Charity registration number NIC105256 DERRY DIOCESAN TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
DERRY DIOCESAN TRUST CONTENTS Page Charity Information Corporate Trustee's report 2-10 Independent auditorfs report Statement of financial 8Ctivities 14-15 Bslance sheet 16 Statement of cash flows 17 Notes to the financial statements 18-34
DERRY DIOCESAN TRUST LEGAL AND ADMINISTRATIVE INFORMATION Corporate Trustog St. Columb's Di0$8n Trust N1012385 Directors of the Corporate Trustee Most Reverend Donal McKeown Reverend Michael Canny Reverend Paul Mccafferty Mr Shaun McElhinney Mr Sean O'Kane Reverend Michael Mccaughey Ms Aine Gallagher Mr Ciaran Hampson Ms Fiona Schlindwein Ms Brenda Morris Charity number NIC105256 Registered office Bishop's House St. Eugene's Cathedral Francis Street Derry Auditor Moore (Nl) LLP 21123 Clarendon Street DerrylLondondery BT48 7EP Bankers Bank of Ireland 27 Culmore Road Derry BT48 8JB Sollcltors Napier & Sons 1-9 Castle Arcade High Street Belf8St BT15DF Hasson & Company Solicitors 39-41 Clarendon Street Derry BT48 7ER Clarendon Legal Solicitors 48 Clarendon Street Derry BT48 7ET
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Directors of the Corporate Trustee present their report and financial statem8nts for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities Act {Northern Ireland) 2008 and "Accounting and Reporting by Charities= Ststement 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)" Objectives and activities The principal objects ofthe charity are: the advancement of the Roman Catholic religion in the Roman Catholic Diocese of Derry subject to any future curtailment or addition of area made in accordance with the laws and regulations of Ihe Roman Catholic Church- and the advancement of any charitable purpose supported by the Roman Catholic Church throughout the world or in any part of the world. The territory covered by the Diocese of Dery is made up of 51 Parlshes across parts of Counties D8rry, Tyrone and Donegal and a very small part of CountyAntrim. The Church in Derry, in union with the Catholic Church worfdwide, seeks to achieve its objectives through activities including the following.. Proclamation of the Gospel Worship of God Provision of Clergy and pastoral personnel Formation and development of parish communities Support for families Provision of educational, pastoral and youth ministries Provision and maintenance of places of worship Aid for impoverished and n88dy communities worldwide. The means used to fulfil the purpos&s of the Diocesan Trust are constantly monltored and reviewed in order to ensure that the principal aims and objectives of the charity are adhered to. Statement that the Corporate Trustee has had regard to the Charlty Commisslon for Northem Ireland public beneflt requlrement statutory guidance The Corporate Trustee confirms that is has paid due regard to the public benefit guidance issued by th8 Charity Commission for Northern Ireland in determining the activities undertaken by the charity. Proclamation of the Gospel and Worship of God Within the Dioc@so religion is normally advanGed through the provision of places of worship, the facilitation of religiou5 practice and through community celebration of Mass. There is a public lebratIon of Mass every day in the majority of Parishes and on every weekend several communily Masses are celebrated in public in every Parish. All such celebrations are open to the public without any restrictions. Other activities of the charity include conducting religious ceremonies (such as baptisms, weddings and funerals), running programmes pertaining to spiritual formation and development, encouraging and supporting inter-church relalionships and maintaining places of worship, many of which are listed and contain religious works of art and other artefacts all of which form part of our national heritage. As these places of worship are open to the general public. people of all faiths or none, they provide a public benefit for the whole community and for many people they are spaces which offer the opportunity for quiet reflection and for spiritual contemplation.
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 It is within Parishes that people expertence what it is to be a member of the Catholic Church and where faith is nurtured and given expression. Parishes, through various means. provide for the moral and spiritual wellbeing of parishioners. Practical expressions of faith are manrfested through the means of Parish organised pastoral. social and educational activities. many of which rely on the voluntary involvement of parishioners. As well as pastoral care and the provision of the Sacraments to the members of parish communities. the Diocese offers chaplaincy services to those who cannot be part of a regular parish community. Hospital Chaplains are avai18ble at all the major hospitals within the Diocese of Dery. The Chaplains are regularly available to patients, patients, relatives and staff and are on call to attend in emergencies. The Diocese also provides chaplaincy services in penal institutions. The important role played by volunteers who participate in the various activities of the Parish cannot be overstated and their contribution is vital in enabling the Diocese to continue to fulfil and develop its slated objectives. Volunteers generously give of their time serving in various ministries, caring for and visiting the sick, the housebound and those on the margins of society. They play a significant role in helping to maintain Parish property and assisting in financial and other administrative duties, such as through membership of Parish Pastoral, Finance and Safeguarding Committees. Such parishioners are the lifeblood of their communities and their contribution is significant. The Diocese has around 1,100 volunteers who provide a voluntary contribution to the Diocese within their respective Parishes on a regular basis. Although the charity relies principally on donations from parishioners for its funding, acc8SS to religious services is never restricted on the grounds of financial contributions. 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 volunteers withln their local area through membership of charities, local socielies and community groups. Alongside the work aGcomplished in the Parishes. the Curla, the central administrativa office of the Diocese, coordinates and carries out a number of essential functions necessary for the advancement of Catholic religion at local, national and intemational level. In order to do this, the Curia operates through Diocesan Committees and through various personnel charged with specific responsibilities. Provision of Clergy Central to Parish life is the relationship between the Parish Prlest, Curates and parishioners. Clergy are not employees of the Diocese, however, in Canon Law the care and welfare of inGardinated Priests of the Diocese is mandatory and is, therefore, part of the charity's ongoing commitments. Support for Families Family Ministry within the Diocese is dedicated to strengthening marriage and families by coordinating pastoral programs and ministries that have faith as their foundation and Christ as their goal. By responding to the needs of today's families, as they strive to live in a very challenging culture and a rapidly changing wortd, 'Family Ministry, serves as a resource for families, clergy and parish communities. Education The Diocese of Derry continues to dedicate personnel who support the work of the 139 schools which are in Catholic Trusteeship within Ihe Diocese of Derry. This programme not only engages with classroom teachers, schools leadership and Governors but also promotes strong links with the local parish communities in the interest of a rounded education. Criteria for measurlng progress against aims and objectives The nature of the objectives and activities of the Diocesan Trust are such that it is difficult to measure and assess success using quantitstive or other similar measurement methodologies. However the Diocesan Trust is satisfied that it has continued to engage in levels of activity that safeguard the achievement of its core objectives which in turn conlinue to sustain the promotion and practice of Catholic faith within and beyond the Diocese. The Diocese has succeeded in providing clergy, pastoral personnel and resources to sustain the structure and activities of parishes. It has succeeded in maintaining programmes of activity in supporting faith-based educ8tion. providing pastoral support lo communities. families. young people and people who have become marginalised in society. It has succeeded in maintaining in good condition the buildings and properties that il holds to resource its key objectives in current times and into the long-term future.
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Achievements and performance Pastoral Development after Covid Covid restrictions continued through the early part of 2022. By May 2022, most restrictions had been lifted, enabling the Diocese, supported by the Derry Diocesan Trust. to continue more fully its work in providing pastoral support to the communities and families in the 51 parishes of the Diocese. responding to the needs of local people. The Diocese has sought to continue to use some of the new methods of engaging with its congregations which were brought into use during Covid. for example webcams and other on-line platforms. Continuing Synod Preparation 2021-2023 In late 2021, Pope Francis had called the entire People of God to journey together and answer the call to participate in preparation for the 2023 Synod of Bishops, through a fwo-year process of Gonsultation with parishioners,- this is process ofjourneying together, listening to each other, dialoguing and discerning, so as to arrive at decisions which will render the church's mission of service more effective in recognising and responding to the needs of people, both locally and universally. Guided by a Diocesan Synod Working Group, a listening process was established for parishioners of this Diocese, @nabling their voices, concerns, needs and challenges to be heard. The Diocese's Youth Ministry team engaged with youth across thè Diocese, and th8 Diocesan CatechetiGal Centre reach8d out to all Catholic primary and post- primary students and teachers. Information and facilitation training was managed by professional facilitators with expertise in restorative justice in the community and church, and in the theology of Synodality. Parishes held 'list8ning gatherings, in an atmosphere of prayer, welcom8 and hospitality, aiming to reach out to all young and old, small groups, organisations schools and those on the margins or alienated. Through this process, there has been a recognition of change in local communities and of the need for a new model within Church; there is a clear realisatlon of the need to empower people to engage in Ihe church community, with increasing co-responsibility of lay people and local clergy for parish development and in the Diocese as a whole. Formation and training needs have been identified to build the necessary confidence which will encourage everyone in parishes to use the full range of gifts that they have within and for the local parish community. The development of a programme of adult faith fomiation is already well underway in the Diocese. To this end, clergy, staff and volunteers have already been able to deliver in-person pastoral programmes and lead8rship training in a number of parishes, to empower members of the local parish communities to engage in greater co-responsibilily. Bishop McKeown has appointed a person to the new diocesan role of 'Training in Evangelisation and Adult Faith Formator,, in support of thi8 process. to work alongside the existing Diocesan Pastoral Coordinator. On-going engagement with Youth and Schools in the Diocese The Diocese. supported by the Derry Diocesan Trust, continues to assist the work of the primary and post-primary schools which are in Catholic Trusteeship. In May 2022 the Derry Diocesan Catechetical Centre organised the firsl post-covid in-person 'Fan the Flame. gathering in Celtic Park. Over 3.500 pupils from throughout the Diocese of Derry attended. This was the largest such evenl ever held by the Diocese. structural Change for more effective Outreach Having reviewed alongside the clergy of the Diocese, who are most directly affected, Bishop McKeown has proposed creating missionary pastoral communities with the current aim of at least two priests in each pastoral community. The purpose is to carry out more effectively the outreach mission of the Diocese. The first three of these areas have been established. This model will giv& parishes more of an opportunity of working cooperatively with their neighbours, sharing their gifts, talents and resources. Parishes, while retaining their individual parish identity, will share clergy. There will be a gradual introduction of these areas over a period of years.
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Maintenance of buildings and proporty The Diocesan Trusl has actively continued to manage and safeguard the condition of the buildings and properti8S that it holds in trust to meet its charitable objectives including churches, parish halls and parochial houses. The Trust aims to maintain all properties in a good state of repair and has completed a number of substantial repair and refurbishment projects during the year. Projects of this nature are financed through a mix of parish financial reserves, project fundraising programmes and collections and special-purpose donations. The maintenance and refurbishment of property and buildings assists in safeguarding the ongoing activities of the Diocese and also benefits the broader communily through the protection and safeguarding of the built environment and heritage buildings. Funding of parishes The Diocesan Trust relies largely on donations from parishioners to fund its pastoral programmes, to maintain its buildings and properties 8nd to meel its running costs. Covid impacted adversely on the level of income received by Parishes and the Diocese and presented significant financial challenges. Although the financial pressures arising directly from Covid have now ended, income gener8ted remains below pre-covid levels. The Diocesan Trust has provided advice and support to Parishes where financial difficulties have been most acute. Going forward, the Diocesan Trust is now starting to explore new methods of receiving donations which would involve the use of modern technology and reflect the way in which. for many people, the use of cash is becoming close lo redundant. Laudato Si and Environmental Strategy In his 2015 encyclical Laudato Si. Pope Francis made a great call for the practical care of our planet, our common home, especially in this time of climate change. He challenged both the church and the entire world to engage with the environmental challenges presented by climate change. Over the past few years since the presentation of Laudato Sl, the Diocese of Derry has been engaging with the issues raised, moving towards both a diocesan strategy and, crucially, its implementation. Thus, the Trust is involved actively in education and practical engagement with the environmental challenges facing the planet. Investment policy and perfomian¢e The Diocesan Trust has an Investment Policy which sets out assessment criteria for investments including levels of rlsk and performance. The primary financial objective of the Diocesan Trust is to ensur8 that the current and future financial and pastoral obligations of the Diocese of Derry can be met. The Trust seeks to produce the best financial return within an acceptable lavel of risk, maintaining a balance between long term capital growth and income growth. The investment objective is to generate a tUrn as specified in the Trust's Investm@nt Policy ov@r a rolling three-year period. A moderate arnount of risk can be taken in order to achieve this objective. The Diocesan Trust's investments satisfied risk criteria in 2022. Investment perfomiance in 2022 fell below specified target returns but the Trustee Board are satisfied that this reflected general market conditions in 2022 and did not illustrate unsatisfactory performance in the Diocesan investment portfolios compared to market trends and suitable comparators. Flnanelal revlew Details of the income and expenditu for the current and previous financial years are shown in the Statement of Financial Activities on pages 14 - 15. Although total income in 2022 has fallen below 2021 total income, donations from parishioners (being the primary source of funding for the Diocese) have increased from £7,526,294 in 2021 to £7,987,032 in 2022 as the Diocese emerged from Covid. However parishioner donations r8main below Pfe-covid levels. Total income for the year was £11,931.514 of which £9,563.760 was generated by Parishes and £2,368,754 was generated by central Curia funds. The principal funding source of the Diocesan Trust in 2022 has conlinued to be donations from parishioners which have been used primarily to fund the costs of pastoral activity, maintenance of buildings and administration in the particular parishes in which the donations were received. Modest residual amounts of Covid-related funding totalling £5,928 (2021.. £578.175) were received. Total expenditure for the year was £12.053.977 of which £9,450.355 was expended by Parishes and £2,603,622 was expended from ntral Curia funds. Therefore expenditure exceeded income for the year by £122,463. There were net losses on revaluation of investments to market value of £1,997,844 (2021.. net gains of £1,897,045) which combined with sterling-euro exchange adjustments resulted in nel outgoing resources for the DI0Se of £2,128,240.
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 The Diocesan Trust holds reserves of £76,163,970 at 31st December 2022 (2021: £78,292,210) comprising r8Stricted reserves of £71,014,644 (2021= £72,839.8311 and unrestricted reserves, which exclude parish reserves, of £5,149,326 (2021: £5.452,379). Details of the amounts and purposes of restricted reserve funds are included in note 20 in the accounts. Reserves policy The Diocesan Trust recognises that its income arises primarily from voluntary donations and that accordingly it is important lo seek to carry adequate levels of resetves to ensure its ability to meet future expenditure commitments as they arise. Parishes are encouraged to maintain adequate short-temi 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 commilments, such as buildings refurbishmenl projects, arise in the future. The Diocese centrally aims to maintain adequate levels of reserves to meet Diocesan operating costs in the short- to medium-term and to provide for any significant expenditures and contingencies that may arise at future dates. The policy of maintaining significant long-term reserves is considered consistent with the expectation that the Diocese of Derry will continue to exist in perpetulty. The Diocesan Trust aims to hold reserves equating to at least the average amount of operating expenditure for three months as Free Reserves. Free Reserves are defined as Unrestricted Funds less Tangible Fixed Assets. Funds invested in Tangible Fixed Assets are excluded from Free Reserves as these funds cannot be released without undermining the Diocese's ability to fulfil ils principal charitable objectives. At 31 December 2022, Free ReseNes were £4,493,478 (2021.. £4,782,305) and represented 5.71 months 12021: 5.99 months) of Total Operating Expenditure. Total Operating Expenditure takes into account Parish expenditure and is measured against central Curia free reserves. The Trustee Considers that this level of Free Reserves is reasonable, especially at the present time, to enable the Diocese to fulfil its immediate financial obligations and commitments and to plan for future investment requirements, Prlnclpal rlsks and uncertalntles The Corporate Trustee engages in a continuous process of monitoring and identifying risk and seeks to implement me8sures to address the risk and mitig8te the impact of any negative outcomes. The Corporate Trustee is satisfied with the Gharity's ability to continue as a going conGern. Risk Management The Trust Council actlvely revlews 811 malor strateglc and operatlonal rlsks to whlch the charlty Is exposed and confirms these have been reviewed and that strategies and systems are established to manage exposure to Ihese risks. The main areas of risk identified and monitored by the Trust Council include: Safeguarding Compliance with Health & Safety and listed buildings legislation Reduction in active clergy members Reduction in voluntary income Increasing costs for the care of sick and retired clergy Reduction in c8nlral reserves due to Gapital projects and long term commitments Compliance with data protection regulations Risks in relation to fraud Diminishing numbers in weekly worshipping Gongregations
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Plans for future periods The Diocese of Derry recognises that its core objectives of advancement of the Catholic faith and proclamation of the Gospel remain constsnt over time and accordingly it aims to maintain its existing activities into the future. At the same time the Diocese recognises the changing environment in which it exists and accordingly reviews its pastoral and operational programmes and plans on an ongoing basis in an effort to ensure that it continues to meet its primary objectives in the conlext of a changing environment. The Diocese is carrying out a process of review involving broad consultstion to plan how it will succeed in delivering its pastoral work in the future given the challenges that exist in terms of numbers of clergy, participation of lay people in church life and finan. The Diocese is actively responding io initiatives put in place by Pope Francis including work to incorporate the principles of Laudato Si into the life and work of the Diocese and its parishes and Synodality programmes. In 2018 the Diocese published a Diocesan Pastoral Plan for 2018-2021 entitled "God is Love" The Pastoral Plan set out the path that the Diocese hoped to take in every parish community over the course of the three-y&ar period 2018-2021. The Plan was framed by three pastoral themes: Building Welcoming and Inclusive Communitles,. Being Disciples of Jesus Christ, Growing in Faith Together., Working to Make Jesus Known and Loved. The Diocese continues to strongly promote and support the work of Parish Pastoral CoLJncils. The Diocese has continued to develop the themes of the Diocesan Pastoral Plan in 2022 and continues to do so in 2023 and beyond. On-going engagement with Youth and Schools In the Diocese In 2023, the Diocese plans to host its second Religious Education Conference for primary and post-primary school teachers in the Diocese. Organised by the Catechetical Centr8, it is planned to be held in Saint Columb's College, Derry with, as main topics, 'Building Communities of Dialogue,. 'Forgiveness and Catholic Schools as Essential Places of Evangelisation,. Part of the conferenGe will indude an evening gathering of parishes in the Diocese, focussed on 'Building Parish Life,. Reaching out to young people and a commitment to youth ministry remains a top prlority of the Diocese and a significant financial investment by the Derry Dlocesan Trust. Laudato Si and Environmental Strategy A Diocesan group developed a draft Environmental Strategy which was put out for consultation. The Trust's Board of Directors has reviewed the draft Environmental Strategy and plans to adopt this as a Diocesan Environmental Strategy. The document is available at: https'.Ilwww.derrydiocese.orgl index.php. preview=1 &option-com dropfiles&fonTJat-&task-fronffile.download&catid-75&id-188&1temid=10000000 00000 . This strategy provides concrete objectives, as well as practical proposals, in temis of land usage, food, energy usage, design and managemenl of diocesan and parish properties, water and waste management, and transport. as well as the crucial matters of implementation and moniloring. The areas are focussed on actions by the Diocese and parishes. and by groups or individuals. Four parishes or clusters of parishes have begun pilot projects. It is considered that implement81ion is more important than launch of Ihe strategy. Therefore, successful pilots will be roSled out across other parishes. Education and awareness of environmental issues are essential. A month-long 'Season of Creation. will continue to be promoted in every parish beeen September and October annually. Structure, govemance and management The Roman Catholic Diocese of Derry exists in civil law as the registered charity Derry Diocesan Trust, a charitable trust established by a Trust Deed dated 20th July 2009. On 7th July 2016, Derry Diocesan Trust became registered as a charity with the Charity Commission for Northern Ireland under charity registration number NIC 105256. For tsx purposes, Derry Diocesan Trust is also registered with HM Revenue and Customs as holding charilable lax status. The sole Corporate Trustee of the charity is St Columb's Diocesan Trust. a company limited by guarantee. The Corporale Trustee is authorised by the Lord Chief Justice of Northern Ireland to act in any charitable or ecciesiastical trust as a trust corporation. The Diocesan Trust is currently carrying out a review of its governance structures and arrangements wilh the support of an independent professional firm.
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 The operation of the charity is overseen by the Corporate Trustee. The Directors of the Corporate Trustee are appointed by the Bishop of Derry who is Chair of the Board (Trust Council). The Corporate Trustee which served during the year and up to the date of signature of the financial statements was: St. Columb's Diocesan Trust The directors which served on the Board of the Corporate Trustee during the year and up to the date of signature of the financial stalements were.. Most Reverend Donal McKeown Reverend Michael Canny Reverend Paul Mccafferty Mr Shaun McElhinney Mr Sean O'Kane Reverend Michael MGCaughey Ms Aine Gallagher Mr Ciaran Hampson Ms Fiona Schlindwein Ms Brenda Morris Recruitment and appointment of Trustees Recruitment of Directors is based upon their knowledge of the local Church and their having the professional skills and experience necessary for overseeing the affairs of thè charity by ensuring it is solvent. well run, and that it d8livers the outcomes for which it is established. Induction and training of Trustees New members of the Trustee Board are glven an introduction to the structure and governance arrangements of the Diocesan Trust and to the roles and responsibilities of the Trustee Board and its Committees upon appointment. In addition the Diocesan Trust has provided a number of training days for Trustee Board members and will continue to do this. Training days are delivered by external professional firms with relevant expertise and focus on developments in charity law and practice and on charity govemance and management. Organisational structure Reflecting Canon Law, the activities of the charity are separated In thls report Into Parish and Curia functions. Parishes The Diocese is divided into Parish communities. Parish PriestslAdministrators and Curates are appointed by the Bishop to provide pastoral care for Parish communities and to manage Parishes in all juridical affairs thus ensuring Parishes are administered in accordance with the norms of Canon and Civil Law while fulfilling the aims of the charity. Each Parish is required by Canon Law to have a Finance Committee to assist the Parish PriesUAdministrator in the administration of the Parish. Parish Finance Committees include parishioners with knowledge and experience in finance, property management and administralion. The Diocesan Trust is currently reviewing and updating its publication Financial and Administrative Guidelines for Parishes in order to ensure that there is clear and meaningful guidance in place for Parish Priests, Administrators and Parish Finance Committees. Curia The Diocesan Curia consists of those institutions and persons which furnish assistance to the Bishop and Trust Council in the govemance of the entire Diocese, especially in directing pastoral activity, in providing for the administration of the Diocese and in exercising judicial power. It also includes all who participate in the overall administration of the Diocese, especially those who direct Diocesan activities such as pastoral support, youth work. educations, family life, liturgy, laity and other facets of the local Church's life.
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Delegation of management In the day to day management of the charity, the Bishop refers ecclesiastical-related matters to the Chancellor of the Diocesa, the Diocesan Secretary. the Vicars General and other appropriate officials. Civil administrative matters are referred to the executive staff employed by the charity. The Trust Council delegates oversight of the Diocese's financial, propety, investment and administration matters to the suitably qualified clergy and staff within the Curia. The Trustee Board delegates day-to-day management of the charity (other than areas of a canonical and pastoral nature which are managed by a number of Diocesan clergy) to the following Diocesan staff members.. Kevin Mccauley Bsc FCA- Executive Director, Derry Diocesan Trust Teresa McMenamin-Administrative and Financial Secretary, Derry Diocesan Trust Oonagh Robinson- Diocesan Trust Officer, Derry Diocesan Trusl Finola Downey- Administrative Officer, Derry Diocesan Trust Remuneration policy The process of setting pay and remuneration of the Diocesan Trust's key management personnel is undertaken by the Bishop of the Diocese (who is the Chair of the Trustee Board) in consultation with the Diocesan Personnel Committee and the Trustee Board. Statement of Corporate Trustee's responsibilities The Corporate Trustee is responsible for preparing the Corporate Trustee's Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to ¢harili8s in Northern Ireland requires the Corporate Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the Corporate Trustee is required to: select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charities SORP-, make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements- and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Corporate Trustee is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial slalements comply with the Charities Act (Northern Ireland) 2008. the Charity (Accounts and Reports} Regu18tions (Northern Ireland) 2015 and the provisions of the trust deed. The Corporate Trustee is also responsible for safeguarding the assets of the charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities.
DERRY DIOCESAN TRUST CORPORATE TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 The Corporate Trustee's report was approved by the Board of the Corporate Trustee. Most Reveren Director of St Donal McKeown olumb's Diocesan Trust - Corporate Trustee of Derry Diocesan Trust Dated: 27 October 2023 10-
DERRY DIOCESAN TRUST INDEPENDENT AUDITOR'S REPORT TO THE CORPORATE TRUSTEE OF DERRY DIOCESAN TRUST Opinion We have audited the financial ststements of Derry Diocesan Trust (the 'charity') for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Slandard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements- give a true and fair view of the stste of the charity's affairs as at 31 December 2022 and of it5 incoming resources and application of resources, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with Ihe requirements of the The Charities Act (Northem Ireland) 2008. Basis for opinlon We conducled our audit in accordance with International Standards on Auditing (UK) (ISAS {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of th8 charity in accordance with the elhical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Slandard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basls for our opinion. Conclusions relating to going concern In auditing the financial statements, w8 have concluded that the Corporate Trustee's use of the going concern basis of accounting in the preparation of the fjnancial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintles relating to events or conditions that. individually or collectively, may casl significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when Ihe financial Statements are authorised for issue. Our responsibilities and the Sponsibl11t1es of the Corporate Trustee with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included In the annual report other than the financial statements and our auditorfs report thereon. The Corporate Trustee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to rsad the other informalion and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work wo have performed. we conclude that there is a material misststement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing Éo report 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: the information given in the financial slatements is inconsistent in any material respect with the Corporate Trustee's report-, or sufficient accounting records have not been kept", or the financial statements 8re not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit. 11
DERRY DIOCESAN TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE CORPORATE TRUSTEE OF DERRY DIOCESAN TRUST Responsibilities of Corporate Trustee As explained more fully in the statement of Trustees, responsibilities, the Corporate Trustee are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Corporate Trustee detemiines is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the Corporate Trustee are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going Concern basis of accounting unless the Corporate Trustee either intend5 to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under soction 6512) of the Charities Act (Northern Ireland) 2008 and report om accordan with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial ststements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 8uditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are Gonsidered material if. individually or in the aggregale, they Gould reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting Irr@gularitles, Including fraud, is detailed below. Extent to which the audlt was consldered capable of detectlng Irrogularities, including fraud The objectives of our audit in respect of fraud, are., to identify and assess the risks of material misstatement of the financial statements due to fraud. to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately lo instances of fraud or suspected fraud identified during the audil. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity. Based on our understanding of the charity and its operating environment, we determined that the most significant frameworks which have a direct impact on the preparation of the financial statements are those related to Ihe reporting framework, {FRS 102, the Charities Act (Northern Ireland) 2008, The Charities (Accounts and Reports) Regulations (Northem Ireland) 2015, and the Charity SORP). Compliance with these laws and regulations was assessed as part of our procedures. Other laws and regulations of which non-compliance may have a material effect on the financial statements. e.g. through fines or litigation, were identified as regulations in relation to employment law and regulations in relalion to holding charitable status with the Charity Commission for Northern Ireland. Our required procedures in these areas are limited to inquiry of trustees and other management and inspection of any regulatory or legal correspondence. These limited procedures did not identify any actual or suspected non-compliance. We assessed the susceptibility of the charity's financial statements to material misstatement. including how fraud might occur, including evaluating management's incentives and opportunities to manage or influence the reported results. From the results of our assessment, we determined that the principal risks of fraud relate to posting inappropriate journal entries and use of charity funds for purposes outside of restrictions imposed by the donor. In common with all audits under ISA5 (UK), we are required to perform specific procedures to respond to Ihe risk of management override. 12-
DERRY DIOCESAN TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE CORPORATE TRUSTEE OF DERRY DIOCESAN TRUST Audit response to risks identified As part of an audit in accordance with ISAS {UK) we exercise professional judgement and maintain professional s¢epti¢ism throughout the audit. Audit procedures performed by the engagement team included.. We obtained an understanding of the charitable company's internal control systems in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity's internal control. We obtained an understanding of how the charity complies with relevant laws and regulations, including those as a result of its registration with the Charity Commission for Northem Ireland and charitable status with HM Revenue & Customs, by making enquiriès of management and those charged with governance. Enquiry of management, those charged with govemance and the entity's solicitors around actual and potential litigation and claims. Enquiry of entity staff to identify any instances of non-compliance with laws and regulations, Performing analyti¢al procedures to identify any unusual or unexpeded relationships that may indicatè risks of material misstatement due to fraud Reviewing minutes of meetings ofthose charged with governance Reviewing financial statement disclosures and lesting to supporting documentation to assess compliance with applicable laws and regulations. Auditing thè risk of management override of controls, including through testing joumal entries and other adjustments for appropriateness, and evaluating the business rationale of significanl transactions that are unusual or oulside the normal course of business. Auditing the risk of use of charity funds outside of restrictions imposed by the donor by review of funding letters of offer to identify restrictions, and review of funding claims prepared by management to check Complian with restrictions. We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indieations of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limilalions in the audit procedures described above and the further removed non-compliance wilh laws and regulations is from the events and transactions reflected in the financial stalemenls, thè less likely we would become aware of it. Also, the risk of not detecting a material misslatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involvè deliberate cOnalment through collusion, forgery, Inlentional omissions, misrepresenlations or the override of internal control. A further descriplion of our responsibilities is available on the Financial Reporting Council's website 3t= https'.11 www.frc.org.ukJauditor5responsibilities. This description forms part of our auditols report. Use of our report This report is made solely to the charity's truslees, as a body, in accordance with part 4 of Ihe Charities (Accounts and Reports) Regulations {Northern Ireland) 2015. Our audit work has been undertaken so that we might state to the Gharity's trustees those matters we are required to state lo them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone olher Ihan the charity and the charity's trustees as a body, for our auditwork, for this report, or for the opinions we have formed. n Bradley (Senior Statutory Auditor for and on behalf of Moore INII LLP 27 October 2023 Chartered Accountants ststutory Auditor 21123 Clarendon Street DerrylLondonderry BT48 7EP Moore (Nl) LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 13-
DERRY DIOCESAN TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Current financial year Unrestricted Restricted funds funds 2022 2022 Total Total 2022 2021 Notes Income and endowments from: Donations and legacies Charitable activities Investments Other income 637,067 9.588.494 10.225.561 193,600 193,600 224,803 252,899 768,443 1,259,454 9.204,514 980,663 232,771 1,812,123 28,096 491,011 Total income 1,156,174 10,775,340 11,931,514 12.230.071 enditure on: Charitable activities Parishes Curial 9,450,355 9,450,355 9,567,204 1,644.230 2,603,622 1,599,485 959,392 Total charitable expenditure 959,392 11,094,585 12,053,977 11.166,689 Net {losses)Igains on investments 10 (301,809) {1,696,035) (1,997,844) 1.897.045 Net {outgoing}lincoming resources before transfers {105,027} {2.015,280) (2,120,307> 2.960.427 Gross transfers between funds 22 1209,559) 209,559 Not (outgoing)lincoming rosourcos (314,586) (1,805.721) (2,120,307) 2,960,427 Other recognised gains and losses Other gains or losses 12 11,533 (19,466) (7,933) 20,158 Net movement In funds {303,053) {1,825,187) (2,128,240) 2,980,585 Fund balances at 1 January 2022 5.452.379 72,839,831 78,292,210 75,311,625 Fund balances at 31 December 2022 5.149.326 71.014.644 76,163,970 78,292,210 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 14-
DERRY DIOCESAN TRUST STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Prior financial year Unrestricted Restricted funds funds 2021 2021 Total 2021 Notes Income and endowments from: Donations and legacies Charitable activities Investments Other income 589,347 8.615,167 980,663 184,653 859,123 9,204,514 980,663 232,771 1,812,123 48,118 953,000 Total Income 1,590,465 10,639,606 12,230.071 enditure on: Charitable activili Parishes Curial 9.567,204 9,567,204 987,087 1.599.485 612,398 Total charitable expenditure 612,398 10,554,291 11,166,689 Net galnslllosses) on investments 10 150,324 1,746,721 1,897,045 Net (outgoing)lincoming resources before transfers 1,128,391 1,832,036 2.960,427 Gross transfers between funds 22 (177,954) 177,954 Net (outgoing)Ilncomlng resources 950,437 2,009,990 2,960,427 Other recognlsed galns and losses other gains or losses 12 (19,715) 39,873 20.158 Net movement in funds 930,722 2,049,863 2,980,585 Fund balances at 1 January 2021 4,521,657 70.789,968 75.311.625 Fund balances at 31 December 2021 5,452,379 72.839,831 78,292,210 15-
DERRY DIOCESAN TRUST BALANCE SHEET AS A T 31 DECEMBER 2022 2022 2021 Notes Fixed assets Tangible assets Inveslrnents 13 14 32,158,040 18,228,244 32,538,883 20.037,877 50,386,284 52,576,760 Current assets Debtors Cash at bank and in hand 15 3,871,586 23,680,383 3,985,176 23,243,230 27,551,969 27,228,406 Creditors: amounts falling due within one year 17 {658,672) (621,879) Net current assets 26,893,297 26.606,527 Total assets less current Ilabilities 77,279,581 79,183,287 Creditors: amounts falling due aftor more than one year 18 (390,611) (527,147) Provisions for liabilitles 19 (725,000} (363,930) Net assets 76,163,970 78,292,210 Income funds Restricled funds Unrestricted funds 20 71,014,644 5,149,326 72,839,831 5,452,379 76,163,970 78,292,210 The financial st ements were approved by the Corporate Trustee on 27 October 2023 Most Reve Director of St Donal McKeown olumb's Diocesan Trust - Corporate Trustee of Derry Diocesan Trust 16-
DERRY DIOCESAN TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Notes Cash flows from operating activities Cash absorbed by operations 25 (309,724) (662,888) Investing activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Purchase of investments Proceeds on disposal of investments Interest received (200,868) 850,049 (250,270} 54,107 252,899 2,318,039 (274) 786,824 232.771 Net cash generated from investing activities 906,785 3,136,492 Financing activities Proceeds from borrowings Repayment of borrowings Repayment of bank loans 80,000 (186,145) (39,807) (18,150} (136,536) Net cash used In financing activities (154,686) {145.952) Net Increase in cash and cash equivalents 442,375 2,327.652 Cash and cash equivalents at beginning of year 23,177,161 20,849,509 Cash and cash equivalents at end of year 23,619,536 23,177,161 Rolating to: Cash at bank and in hand Bank overdrafts included in creditors payable within one year 23,680,383 23,243,230 (60,847) (66,069) 17-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Charity information Derry Diocesan Trust is a registered charity in Northern Ireland. The charity operates in Northern Ireland and Republic of Ireland. The address of the registered office is given in the charity infomation. The nature of the charity's operations and principal activities are- 11 the advancement of Roman Catholic religion in the Roman Catholic Diocese of Derry subject to any fuknre curtailment or addition of area made in accordance with the laws and regulations of the Roman Catholic Church. and 21 the advancement of any charitable purpose supporled by the Roman Catholic Church throughout the world or in any part of the world. 1.1 Accounting convention The financial statemenls have been prepared in accordance with the charity's constitution, the Charities Act {Northern Ireland) 2008 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in th8 UK and Republic of Ireland (FRS 102) (effective 1 January 2019)" The charity is a Publlc Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, Imodified to include the revaluatlon of freehold properties and to include investment properties and certain financial instruments at fair value]- The principal accounting policies adopted are set out below. 1.2 Golng concern At the time of approving the financial statements, the Corporate Trustee has a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. Thus the Corporate Trustee continues to adopt the going conc@rn basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the diSction of the Corporate Trustee in furtherance of their charitable objectives. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donor5 or which hav8 been raised by thg charity for particular purposes. The costs of raising and administering such funds are charged against the specific nd. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably. and it is probable Ihat income will be received. Cash donations are recognised on receipl. Other donations are recognised once the charity has been notified of the donation. unless perfomiance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otheiSe if the charity has been notified of an impending distribution, the amount is known. and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. 18-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies (Continued) No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). The charity occasionally receives grants in repsect of running costs and upkeep of properties. Income from grants is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be receive(S and the amount can be measured reliably. Investment income is earned through holding assets for investment purposes such as shares and propety. It includes dividends, interest and rent. Interest income, dividend and rent income recognised as the charity's right to receive payment is established and is included when the amount can be measured reliably. Where it is not practical to identify investment management costs incurred within a scheme with reasonable accuracy, the investment income is reported net of these costs. 1.5 Resources Expended Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure on charitable activities includes the costs s8rvices undertaken to further the purposes of the charity by Parishes and Curia. Irrecoverdble VAT is charged as a cost against the activity for which the expenditure was incurred. Grants payable to third parties are within charitable objectives. Where unconditional grants 8re offered, this is accrued as soon as the recipienl is notified of the grant, as this gives rise to a reasonable expeclation that Ihe recipient will receive the grants. Where grants are conditional relating lo performance, then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subs8quently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases,. Parish property and contents Curia land and buildings 1 % straight line 20/0 Straight line Freehold land included within Curia land and buildings is not depreciated. 1.7 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel(expenditure} for the year. Transaction costs are expensed as incurred. 1.8 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand. deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. and bank overdrafts. Bank overdrafls are shown within borrowings in current liabilities. 19-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies (Continued) 1.10 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance she&t when the charity becomes paty to the GontraGtual provisions of the instrument. Financial assets and liabilities are offset. with the net amounts prèsented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Baslc financlal assets Basic financial assets. which include debtors and cash and bank balances. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a mark8t rat8 of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilili8s classified as payable within one year are not amortlsed. Debt instruments are subsequently carried at amortlsed cost, using the effective interest rate method. Trade credilors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual oblig8tions expire or are discharged or cancelled. 1.11 Taxation Derry Diocesan Trust is a charity and is recognised as such by HM Revenue & Customs. As a result. there is no liability to taxation on any of its income. 1.12 Provisions Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable thal the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainlies surrounding Ihe obligation. Where the effect of the time value of money is material, the amount expeded to be required to settle the obligation is recognised at present value. When a provision is measured at piesent value, the unwinding of the discount is recognised as a finance cost in net incomel(expenditure) in the period in which it arises. -20-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 A¢countlng policies (Continued) 1.13 Employee benefits The cost of any unused holiday entitlement is recognlsed in the period in which the employee's setvices are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employe8 or to provide termination benefits. 1.14 Foreign exchange Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate beeen the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. Critical accounting estimates and Judg8m8nts In the application of the charity's accounting policles, the Corporate Trustee 5s requlred to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from oth8r sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both Current and future periods. Critical judgements Property Curial land and buildings and Church property and contents are stated at cost, where the cost can be identified. Prior to 1996, the accounting policy applied was for capital expenditure to be written off in full as incurred. As a result of that policy, the original costs and accumulated depreciation of most curial land and buildings and Church property and contents held then was not availablè. The Corporate Trust8e's view was that a reasonable approximation of the net book value of the curial property held at 31 December 2016 would be established through discounting the insurance values of these assets at that date by 900/.. Key sources of estimation uncertainty Provlsions for liabilities and charges - legal clalms The charily has provided foi the expected financial outcome of claims and the associated legal costs that have been notified to the Corporate Trustee. The Corporate Trustee has laken advice from the solicitors engaged in the claims to arrive at the amount provided. The details of the amounls provided are included in note 19. 21
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Donations and legacies Unrestricted Restricted funds funds Total Unrestricted fijnds Restricted funds Total 2022 2022 2022 2021 2021 2021 Parishes - offertories. donations and legacies Curia - donations, legacies and gifts Levy income Parishes fundraising 7.987,032 7,987,032 7.526,294 7,526,294 55,462 581,605 953,485 258,492 389,485 1,008,947 840,097 389,485 52,698 536,649 445,475 238,509 404,889 498,173 775,158 404,889 637,067 9,588,494 10,225,561 589,347 8,615,167 9,204.514 Charitable activitles Parishes Curfa Total 2022 Parlshes Curfa Total 2021 2022 2022 2021 2021 Grants recelved 193,600 193,600 947.303 33,360 980,663 Grants roceived HMRC Coronavirus Job Retention Scheme Revenue Commissioners TWSSIEWSS Dept for Communities COVID Charities fund Church refurbishment grants Other 171,862 33,360 205,222 5,928 5,928 155,667 155,667 217,286 217.286 115,579 72,093 115,579 72,093 327,488 75,000 327,488 75,000 193,600 193,600 947,303 33,360 980,663
TIn O N¢JJ (yv Vts o e4
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Other income Unrestricted Restricted funds funds Total Unrestricted funds Restricted funds Total 2022 2022 2022 2021 2021 2021 Net gain on disposal of tangible fixed assets Parishes Net gain on disposal of tsngible fixed assets - Curial Other income Income from solar panels and NIE Income from insurers Income from candles and printed material 338,310 338,310 339,758 339,758 491.011 491,011 18,299 953.000 953,000 175,920 18,299 175,920 3,514 101,881 3,514 101,881 955 16.382 955 16,382 306,439 306,439 326,108 326,108 491,011 768,443 1,259,454 953,000 859,123 1,812,123 -24-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Charitable actlvities Parishes Curial Total 2022 Parishes Curial Total 2021 2022 2022 2021 2021 Gross salaries and employers national insurance costs Depreciation and impairment Consumables and administration costs Clergy stipends Pasloral costs Donations Premises costs including insurance Repairs and maintenance Diocesan levy Pilgrimages and retreats, conferences and events Bank charges and interest Accountancy fees Professional and consultancy fees Miscellaneous and sundry expenses Legal claims and associat8d costs Retirèd priests stipends and expenses Clerical students, fees and ongoing formation S8feguarding costs Pasloral Centre activities Catechetical Centre activities Regional Marriage Tribunal Irish Hierarchy 1,822,438 445,923 2,268,361 1,813,827 442.317 2,256,144 339,320 28,747 368,067 339,020 28,747 367,767 719,555 773,273 192,220 92,547 33,194 752,749 773,273 293,135 931,539 706,178 814,778 228,283 89,092 38,823 745,001 814,778 326,346 290.160 100,915 838,992 98,063 201,068 1,614,348 2,747,701 840,097 44,103 1,658,451 1,223,894 322 2,748,023 3,375,397 840,097 775,158 50,472 1,274,366 1.316 3,376.713 775,158 65,980 74,425 35,061 65,980 75,595 45,501 2,544 64,012 46,565 2,544 65.168 57,005 1,170 10,440 1,156 10,440 96,745 17,487 114,232 43,311 8,106 51,417 36,645 4,931 41,576 45,145 9,855 55,000 361,070 361,070 163,294 163,294 168,839 168,839 76,474 45,401 95,859 76,474 45,401 95,859 109,270 50,048 105,437 109,270 50,048 105,437 179,705 29,916 125,679 179,705 29,916 125.679 147,369 25,150 103,009 147,369 25,150 103,009 9,450,355 2,603,622 12,053,977 9,567,204 1,599,485 11.166,689 Analysis by fund Unrestricied funds Restricted funds 959,392 959,392 9,450,355 1.644,230 11,094,585 9.567.204 612,398 612,398 987,087 10.554,291 9,450,355 2.603.622 12,053,977 9,567,204 1,599.485 11,166.689 -25-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Corporate Trustee The Corporate Trustee (nor any persons connected with them) did not r8c8ive any remuneration or benefits from the charity during the year in respect of the role of Trustee. Employees The average monthly number of employees during the year was: 2022 Number 2021 Number Curial employees Parish employees 13 15 202 Total 197 217 Employment costs 2022 2021 Wages and salaries 2,268,361 2.256.144 There were no employees whose annual remuneration was £60,000 or more. 10 Nel gainsl(losses) on investments 8S Stated as r8Stated Totsl Unrestrlcted Restrictad Total funds funds Unrestrlcted Restrlcted funds funds 2022 2022 2022 2021 2021 2021 Revaluation of Investments (301,809) (1,696,035) {1,997,844) 150,324 1,746,721 1,897,045 11 Taxation The charity is exempl from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 12 Other gains or losses Unrestrlcted Restricted funds funds Total Unrestricted funds Restricted funds Total 2022 2022 2022 2021 2021 2021 Foreign exchange gains 11,533 (19,466) (7,933) (19,715) 39,873 20.158 26-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 13 Tangible fixed assets Parish Curla land and property and bulldings contgnts Total Cost At l January 2022 Disposals 33,932,040 1,437.344 {13,446) 35,369,384 (13.446) At 31 Dember 2022 33,918,594 1,437,344 35,355,938 Depreciation and Impalmient At 1 January 2022 Depreciation charged in the year Eliminated in respect of disposals 2.613.825 339,320 (670) 216,676 28,747 2,830,501 368.067 (670) At 31 December 2022 2,952,475 245,423 3,197.898 Carrying amount At 31 December 2022 30,966,119 1,191,921 32,158,040 At 31 December 2021 31,318,215 1,220,668 32,538,883 27-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 14 Fixed asset investments Parishes Curia investments investments Total Cost or valuatlon At 1 January 2022 Additions Valuation changes Service fees Disposals 5,793,908 14,243.969 20.037.877 270 250,000 250,270 (604.161) 11,393,685) {1.997,846) {7.950) (7,950) (54,1071 (54,107) At 31 Dernber 2022 5,135,910 13,092,334 18,228,244 Carrying amount At 31 December 2022 5,135,910 13,092,334 18,228,244 At 31 December 2021 5,793,908 14,243,969 20,037,877 15 Debtors 2022 2021 Amounts falllng due within one year: Other debtors 3,871,586 3.985,176 16 Loans and overdrafts 2022 2021 Bank overdrafts Bank loans other loans 60,847 447,431 365,546 66.069 583,967 383.696 873,824 1,033,732 Payable within one year Payable after one year 483,213 390,611 506,585 527,147 Amounts included above which fall due after five years: Payable by instalments 163,331 299.867 -28-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 17 Creditors: amounts falling due within one year 2022 2021 Notes Bank loans and overdrafts Other borrowings Other taxalion and social security Accruals and deferred income 16 117,667 365,546 122,889 383,696 35,593 79,701 175,459 658,672 621,879 18 Creditors: amounts falling due after more than one year 2022 2021 Notes Bank loans 16 390,611 527,147 19 Provisions for liabllities 2022 2021 Legal claims and associated costs 725,000 363,930 Movements on provisions.. Legal Clalms and associated costs At 1 January 2022 Additional provisions in the year 363,930 361,070 At 31 December 2022 725,000 The charity has made a provision in the financi81 statements of £725,000 {2021.. £363,930) in relation to ongoing legal claims and associated cosls. The charity has quantified the likely financial oulcome based on legal advice received. There is scope for amounts ultimately payable in respect of leg81 c18ims to be mitigated by insurance cover. -29-
e+4 ID * C (OZS rfj a> C4tyJ tr•r O) f r- e4 rrV4 È g g 10 0) irt (o o ¢o>tr c oi c tn c w)_ o) Ci (V Ci£ a) (o IL(nocoiLWI J CLCLLLLLULU LL(L(aCLQUUQC£
LL fn £ (n c Uc LL fok- IL0
Z5 0 ¢D 5 C c(J CDC t1( c£ rJ> (U CD u¢ 0>>JO
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 21 Analysis of net assets between funds Unrestricted Restricted funds funds 2022 2022 Total Unrestricled funds 2021 Restricted funds 2021 Total 2022 2021 Fund balances at 31 December 2022 are represented by.. Tangible assets Investments Current assetsl(liabilities) Long term liabilities Provisions 655,848 31,502,192 32.158.040 670.074 31.868,809 32,538,883 2,573,743 15.654,501 18,228,244 2,875,553 17.162,324 20.037.877 2,644,735 24.248,562 26,893,297 2,270,682 24.335,845 26,606,527 (390,611) (390,611) (527,147) (527.147) (725,000) 1363,930} (363,930) (725,000) 5,149,326 71,014,644 76,163,970 5,452,379 72.839,831 78,292,210 22 Transfers between funds There have been transfers beeen funds during the year totslling £209,559 (2021.. £177,594) from unrestricted reserves to restricted reserves, which represents central Curia funding towards Parishes and Pastoral and Catechetical Centre activities. 23 Related party transactlons There were no disclosable related party transactions during the year {2021- none). 24 Amounts held as agent There ar8 various collections taken up during the year within the Diocese that are collections undertaken as agent on behalf of other organisations. These funds are lodged lo the bank and then paid to the individual organisations. The asset and liability are not recogniseé within these financial statements. The amount offunds held by the charity at the year end as an agent was £46,070 (2021.. £45,174>. 2022 25 Cash generated from operations 2021 (Deficitysurpus for the year 12,120,307) 2.960,427 Adjustments for: Investment income recognised in statement of financial activities Foreign exchange differences Gain on disposal of tangible fixed assets Fair value gains and losses on investments Depreciation and impaimient of tangible fixed assets {252,899) (232,771) (7,933) 20,158 (829,321) (1,252.758) 1.997,844 (1,897,045) 368,067 367,767 Movements in working capital.. Decreasel(inGrease) in debtors Increase in creditors Increase in provisions 113.590 60,165 361,070 (630,746) 2,080 Cash absorbed by operations {309,724) (662,888) -33-
DERRY DIOCESAN TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 26 Analysis of changes in net funds At 1 January 2022 Cash flows At 31 De¢ember 2022 Cash at bank and in hand Bank overdrafts 23,243,230 (66,069) 437,153 5,222 23,680,383 {60,847) 23,177,161 442,375 23,619,536 Loans falling due within one year Loans falling due after more than one year {440,516) (527,147) 18,150 136,536 (422.366) (390,611) 22,209,498 597,061 22,806,559 -34-