CHURCH OF IRELAND DIOCESE OF DOWN AND DROMORE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 REFERENCE AND ADMINISTRATIVE INFORMATION MEMBERS OF THE DIOCESAN COUNCIL {1s1 January 2022 to 31st December 20221 Bishop The Right Revd David A Mcclay Honorary Secretarles Down The Ven Kenneth Higgins Archdeacon of Down Dr Elizabeth J Leonard Dromore The Very Revd S Geoffrey Wilson Mr Basil J O'malley Down Clerfcal The Revd James W Cheshire The Revd Colin P Darling The Revd Adrian TW Dorrian The Revd Canon Gareth A Harron The Very Revd T Henry Hull. Dean of Down The Revd Emma C Rutherford The Revd Karen E Salmon The Revd Calherine J Simpson The Revd Canon Helene Steed Dromore Clerical The Ven T Roderic West. Archdeacon of Dromore The Revd Canon Terence J Cadde The Revd Altson N Calvin The Revd J Mark Harvey The Revd B lan Linton The Revd Paul McAdam Down Lay Dr Marilyn A Armstrong Mr James E Bunting Mrs E June Butler Mr Paul Jardine (from 1/12/22) Mr Michael H Johnston Mr Davrd Manning Mr John Menagh Mr Tom Mullan Mr Ross P Munro (until 30111t22) Mr Nigel G Quinn Lady Brenda MH Sheil Professor Brian M Walker Mrs Denise E Wilson Dromore Lay Mrs Alison F Adams Mr Simon Henry Mr C Michael Mccarter) Mr Colin W Morfls Mrs Dianne Ruddock Mr Stephen W Trew CHURCH OF IRELAND DIOCESE OF DOWN AND DROMORE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Northern Ireland Charity Number: NIC107102 Registered Offlce Church of Ireland House 61-67 Donegall Street Belfast BT12QH Business Address Church of Ireland House 61-67 Donegall Street Belfast BT12QH Auditors Finegan Gibson Ltd Causeway Tower 9 James Street South Belfast BT2 8DN Solicitors Edwards & Co Solicitors 28 Hill Slreet Belfast BT12LA Bankers AIB (NI) University Road Belfast BTI 1ND Danske Bank PO Box 183 Donegall Square West Belfast BT16JS CHURCH OF IRELAND DIOCESE OF DOWN AND DROMORE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 DECEMBER 2022 REPORT OF THE DIOCESAN COUNCIL The Diocesan Council presents its annual report and financial statements for the year ended 31 December 2022. OBJECTIVES AND ACTIVITIES The charitable purpose of the Church of Ireland Diocese of Down and Dromore is the advancement of the Christian religion. The principal function of th8 Diocese of Down and Dromore is to support and develop mission and ministry within the geographical area of the Dio¢ese through the advancement of the Christian religion by promoting, through the work of the Diocese of Down and Dromore and its Parish network the whole mission of the Church, pasloral, evangelistic, social, and ecumenical. Being open to and engaging with society as a whole and offering support for those needing help are fundamental to the practical delivery of the benefrts of the Di0￿Se of Down and Dromore. As a result of activity in the pursuit of the advancement of the Christian religion, the Diocese of Down and Dromore has responsibility for property and Gustody of records. materials, and artefacts of significance to the cultural and religious herilage of the Diocese of Down and Diomore. General oversight of this work is undertaken by the Diocesan Council of the Diocese of Down and Dromore. ACHIEVEMENTS, PERFORMANCE & PUBLIC BENEFIT The Diocese has been in the process of rebuilding and re-energising the worf( of its parsshes throughout 2022 following the impact of covid-19 This has proved lo require hard work and initiative at both Ihe local level in parishes and at the more central level in the diocese. Many parishes have experienced growth while others have found the pathway to recovery after covid-19 more difficult. The Diocese. mostly through the work of the Diocesan Bishop and Diocesan team has sought to provide appropriate support to local parishes and church plants. This has included providing one on one meetings with clergy, coming alongside selecl veslries. providing rnuch by way of wrFtten materials, visitation of the parishes by members of the diocesan team and putting into the hands of clergy and select vestries resources to help them rebuild. Full details of the achievements and perfomiance of the Diocesan Council are detailed in the Diocesan Council's report to Synod. however some highlights of how the Diocese gave support in several ways to enhance Mission & Ministry are as follows-. Clergy Support- Through the 'Area Deanery, system clergy received mutual support and encouragement throughout the year. Pastoral support is offered to clergy on an on-going basis through the Area Deanery ne￿Ork and when required through paid counselling services. The Bishop of the Diocese, the Right Reverend D A Mcclay, Provided ongoing pastoral support to all seNing and retired clergy through regular telephone contact and home and hospital visitation. Due to the COVID restrictions the residential clergy conference was replaced in March 2022. with the opportunity for other support gatherings which enabled smaller gTOUPS of clergy and others in full-time ministry to come together safely. At a time when clergy needed input and refreshment these opportunities Pfovided encouragement and support that the dI0￿san clergy and Ghurch workers greatly appreciated and found beneficial. Monthly support gatherings are also provided for those pioneering new initiatives. These have proved very fruitful and have led to new initiatives that are supporting the most vulnerable in our diocese. Monthly gatherings a150 provide in-service training for clergy, Providing the opportunity to equip our clergy and other staff members in parishes for the challenge5 of mission and ministry in today's World, for example these included providing help to clergy for those suffering from mental health issues and stress. Wider support provided to staff and volunteers involved In ministry The Diocesan 'Bible Week, was held in WillowField Parish Church and live streamed to engage with those who for whatever reason were unable to travel to the event each evening. This event is run to give both clergy and those involved in Paris h ministry the opportunity to be challenged and refreshed. The main purpose of this event each September is to equip and refresh members of select vestries. youth and children's workers, Sunday school teachers and all those involved in ministry at the commencement of a new season of ministry in 75 parishes and 9 church plants in our diocese. Thi5 year the devolions at the Bible Week were delivered by the Reverend Canon John Coles. Chair of the Trustees of New Wine. England. The evenings also involved gathering together all our ¢lergy for a service of the renewal of ordination vows. on a different evening a special time for lay readers to reaffirm their commitment of being a diocesan reader. on another evening all the parish readers in the diocese had the opportunity lo reaffiTm their commrtment to working locally in a parish and on yet another evening those involved in music ministry had the opportunity to reaffirm their commitment to lead other5 in praise and worship. CHURCH OF IRELAND DIOCESE OF DOWN AND DROMORE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 REPORT OF THE DIOCESAN COUNCIL {CONT'D) Lay Minlstry Support - the DI0￿Se continued to provide support and opportunities to those involved in Lay Ministry. Some of this involved new areas of ministry such as videos to resource the life. work, and ministry of parishes across the diocese. It also included providing ongoing resources for youth ministry. for children's ministry and for the development of leaders for these and other ministries. Significant numbers attended training events online. These events included training on Safeguarding, on leadership development, on mental health awareness and on other aspects of self4evelopment and leadership. We also held in- person training event5 whilst streaming these and other programmed to online audiences. These included a series of 40 devotional talks which were delivered by the Bishop during the 40 days of Lent leading up to Easter. Information evenings were held for select vestries in five different venues bringing together all select vestries in Down and Dromore. Additionally. a training and infomation evening was held for rectors and church treasurers which all rectors, church plant leaders and honorary treasurers had the opportunity to attend. Ongoing guidance was also provided to parishes. to select vestries, church treasurers, vestry secretaries, clergy. lay readers and to many other people groups within the diocese, to enable them to deal with the restrictions and to put in place ministry that was both safe, and at the same time iesourced local churches to care for the needs in their community- A large number of resource videos for talks and worship were developed for parishes in throughout the months of restriction and lockdown as well as other resources to help Ihem adapt to the continual changing situation. Other ongoing diocesan ministries were adapted to meet government guidelines around social distancing etc. Online provision was put in place for dI0￿$an programmes such as the continuation of the Lay Training programme. Parish Readers, Exploring Ordination and Evangeli515' courses. During this past year these have all been enabled to continue with new people being recruited into each of these ministries. These included: Child Protection Training.. 78 audit visits done., A new training Support Team fomied and 11 training evenings for over 500 people.. Drocesan Readers and Evangelists.. 7 Readers and 8 Evangelists currently in training-, Parish Readers= 100 trained in the past 3 years and a new course to take place in May- Exploring Ministry. 10 currently training frjr ordination and 22 in the exploring ministry group.. Bible Course-. Held over 1 year and 3 modules this course had 40 people attending., Small Group Leadership.. involving 25 people over 5 evenings,. Shartng your Faith Course.. Involvin9 9 people over 3 evenings.. Prayer Ministry Training.. This involved 45 people for a full day training event., Kintsugi Hope evening on mental health.. Attended by around 25 clergy- First Aid Training.. Currently 20 booked into these training days in 2 locations in the dI0￿$e,. Pioneer Ministry-. 8 regular meetings with around 20 mini51ers and leadeTS in pioneer contexts.. Training on Pioneer ministry for around 40 olher Glergy,. Vestry Evenings.. These took place across 5 locatFon5 for all vestries in the diocese., Bible Week 2022.- 4 evenings held in Wiifowfield for parishioners from across the diocese.. Clergy conferen￿." Held over 4 days and involving 140 Clergy, spouses and church staff- St. Patricks Day.. Involving over 400 people across the services and pilgrimage.. Foundations meetings for young adults.. 7 ofthese were held and typically around 20-30 attend. All of the above is part of how local churches, parishes and individuals are resourced by the Diocese for ministry acr05S our Diocese of Down and Dromore. Youth & Chlldren's Minlstry- The Diocese has continued to support those involved at diocesan and parish level in various forms ofyouth & Children's Ministry. Delails include. The Down and Dromore marquee at Summer Madness had 136 young people attending over 5 days: JAM Summer Children's day camps involving 140 children-, new Holiday Bible Club resource produced and used by 7 Ghurches,- Advent devotional booklet designed and given to 150 Children; Lenten resource developed on the environment and 800 copies distributed.. the summer camps had 103 young people and 18 young leaders attend over three 5-day camps: Youth Night at Bible Week with 80 young people attending., Sunday children's talks and visits to 25 different churches.. Youth and Children's leaders. training day with 74 leaders,. Serve leadership course for youth {5 involved) and OCN training certificate delivered (10 completed),. Kilbroney Youth Weekend for 60 young people and leaders; Confirmation services in 18 churches and 118 young people-, Saturday Night Live youth events were held in 4 churches and usually involved around 70 young people from different churches,. The Big Diocesan Youth Weekend in March had 183 booked into but was cancelled by the venue due to snow. This will be replaced by a day out in June,. 3 Praise Parties organises for April - June. OTHER MINISTRIES The Diocese provides weekly ministry to prisoners in Maghaberry and Hydebank Prisons and provides support to vacant parishe5 through its 'cover duty, service. It not only assis15 existing church Structures but seeks to develop new forms of mission and ministry through the Church Plant initiative, which this year has supported seven Church Plants and provided support to ￿ new initiatives. CHURCH OF IRELANO DIOCESE OF OOWN AND DROMORE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 REPORT OF THE DIOCESAN COUNCIL (CONT'D) SUPPORT MINISTRIES The Diocesan Office also provides on-going support to parishes in relation to church property and lands, through Quinquennial inspections of rectories and church property, and advice on church graveyards. The support staff also help facilitate the running of the various Diocesan committees, organised Ihe Diocesan Synod. and help with the slructures to fill parish vacancies and the placement of curates and deacons. The collection and payment of Clergy Pensions & Stipends and legal and HR assistance to bolh clergy and parishes is organised at central level. During this past year, all departments within the Diocesan Offrce have provided on-going support and advice lo parishes in relation to the ever-changing governmenl advice and requirements of Yaith groups,. 2022 saw the ongoing work of updating the Diocesan database, a Portallcontact Management system. The new Contact Management System has proved a very useful resource providing management with better statistical and financial inforMat￿n on parishes across the Diocese. Regular Church Plant newsletters and other documents providing useful Information on governance and good practice were provided throughout 2022. Many of these leaflets are also available on the diocesan website. These documents include= Sourcing funding, Reimagining the offering, Bishop David's 10 year vision, Forge Ministry Apprenticeship Scheme, The Suitcase Project, Reading the bible for ourselves, Church Planting in Down and Dromore, Honouring the Memory, Diocesan Rejuvenalion fund, Invest in God's Kingdom by leaving a legacy to His church. Generosity. Making Giving Easier. COMPLIANCE WITH PUBLIC BENEFIT The Diocese has considered the Charity Commission for Northern Ireland's guiijance on public benefit to ensure that the aclivtties entered into during the year have helped to achieve the Diocesan objectives and activities, as well as providing benefit to the wider general public. All the activities as outlined above enables parishes lo effectively provide a seNice to their respective local communities, through the opportunily to provide weekly church services, youth and children's activities and pastoral support lo many in local communities. The Diocese also runs an annual St Patrick's Day Celebration in Saul Parish and Down Cathedral. which welcomes the entire community. This is one of a number of cross community events that helps us fulfil our role in bridge building and reconciliation. All the church services and related activities during 2022 have been conducted in compliance to the government COVID-19 restrictions. FINANCIAL REVIEW The Di0￿53n Council continued to support parishes in facing whatever challenges came their direction, whether these related to finance or personnel, aEways seeking ways to promote growth and utilise its financial resources with Ihe aim of supporting and developing ministry and promoting the Church of Ireland within the Diocese. The net revenue account shows a surplus for the year as reported on page 12 amounled to £273.880 (2021= £190,536). The Council had a net gain in lotal lunds for the year of £44.439 (2021.. £435,933), including a recognised loss on investments of £229,441 (2021=Gain £245,397). RESERVES POLICY The Diocesan Council operate a reserves policy, which they consider appropriate to ensure the continued ability of the harity to meet its objectives and financial commitrnents. The policy is reviewed annually by the Diocesan Council, in ¢onjunction with a broader review of the finances of the Di0￿se. The ￿selVeS policy of the Diocese is sel so that the fixed asset investments plus net current assets are sufficient lo cover the Councils commitments within its Designated and Restricted Funds. 8nd to provide for at least six months operational costs. These reserves are held to maintain the operation of the Diocese of Down & Dromore and to provide surety against adverse financial events. such as in¢ome targets not being achieved or unbudgeted expenditure being required. As at the 31st December 2022, the fixed asset investments plus net current assets totalled £3,708,046 of which £2,944,476 are Restricted Funds and £81,912 are Designated Funds. The funds required to cover the commitments within the CHURCH OF IRELAND DIOCESE OF DOWN AND DROMORE FINANGIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 REPORT OF THE DIOCESAN COUNCIL (CONT'D) Restricted & Designated funds are £3.026,388 with additional funds totalling £467,512 being required to meet six months operational Gosls and £101,248 lo meet employment liabilities in the event of winding up the work of the Cotsncil. Free reserves al 31st December 2022 totalled £763,570 and therefore as the free reserves ex￿ed the £568,758 required to meet six months operational costs and employment liabilities. the Counci15 reserves al the 31 st December 2022 meet the requirement of the reseFves policy. GOING CONCERN The Diocesan Council have reviewed the budget for the year ahead and are satisfied that there are adeguate funds in place to ensure that the Diocese can continue its activities, and the financial statements for the year ending 31 st December 2022 Can be signed off as a going concern. PLANS FOR FUTURE PERIODS The Diocesan Council has given approval for the appointment of a further person to take forward a range of issues relating to compliance. In 2022 a new Diocesan Children's Officer, Mrs Millie Bellew, was appointed and a new Diocesan Administration and Finance Officer. MTS Kelly Mccullough, was also appointed. Both have taken up these roles in 2022. The Diweses of Down. Dromore & Connor Joint Committee plan to put on Ihe market for sale, Church of Ireland House in Belfast, and move to suitable rented accomm¢)dation in 2023. The Moneyreagh Church Plant account5 will rnove out of Ihe Diocesan Accounts from the start of 2023, as this entty is now a registered charty, and will therefore be required to submit ts own separate accounts to the Charity Commission for N. Ireland. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document and Constitution of the Organisation The DI0￿San Council of Down and Dromore, in its present form. was established in 1945 by Act ofthe General Synod of the Church of Ireland and operates under the constitution of the Church of Ireland which claims Éts authority from the Irish Church Act 1869 Recruitment and Appointment of Diocesan Council (Trustees) The Diocese is managed by the Diocesan Council, which consists of approximately forty members elected by the clergy and laity of Ihe Diocese meeting in Synod. Organisatlonal Structure The Diocesan Council is chaired by the Bishop or Archdeacons. Diocesan Council members are responsible for making decisions on matters of general concern and importance to the Diocese including deciding how Diocesan funds are to be applied. The Di0￿san Secretary and other staff handle the day-to4lay management of Diocesan affairs. The Diocesan Council normally meets approximately six times per annum and reports its activities to the Diocesan Synod each year. The Council also operates through meetings of the Honorary Secretaries (Secretariat) who have executive powers and who takes specialist advice from the Diocesan Finance & Governance Committee. Special rneetings may be convened at any time by the chairperson and during 2022 the Diocesan Secretariat met 13 times. either by video ¢onferencing facilities or in person. Related partles and co-operation with other organlsatlons There are several posts Wlthin the DI0￿Se that provide an annual allowance. Some of these post holders are also members of Diocesan Council and as sltch are classed as 'related parties., During the year ended 31 December 2022, The Dioces8 of Down and Dromore paid gifts and expenses to Diocesan Council Members amounting to £8.545 (2021.. £6,269). The parishes of St Donard's and Seapatrlck each received £3,110 to reflect the work carried out on Diocesan business by the Ar¢hdea¢on of Down and the Archdeacon of Dromore respectivety. The Diocese of Down & Drornore is one of eleven Diocese's that make up the Church of Ireland. The Diocese of Down & Dromore interacts and works with several connected organisations within the Church of Ireland, these being the Diocese of Down & Dromore & Connor Joint Committee, the Representative Church Body, the Church of Ireland Trustees, the Church of Ireland Orphan5 & Children's Society for the Counties ofAnlrim & Down, and the Church of Ireland Priorities Fund. The Diocese of Down & Dromore is connected with Ihe above bodie5 by virtue of a number of Diocesan Council CHURCH OF IRELAND DIOCESE OF DOWN AND DROMORE FINANCIAL STATEMÉNTS FOR THE YEAR ENDED 31 DECEMBER 2022 REPORT OF THE DIOCESAN COUNCIL {CONT'DI members being representatives on Ihe decision-making bodies of these organisations. During the year transactions with these bodies amounted to income of£267,227 (2021.. £102,035) and expendtture of £1,296,882 (2Q21.' £1,296.882). The Diocese of Down & Dromore has a 500/0 Stake in the Joint Committee. The Diocese of Down and Dromore also Works ecumenically with other Christian denominations and traditions that exist in the Diocese of Down and Dromore and beyond. The Church of Ireland is in a Covenant relationship with the Melhodisl Church, and this is rellected much in our work and Movilla Abbey and the Church on the Hill in Maghaberry. Pay policy for senior staff The Diocesan Council are the Trustees ofthe organisation with the senior management team comprising ofthe key management personnel of the charity in charge of directing and controlling, running, and operating the Gharity on a day- tOThday basis. All Trustee give of their time freely during the year with delails of Trustee expenses and related paty transactions being disclosed in note 25 to the accounts. The pay of staff is reviewed annually and is increased in line with the recommendation of the Standing committee of the Representative Church Body Clergy Minimum Approved Stipend rales. The remuneration benchmath for Church Plant leaders is taken from the National Joint Council pay s￿leS and is the mid-point of the range paid for similar roles and responsibilities. Risk Management The Diocesan Council has a Risk Register which is reviewed as required and usually annually. The last review was in March 2021 with the next review scheduled for May 2023. Statement of the Diocesan Councils Responsibilities Legislation requires the Diocesan Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Diocese as at the end of the financial year and of the surplus or deficit of the Diocese for that period. In preparing those financial statements. the Diocesan Council is required to". select suitable aGGounting policies and then apply them consistently. make judgemenls and estimates that are reasonable and prudent. state whether applicable accounting standards have been foll¢Jwed, subject to any material departures disclosed and explained in the financial 51atements. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Diocese will continue in operation. The Diocesan Council is responsible for maintaining proper accounting records which disclose with reasonabte accuracy at any time the financial position of the Diocese and enable it to ensure that the financial statements comply with the Diocesan Regulations 2010, applicable and Accounting and Reporting by Charities.- Ststement of Recommended Practice effective 1 January (2015). 11 is also responsible for safeguarding the assets of the Diocese and hen¢e for taking feasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT OF DISCLOSURE TO AUDITORS So far as the members of the Diocesan Cotsncil are aware there is no relevant information of which the Dtocese auditors are unaware. Additionally, the Diocesan Council have taken all necessary steps that they oughl to have taken to make themselve5 aware of any relevant audit infomiation and to 8Stablish thal the Diocese auditors are awa￿ of that information. AUDITORS The auditor. Finegan Gibson Ltd. will be proposed for re-appointment at the meeting of the Diocesan Synod in June 2023. in accordance with the Diocesan Regulations 2010. Signed n Be If of he Diocesan Council Approved by the Council