid on their behalf. AeeommodalK)n prowded for Ihern gxclusively as consequence of their ministries within the Diocese. One director of the Trustee was enlilled lo a stipend for his role as a serving Minister of thè Ch(trch in Dromora, but 818Cted not lo receive the stipend. 24 K•y manag•monl p•rs¢)nMI The charity considers that the directors of the Trustee are the key managemanl personn¢l and the remun6ralion of the kèy management pgrsonnel Is set out in note 23. 25 Capltal comrn5tsnonts The charity has conlract&J lor capital commitments a$ at 31 Dnber 2020 of £nil12019 - £28,350) 28 Flnanclal Instrnm•nts The canwng amounts of the charty's financial in8tnJment8 affj as folbws.. 2020 £'ooo 2019 £'oao Flnanclal assets Measured al fair value through inCre l expgnditure Fixed 058el investmant propert*s Inole 131 Fix8d as8et listed investment$ (note 141 1.71S 1,027 1,715 974 2.742 2.689
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