Dromore Diocesan Trust Registered Charily Number 105046 Report and Financial Statements For the year ended 31 December 2023 Dromore Diocesan Trust Contents Page Legal and administrative information Report of the Trustee Statement of Trustee's responsiblllties 19 Independent auditors, report 20 statement offinanclal actlvltles 25 Balance sheet 28 Statement of cash flows 27 Notes on and forming part of the financial statements 28 Dromore Diocesan Trust Legal and administrative information Trustee Dlocese of Dromore Trustee (a company Ilmlted by guarantee, registration number N1609968> Registered Offlce, Blshop's House, 44 Armagh Road, Newry, BT35 6PN Dlroctor8 and Offlcers of DIoca8e of Dromore Tru8t88 Most Reverend Eamon Martin, Apostolic Administrator Rever8nd Feidhlimidh Magennis Right Reverend Monsignor Hugh Connolly Mr Brendan Jackson Mrs Nuala McKeagney (resigned 10 June 2023) Mr Michael Gillen Mr Tony Mccusker Miss Oonagh Murtagh (resigned 12 June 2023) Registered Office Bishop's House, 44 Armagh Road. Newry, 8T35 6PN Company Secretary Reverend Feidhlimidh Magennis Audltor Hill Vellacott, Chartered Accountants, 22 Great Victoria Street, Belfast, BT2 7BA Banker5 Al8 (Nl), 4244 Hill Street, Newry, BT34 1AU Investment Managers Davy Asset Management. Davy House, 49 Dawson Street, Dublin 2 Sollcltor6 Napler Sollcltors, 1-9 Castle Arcade, High St, Belfast BT15DF Luke Curran & Co. 6 Marcus Square, Newry, Co, Down, BT34 1AY Clyde & Co, 51 Adelaide Street, Belfast, BT2 8FE Dromore Diocesan Trust ort of the Trustee The Trustee presents its Annual Report and the flnanclal statements of the charily, Dromore Diocesan Trust, for the year ended 31 December 2023. Constitutlon and alm8 The Roman Catholic Diocese of Dromore was established through the reorganisation of the Irish Church in the late ￿e1fth century. It is one of the smaller dioceses in Ireland and covers portions of Counties Down, Armagh and Antrim with Its cathedral located in the city of Newry. The Oromore Diocesan Trust is a charitable trust, established by a trust deed dated 1 November 2010. On 20 April 2016, Dromore Diocesan Trust wa5 registered as a charity wlth the Charity Commission for Northern Ireland and given the registration number NIC105046. Under amending leglslation- the Charities Act (Northem Ireland) 2022- registratlon of the Dromore Diocesan Trust Is deemed to commence on 1 April 2022. For tax purposes, Dromore Diocesan Trust is also registered with HM Revenue and Customs - reference number XT27177. The sole trustee of the Chanty Is a Corporab'on, Diocese of Dromore Trustee. The Company is limited by guarantee and was registered on 17 November 2011 reglstratlon number N1609968. On 13 January 2012 the Lord Chlef Justlce of Northern Ireland authorlsed Diocese of Dromore Trustee to act in any Charitable or Ecclesiastical Trust as a Trust Corporation, Objgctlves and actlvltles The prfincipal objects of the Charity are: The advancement of the Roman Catholic religion in the Roman Catholic Dlocese of Dromore subject to any future curtailment or addition of area made In accordance with the laws and re9ulations of the Roman Catholic Church. The advancement of any charitable purpose supported by the Roman Cathollc Church throughout Ihe world or in any part of the world. The Dlocese of Dromore, in union with the Catholic Church worldwlde, seeks to 8chieve its objectlves through activities including the following.. Proclamation of the Gospel Worship of God Provision of clergy and pastoral personnel Formatl'on and development of parish communities Support for famllies Provislon of educatlonal, pastoral and youth mlnistries Provision and maintenance of places of worshlp Aid for impoverished and needy communitie5 worldwlde The means used to fulfil the purposes of the Dromore Dloce5an Trust are constantly monltored and reviewed in order to ensure that the principal aims and objectives of the charlty are adhered to. Dromore Diocesan Trust Report of the Trustee (continued) statement that the Tru8t88 has had regard to the Charity Comml8slon for Northern Ireland publlc benefit requlrement statutory guidance Th8 Trustee confirms it has complied with the requirements of Section 4 (6) of the Charities Act (Northern Ireland) 2008 to have due regard to the public benefit guidance published by the Charity Commission for Northern Ireland in determining the actlvltles undertaken by the Charity. Throughout this Annual Report the Trustee seeks to demonstrate that the Charity's aims and objectives are for the publlc benefit. Structure, Governance and Management Ecclesiastical Law requires certain structures to be In place within the Diocese. Structures in the Diocese of Dromore inGlude- Diocesan Consultors (fulfillèd by the Cathedral Chapter), a Council of Priests and a Finance Councll. The Blshop is also assisted in ecclesiastical governance by a Chancellor, a Vicar General and a Finance Administrator. In the absence of a blshop (sede vaGante), the diocese is under the governance of a Diocesan Administrator (elected by the Diocesan Consultors) or an Apostollc Administrator (appointed by the Holy Father), The overall operatlon of the Charity, including financial and legal responslblllty Sn clvll law, Is overseen by the Trustee, the directors of which are appointed by the Bishop, who is Chalr of the Board. Recruitment of the directors is based on their knowledge of the local Church and their having the professional skills and experiences necessary for overseelng the affairs of the Charily by ensuring it is solvent, well-run, and that it delivers the outcomes for which it was established. The Board is composed of a mixture of clergy and lay members of the Church. On appointment, new directors receive inductlon and are introduced to their role and responsibilities by the Chancellor, the Finance Admlnlstrator and the Finance Officer of the Diocese. They are provided with copies of the Trust Deed and the lalest financial information and reports. Directors attend formal and informal tralnlng sesslons as required, The day-to-day business of the Diocese Is managed through the Diocesan Curia. The Blshop refer5 ecclesiastical related matters to the Chancellor and other appropriate officlals. Clvll administrative matters are referred to the Finance Administrator and the Finance Officer. The Council of Priests also assists the Bishop in the governance of the Diocese according to the norm of law 'so that the pastoral welfare of that portion of the people of God entrusted to the Blshop may be most effectively promoted, (Code of Canon Law, canon 495). Reflectlng Canon Law, the actlvltlès of the Charlty are separated in this Report into Parish and Curla functlons. On 15 Aprll 2019, Archblshop Eamon Martin, Archbishop of Armagh, became Apostollc Admlnlstrator of the Dlocese. An Apostolic Administrator is appointed to temporarily govern a dlocese when speclal or serious circumstances warrant such an appointment. Archblshop Martin governs In the name of the Holy Father and has all the powers and dutles of a dlocesan blshop. Dromore Diocesan Trust Report of the Trustee (continued) Parlshes The Diocese is divided into parish communities. The parishes in the Diocese are establlshed and operate under the Church's Code of Canon Law which bestows on them separate canonical status which explains thelr treatment in the following financial accounts specifically through the columnar layout. The funds and assets of each parish are held in trust by the Drornore Diocesan Trustee for the benefitof each specific parish. Under Canon Law, each parish must have a finance committee to advise the parish priest in regard to the administration of the parlsh. Parish finance committees include parishioners with knowledge and experience In finance, propety management and administration. Parish PriestslAdministrators and Curates are appointed by the Blshop to provide pastoral care for parlsh communities and to manage parishes In all jurldical affairs thus ensuring that parishes are admlnlstered in accordance wlth the norms of Canon and Civil Law whlle fullllling the aims of the Charity. As encouraged by The Directory for th8 Pastoral Ministry of Bishops (Apostolorum Successores), the Bishop, In consultatlon wlth priests and laity, reviews on a regular basls the p8rlsh structure to ensure the long-term pastor81 sustainability of the parishes. Curla The Olocesan Curla conslsts of those Instltutlons and persons whlch fumlsh asslstance to the Bishop in the governance of the entire Diocese. especlally, In d￿reCtIng pastoral activity, in providing for the administfation of the diocese and in exercising jurldic81 power. It also includes all who participate In the overall admlnistratlon of the dlocese, especially those who direct diocesan activities such as pastoral support, youth work, education. family ministry, liturgy, and other facets of the local Church's life. The Trustee Board delegates overslght of the Diocese's day to day financial, property and administration matters to the personnel within the Curia, Under the leadership of Archbishop Martin, the committee structura of the Trustee Board was revised to provide greater oversight of the areas of Finance, Buildings and Property, and Personnel. The remuneration of key personnel is disclosed in the Financial Statements, All employment matters and remuneration issues are overseen by the Trustee Board and reviews are undertaken periodically. Risk Managoment The Trustee Board, through the corporate governance framework identify and manage the rlsks to which the charity is exposed. The Trustee Board, aware of the various risks to which the Dlocesan Trust is exposed, particularly those relating to the operation and finances of the Trust, has establlshed a comprehensive planning Pfocess, together with established systems and procedures which enables them to assess and address risks. They have published and promulgated Internal controls for use throughout the Oiocese. The implementstion of these controls contlnues to be monitored and an ongoing assessment is being undertaken to ensure that systems are in place to manage th8 exposure to major risks. Dromore Diocesan Trust Report of the Trustee (continued) The main areas of risk identified and monltored by the Board Include; Safeguarding Compliance with Health & Safety, employment and other leglslation Reduction in active clergy numbers Reduction in voluntary income Incre.asing costs for the care of sick and retired clergy Reductlon In reserves due to capltal projects and other long-term commitments Compliance with data protectlon regulations. Achievements and performance The terrltory covered by the Dlocese of Dromore has a total populat5on of approximately 190,000 people of whom approximately 90,000 are Catholics. The Diocese conslsts of twenty-two Parishes, clustered Into five pastoral areas. Each pastoral area consists of a number of adjoining parishes united in the Interests of promoting and realizing the objects and the mission of the Diocese of Dromore within their local communities, Proclamatlon of th8 G08pel and Wor8hlp of God thln the Diocese, rellgion Is advanced through the provision of places ofworship, the facIlSta￿On of religious practice, and in partlcular the communlty celebrations of Mass. In most parishes, there Is a public celebration of Mass every day,. and on every weekend there are several communlty Masses celebrated In each parish over Saturday evenlng and Sunday morning. All such celebrations are open to the publiG Without any restricts'ons on attendance. In some parishes, where there Is a decllning number of clergy avallable, other forms of worship have been Introduced such as Llturgles of the Word and Eucharlstic Adoration, led by members of religious communltles or lay personnel. other actlvltles of the Charlty In this category Include the celebration of other religious ceremonies (Including baptlsms, weddlngs and funerals), running programmes in relation to spiritual formation and development, and encouraging and supporting inter-church relationships. As many of the places of worship within the Diocese are listed and some contain significant religious works of art and other artefacts which form part of our national heritage, these places are open to the general public and provide a public benefit to the whole community. They offer spaces for quiet reflection and spiritual contemplation. It is within the parish community that people experience what it is to be a member of the Catholic Church, It is in this context that faith is nurtured and given expression. Hence parishes provide, in various ways, for the moral and spiritual wellbeing of all parishioners. Opportunlty Is glven for practical manifestations of faith in various pastoral, social and educational activities many of which rely wholly on the voluntary involvement of parishioners, In the last year for which statistics are currently available (2023), there were 1,310 Baptisms {2022'. 1,306). 1,426 chlldren made their First Holy Communion {2022: 1,4181 and 1,579 young people received the Sacrament of Confirmation (2022,, 1,473), A total of 280 marriages (2022.. 297) were officiated In the same period, Dromore Diocesan Trust Report of the Trustee (continued) As well as pastoral care and the provlslon of the sacraments to the members of parish communitles, the Dlocese offers chaplalncy services to those who cannot be part of a regular parish communlty. A Hospltal Chaplalncy servlce is provided to Craigavon Area Hospitsl, while other clergy and lay pastoral vlsltors regularly visit other hospitals and nursing homes in the area frequented by members of the Dlocese. Each year, prlests and people of Dromore journey to ancient pilgrimage sltes within the diocese and beyond, The annual Diocesan pilgrimage to Lourdes and the pilgrimage to Knock have resumed following the interruptions caused by the COVID-19 pandemic. Since the challenging years of the COVID-19 pandemic, the pilgrimage director and Gommittees have been re-vltalising the annual pilgrimage with a view to returning to the treasured praGtiGe of bring sick and asslsted pilgrims to the shrine In France. By the start of 2023, parish life was returning to normal followlng the COVID-19 pandemic. While parishes continued to be cautious (taking cognisance of the elderly members of congregations), there was a welcome return to churches and to the celebratlon of the sacraments throughout this year. Provlslon of clergy and pastoral personnel Central to parish life is the relationship be￿een the priests, deacons and people. Clergy are not employees of the Diocese. However, in Canon Law the care and welfare of incardinated priests of the Diocese is mandatory and is, therefore, part of the Charity's on-golng commltments. For the main part, priests ministering in parishes organise, anlmate and motivate the local falth communities. They constantly strive to be witnesses of hope and authentic shepherds for thelr people. At the end of 2023 there were 14 diocesan priests actlve In the Diocese. The provision of dedicated, well-qualified and competent clergy to serve In parlshes and other ministries remains prlority for the Dlocese. Through means of regular conferences, retreats, courses, workshops and sabbatlcals the prlests of the Dlocese are kept informed and provided with guidance In regard to current Issues and developments In all aspects of ministry and mission. A key to sustaining the advancement of the Cathollc rellgion is the promotion and support of vocations to the Priesthood. The Vocations Director works closely with the local branches of St Joseph's Young Priests Society, a national12y organisation for the promotion and support ofcandidates for the priesthood. After Several years when there were no students in formation for the priesthood, in September 2018 two candidates entered the first year of their forrnation and one continues in formation in the academic year 2022-23, bringing the current totsl of seminarians for the years concerned to ￿0. In recent years, the Diocese introduced the Permanent Diaconate. The role of the Permanent Deacon is to be a helper to the bishop and priests, to proclaim by hi5 life the Church's call to serve the needs of others, to proclaim the Gospel message, to live a Ilfe of fidellty to Chrlst and the Church and to lead the community in building a Kingdom of grace, faith, Justlce and compasslon. The Diocese completed a cycle of discernment and training in January 2022. Flve candldates were selected to begin their formation in 2022 and four of these continued thelr preparatlon In 2023. Dromore Diocesan Trust Report of the Trustee (continued) The Important role played by Ihe many volunteers who are actlve In thelr parlshes cannot be overstated, and thelr contrlbutlon Is vltal to enabling the Dlocese to continue to fulfil and develop its stated objectlves. Volunteers glve generously of time and energy, sÈNing in various ministries as part of the worshlpplng communlty and also caring for and vlsitlng the sick, the housebound and thosè on the marglns of our society. They play a significant role in helping to maintain parish propèrtles and asslstlng In financlal and other admlnistrative duties such as through membershlp of parish and diocesan pastoral, finance and safeguarding committees. Such volunteers are often the lifeblood oftheir communities, It is not possible to quantify the number and range ofvolunte8rs active throughout the Diocese, nor is it possible to put a financial value on their involvement. Although th8 Charity relies on the donations from parishioners for its funding, access to religious services is never restricted on the grounds of ability to pay. In addition, members of the Catholic community are encouraged, as a consequence of their faith commitment, to contribute towards creating a better society by becoming active promoters of the Common Good within their local area through membership of other charities, local societies and community groups and by volunteering in all sorts of ways to benefit society in general. Besides the work accomplished at parish level, the Curia (the central admlnlstratlon of the Dlocese) coordinates and carries out a number of essentlal functlons necessary to the advancement of the Catholic religion at local, national and Internatlonal level. In order to do so, the Curla operates through a range of diocesan commisslons. commlttees and through various personnel charged with speclfic responslbllities. The Diocese contlnues to foster close relatlonshlps wlth other Christlan churches and to participate in important ecumenical activities, included the Week of Prayer for Christian Unity and the Irish Inter Church meeting which takes place annually in the Diocese. At clergy conferences, held on at least a quarterly basis, slgnificant liturgical moments are prepared for and discussed. The general well-being and care of clergy in active ministry is coordinated by the Dloces8n Curla. Priests, stipends and related matters are overseen and regulated by a Clergy Remuneration Committee. Equally important is the welfare of priests who are sick or retired. Thelr welfare Is the responsibility of a committee that administers the Clerical Provident Fund. The Diocese contlnue5 to engage wlth men and women who wish to undertake dls¢ernment in regard to vocations to the priesthood, the permanent diaconate and the religious and consecrated Ilfe. The Diocesan Vocations Dlrector, along with the Dlocesan Vocatlons Commlsslon. ¢oordlnates this essential mission mostly through the means of dlscernment groups, prayer viglls, dlscemment retreats and chaplalncy work in the post-prlmary schools of the Diocese. The objectives of the Charty are greatly supported. and the Ilfe of the Dlocese Is enrlched, by the Contribution made by the many members of Rellgious Institutions, Secular Institutions andlor Socletles of Apostollc Llfe servlng In the Dlocese. The Diocese of Dromore expresses its sincere gratitude to these men and women of falth for their mlnlstrles of generous service and sacrlfice Dromore Diocesan Trust Report of the Trustee (continued) Support for famllles Family Ministry within the Diocese is dedicated to strengthenlng marrlagè and families by coordinating programmes and ministrles that have faith as thelr foundation and Christ as their goal. By responding to the needs of today's families, as they strlve to Ilve in a very challenging culture and a rapidly changing world, Family Ministry serves as a resource for families, clergy and parish Communities. In collaboration wlth other groups, Family MiLiisty offers services and practical resources to asslst people, at all stages of Ilfe. in order to help them experience more fully the love and compassion of God in the ordlnary events of life. Among the various services provided with the Dlocese are: ACCORD Cathollc Marriage Care Service, Marriage Encounter, Engaged Encounter, Famllles Flrst (Parentlng Skills). Since the ending of the Covid-19 pandemic restrictions, various pastoral groups have been resuming in-person pastoral activities, home visitation and gathering5 which had been curtailed. A digital presence has continued for those who are vulnerable and most parishes whlch had developed an online liturgical presence and spiritual support activities have malntalned these resources which were highly valued by vulnerable members. The Universal Synodal Process within the Diocese The diocese continues to be involved in the universal synodal process with the steering committee overseeing meetings and discussions In 2022 and 2023 that fed into preparations for the first stage of the Unlversal Synod held In Rome in October 2023. The Dromore Diocesan Synod Core Group organised local and dlocesan-wide consultation leading to a Diocesan Syr)op5is submitted to the National Synodal Team In 2022. A Diocesan Synodal gathering took place in January 2023 to which the Apostolic Nuncio to Ireland was invited. In late 2023 this was followed up by the establishment of a Diocesan Pastoral Council pilot team which accepted the challenge of bringing alive a vision for the Diocese going forward, namely.. We will have vital and vlbrant parish communities that are sustainable for future generations. Four partlcular areas have been identified for ongoing action planning.. Pastoral Care of the Clergy; Communications., Falth Development resources; Effective pastoral and administrative structures to support the misslon of the Diocese. Dromore Diocesan Trust Report of the Trustee (continued) Provision of educatlonali pastoral and youth ministries Catholic schools withln the Diocese A key aspect of the contribution of the Dlocese to the local community is th8 large ne￿Ork of Catholic Schools. There are nine nursery schools, thlrty-seven primary schools and I￿e1ve post- prSmary schools In the Diocese wSth a total enrolment of approximately 22,000 pupils. The Diocese partlcipates In celebrating thls contrlbutlon In Catholic Schools Week, an event held throughout Ireland in JanuarylFebruary of each year. The Dlocese of Dromore remalns fully commltted, through its Catholic Schools, to maintaining, by way of a holisuc methodology, the highest standards in learning and thus continuing to offer academic excellence and faith-filled education to all young people. Many non-catholic parents choose to educate their childr8n in Catholic Schools, not least, because ofthe excellent education on offer but also the identifiable ethos of trust, mutual respect and recognition of responsibility to those in need. The Diocese offered support to school communities as they Struggled with the impact of closure and the difficulties of distance learning, From the inability to make pastoral vlslts to schools to th8 interruption ofthe public celebration of key moments the lives ofthe chlldren (e.g. the sacramental celebrations of First Communion and Confirmation), the pandemlc had a significant impact on young people and their spiritual development whlch is stlll hard to quantify. Parish communitie8 are to be praised for the provision of alternative afrangements for these key events under greatly restrlctlve clrcumstances. A new diocesan advlsory te8m was established working closely with partners in the Archdiocese of Armagh to share best practice, resources and ideas to support religious education and the ethos of Cathollc schools. Celebrations to mark Catholic schools week took place in January which were well attended by local schools at both primary and post-primary level. Schools Singing Programme 2022-2023 saw the roll￿Ut of 8 pllot project to encourage young people to enjoy the benefits of singing as part of their curriculum, while growing in their understanding of faith and Ilturgy. Partly funded by a UK charity, the project united 600 children from schools in the Archdlocese of Amagh and the Diocese of Dromore. The children benefited from free weekly, professional singing tuition aimed at raising pupil self-esteem as well as providing opportunitles for school staff to develop leadership skills in whole-class and group singing. 10 Dromore Diocesan Trust Report of the Trustee (continued) Youth Ministry The Dromore Youth Commisslon develops falth services to young people across the Dioces8. Developlng and nurturlng leadershlp skllls Is a key facet of its work, as the leaders of tomorrow arè to be found in the ranks of today's young people. Parental participation and contribution is encouragèd as drawlng the family Into thls youth work, draws them closer to God. The organisation of this ministry is led by the Diocesan Youth Director who coordinates over 75 volunteers across the Diocese. Volunteers undergo appropriate safeguarding vetting and training to prepare them for ministry, as well as specialist preparation for particular programmes hosted by the Commission. The Diocesan Youth Director maintains active engagement with the schools of the Diocese to support their work in the spiritual development of pupils. The Dlocesan Youth Commission maintains active collaboration with other agencies such as the Educatlon Authority Youth Service, YouthLink and other community youth initiatives at regional and national level. In partnership with the Archdiocese of Armagh, a group of young leaders attended World Youth Day in Portugal in Ju5y 2023 and a parallel "World Youth Day at Home" was organised for those who were unable to travel abroad. This included pilgrimage to Knock Shrine and Croagh Patrick In Co Mayo. A successful initiative (VAKS) to provide 42 young volunteers to assist at Kncck Shrlne was highly valued by the partlclpants In terms ofgrowing in faith, personal confidence and leadership skills. Summer camps in Newcastle, Co Down, attracted 70 young people and facilitated the trdlning of young leaders. 42 parents and grandparents travelled for a two-day residential experience at Knock Shrine to discuss support for young people and to develop parenting skills. Key programmes offered by the Youth Commlsslon are., 'Growing in Falth Together, (GIFTI offered to pupils after receiving the Sacrament of Confirmation, the Pope John Paul 11 Award offered to school-leavers. The activitie5 of the Youth Commisslon have resumed in 2023, Including the participation of students in the Pope John Paul11 Award. Safeguardlng The Dlocese Is commltted morally and legally to upholding the rights of children, young people and vulnerable adults. The Dlocesan Safeguardlng Office continues to co-ordinate and build upon the exlstlng good work of safeguardlng throughout the difficult circumstances of recent years, The Diocesan Safeguarding Office was led by Mrs Patricia Carville (Director of Safeguarding and Diocesan Liaison Person) who retired from post in January 2024 after 15 years of servlce. She has been replaced by Mr Stephen Sherry. Safeguarding information is readily accessible through the Diocesan website. The role of the Safeguarding Office is to develop and oversee the implementation of safeguarding practices for the Diocese, for both child protection and adult safeguarding, and to118ise wlth the statutory agencies in relation to the management of cases and the development of best practice. All the safeguarding personnel in the Diocese work to a Code of Practice in line wlth the National Board for Safeguarding Children in the Catholic Church in Ireland (NBSCCCII Standards and Guidance Document. Following the impact of the pandemic in previous years, there has been concerted effort on the implementation of a development plan written to ensure that parishes were compliant with the Standards for Safeguarding. This action was su¢cessfully implemented during 2023, 11 Dromore Diocesan Trust Report of the Trustee (continued) The Diocesan Safeguarding Committee meets regularly to review and support the work of the Safeguarding Office and is accountable to the Apostoli¢ Administrator. The Dlocese has opted to use, as its Advisory Panel, the National Case Management Committee of the National Board for Safeguarding Children (based in Maynooth> because of the expertise of the group and the fact thatthey were independent ofthe Diocese and objective in their perspectlve: the Diocesan Liaison Person meets wlth them ￿lce each year to dlscuss case management. Much has been achieved, particularly, by havlng so many dedlcated people providing exemplary support. It is important to note that the Diocese of Dromore safeguarding parish structures comprise of Local Safeguarding Coun¢lls made up of representatives who Ihemselves are vetted and tralned. These dedicated volunteers contlnue to maintain a uniqu8 and robust safeguarding structure designed to ensure that best practice Is drlven and maintained at parish level where chlldren, young people and vulnerable adults participate in parish activities, In 2023 the arrangements for Safeguarding in the Diocese of Dromore were independently reviewed by the National Board for Safeguarding Children in the Catholic Church in Ireland. The Review Report Is available on the diocesan website and shows thal the Diocese of Dromore is abiding fully with best practice in safeguarding standards. In 2021, the diocesan authorities and its legal advisors devised and Inltiated a Redress Schem8 for SUTvivors and victims of child sexual abuse perpetrated by members of the clergy and other representatives acting under the authority of the Diocese of Dromore. The scheme was initially scheduled to run for t￿0 years, but during 2023 the Diocese agreed to extend the scheme for a further six months to March 2024. Over 40 appllcations have been made to the scheme with the vast majority proceeding to resolutlon. A full report wlll be issued followlng the completion of the scheme. It Is vltally Important that the Dlocese has the necessary human and financlal resources going forward for safeguarding besl practlce and for responding, via counselling, support and just compensation and redress to those who have been abused. Being conscious that remalning diocesan funds are Ilmited, the Directors ot the Dromore Diocesan Trust have conducted a review to identify any diocesan assets that could be sold in order to meet existing and ongoing safeguarding responsibilities. Following an extenslve feaslbilty study during 2023, the Trust has identified lands at Armagh Road, Newry, which It proposes to sell in order to finance the Ilabillties of the Diocese. These lands, adjacent to, and including the existing Bishop's House, are In the ownership ofthe Diocese of Dromore. Given their proximity to the amenities of Newry City Centre and to various educational and retail facilities. It is understood that sections of the land would likely be very suitable for residential development In order to help meet the Identlfied soclal and private housing need in the Newry area. 12 Dromore Diocesan Trust Report of the Trustee (continued) Provlslon and malntenance of place8 of worshlp Churches play a central role in the spiritual life of Parishioners and along with parochial houses and other associated parish buildings they are often significant landmarks within the wider local community. Public benefit is provided through the provision of safe and worthy places ofworship and assembly for not only the Catholic community but for those who wish to make use of them for personal or spirit'Jal contemplation, Many of the Churches and associated bulldings are listed as being of special or historical architectural interest. The proper care of these buildings can be onerous but they are essential for the on-going realisation of the principal objéct of the Charity, the advancement of the Catholic religion, Church Buildlngs and their contents amount for approximately 75% of the tangibl8 fixed assets on the balance sheet of the Dromore Dlocesan Trust (see pag8 26 and note 13>. These churches are held by the Dromore Dlocesan Trustee In trust for each parish in which the churches are located. General malntenance, mlnorand majorschemes of renawal and projects of construction in regard to church bulldings and properties often require major outlays which are essential if these important structures, which form part of our national heritage, are to be maintained not lust for present use but for future generations. The management of this responsibility is on-going and is carefully regulated and professionally monitored so that legitimate requests for new works. renovations and adaptations can be readily assessed and progressed. The Diocese has in place insurance cover In respect of all Its bulldings so that public access should not be unduly restricted by lack of funds to repalr or restore buildings harmed as a result of accidental or other damage. Renovatlons to the exterlor of the sanctuary of Newry Cathedrdl were carried out in 2022-23. Thls work to Ilmlt Ingress of water and marked the commencement of phased series of renovations to the Cathedral In coming years. Fundral8lng The Trust recelves a large proportion of its income from donations, bequests and legacles from its supporters who are generally parishloners or those who have close connectlons to the Church. Without this valuable support the Trust would not be able to carry out most of its mission, The Trust is mindful of its duty of care to those who support it IncludSng vulnerable people, and therefore ensures that fundraising is done in a re5pon5ible and carlng manner, always bearing in mind that the people themselves are integral to the Church. The Trust does not require its parishioiiers to donate in order to share in the generous resources that God has provided fcr thelr use. It rather enGourage5 a culture of glving where thls Is possible and therefore places no pressure on its donors to give rnore than Is affordable. Our aim Is to lock after our parishicners and continue to engage with them in interests'ng, informalive and innovative ways. We continue to strive to reach out to new potential donors and dlverslfy revenue streams. The closure of churches for publlc worshlp durlng Ihe COVID-19 pandemic and the restrictions on capacity for worship in those years had a serlous Impact on the ability of parishes to raise funds. Efforts were made to engage parlshioners wlth onllne donations and standing orders, The Diocese was able to make an insurance claim on behalf of parlshes for Business Interruption, These claim5 were resolved to the sum of £662,000 for 2020 and £465,000 for 2021. 13 Dromore Diocesan Trust Report of the Trustee (continued) Ald to Impoverlshed and needy communltle8 worldwldo Trocaire is the official overseas development agency of the Catholic Church in Ireland. It was established by the Irlsh Blshops, Conferenc8 in 1973 as a means through which people contribute to overseas emergency relief and development aid programmes, Its dual mandate is to support the most vulnerable people in the developing world while, also, raislng awareness of injustice and global poverty. The Diocese of Dromore, despite its small size, is a significant contributor to the charitable work of Trocaire, and in 2023 contributed over £169,260 (with additlonal funds sent directly by parishioners to Trocaire). Management of Resources Oromore Diocesan Trust is governed by the Diocese of Dromore Trustee through its Board of Directors. The Directors meet regularly thioughout the year to attend to the financial, property, building, legal and administrative affairs of the Diocese. There are slx {2022.' eight) directors of the Dlocese of Dromore Trust8e. The Archbishop is Chair of the Trust Board. The Vlcar General is ex officio member of the Board, There are three lay and three priest members of the Trustee Board chosen by the Archbishop for their integrity, experience and expertlse. The Secretary for the Trustee Board, appointed by the Archbishop, is the Diocesan Financial Administrator, The Trustee Board has instituted a number of committees to assist and advlse it in the proper performance of its duties, including the Diocesan Building and Property Commlttee, The Diocesan Finance Committee and the Diocesan Personnel Committee. The Buildlng and Property Committee provides overslght and makes recommendations in relation to the area of bullding and property development and considers all capital expenditure budget requests. Thls Includes acquisitions, dlsposals, lettlng, leasing, licensing and any other form of allenatlon which alters the value of a propety. The Committee meets on a ￿0-monthlY basis and the Chalr of this Committee reports Its dellberatlon8 and makes recommendation8 to the Trustee Board. The Diocesan Finance Comm1tt8e provides oversight and m8kes recommendations in relation to the area of finance withln the Diocese and parishes as set out in the Administrative and Financial Guidelines. This includes strategic planning, fundraising, audit and reporting requirements, controls, investments, budgets etc. The Committee also meets on a two-monthly basis and the Chair of this Commlttee reports Its deliberations and makes recommendations to the Trustee Board. The Personnel Committee makes strategic recommendations on behalf of and to the Trust Board in relation to the area of parlsh and Diocesan personnel and human resource managernent. The Committ8e mèets on 8 ￿0-MonthlY basis to consider all issues relating to personnel, employment and remuneration. The Chair of this Committee reports directly to the Trustee Board. 14 Dromore Diocesan Trust Report of the Trustee (continued) Revlow of Flnanclal P8rformanc6 The detailed flnanclal results for the year ended 31 December 2023 are set out in the financial statements that accompany this report. The table below summarises the financial activities of the Diocese,, 2023 £'ooo 2022 £'ooo Parlsh88 Income Expendlture 4,282 (3,6971 3,835 (2,980) Net Income before assessment and transfers Diocesan Assessment and other transfers Investment property revaluation 585 1756) 712 855 (1,338) Increase l (decrease) in reserves Curia Income Expenditure Diocesan assessment and other transfers 541 (483) 288 (877) 756 625 <3.836) 1,338 Surplus l (deficlt) before investment galns Net galn l (loss) on Investments 167 {1,873) 103 (116) Investment propety revaluation 1,936 Increase l (decrease) in reserves 2,206 (1,989) Total increase l (decrease) in parish and Curia reserves 2,747 (2,472> Complete details ofthe income 2nd expendlture are shown in the statement of financial aGlivities on page 25 and in the notes to the accounts. Revlew of tran8actlon8 and flnanclal po8ltlon of the Charlty The principal funding source for parishes has contlnued to be donations from parlshloners through the Sunday offertory and other donalions which have been used primarily to fund the costs of pastoral activity, maintenance of buildings and administration in the particular parlshes In whlch the donations were received. This source of income is 79% of the parlsh total. Thls Increased from £2.6m in 2022 to £3.4m in 2023. Total Curia income decreased from £0.6m in 2022 to £0.29m in 2023. Total expendlture decreased from £3.8m in 2022 to £0.88m in 2023. 15 Dromore Diocesan Trust Report of the Trustee (continued) The reserves of the Charity at 31 December 2023 total £28.Sm (2022.. £25.7m) and of this total £29m relate solely to the assets and activities of Indivldual parlshes and are not available for the non-parish general purposes of the Charity. Curia total reserves aré in deficit {£0.5m) at the year- end. The Curia has a negative unrestricted reserves balance whlch has arisen due to the provision for liabilities and charges. The Trust regularly revlews Its potential liabilities in relation to safeguarding issues. As these have grown In recent years, resulting from an increase in the number of claims brought against the Dloc,ese, the curial unrestricted reserves have moved further into deficit. The Trust considers the resolutlon of safeguarding issues as of highest priority an¢J Is actlvely committed to seeking a resolution that brlngs some level of closure and restitution to the vlctlms. The Trust regularly revlews its potentlal Ilabilities and lists them on the balance sheet. It has also engaged In a process of identifying assets that can be realised to meet those Ilabllities. The Trust recognises that, the In Ilne with ils fixed assets policy, the carrying value of Its fix8d assets on the balance sheet is stated at cost less depreciation which is considerably less than the realisable value of those assets. The Trustee Board have identified unrestricted assets that could be sold to redress the negative reserves balance {see report on Safeguarding on pages 11-12). The Trust has determined that, once resolv8d, its future internal InGomes and expenditures can be managed In the medium term to accumulate sufficlent assets to offset any remaining deficit in these reserves. Investment Pollcy and PorformanGe The Trust Deed authorises the Trustee to make and hold investments. The Trustee has appolnted Davy Charities as Investment Managers. The managers have full discretion to Invest. subject to the parameters laid down by the Trustee. There is a regular review of informatlon from the Investment Managers whlch monltors the performance of the portfolio and the Investment strategy. Further details are set out at note 14. At present the Diocesan Finance Committee liaises with the current Inv8Stment managers, monitors the performance and reports to the Trust Board. Under Charity Law the Trust Board must seek to obtain the best financial return possible consistent with commercial prudence. Invoslment Objectlves The Trustee Board has adopted investment objectives that seek to protect and enhance the real value of the Diocesan Assets over the long term whlle also achleving agreed rates of income generation. In fulfilling these objectives, the Trustee Board adheres to an ethical policy that preclude5 investrnent in asset classes directly or mainly Involved in the manufacture andlor supply of goods and services which are not in accordance with the teachings of the Roman Catholic Church. Environmental issues are also a factor with the Trustee Board seeking to invest in low carbon or carbon neutral investments, In Mar¢h 2020, the Trustee Board approved to divest from all companies directly involved in fossil fuels in the Dlocesan Trust's Investment Portfolio. The Diocesan Trust Investment Portfolio (£1.,105m) currently managed by Davy Investment Managers is invested over the medium to long term wlth emphasis on current income with a low- medium risk profile. 16 Domore Diocesan Trust Report of the Trustee {continued) Reserves Policy The Trust recognises that its income arises primarily from voluntsry donations and that accordingly it is important to seek to carry adequate levels of reserves to ensure its abllity to meet future expenditure commitments as they arise, Parishes are encouraged to maintsin adequate short-term reserves to ensure that they Can meet operating costs in the short-term and to build longer-term reserves that will be available if substantial commitments, such as bulldlng refurblshment projects, arise in the future. The Diocese centrally aims to malntaln adequate levels of reserves to meet Diocesan operating costs in the short to medium term and to provide for any slgnificant expenditures and Contingencies that may arise at future dates Unrestricted funds are not all freely avall8ble, should the charity need immediate access to reserves. In order to ensurè that the organisatlon has access to funds it is necessary to adjust unrestricted reserves as recommended by SORP 2019 by excluding Fixed Assets as it would be unlikely that the organisatlon would be able to liquidate the fixed assets in a timely manner. Our reserves position is heavily impacted by our high asset base which includes Churches which the Board have no intention ofselling. The Trustee Board monitors our reserves position and the cash In bank balances on a regular basis to ensure there is no immediate risk to the Trust. The Charity recognises that by excluding Fixed Assets it has a negative unrestricted rese￿eS balance. The Charity has been impacted by an increase in its provision for liabilities this year. The Trust has a strong cash position at the year end 2023 of £3.6m which equates to twenty four months of planned operating expenditure going fotward. The Charity will continue to monitor thls position and actlvely take steps to address this position by realislng assets and reducing costs. The Charity's targeted pollcy is to maintain 6 months unrestrlcted expendlture as free reserves and It will continue to work to achieve thls posltlon of Ilquidity- Flnanclai Managemont With the pro-active involvemènt of the Trust Committees, Diocesan resources are managed to tightly control all costs In particular property and human resourceslemployment Costs. The Trust Committees pursue a policy of obtaining value for money and protection of DioGesan assets. The management of the Trust property buildings, with input from the Building and Property Committee, 15 time Gonsuming and costly. However, the resource of property is key to engaging wlth the Charfjty's stakeholder5 and essential for the public benefit it provides. The Personnel Commlttee focuses on the costs of employments and compensatlng employees falrly. The Flnance Committee monitors general overheads, one-off expenditure and the financial Implications of the Building and Property Commlttee declslons as well as acting as a sounding board for all the Trustee Commlttees. Targeted fundraising is employed when major expenditure projects are being planned which would otherwise put too much strain on existing resources. Future plan8 This brief overview reflects the work of the charity in the current year and also indicates its on- going commitment in regard to fulfilling the principal aims and objectives of the Charitable Trust into the future, The Diocese of Dromore will continue to build upon and develop the initiatives and activities outlined in the narrative above and so continue to fulfil the principal aims of the Charity. In addition, a primary focus of the Trustee is to secure the long-term financial stability of the Diocese, The appointment of Archbishop Eamon Martin, as Apostolic Administrator, means that the Diocese continues to manage the issues facing the diocese, Periodically the Trustee undertakes a review exercise in respectofall aspects ofthe activities ofthe Charity through reports from Parish Priests, Parish Administrators and the various bodies which are constituent parts of the Diocese, The Trust will continue to build upon the work undertaken to date and will continue to foster strategic 17 Domore Diocesan Trust Report of the Trustee (continued) stakeholder engagement. In support of our work, excellent organisalional governance will remain a priority focus, ensuring compliance and delivering required assurances to all our stakeholders. The financial statements reflect a deficit in unrestricted curia reserves at the end of the year of £3.1m that has arisen from the increasing provision for claims made against the Diocese and the cost of the Redress Scheme launched in September 2021. The Board of Directors of the Trustee have met on numerous occasions since being informed of the increasing provision for claims. It has taken advice from legal and financial specialists and is implementing a plan of actlon. Firstly, Truslee is reviewing the assets hold within the Curia to identify those assets that can be reallsed and generale gains that will allow the unrestricted curia funds to settle the 118billties within the provision as they fall due. It is expected that the provision will fall due over a number of years. Secondly it has been reviewlng all assets to establish more clearly which are clearly restricted and beyond the use of the Curia, Thirdly, it has commenced actions wlth assets that have been identtfied with development potential and the Trustee has commenced dlscussions around the process of Incréasing the asset value wlth a vlew to selllng these to developers. Finally, it is exploring other avenués to raise funds that can be utlllsed for the settlement of claims. The Trustee Is of the oplnlon that assets can be identified and work undertaken to increase their value and these can be subsequently Sold and gains achieved to allow the unrestricted curia funds to settle tho liablllties wlthin the provislons as they fall due, Signed on behalf of the Trustee on: 31 October 2024 Most Reverend Eamon Martln, Apostollc Admlnlstrator Reverend Feldhlimldh Magennis 18 Dromore Diocesan Trust Statement of Trustee's responsibilities The Trustee is responsible for preparing theTrustee's Annual Report and the financial statements of the Dromore Diocesan Trust In accordance wlth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in Northern Ireland requires the Trustee to prepare financial statements for each financial year which give a true and fairview ofthe state ofaffairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustee is required to: select suitable accounting policies and then apply them consi8tently', observe the methods and principles in Ihe Charities SORP 2019 (FRS1021; make judgements and estlmates that are reasonable and prudent., state whether applicable accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statement8', prepare the flnancial statements on the golng concern basis unless It is inappropriate to presume that the charlty will continue in operation. The Trustée Is responslble for keeping proper accountlng records that dlsclose with reasonable accuracy at any tlme the financlal poslllon of the Charity and enable the Trustee to ensure that the financial statements comply wlth the Charities Act (Northern Ireland) 2008, the Charities {Accounts and Reports) Regulations (Northern Ireland) 2015 and the provisions of the trust deed. The Trustee is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Signed on Behalf of the Trustee on 31 October 2024 Most Reverend Eamon Mgrtin, Apostolic Administrator Reverend Feidhlimidh Magennis 19 Independent auditors, report to the TTUStee of DTomore Diocesan Trust Dlsclalmer of Oplnlon We were engaged to audit the financial statements of Dromore Diocesan Trust {th8 'charity") for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the flnanclal statements, including a summary of significant accounting policies, The financial reportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard 8ppllc8ble in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounts-ng Practice} and the Charities SORP (FRS 102). We do not express an opinion on the accompanylng financlal statements of the charity, Because ofthe significance of the matters descrlbed in the Basis for Disclaimerof Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provlde a basls for an audlt opinlon on these financlal statements. Basls for Dl8clalmer of Oplnlon The charity has a provlsion for liabilities, as set out in note 18, that has created a deflclt In unrestricted reserves within the Curia, as set out in note 19, We have been unable to obtain sufficient audit evidence that the charity will be able to settle the Ilabllltles wlthin the provislon as well as addressing the deficit in the curia unrestricted funds to prepare the financlal statements under the going concern basis, As a result of this matter, we were unable to determine whether the charlty Is 8 going concern and any adjustments that might need to be made If the financial statements are not prepared on the going concern basis. Other Information NO￿lthstanding our dlscialmer of an oplnlon on the financlal ststements, Sn the Ilght of the knowledge and understanding of the charity and its environment obtained In the course of the audit performed subject to the pervaslve limitatlon described above, we have not identified material misstatements in the irustee's report. The comparative financial statements are unaudited. 20 Independent auditors, report to the Trustee of Dromore Diocesan Trust (continued) Matters on whlch the audltor Is required to report by oxceptlon Arising from the limitation of our work referred to above, we have not obtained all the information and explan8tions that we considered necessary for the purpose of our audit. We have nothing to r&port in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 require us to report to you If. in our opinion.. sufficient accoijnting records have not been kept; or the financial statements are not in agreement with the accountlng records. Responsibilities of Trustee As explalned more fully in the Trustee's responslbllltles statement set out on page 20, the Trustee Is responsible for the preparation of financial statements which give a true and fair view, and for such Internal control as the Trustee delermlnes Is necessary to enable the preparation of financial statements that are free from materlal mlsstatement, whether due to fraud or error. In preparing the financial stat8ments, the Trustee is responslble for assessing the charity's abillty to continue as a going concern, disclosing, as applicable, matters related to golng concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilltie5 for the audit of the financlal Statements Our responslbility is to conduct an audit of the charlty's flnancial statements in accordance with International Standards on Auditing (UK) and to Issue an auditor's report. However, because of the matter described In the Basis for Disclaimer of Oplnion section ofour report, we were nol able to obtain sufficient approprlate audit evidence to provide a basis for an audit opinion on these financial statements. We are independent of the charily in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responslbilities in accordance with these requlrements. 21 Independent auditors, report to the Trustee of Dromore Diocesan Trust {continu8d) Irregularities including fraud We have been appointed as audltor under sectlon 65(2}3 of the Charities Act (Northern Ireland) 2008 and report in accordance with the Act and relevant regulations made or havin9 effect thereunder. Our objectlves are to obtain reasonable assurance about whether the financial statements as whole are free from materlal mlsstatement, whether due to fraud or error, and to issue an auditorfs report that Includes our oplnlon. Reasonable assurance is a high level of assurance, but is not a guarantee that an audlt condurted In accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or In the aggregate, they could reasonably be expected to influence the economic decisions of users taken on th6 basis of th8se financial statements. The extent to which our procedures are capable of detectlng irregularities, Includlng fraud Is detailed below: Our approach was as follows; We obtsined an understanding of the legal and regulatory frameworks that are applicable to the entlty and determined that the most significant are those that relate to.. the charltable status of the Charlty and Its registratlon with Th8 Charity Commission for Northern Ireland under the Charitles Act (Northern Ireland) 2008 and the Charities Act (Northem Ireland) 2013., compliance with the Charities SORP (FRS 1021 (second edition October 2019) Accounting and Reporting by Charities,, Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019): data protection laws (including UK General Data Protection Regulatlon (GDPR)),. 8nd safeguarding of children, young people and adults In need of protectlon. We assessed the risks of material misstatement in respect of fraud wlth the consideration of,. the Charlty's own assessment of the rlsks that Irregularities may occur elther because of fraud or error that was approved by the dlrectors of the Trustee., the results of our enquiries of managément and the Audit Committee about their own identification and assessment of the risks of irregularities., any matters we Identlfied havlng obtained and reviewed the Charity's documentstion of their policles and procedures relatlng to: Id8ntlfylng, evaluatlng and complying with laws and regulations and whether they were aware of any instances of non-compliance., detecting and respondlng to the rlsks of fraud and whether they have knowledge of any actual, susp8Cted or alleged fraud., 22 Independent auditors, report to the Trustee of Dromore Diocesan Trust (continued) the internal controls established to mltlgate rlsks of fraud or non-compliance with laws and regulatlons., and the matters dSscussed among the audit engagement team regarding how and where fraud mlght occur In the financial statements and any potential indicators of fraud. Based on the results of our risk assessment we designed our audit procedures to Identify non- compliance with such laws and regulations identified above. we considered the opportLinities an(1 incentives that may exlst wlthin the organisation for fraud and identified the greatest potential for fraud in the areas of the controls covering the receipt of donations and offerings that are received in cash and in which management is required to exercise significantjudgment, such as disclosure of adjusting items. In common with all audits under ISAS {UKI, we are also required to perform Specific procedures to respond to the risk of tnanagement overrlde. we also obtained an Ltnderstandlng of the leg81 and regulatory framework that the Charity operates in, focusing on provlslons of those laws and regulations that had a dlrect effect on the determination of materlal amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included Nl Charity legis18tion (Includlng the regulator, The Charities Commission for Northern Ireland) and the Charity SORP. in addition, we considered provisions of other laws and regulatlons that do not have a direct effect on the financial statements but compllance wlth which may be fundamenlal to the charity's ability to operate or to avoid a material penalty. This included data protection and safeguarding. we made enquiries of management and those charged with governance and revSewed minutes of the Board of the Trustee and Parish Finance Committees and enquired about any communlcatlons wlth the charity regulator. Audlt procedures deslgned to respond to the rlsk8 of fraud we considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. we consldered the rlsk of fraud through transactlons outslde the normal course of transactions by noting anything that was unusual in nature or size and enquired about such transaction to gain an understanding of their nature: based on the results of our rlsk assessment we deslgned our audit procedures to identify and to address material misstatements In relation to fraud and other irregularities, we reviewed the operation of the controls within the Parishes over the collections, donations and offering5 and the segregatlon of duties within those controls and those controls within the Curia, together wlth substantive testing and analytical review and incorporatlng an element of unpredSctabillty in th8 selection of the nature, timing and extent of audit procedures. we evaluated the selectlon and appllcatlon of accounting policies by the Charity, partl¢ularly those related to subjective measurements and complex transactions, that may be indicative of fraudulent financial reporting. 23 Independent auditors, report to the Trustee of Dromore Diocesan Trust {Gontinued) Use of our report This report is made solely to the charity's Trustee, as a body, in accordance with Part 4 of the Charlties (Accounts and Reports) Regulations (Northern Ireland) 2015. Our audit work has been undertaken so that we might state to Ihe charity's Trustee those matters we are required to stat8 to the Trustee In an auditor's report and for no other purpose. To the fullest exlent permitted by law, we do not accept or assume responslbility to anyone other than the charity and the charity's Trustee as a body, for our audit work, for thls report, or for the oplnions we have formed. Hlll Vellacott Chartered Accountants and Statutory Auditor 22 Great Victoria Street, Belfast, B T2 7BA 31 October 2024 Hill Vellacott is eligible to act as an auditor in terms of section 1212 of the Companles Act 2006. 24 I/J c> CO￿ 8couz ￿ kuuuc ZZ(g ZL 4VQ 118 ¥3 3 ¢yrn UOL> Dromore Diocesan Trust Statement of cash flows 31 December 2023 2023 £'ooo 2022 £'ooo Cash flow from operatlng actlvltl88 Net {expenditure) Investment income Depreciation (Increase) In debtor5 (Decrease) l increase in creditors (Decrease) I Increase in provisions (Galn) on dlsposals of assets {4) (2,355) (2) 301 (483) 975 2,185 (501 282 (98} <1,215) 165) Net cash (used in) I generated from operatlng activities (1,106) 551 Cash flows from Investlng actlvltl68 Investment income received Purchase of tangible assets Sale of tangible assets (12) 700 565 Net cash generated from Invesllng actlvEtles 568 890 Net (decrease) l increase in cash and cash equivalents Cash and cash equivalents at 31 December 2022 1538) 4,171 1,241 2,930 Cash and cash equivalents at 31 Docemb?r 2023 3,633 4,171 Cash and cash equivalents consists of: Cash at bank and In hand Bank overdrafts 7,260 (3,627) 7,587 (3,416) 21 3,633 4,171 27 Dromore Diocesan Trust Notes Accounting pollcles Summary of significant accounting policles General information and basis of preparatlon Dromore Diocesan Trust is a registered Charity in the Unlted Klngdom. The address of th8 registered office is given in the charity information on page 2 of thesè financial statements. The nature of the charity's operations and principal activities are.. The advancement of the Ronian Catholic religion In the Roman Catholic Dromore Diocesan Trust subject to any future ¢urtailment or addition of area made in accordance with the laws and regulatlons of the Roman Cathollc Church. The advancement of any charilable purpose supported by the Roman Catholic Church throughout the world or In any part of the world. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charltles: Statement of Recommended Practice applicable to charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republlc of Ireland issued in October 2023, the Financial Reporting Standard appllcable In the United Kingdom and Republic of Ireland (FRS 102), the Charitie5 Act 2008 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a golng concern basis under the historlcal cost convention, modified to include certaln Items at falr value. The financlal statements are prepared in sterling which Is the functlonal currency of the charity and rounded to the nearest £000. The significant accounting policies applied in the preparation of these finanGlal statements are set out below. These polici88 have been consistentty applied to all years presented unless otherwise stated. Judgement8 and key Sources of estlmatlon uncertalnty The preparation of the financial ststements requlres the Trustee to make judgements, estimates and assumptions that affect the amounts reported. These estimates and Judgements are continually revlewed and are based on experience and other factors, ncluding expectations of future events that are belleved to b8 reasonable under the clrcumstsnces. Slgnlflcantjudgements The judgments (apart from those involving estimations> that management has made in the process of applylng the entity's accountj'ng policies and that have the most significant effect on the amounts recognlsed In the financial statements are as follows,, Going concern The financlal statements have been prepared under the going concern con¢ept under which the Trustee has revlewed a period of at least 12 months from the date of approval of these financial statements and has exercised judgèment that the charity can continue to operate, The claims agalnst the charity have been recognised within curia unrestricted funds and the curla unrestrlcted funds are In deficlt at the start of the year and at the end of the year, The charity continues to explore options to address the curia unrestricted fund deficit and in the Trustee's judgement, the deficit can be addressed. 28 Dromore Diocesan Trust Notes (continued) Tangible ass8ts Church property wlthln the parlshes and curia propety is ststed at cost less accumulated depreciatlon and the Trustee will exercisejudgement when identifying Ihe useful Ilfe and the rèsldual value of those assèts. Key source8 of 08tlmatlon uncortalnty Accounting estimates and assumptions are made concernlng the future and, by their nature, will rarely equal the relaled actual outcome. The key assumptions and other sourc£,s of estimation uncertainty that have a significanf rlsk of causing a material adjustment to the carrying amounts of assets and liabilities wlthln the next financial year are as follows: R8V81u8tlon of Inv8stm8nt prop8rtles The charlty carrles the Investment properties at fair value with changes In fair value being recognised In the SOFA. The Trustee has used available expertise to determine the fair value, based on market value of the investment propertie5. Further Information is available at note 13. Provlslons for liabilrfles and charges - J8gal cl8ims The charity has provided for the value of claims and the associated legal costs that have been notlfled to the Trustee. The Trustee has taken advice from the solicitors engaged In the clalms to afflve at the amount provided. The details of the amount provided 15 included In note 18. Fund8 Unrestricted funds are available for use at the discretion of the Trustees In furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set asld8 by the Trustees for particular purposes. The aim and use of each designaled fund is set out In the notes to the financial statements. Restricted funds are funds which are to be used in accordance wlth specific restrictions imposed by donors or which have been raised by the charity for partlcular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements, Endowment funds represent those assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance wilh the objects of the charity and is included as unrestricted income. Any capltal gains or losses arising on the investments form part of the fund, Investment management charges and legal advice relating to the fund are charged against the fund. 29 Dromore Diocesan Trust Notes (continu8d) Income recognltlon All incoming resources are included in the Statement of Financial Activitles (SOFA) when the charity is legally entitled to the income after any performance Conditions have been met, the amount can be measured reliably and it is probable that the income will be received, For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and thls requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is Wlthin the control of the charlty and it is probable that they will be fulfilled. Donated facilitl8s and donated professional Services are recognised in income at their falr value when their economic benefit is probable, it can be measured reliably and the charlty has control over the item. Fair value is determined on the basis ofthe value ofthe glft to the charity. For example, the amount the charity would be willing to pay In the open market for such facilities and 5ervice5. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line wlth the SORP (FRS 102). Further detail is given in the Trustee's Annual Report. INhere practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon recelpt, If it Is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a componenl of donations when it is distributed and an equivalent amount recognised as charitable expendlture. Gifts in kind donated for resale are included at falr value. belng the expected proceeds from sale less the expected costs of sale. Where estlmating the falr value is practicable upon receipt it is recognised in stock and 'lncome from other tradlng activltles,. Upon sale, the value of the Stock is charged against 'lncome from other trading activities, and the proceeds are recognlsed as 'lncome from other trading activitles,. Where it is impracticable to fair value the items due to the volume of low value Items they are not recognised in the fi'nancial statements until they are sold. This income Is recognised wlthin 'lncome from other trading activities,. Fixed asset gifts in kind are recognised when recelv8ble and are Included at fair value. They are not deferred over the life of the asset. For legacies, entitlement is the earlier of the charity being notified of an impending distrlbution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the Charity however il is not possible to measur8 th8 amount expected to be distributed. On these occasions, the legacy is treated as a conts-ngent asset and disclosed. Income from trading activities includes income earned from fundralslng events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurrèd. The charity receives government grants in respect of running costs and upkeep of properties. Income from governmènt and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the in¢ome will be received and the amount can be measured rellably. If entitlement is not met, then these amounts are deferred. 30 Dromore Diocesan Trust Notes (continued) Investment income is earned through holding assets for Investment purposes such as shares and propety. It includes dividends, interest and rent. Where it is not practicable to identify Investment management costs Incurred wlthin a scheme with reasonable accuracy the Investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest Income Is recognised using the effective interest method and dlvldend and rent Income Is recognlsed as the charity's right to receive payment is establlshed. other Income Includes the converslon of endowment funds into income which arises when capital funds are released to an income fund from expendable endowments or when a charity has authority to adopt a total return approach to its permanent endowment fund, It also includes other income such as gains on disposals of tangible fixed assets. Expondlture recognltlon All expenditure is accounted for on an accruals basis and has been classified under headlngs that aggregate all costs related to the category. Expenditure is recognised where there Is a legal or conslructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured rellably. It is categorised under the following headings.. Costs of raising funds includes cost of fundraising from within the Parlsh and Curl8. Expendlture on charltable activities includes administration costs, bank fees, depreciation and premises expenses, other expenditure reprosents those items not falling into the categoriés above. Irrecoverable VAT is charged as an expense againsl the activity for which expendlture arose. Grants payable to third parties are within the charitable objectives. ￿ere uncondltlonal grants are offered, this is accrued as soon as the recipient is notified ofthe grant, as this gives rlse to a reasonable expectatlon that the recipient will receive the grants. Where grants are condltlonal relating to performance then the grant is only accrued when any unfulfilled condltions are outside of the control of the charity. Resource8 expended Resource expended are included In the statement of flnancial affairs on the basls of the amounts payable for work done and setvlces provlded in the year. The costs of activities in the furtherance of the charlty's oblectlves consist of all expenditure directly related to the objectives of the Diocese. The costs of generating funds consist of expenditure incurred by the charity in encouraglng others to make contributions to it, Governance costs include those incurred in the governance of its assets and are prlmarlly associated with constitutional and statutory requirements. 31 Dromore Diocesan Trust Notes (continu8dJ Tanglble flxed assets Curia buildings The Trustee's view was that a reasonable approximation of the net book valu8 of the curial propety held at 31 December 2014 would be establlshed through dlscounting the insurance values of these assets by 909/0. Depreclation is provided at rates calculated to write off the cost less resldual value of each asset over its estimated useful economic life at 0.67% straight Ilne. Parlsh land Parish land is divided Into dlfferent categories and has been valued by the Trustee uslng a value per acre, depending upon the type of land that is held, to arrlve at deemed cost. Church property and contents Prlor to 2015, the accounting pollcy applled was for capital expenditure to be written off in full as incurred. As a result of that pollcy, the origlnal costs and accumulated depreciation of all church property and contents held then was not available. The Trustee's view was that a reasonable approxlmatlon of the net book value of the church propety and contents held at 31 December 2014 would be established through discounting the insurance values of these assets by 900/0. This was th8 policy 8mployed to include the assets on the balance sheet at estimated historic cost net of accumulated depreciation, Of the 22 parishes, all wlll have a church and a presbytery and some will have oratorie5 and halls. Church property and contents depreciation is provided at rates calculated to wrlte off the cost less residual value of each asset over its expected useful life at 0.67 /0 pa stralght Ilne, Other tangible fixed asgets Other tangible fixed assets are stated at cost less depreciatlon. Addltlons are capitalised where the value exceeds £1,000. Depreciation Is provlded at rates calculated to write off the cost less residual value of each asset over its expected useful Ilfe, 8s follows.. Fixtures, fittings and equipment 100/0 reducing balance (curia) 100/0 reducing balance (parishes) Investment proport188 Inv88tment propertles for whlch falr value can be measured reliably without undue cost or effort are measured at falr value at each reportin9 date with changes in fair value recognised in 'net galns l (losses) on Investments. in th8 SOFA. Inve8tm8nts Investments 8re recognlsed Initlally at market value at the balance sheet date which is normally the transactlon price excluding transaction costs. Current ?sset Investments are short term hlghly Ilquld Investrnents and are held at fair value. These include cash on deposit and cash equivalents wlth a maturity of less than one year. 32 Dromore Diocesan Trust Notes (continued) Debtors and cr6dltors r8¢olvable I payable wlthln one year Debtors and creditors with no stated interest ratè and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. Cash and cash equlva16nts Cash and cash equlvalents In the balance sheet comprlse cash at banks and in hand and short term deposits wlth an orlginal maturlty date of three months or less. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. Loans and borrowlngs Loans and borrowlngs are Inltlally recognlsed at the transactlon prlce including transactlon costs. Subsequently, they afe measured at amortised cost using the effectlve Interest rate method, less impairment. If an arrangement constitutes a finance transactlon It Is méasured at present value, Concosslonary loans Concesslonary loans Include those recelvable I payable which are interest free or below market interest rates and are made to advance charitable purposes, Where the loan is repayable more than one year, the loan is initially measured at fair value £nd subsequently measured at amortised cost using the effective interest rate method, less impairment. Impairment Assets not measured at fair value are reviewed for any indication that the asset may be Impaired at each balance sheet date. If such indication exists, the recovefable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount, IM)ere the carrying amount exceeds its recoverable amount, an Impalrment loss is recognised In the SOFA unless the asset is carried at a revalued amount where the Impairment loss is revaluatlon decrease. Provlslons Provisions are recognised when the charity has an obligation al the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement 2nd the amount can be reliably estimated. Lease5 Assets acquired und8r finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life ofthe asset. Minimum lease payments are apportioned be￿een the finance charge and the reduction of the outstanding lease liability using the effective interest method. The relat8d obligations, net of future finance charges, are included in creditors. Rentals payable and recelvable under operatlng leases are charged to the SOFA on a straight- line basis over the period of the18as8. 33 Dromore Diocesan Trust Notes (continued) Forelgn currency Foreign currency transactions are initially recogniséd by applying to the foreign currency amount the spot exchange rate between the functlonal currency and the foreign currency at the date of the transactlon. Monetary assets and Ilabilities denominated in a ft)relgn currency at the balance sheet date are translated using the closing rate. T•rmlnatlon b8nèflts Termlnatlon benefits are payable when employment is termlnated beft)re the normal retlrement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The charity recognises termlnation benefits when it is demonstrably committed to elther (i) terminatlng the employment of current employees according to a detailed formal plan without possibility of withdrawal or (il) providing terminatlon benefits as result of an offer made to encourage voluntary redundancy, Tax The Trustees conslder that the Charlty Is largely exempt from Income tax under the provislons of the Income and Corporation Taxes Act 1988 and the Taxation of Taxable Gains Act 1992. ReGovery is made of tax deducted from Income and from receipts under Gift Aid. The charity is riot able to recover Value Added Tax, Expenditure is recorded in the accounts inGlusive of VAT. 34 Dromore Diocesan Trust Notes (continued) Voluntary Incomo Parishes Unrestricted Restrlcted fund5 fund8 £'ooo £'ooo Total 2023 £'ooo Offertoriès, donatlons and legacies 2,827 673 3,400 2,827 573 3,400 Unrestricted funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Offertories, donats'ons and legacies 2,120 512 2,632 2.120 512 2,632 Curial and pastoral Unrestrlcted Restrlcted funds funds £'ooo £'ooo Total 2023 £'ooo Donations and glfts 107 26 133 107 26 133 Unrestricted funds £'ooo Restrlcted funds £'ooo Total 2022 £'ooo Donations and gifts 218 38 256 218 38 256 35 Dromore Diocesan Trust Notes (contlnued) Investment Income Parishes Unrestrlcted Rè8trlcted funds funds £'ooo £'ooo Total 2023 £'ooo Bank Interest Unrestricted fund5 £'ooo Restricted funds £'ooo Total 2022 £'ooo Bank interest Curlal and pastoral Unrestricted Restricted funds fund8 £'ooo £'ooo Total 2023 £'ooo Listed investments Unrestricted funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Llsted Investments 36 Dromore Diocesan Trust Notes (continued) other Income Par18h08 Unrestrlcted Re8trlcted fund8 fund8 £'ooo £'ooo Total 2023 £'ooo Insurance Claims 38 38 38 38 Unrestrlcted funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Insurance Clalms 489 489 489 489 Curlal and pastoral Unre8trlcted Re8trlcted funds funds £'ooo £'ooo Total 2023 £'ooo Insurance Claims Unrestricted funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Insurance Clalms 79 79 79 79 37 Dromore Diocesan Trust Notes (Gontinued) Incomlng r880urc88 from charltablo actlvltl88 Parl8he8 Unrestricted Restricted funds funds £'ooo £'ooo Total 2023 £'ooo Fundraising Booklets and pllgrfmages Other incoming resources from charitable activities Capital grants recetved other Grants Recetved Youth Mlnlstry 344 222 344 222 120 37 107 120 37 107 14 14 830 14 844 Unrestricted funds £'ooo Restrlcted funds £'ooo Total 2022 £'ooo Fundraising Booklets and pilgrimages Other incoming resources from charftable acts'vities Capital grants recelved Other Grants Received Youth Ministry 310 212 310 212 98 32 98 32 12 12 652 12 6e4 38 Dromore Diocesan Trust Notes (continu8d) Incoming resources from charitable activities (continued) Curial Unrestricted Restrlcted funds fund8 £'ooo £'ooo Total 2023 £'ooo Youth Commisslon Income Youth Ministry Sick and retired priests Family Care Collection Education of Priests Collection Rent Receivable Bank I nterest rec'd Other Grants Recelved 30 30 23 23 26 26 28 58 86 Unr&stricted funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Youth Commission Income Youth Ministry Sick and retired priests Family Care Collection Education of Priests Collection Rent Receivable Bank Interest rec'd Other Grants Recelved 21 21 {1) (1) 12 251 251 256 32 288 39 Dromore Diocesan Trust Notes (contlnued) Net gainsllosses on disposals of fixed assets Unrestricted Restrlctèd funds funds £'ooo £'ooo Total 2023 £'ooo Profltl(Loss) on 8ale on tanglble flxed assets Parlshes Curia 65 65 65 65 Unrestricted funds £'ooo Restrlcted funds £'ooo Total 2022 £'ooo ProfiU(Loss) on sale on tangible fixed assets Parishes Curia 50 50 50 50 40 Dromore Diocesan Trust Notes (continu8d) Costs of generating funds Parlshos Unr88trlcted R88trfcted fund8 fund8 £'ooo £'ooo Total 2023 £'ooo Fundraising costs 11 11 11 Unrestricted funds £'ooo Restricted fund5 £'ooo Total 2022 £'ooo Fundraising costs 11 11 11 Curial and pastoral Unre8trlcted Re8trlcted fund8 fund8 £'ooo £'ooo Total 2023 £'ooo Fundraising Costs Unrestricted funds £'ooo Restrl¢ted funds £'ooo Total 2022 £'ooo Fundraising costs 41 Dromore Diocesan Trust Notes (continued) Co8t6 of actlvltl88 In furtherance ol charltable actlvltles Parlsh?s Unrestricted Restricted funds funds £'ooo £'ooo Total 2023 £'ooo Administratlon costs Bank interest Parish centre costs School payments Prlest Welfare Payments Clerical Provident Society Premises costs including insurance Repairs and maintenance Gr05s salaries and employers, NIC costs Votives and liturgical costs Cemetery Maintenance Depreciation other Costs 86 86 60 37 60 37 396 396 887 920 425 182 313 282 98 887 920 425 182 3q3 282 98 3,290 396 3,686 Unrestricted funds £'ooo Restricted fund5 £'ooo Total 2022 £'ooo Adminlstration costs Bank interest Parish centre costs School payments Priest Welfare Payments Clerical Provident Society Premise8 Costs including insurance Repairs and maintenance Gross salaries and employers, NIC costs Votives and liturgical costs Cemetery Maintenance Depreciation Other Costs 164 184 103 103 380 380 798 369 405 181 175 301 93 798 369 405 181 175 301 93 2,589 380 2,969 42 Dromore Diocesan Trust Notes (continued) C08ts of actlvltlas In furthérance of charltable actlvltla8 (contlnuedj Curlal and pastoral Unr08trlctod Re8trlcted fund8 funds £'ooo £'ooo Total 2023 £'ooo Gross salaries and employers, NIC costs DCPS Payments Franchise Fee Administration costs Parlsh Centre Costs Subscrfptlons Child protectlon costs Bank interest Healthcare costs Compensation fees Training Other Costs Donations 78 40 77 118 77 22 23 197 36 197 36 284 139 423 620 257 877 Unrestrlcted funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Gross salaries and employers, NIC costs DCPS Payments Franchise Fee Administration costs Parish Centre Costs Subscriptions Child protection costs Bank interest Healthcare costs Compensatlon fees Tralnlng other Costs Donatlons 141 37 79 178 79 22 22 25 25 3,241 3,241 216 74 290 3,646 190 3,836 43 Dromore Diocesan Trust Notes (contlnued) Gains l (losses) on investments Parishes Unrestricted Restricted funds fund8 £'ooo £'ooo Total 2023 £'ooo Increase l (decrease) In Investments value Unrestrlct8d funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Increase l (decrease) In Investments value Curial and pastoral Unr08trlcted R08trlcted funds fund8 £'ooo £'ooo Total 2023 £'ooo Increase in investments valu8 22 81 103 22 81 103 Unrestricted funds £'ooo Restrlcted funds £'ooo Total 2022 £'ooo (Decrease) In Investments value (25) (91) (116) (25> {91) (116} 44 Dromore Diocesan Trust Notes (contlnued) 10 Governance cost8 Curlal and pastoral Unre8trlctod Re8trlcted fund8 funds £'ooo £'ooo Total 2023 £'ooo Fees payable to external auditors for audit 26 26 26 26 Unregtricted funds £'ooo Restricted funds £'ooo Total 2022 £'ooo Fees payable to external auditors for other services 11 Not Income l (expendlture) Net income l {expenditure> is stated after charging.. 2023 £'ooo 2022 £'ooo Audito¢s remuneration - audit Auditor's remuneration - other servlces Depreciation - unrestricted funds Gain on disposal of fixed assets Gain on fair value movement of Investment property ProfiV{Loss) on fair value movement of investments 26 282 65 2,648 103 301 50 {116) 45 Dromore Diocesan Trust Notes (contlnued) 12 Staff number8, costs and pension Gontributions The average number of employees durlng the year was: 2023 Number 2022 Number CLiria employees Parish employees 41 40 48 48 The aggregate payroll costs for the above were as follows: 2023 £'ooo 2022 £'ooo Wages and salarles Social security costs Employer pension contributions 492 27 496 27 527 529 No employee recelved emoluments, this year or last year, of more than £60,000. TheTrust makes payments to personal pension schemes and through auto enrolment in respect ofeligible employees. The pension charge represents contributions due from the Trust and amounted to £8,046 (2022 - £6,135). 46 Dromore Diocesan Trust Notes (continued) 13 Tanglblo flxed assets Parishe5 Church Building & Contents £'ooo Land Flxture8, flttlngs and équlpment £'ooo Total Fr¢ehold Investment propertle8 £'ooo £'ooo £'ooo Cost or ¢alculatlon At 1 January 2023 Additions Disposals Revaluation 21,787 1,550 3,696 27,033 1,715 712 At 31 December 2023 21.787 1,550 3,696 27,033 2A27 Depreclation At 1 January 2023 Charge for year Elim on Dlsposal 925 116 2,028 166 2,963 282 At 31 December 2023 1,041 2,194 3,235 Net book value At 31 December 2023 20,746 1,550 1,502 23,798 2N27 At 31 December 2022 20,862 1,550 1,668 24,080 1,715 Inve$tmenl land and properties have been valued at falr value by the Trustee on the basis of market value, after oblaining the advice of OKT, 22 Adelaide Street, Belfast, BT2 8GD. 47 Dromore Diocesan Trust Notes (continued) 13 Tangible fixed a88ets (continued) Curia Land and Fixtures, bulldings flttlngs and èqulpmant £'ooo Total Freehold Investment Property £'ooo £'ooo £'ooo Cost or calculation At 1 January 2023 Additions Transfers Disposals Revaluatlon 1,147 1,150 (3141 (500) (314) (500) 314 1,936 At 31 December 2023 333 336 2,250 Depreclatlon At 1 January 2023 Charge for year Elim on Disposal At 31 December 2023 Net book value At 31 Decembor 2023 333 333 2,250 At 310ecember 2022 1,147 1,147 Investment land and properties have been valued at falr value by the Trustee on the basls of market value, after obtaining the advice of OKT, 22 Adelaide Street, Belfast, BT2 8GD. 48 Dromore Diocesan Trust Notes (continued) 14 Investment6 2023 £'ooo 2022 £'ooo At market value At 1 January 2023 Unrealised galns Reali5ed (losses) Income received Fees paid 1,003 118 (17) 1,119 120 (236) (8) {71 At 31 December 2023 1,105 1,003 2023 £'ooo 2022 £'ooo Movements Government Bonds Corporate & other bonds International Equity Emergln9 market Equlty Commodltles cash 245 103 635 73 45 220 114 536 60 42 31 1,105 1,003 IS Dobtors 2023 Curia £'ooo 2022 Total £'ooo Parishes £'ooo Total £'ooo Trade debtors Gift Ald Debtor Prep8ymentS Sundry Debtor Insurance proceeds 27 372 132 27 333 27 372 132 32 333 295 159 333 891 896 798 49 Dromore Diocesan Trust Notes {continu8d) 16 Creditors - amounts falling due wlthln one year 2023 Curla £'ooo 2022 Total £'ooo Parl8h08 £'ooo Total £'ooo Bank overdrafts Trade creditors Accruals and deferred incomé Other creditors Interorganlsational Credltor Schools creditor Other taxes and soclal securlty costs 3,827 135 24 3,627 135 228 215 17 63 3,416 79 241 251 29 59 204 21S 17 63 3,868 422 4,290 4,083 17 Statement of control The charity is controlled by the Diocese of Dromore Trustee, a company limited by guarantee, reglstered in Northern Ireland. 18 Provlslon8 The trust has made a provislon in these flnanclal statements of £5,297,000 (2022., £6,512,000> to cover legal claims and costs. The Trustee has made this provision in this yearfs financial statements based upon legal advice on the Ilkely outcome of these cases, Legal clalms & Costs £'ooo Total £'ooo Openlng balanGe Payments made In the year 6,512 (1,2151 6,512 11.215) Closlng balance 5,297 5,297 50 0￿0￿￿ fo i Lnnajrt Dromore Diocesan Trust Notes (continued) 19 Movement in funds (continued) The curia unrestricted funds are overdrawn by £3.134m (2022 £5.128ml and thls decrease has arisen from the revaluation of the Curla assets this year as set out in note 13. The charity is reviewing the assets held within the curia to identify those assets that can be realised and generate galns that wlll allow the unrestricted curia funds to settle the liabilities within Ihe provision. The charlty has been reviewing all assets ,to eotablish more learly which are clearly restricted and beyond the use of the Curia and in addition, the charity is exploring other avenues to raise funds that can be utilised for the settlement of claitns. The detalls of the restrlcted funds are as follows: Parlshe8 This fund reflects collections tak8n by the parlshes for speclfic purposes. Clorgy Support This fund represents the surplus of monies collected for the support of priests of the Diocese. The policy is lo maintain a reserve for the long-term provision for priests, support which represents at least six months of expenditure. Dlocesan Clerlcal Provldent Society This fund provides supportfor sick and retired secular priests ofthe Diocesewho may need finanGial assistance. Youth Commission This fund is used to support the operatlon of the Drcmore Diocesan Youth Commission office. Famlly Care This fund is used to support agencies involved in family ministry wlthln the Diocese and at national level, Educatlon of Prlests This fund is used to support the education, trainlng and Ilvlng costs of seminarians and clergy of the Diocese. Boquests These funds are legacy bequests and are restrlcted for the purposes stipulated in the will of the testator or testatrix, school Singing Programme This fund supports a school singing programme based on the National School Singing Programme and a grant was received and is used to support schools to promote liturgical music and singing. 52 Dromore Diocesan Trust Notes (contlnued) 20 Amounts held as agent There are varlous collections taken up dLtring the year within the Diocese that are collections undertaken as agent on behalf of other org8nis8tions. These funds are lodged to the bank and then paid to the individual organisations. The 8mount of funds held by the trust at 31 December 2023 was £64,746 (2022 - £52,498> at year end. The maln Collectlon that would be taken up each year is the annual Trocaire appeal. During the year a total of £169,260 {2022 - £156,120) was collected. 21 Analys18 of changes In net dobt At start of Cashflows At ènd ol year year £'ooo £'ooo £'ooo Cash Overdraft facility repayable on demand 7,587 (3,416) (327) (211) 7,260 (3,627) Total 4,171 15381 3,633 53 t￿L￿￿)￿J0¢ Yo TP*p ¢Yrln 350 ¢Y l I Uo In o ¢n N(o*tin lYN￿￿1¢y ow) l (D ¢Ov Otr- O Q alv4 Inin c OJ c ¢lJ Dromore Diocesan Trust Notes (contlnued) 23 Truste• r•muneratlon The Trustee neither received nor waived any emoluments nor made a claim for expenses incurred relating to duties carried out for the Trust, Four directors of the Trustee received stipends, in aggregate, totaling £33,600 for the year to 31 December 2023, {2022 £27,35Q). These stipends were pald to them in respect of their role as servlng Ministers of the Church and not as a result of their Trustee role. No pension contribulions were paid on thelr behalf, Accommodation is provided for them exclusively as a consequence ofthelr ministries within the Diocese. 24 Key management personnel The Charity considers key management personnel comprlses the Directors, Diocesan Finance Manager and Diocesan Secretsry. The total amount of remuneration and b8n&fits recelved by key management personnel, excludlng the amounts included in note 23, in the flnancial year is £41,570 (2022 - £60,970). 25 Capltal commltments The charity has contracted for capltal commitments as at 31 December 2023 of £nil (2022 £nil}. 26 Flnanclal Instruments The carrying amounts of the charity's financial instruments are as follows- 2023 £'ooo 2Q22 £'ooo Financial assets Measured at falr value through net Income l expenditure Fixed asset investment propertie5 (note 13) Fixed asset listed investments (note 141 4,877 1,105 1,715 1,003 5,782 2,718 55 lo￿0)¢?) ¢N o) Illi tr)VYJ