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St Patrick's Archdiocesan Trust Limited Cashfloiv Statement 31 March 2024 2024 2023 Note Casli flow5 from operatlllg activities Cash flow frorn operations 20 1,879,603 2,736,872 Finance costs 89,142) 79,703 Net cash eneraled from o eratin activities 1,790,461 2,657,169 Cash flows from investing activities Purchase of property, plant and equipment (1,674,434) (1,451,010) Proceeds from disposal of property, plant and equipment 377,472 589,809 Sale of investments 2,211,440 4,052,524 Purchase of investments (2,215,894) (3,909.135) Investment portfolio liquid asset movement (111,033) (251.427) Finance income 145,882 76,037 Net cash aid Ireceived in investin activities 1,267,167 893,202 Net increase in cash and cash e uivalents 523,294 1,763,967 Cash. ¢ash e uivalenls and bank overdrafts at be innin ofthe ear 19,064,400 17,300,433 Cash cash e uivalellts and bank overdrafts at elld of the ear 19 587 694 19.064.400 32
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 Accounting policies General information and basis of preparation St. Patrick's Archdiocesan Trust Limited (the "charity") is a company limited by guarantee and incorporated in Northern Ireland. The Registered Office is given in the charity infonnation on page 3. The Council of the Trust members of the charity ar¢ the directors named on page 3. The nature of the charity's operations and principal activities are.. The advancement of the Roman Catholic religion in the Roman Catholic Archdiocese of Arniagh subject to any future curtailment or additiorL of area made in accordance with the laws and regulations of the Roman Catholic Church. The advancement of any charitable 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. Going concern The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The fmancial statements have been prepared on a going concem basis as the charity believes that no material uncertainties exist. The charity has considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. Base currency The financial statements arc prepared in sterling which is the functional currency of the charity. Statement of compliance The fmancial statements have been prepared in accordance with the provisions of the Statement of Recommended Practice "Accounting and Reporting by Charities" issued in October 2019 (SORP 2019), the Charities (Accounts and Reports) Regulations (NI) 2015, the Charities Acts (NI 2008 and 2022), the Companies Act 2006 and applicable Accounting Standards in the UK. Summary of significant accounting policies Tlie significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Judgements aDd key sources of estimation uncertainty The preparation of the fmancial statements requires the charity to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually revtewed and ar¢ based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgments (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: 33
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 Tanble assets The iiet book value of property held at l April 2018 was established through discounting the insurance valuation of these assets by 90 /0. Land is divided into different categories and has been valued by the charity using a value per acre, with the exception of investment land, to arrive at deemed cost. Key sources of estimation uncertainty Accounting estimates and assumptions are made conceming the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustinent to the carrying amounts of assets and liabilities within the next financial year are as follows: Valiiation of investmentproperties The charity carries the investment properties at fair value with changes in fair value being recognised in the Statement of Financial Activities (SOFA). The charity has used internal expertise available to deterniine the fair value, based on inarket value of the investment properties. Further infonnation is available at note 12. Pi"ovisionsfor Jiabilities and charges - legal claints The charity has provided for the value of claims and the associated legal costs that have been notified to them. The charity has taken advice frorn the solicitors engaged in the Claims to arrive at the amount provided. The details of the amount provided is included in note 16. Funds Unrestricted funds are available for use at the discretion of the charity in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are ndS which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular pUoses. The cost of raising and administering such funds are charged against the specific fund. Any capital gains or losses arising on the investments fomi part of the Eund. Investment management charges and legal advice relating to the fund arc Charged against the fund. Income recognition All incoming resources are included in the SOFA when the charity is legaEly entitled to the income after any pei'fonnan¢e ¢onditioi]s have been met, the amount can be measured reliably, and it is probable that the income will be received. Offertories and collections are included in income wheii 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 this rcouires 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 within the control of the charity, and it is probable that they will be fulfilled. No amount is included in the financial statements for volunteer timc in line with the So1 (FRS 102). Further detail is given in the Trustee's Annual Report. Fixed asset gifts in ktnd are recognised when receivable 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 distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity, however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. 34
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 Income recognition (continued) Income from fvndraising events and other activities is recognised when entitlement has occurred. Income is received in exchange for supplying goods and services in order to raise ndS and is recognised when entitlement has occurred. The charity receives grants in respect of th¢ upkeep of properties. Income from government and other grants are recognised at fair value when the charity has entitlement after any perfonnance conditions have been met, it is probable that the income will be received, and the aniount can be measured reliably. If entitlement is not met, then these ainounts are deferred. Investment income is earned tbrough holding assets for investment Putyoses such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment manageiT)ent costs incurred within a scheme with reasonable accuracy the investment income is rq)orted net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established. Expenditure recognition All expenditure is accounted for on an accruals basis and has been classified under headÉngs that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive 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 reliably. It is categorised under the following headings.. Costs of raising funds includes fundraising from within the Parishes and Curia. Expenditure on charitable activities includes administration costs, bank fees, depreciation and pr¢rnises expenses. Other expenditure represents tbose items not falling into the categories above. ecoverable VAT is charged as an expense against the activity for which expenditure arose. Resources expended Resource expended are included in the statement of fmancial affairs on the basis of the aTnounts payable for work done and services provided in the year. The costs of generating funds consist of expenditure incurred by the charity in encouraging others to make contributions to it. The costs of activities in the furtherancc of the charity's objectives consist of all expenditure directly related to the objectives of the Diocese. Support costs represent indirect charitable expenditure. In order to cary out th¢ primary purposes of the charity it is necessary to provide support in the form of personnel development, fmancial procedures and ontrols, provision of general office services and equipment and a suitable working environment. All support costs and goveniance costs are included within the expenditure of the one principal charitable activity of the Charity i.e. advancing the Roman Catholic faith primarily within the Archdiocese of Armagh. Governance costs comprise the costs relating to the public accountability of the charity (including audit costs) and costs incurred in respect of its compliance with regulation and good practice. 35
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 Atl support eosts and governance costs are included within the expenditure of the one principal charitable activity namely the costs of activities in the furtherance of the charity's objcctivc. Tangible fixed assets Land and buildings Land is divided into different categories and has been valued by the charity using a value per acre, depending upon the type of land that is held, to arrive at deemed cost. Prior to activation of St Patrick's Archdiocesan Trust LiInited on the l April 2018, the accounting policy applied to most buildings 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 property held then was not available. The charity's view was that a reasonable approximation of the net book value of property held at l April 2018, the date the assets were assumed into St Patrick's Archdiocesan Trust Limited, would be established through discounting the insurance valuation of these assets by 900/0. This was the policy employed to include the assets for which the cost could not be identified on the balance sheet at estimated historic cost net of accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its estimated useful econoinic life at l 0/0 for church buildings and 2 % for all other buildings. Other tangible fixed assets Other langible fixed assets are stated at cost less depreciation. Additions are capitalised where the value exceeds £5.000. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, asfollows: Fixtures, fittings and equipment 150/., 250/0 Straight line and 20 % reducing balance 250/0 Straight line Motor vehicles Land is not depreciated. Investment properties Investments are tneasured at fairvalue at each rcporting date with changes in fair value recognised in 'nct gains l (losses) on investments, in the SOFA. Investments Investments are recognised at market value at the balance sheet date which is nornially the transaction price excluding transaction costs. Current asset investments are short tern] highly liquid investments and are held at fair value. The5C include cash on deposit and cash equivalents with a maturity of less than oneyear. Debtors and creditors receivable / payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impaimient are recognised in expenditure. Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-temi deposits with an original maturity date of three months or less. For the pUoSe of the cash fiow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. 36
St Patrick's Archdiocesall Trust Limited Notes to the financial statements for the year ended 31 March 2024 Impairmellt Assets not measured ai fair value are reviewed for any iiidication that the asset may be impaired at each balance sheet date. If such indication exists. the recoverable amount of the asset, or the asset's cash geiierating unit. is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverabl¢ amount, an impairnient loss is recognised in the SOFA unless the asset is carried at a revalued amount where the impaim]ent loss is a revaluation decrease. Provisions Provisions are recognised when the charity has an obligation at the balance sheet date as a sUIt of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimatcd. Foreign currency Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign curreiicy 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. Pensions The pension costs for the charity's pension schemes are charged in the year they are incurred. Termination benefits Termination benefits are payable when employment is tern]inated before the nornial retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The charity recognises temiination benefits when it is demonstrably committed to either (i) tenninating the emplOyent of current employees according to a detailed forn]al plan without possibility of withdrawal or (li) providing termination benefits as a result of an offer made to encourage voluntary redundancy. Tax It is considered that the charity is largely exempt from income tax in Northern Ircland undcr the provisions of the Income and Corporation Taxes Act 1988 and the Taxation of Taxable Gains Act 1992 and in the Republic of Ireland under the provision s84A of the Taxes Consolidation Act 1997. Recovery is made of tax deducted from Income and from receipts under Gift Aid in Northern Ireland and CHY charitable donations scheme in the Republic of Ireland. The charity was not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT. Financial Instruments The charity has chosen to adopt Sections I l and 12 of FRS 102 in respect of financial instruments. (i) Financial assets Basic fmancial assets, including trade and other receivables, cash and bank balances and amounts owed by related companies are initially recognised at transaction price, unless the aang¢illellt constÉtutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. 37
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 At the end of each reporting peiiod financial assets measured at amortised cost are assessed for objective evidence of iinpainnent. If an asset is impaired, the impairn]eiit loss is the difference between the carying arnount and the present value of the estimated cash flows discounted at tlie asset's original effective interest rate. The impaimient loss is recognised in SOFA. If there is a decrease in the impainllent loss arising from an event occurring after the impairment was recOlSed, the impairn]ent is reversed. The reversal is such that the current canying amount does not exceed what the canying nOUnt would have been had the impaim]ent not previously been recognised. The impairment reversal is recolsed in the SOFA. (li) Financial liabilkties Basic financial liabilities, including trade and othcr payables, bank loans and overdrafts and hire purchase contracts are initially recogniscd at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrLunent is ineasured at thc present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and ainortised over the period of the facility to which it relates. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. (iii) Offsetting Financial assets and liabilities are offset, and thc net amounts presented in the flnancial statements when there is a legally enforceable right to set off the recogi]ised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 38
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 Collections, donations and legacies Parishes Unrestricted funds Restricted funds 2024 Total funds 2023 Total funds Offertories and collections Donations and legacies Charitable tax relief 8,232,579 841,080 931,265 10,004,924 8,232,579 841,080 931205 10,004,924 7,775,626 539,990 926,588 9,242,204 Curia Offertories and collections Donalions and legacies Levy tncome 50,360 1,381,408 74,801 1,506,569 50,360 1,381,408 24,442 1.933,541 56,588 2,014,571 1,506,569 All voluntary income for Parishes and Curia was restricted in 2023. Investment income Parishes Unrestricted funds Restricted funds 2024 Total funds 2023 Total funds Income from listed investments Bank interest 9,489 9,489 9,489 9,489 2,069 2,069 Curia Incon]e from investment properties Income from listed investrnenls Bank interest 25,300 25,300 444,920 136 393 606,613 25,910 417,264 73,968 517,142 444,920 136 393 581,313 25,300 All investment income. with the exception of income from investment properties. was restricted in 2023. 39
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 4. Charitable activities Parishes Unrestricted funds Restricted funds 2024 Total fund5 2023 Total fimds Grants received 171,854 171,854 178.996 Fundraising Rental income 790,687 790,687 719,268 858.966 891,071 178.617 891,071 178,617 Grave fees 220,483 7,617 1,985.330 Governmenl Covid 19 subsidies 2,032,229 2,032,229 Curia Grants received 46.111 46,111 382,764 12,774 325,839 Pilgrimageslretreats Fundraising Rental income 382,764 77,270 77,270 30,833 Government Covid 19 subsidies 46,111 460.034 506,145 369,446 All incotne from charttable activities, with Ibe exception of £12.774 was restricted in 2023. 5. Net gains on disposals of tangible fixed assets Unrestricted funds Restricted riunds 2024 Total fund5 2023 Total fiLnds Profit on sale of Lingible red assets Parishes 368,672 368,672 302,609 101,050 403,659 Curial 368,672 368 672 The net gain on disposals of £302,609 was restricted in 2023. 40
St Patrick's Archdiocesall Trust Limited Notes to the financial statements for the year ended 31 March 2024 6. Costs of raising funds Parishes Unrestricted funds Restricted funds 2024 Total funds 2023 Total funds Fundraising expenses 253,384 253,384 253,384 267 981 253,384 267,981 Curia Fundraising expenses 7,959 2.015 7.959 7,959 2,015 The cost of raising funds in Parishes and Curia was restricted in 2023. 41
St Patrick's Archdiocesan Trust Limited Notes to the fRnancial statements for the year ended 31 March 2024 7. Charitable Expenditure Parishes Unrestricted funds Restricted funds 2024 Total funds 2023 Total ndS Administration costs 187,051 53,970 74,373 1,429,229 83,341 187,051 53,970 74,373 1,429,229 83,341 1,837,72J 590,567 211,268 Legal and professional fees Batth cliarges Clergy revenue payments Pastoral personnel Premises costs 70,012 68,838 1,425,256 51,859 2,068,848 1,837,721 590,567 Votives and liturgical costs Parish centre costs 529,082 245,645 193,283 193,283 Gross salaries and employer NICJPRSllpensions Rates and insurance 1,728,245 706,075 1,728,245 706,075 1,560,748 702,110 1,916,387 Repairs and maintenance Exchange (gain)/loss Sundry expenses Depreciation School payments Charitable donations 2,461,505 2,461,505 23,979 23,979 (58,167) 167,085 854,724 10,858 210,805 210,805 841,596 8,967 47,422 980,733 841,596 8,967 47,422 980 733 34,936 1.006,328 Diocesan levy 11458 802 11,458,862 10 865 817 All charitable expenditure for Parishes was restricted in 2023. 42
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St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 Mareh 2024 Investment management costs Parishes Unrestricted fulld5 Restricted funds 2024 Total funds 2023 Total funds Investment nianager fees Curia Unrestricted funds Restricted funds 2024 Total funds 2023 Total funds Investment Manager fees 94,387 94,387 58,775 Governance costs Curia Unrestricted fund5 Restricted fund5 2024 Total funds 20?3 Total funds Fees paid to external auditors for audil 25,800 25,800 25,800 25,800 10. Net income l expenditure Net income l expenditure is slated after charging: 2024 2023 Auditors, retnuneration - audit 25,800 857 225 25,800 870 353 Depreciation - restricted ndts
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 11. Staff numbers, costs and pension contributions The average number of employees during the year was.. 2024 2023 Number 15 186 201 Number 14 186 200 Curia employees Parish eniployees The aggregate payroll costs for the above were as follows: 2024 2023 Wages and salaries Social security costs Employer pension contributions 2,019,823 124,011 15,807 2,159,641 1,840,243 115,322 15,093 1,970,658 One employee received remuneration in the band £80,000 to £89,999. The charity makes payments through pension auto enrolmcnt in respect of eligible employees. Tlie Charity considers that its key management personnel comprise the Directors, Diocesan Secretary, Diocesan Financial Administrator and Diocesan Director for Safeguarding. The total amount of remuneration and benefits received by key management personnel in the fmanciaK year is £135,033 {2023: £147,904). Indemnity insurance for directors. liability has been purchased by the Charity. 45
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St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 13. Investments 2024 2023 Investments Opening at I" April 2023 Foreign exchange Additions Disposal proceeds Net realised investment gains Net unrealised investment gainsl(losses) Net movement in cash and short-term deposits Closing at 31 March 2024 14,819,421 (7,601) 2,215,894 (2,211,440) 150,832 475,960 111633 15,554,699 15,276,000 13,067 3,909,135 (4.052,524) 221,029 (798,713) 251,427 14,819,421 14. Debtors 2024 Total 2023 Total Parishes Curia Parishes Curia Gift aidlCHY lax relief Prepayments Other debtors 913,447 173,822 859,442 1,946,711 913,447 195,689 1,349,871 2,459,007 875,885 223,523 731,520 1,830,928 875,885 258,455 1.201,956 2,336,296 21,867 490,429 512,296 34,932 470,436 505,368 15. Creditors - amouuts falling due withill oneyear 2024 Total 2023 Total Parishes Curia Parishes Curia Bank overdrafts Credicors and accruals Other creditors Tax and social security 366,123 343,325 264,725 53,477 1,027,650 1,034,769 767.553 1,400,892 1.110,878 264,725 49,812 2 826 307 321,111 547,399 200,973 74,336 I l43 818 961,040 401,622 1.282,151 949.020 200,973 41,263 2 473 407 3,665 1,798,657 33,073 1329 589 16. Provisions The charity has included a provision in these financial stateinents of £305,000 (2023: £1,231,000) to cover legal claims and costs. They have made this provision in this year's financial statements based upon legal advice on the likely outcome of these cases. 49
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St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 18. Capital commitments The charity had capital commitments amounting to £38,446 at 31 March 2024 (2023.. £1,699,488) 19. Amounts held as agent There are 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 to the bank and then paid to the individual organisations. The asset and liability are not recognised within these financial statements. The amount of llds held by the charity was £l17.252 at 31 March 2024 (2023.. £90,395). 20. Reconciliation of net income to net inflow/(oufflow) of cash flow from operating activities 2024 2023 Net income for the year Ad'uslmenls for.. 3,097,818 1,730,786 Depreciation of property, plant and equipment Profit on disposal of property, plant and equipment Foreign exchange movements Finance income 857,225 (368,672) (203,560) 870,353 (403.659) 192,606 (145,882) 89,142 (5,124) (122,711) (76,037) 79,703 (2,017) {516,852) 236,805 Finance costs Movement in inventories Movement in receivables Movement in creditors and other payables Movement in provisions for liabilities Movement in market value of investment ortfolio 234,159 {926,000) 626 792 47,500 577,684 2.736.872 Trlet cash inflow of cash enerated from o erations 1,879,603
St Patrick's Archdiocesan Trust Limited Notes to the financial statements for the year ended 31 March 2024 22.Financial Instruments The charity has the following fmancial instruments 2024 2023 Financial assets Cash held al bank and in hand 20,988,586 20,346,550 Other debtors and accmed income 1371,738 22,360J24 1,236,888 21,583,438 Financial assets held at amortised cost Financial liabilities Bank overdraft Accruals 1,400,892 1,110,878 264,725 2,776 495 1,282,151 949,020 200,973 2,432,144 Other creditors Financial liabilities held at amortised cost 23. Contingent Liability A contingent liability exists for potential additional liabilities for legal costs that may fall due, but the amounts and timing of any such potential payments for additional liabilities for legal costs cannot be estimated with any reasonable certainty and, therefore, no provLSLon has been made in these fmancial statements. 24. Director5, Remuneration The directors neither received, nor waived, any emoluments nor made a claim for expenses incurred relating to duties carried out for the charity. Eight (2023: eight) directors of the charity received stipends, in aggregate, totalling £170,176 for the year to 31 March 2024 (2023: £170,586). These stipends were paid to them in respect of their role as serving Ministers of the Church in the Archdiocese of Annagh and not as a result of their director role. No pension contributions were paid on their behalf. Accommodation is provided for them exclusively as a consequence of their ministries within the Diocese. 53