Charity registration number NIC107866 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE CONTENTS Page Charity information Governors, report Independent examinerfs report Statement of financial activities Balance sheet Notes to the financial statements 10-15 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE LEGALAND ADMINISTRATIVE INFORMATION Governors Ex-offiGio Governor(s) The Bishop of Down and Dromore.. The Right Reverend D A Mcclay (co-chair) The Bishop of Connor: The Right Reverend G T W Davison (c(Fchairl Clerical Representative Governors Down: The Rev'd C Darling Connor.. The Rev DrA P Campbell The Rev P R Benson - Until Feb￿ary 2022 Dromore.. The Venerable T R West Lay Representative Governors Down: Mr J E Bunting Connor: MrNRBolt Mr R Gilbert Dromore" Mr S Cassells Honorary Treasurer MrNRBolt Honorary Secretary Mr J E Bunling THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE LEGALAND ADMINISTRATIVE INFORMATION HMRC Charity number NIC107866 Nl Charity number 107866 Independent examiner Moore {N.I.) LLP 4th Floor Donegall House 7 Donegall Square North Belfast BT15GB Bankers AIB 35 University Road Belfast BT7 1ND Solicitors Edwards & Co Solicitors 28 Hill Street Belfast BT12LA THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE GOVERNORS, REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The Governors present their annual report and financial statements for the year ended 31 December 2022. The financial statemenls have been prepared in accordance with the accounling policies set out in note 1 to the financial stalements and comply with the Charities Act (Northern Ireland) 2008 & 2013 and "Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparing their accounts in accordance wilh the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019}" Objectives and activities The principal objective of the charity is to manage the property and financial assets vested with it as educational endowments. arising from the transfer to il of parochial school properties within the present dioceses of Down and Dromore, and Connor. Proceeds from the disposal of redundant school properties are held upon trust by the Charity, and the net income therefrom is transferred annually to the respective parishes under the terms of the scheme. The main aclivities of the charity remain unchanged since lasl year. Public Benefit The expression of the precepts of the Christian religion through engagement with the public, and in particularly by way of promoting religious education. is a public benefit. This can be measured and evidenced through increased social integration and pastoral care especially of the young. The direct benefits of Ihis element of religious life include the encouragement of learning, the provision of premises for social and religious purposes. community cohesion through church based organisations and improved educational outcomes. The beneficiaries are the general public as evidenced by social and inter-denominational organisations and church members through the provision of religious education at all levels and indeed for all ages. Any private benefit arising out of the fulfilmenl of this religious educational ministry is essential to the fulfilment of the purpose of the charity. No trustee receives remuneration, reward or other private benefit for carrying out their Irustee responsibility with the exception of one co-opted Iruslee and secretarial staff who help with the provision of financial and other services through the agency of a separate body to which the charity makes payment. The Governors have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. Achievements and performance The Governors continued to review all operating and financial procedures. The Charity completed an active year with net expenditure of {£430.707} (2021.. net expenditure of£244,953). As the Charily makes no direct use of the properties impressed with it under Scheme 89, the parishes, being responsible as beneficial users, are required to insure, maintain and develop the properties for their own needs. Accordingly, the Governors have decided it is not appropriate to apply a depreciation sum on any of them and thus have allocated a rale of deprecialion of 0% per annum. The basic value is established by insurance replacement values or governor's estimates. Dividend income inGreased by £5,586 or 1.29kn. Donations from parishes decreased to £257 (2021: £300). Unrestricted charitable expenditure decreased by £53,143 or -98.90h as 2021 included a grant payment to Kilwaren. Core administration costs increased to £640 (2021.. £480). Govemance costs increased to £2.511 (2021.. £2,045) due to higher legal fee5. THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Financial review The financial statements are presented in the standard format required by the Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102. The Statement of Financial Activilies (SOFA) shows the gross income from all sources. The charily's declared unreslricted reserves al 31 December 2022 were £560,353. It is the charity's policy not to maintain unreslricted revenue resetves greater than 1000/0 of actual resources expended in any normal year. The Board notes Ihat of its staled unrestricted reserves of £560.353. £6.742 consists of unrealised gains on invested capital, an uncertain base which may not be relied upon in difficult economic Gircumstances. With the exception of certain unrestrided reseNes. the vast bulk of inveslment assets are held for restricted trusls nomially arising from the proceeds of sale of redundant school properties. Almosl all inveslment assels are held by Church of Ireland Trustees. They are actively managed by Sarasin & Partners LLP of London and regular performance reports are given to the Board. Risk management The governors keep under revtew the major risks, to which the charity may become exposed. in particular Ihose relating to the finances of the charity, and are satisfied that appropriale systems are kept in place to mitigate exposure to such major risks. As part of this strategy. investment assets were reinvested in Church of Ireland Trustee units in 2015 which provides a pooled investment structure consisting for the greater part of equities and bonds. and designed lo provide a combination of capital and income growth. The governors intend that the tharity shall continue with its existing policy of goveming and managing those assets with which it is impressed. The process of registration with the Charilies Commission for Northern Ireland was completed on the 15th February 2021. with the Charity registered under the name "The Parochial Schools of the Dioceses of Down and Connor. and Dromore" Structure. govemance and management The charity is a body corporate framed under the Educational Endowments (Ireland) Act 1885 which established, under Scheme 89 of that Act. a structure for the government and management of Ihe parochial schools of the dioceses of Down and Connor. and Dromore. Scheme 89 was given final approval by the Lords Justices General and General Governors of Ireland with the consent of the Privy Council in Ireland at Dublin Caslle, on the 6th November, 1893. The charity is managed by a Goveming Body, established under Scheme 89, consi51ing of of￿0 ex-officio Governors-The Bishop of Connor and The Bishop of Down and Dromore, Clerical Representative Governors and Lay Representstive Governors from each diocese. elected by di0￿$an synods. and up to four co-QPled Governors. The Governing Body meets approximately four limes per annum. Day to day administration is managed Ihrough the Executive Secretary, Assistant Secretary and other governors as required. The members of the Governing Body as at 31st December 2022 are as outlined below.. THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Ex-officio Governor(sl The Bishop of Down and Dromore= The Right Reverend D A Mcclay (co-chair) The Bishop of Connor.. The Right Reverend G T W Davison (COThchair) Clerical Representative Governors Down.. The Rev'd C Darling Connor.. The Rev DrA P Campbell The Rev P R Benson - Until February 2022 Dromore: The Venerable T R West Lay Representative Govemors Down.. Mr J E Bunting Connor: MrNRBolt Mr R Gilbert Dromore.. Mr S Cassells Honorary Treasurer MrNRBolt Honorary Secretary Mr J E Bunting Members of the Board are elected by the diocesan synods each year ex￿pt for those who are co-opted under the powers provided by Scheme 89 to the Educational endowments (Ireland) Ad 1885. All co-options are holders of office5 whiGh directly supplemenl the working of the board. Taxation The charitable stalus of the charity is recognised by His Majesty's Revenue and Customs and this status allows certain tax exemptions on income and profits from investments and surpluses on any activities carried on in furtherance of its primary objectives. if these profits and surpluses are applied solely for charilable purposes. The charity is not registered for VAT and accordingly all its expenditure is recorded inclusive of any VAT incurred. Responsibility in respect of the Annual Financial Statements The Governor5 are responsible for the preparation of the financial statements for each year which give a true and fair view of the state of affairs of the Board as at the end of the financial year and of the surplus or deficit of the Board of that period. In preparing those financial statements. the Board is required to: Selecl suilable accounting policies and then apply them consistently Make judgements and estimates that are reasonable and prudent Prepare the financial statements on the going concern basis unless it is inappropiiate to do so. The Governors are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial posilion of the Board and to enable it to ensure that the financial statements comply with the Educational Endowments Acl 1885 and United Kingdom Accounting Standards. The Governors. are also responsible for safeguarding its assets and hence for laking reasonable steps for the prevention and detedion of fraud and other irregularities. Draft Financial Statements at 27 November 2023 at 10:55:26 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 The Governors, report was approved by the Board of Governors. Dated.. |,.IthLs THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE INDEPENDENT EXAMINER'S REPORT TO THE GOVERNORS OF THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE I report on the financial statements of the Charity for the year ended 31 December 2022, which are set out on pages 8 to 15. Respective responsibilitles of Governors and examiner As the charity's Trustees you are responsible for the preparation of the accounts in accordance with the Charities Act (Northern Ireland) 2008. In accordance wilh the terms of our engagement, and to assisl YOU to fulfil your duties under the relevant charity laws and regulations, I have compiled the financial statements ofThe Down and Connor, and Dromore Diocesan Board of Education for the year ended 31 December 2022, set oul on pages 8 to 15, from the accounting records and information and explanations you have given to me. It is my responsibility to.. examine the financial statements under section 65 of the Charities Act (li) follow the procedures laid down in the general Directions given by the Charity Commission under seclion 65(9)(b) of the Charity Act {iii) state whether particular matter5 have Gome to my attention. Basis of independent examiner's report I have examined your charity accounts as required under section 65 oflhe Charities Act and my examination was cartied out in accordan￿ with the general Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Acl. My examination included a review of the accounting records kept by the charity and a comparison of the accounts presented wilh those records. It also included consideration of any unusual items or disclosures in Ihe accounts and seeking explanations from you as charity Truslees concerning any such matters. My role is to state whether any material matters have come to my attention giving me cause to believe: 1. That accounting records were not kept in accordance with section 63 of the Charities Act 2. That the accounts do not accord with those accounting records 3. Thal the accounts do not comply with the accounting requirements of the Charities Act 4. That there is further information needed for a proper understanding of the accounts to be reached. Independent examlnerfs statement I have completed my examination and have no concerns in respect of the matters {1) to (4) listed above and, in connection with following the Directions of the Charity Commission for Northern Ireland, I have found no matters that require drawing to your attention. &, g.fkn4JW Dr R I Peters Gallagher OBE FCA For and on behalf of Moore (N.I.) LLP 4th Floor Donegall House 7 Donegall Square North Belfast BT15GB 0711212023 Dated: .. THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 As Restated Total Unrestricted Restricted funds funds 2021 2021 As Restated Total Unrestricted Restrlcted funds funds 2022 2022 2022 2021 Notes Income from: Donations Commission Investments 257 257 300 20,940 4,272 300 20,940 113,742 4,272 115,056 119,328 109,470 Total Income 4,529 115.056 119,585 25.512 109,470 134,982 Ex enditure on: Charitable activities 4,310 103,830 108,140 8,132 104,214 112,346 Net gains (losses) on investments (8,852) (433.300) {442,1521 18,245 252,543 270,788 Net movement in funds (8,633) (422,074) (430,7071 35.625 257,799 293,424 Fund balances at 1 January 2022 568,986 16,699,529 17.268,515 533.361 16,441,730 16,975,091 Fund balances at 31 December 2022 560,353 16.277,455 16,837,808 568,986 16,699,529 17,268,515 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. Draft Financial Statements at 27 November 2023 at 10:55:26 THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE BALANCE SHEET AS AT 31 DECEMBER 2022 As Restated 2021 2022 Notes Fixed assets Investment properties Investments 13,179,992 3,607,677 13,179,992 4,049,829 16,787,669 17,229,821 Current assets Cash at bank and in hand 66,247 40,794 Creditors: amounts falling due withln one year 10 (16,108) {2,100) Net current assets 50,139 38,694 Total assets less Current liabilitles 16,837,808 17,268,515 Income funds Restricted funds Unrestricted funds 16,277,455 560,353 16.699.529 568.986 16,837,808 17,268,515 The financial statements were approved by the Govemors on . Trustee THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR. AND DROMORE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies Charity infomiation The Parochial Schools Of The Dioceses Of Down And Connor, and Dromore is a registered charity. 1.1 Accounting Convention The financial statements are prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounls in accordance with Financial Reporting Standard 102. The financial statements are prepared in sterling, which is the functional currency of thè Charily. Monetary amounts in these financial statements are rounded to the nearest £. 1.2 Charitable funds Unrestricted funds are available for use at the discretion of the Govemors in furtherance of their charitable objectives. Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to Ihat area or purpose. 1.3 Income All incoming resources are included in the statement of financial activilies when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.. Voluntary income is received by way of donations and gifts and is included in fvll in the Statement of Financial Activities when receivable. Investment income is included when receivable. 1.4 Expenditure Charitable activities expenditure is recognised on an accruals basis as a liability is incurred. Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements. 1.5 Investment properties Buildings are stated at cost, ex￿pt for those buildings which were not capitalised until many years after being acquired. Their original cost could not be as¢ertained and a reasonable estimate of their value to the charity had been used. Buildings are not depreciated as the Board is of the opinion that both the depreciation charge and the accumulated depreciation are not material because the eslimated residual value (based on reasonable estimates of Iheir current value when recognised in the financial statements) of the asset is not materially different from the carrying amount ofthe asset. The buildings are subject to an annual impairment review. 1.6 Investments All income from inveslments is acKounled for on an accruals basis. Deposit interest receivable, expenses and interesl payable are accounled for on an accruals basis. Listed investments comprise those quoled on a Stock Exchange. 10- THE PAROCHIAL SCHOOLS OF THE DIOCESES OF DOWN AND CONNOR, AND DROMORE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting policies (Continued) 1.7 Cash and cash equlvalents Cash and cash equivalents includè cash in hand, deposits held at call with banks, other short-term liquid investments with original malurities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. Critical accounting estimatss and judgements In the application of the Charity's accounting policies, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparenl from other sources. The estimates and associated assumptions are based on historical experience and olher factors that are considered to be relevant. Actual results may differ from these estimates. The eslimates 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. 11 ¢4 y Ir> r 75 75 0￿0 oJoo Ln ¢¢¢DvO 0£7>0 <